The Labour Party is promising to boost internet connectivity in rural New Zealand if re-elected.

A $60 million fund will be set up to target those places with the poorest coverage including Gisborne, Manawatū, Otago, Hawke's Bay, West Coast, Taranaki and Southland, as well as rural parts of Auckland and Wellington.

Labour's communications spokesperson Kris Faafoi said the money would be used to upgrade capacity and improve networks.

He said the Covid-19 pandemic had highlighted the importance of digital connectivity in rural places.

Labour is also promising to spend $10m to improve mobile phone reception in the provinces.

The policy announcement has been welcomed by the Wireless Internet Service Providers Association.

WISPA.NZ chairperson Mike Smith said it would expand city-grade connectivity further into the regions.

"We especially welcome the commitment to release more radio spectrum. Spectrum is crucial to meeting the ever-increasing demand for bandwidth, driven by increasing automation of farm systems and general internet usage, and accelerated by increased online study and work from home."

Smith said it was important to ensure New Zealand's rural communities had world-leading broadband services.