Internet service representatives say an agreement to carry out a survey for a trans-Tasman internet cable is good news for web users.
The agreement has been announced by Axin Ltd and Huawei Marine.
The companies say the Optikor cable, which would bolster broadband provisionm, is set to be completed by the end of next year.
It will be more than 3000km in length, and connect Sydney with New Zealand.
Internet Service Providers Association acting president Dave Mill says Australia has several cables linking it to the world while New Zealand at present has only the Southern Cross cable that runs from Australia to New Zealand and the US.
When the Optikor cable is completed New Zealand will be able to tap into the Australian markets which should same some money on international costs for ISPs.
He told Summer Report that says that while prices will fall a little for consumers, it is more likely that internet users will get more bandwith for the same price.
The cable would compete with the existing Southern Cross link, and a cable being proposed by consortium Pacific Fibre that would connect New Zealand to Australia, then on to the USA.