The Niue government has allowed the independent internet provider, Rocket Systems, to resume its wifi service on the island.
It has given the company a month to discuss a way forward after the government forced a shutdown yestersday.
The government had taken exception to the company charging for a service that was previously free.
But Rocket Systems said it was providing an expanded service and needed to charge because a subsidy it had previously received had been cut.
Rocket's chief executive Emani Lui said the Internet Users' Society Niue, which administers the island's .nu domain name, was no longer earning what it had, and could no longer subsidise the free wifi.
The majority of internet users on Niue use Rocket as their service provider.
The Niue government said it hoped that constructive discussions can be held with Rocket to resolve the issues.