Chorus has dumped Downer from its ultra fast broadband (UFB) installations for much of the lower North Island.
The company, which is overseeing the UFB rollout for most of New Zealand, said that in the coming months Downer would no longer carry out its installations in Wellington, the Kapiti Coast and Manawatu.
Visionstream will take over the contract in those areas, with Downer continuing to complete the installations in the Hutt Valley and Wairarapa.
"Chorus expects that some Downer employees will be affected by the change, however, as demand for fibre is increasing significantly, more technicians will need to be recruited than will be affected by this change," Chorus said in a statement.
In November Chorus confirmed that Visionstream was taking over installations from Downer in Porirua, as customers complained about how long it was taking to be connected to the high speed internet.
Today Chorus indicated that the change had led to an immediately improvement in waiting times.
"Since Visionstream took over fibre installs in Porirua from Downers late last year, the time it takes to get the first appointment for a fibre install has reduced from 24 days to four days, so massive improvement," spokesman Nathan Beaumont said.
"The average across the country is about 17 days."
Downer's technicians would have opportunities to move to Visionstream.
"We have had such a high demand for fibre in the Wellington region that we need to make changes to ensure consumers are connected to fibre much quicker than is currently the case," Chorus customer services general manager Nick Woodward said.
"Chorus and Downer have made this joint decision in the best interests of consumers. This change will allow Downer to focus on its performance in Hutt Valley and Wairarapa.
Sources said Visionstream's business model allows its installers to share in profits for installations, unlike those employed by Downer, who are paid salaries.
Visionstream already conduct's UFB installations in Auckland, and could be given other areas in the future.
Visionstream starts work in Wellington and the Kapiti Coast on May 16, and Manawatu on May 30.
Downer retains the contract to connect customers to UFB in Napier, Hawke's Bay, Gisborne and the South Island. It also manages Chorus' copper network in the lower North Island and lower South Island.