The Government is copping flak from all directions over its latest move on the rural broadband service.

Federated Farmers is welcoming the Government’s financial commitment to the project, but is questioning whether it’s committed to delivering equal service across the country.

Feds telecommunications spokesperson Donald Aubrey says the entire country should have one common, improved broadband service, and rural areas shouldn’t have to accept anything less.

“Federated Farmers would argue in respect to the Auckland broadband market there is no market failure.

"Yet in rural New Zealand, without serious assistance, there will be nowhere near the coverage there is in many towns, even today!”

Meantime Labour Party IT spokesperson Clare Curran says Telecommunications Minister Steven Joyce’s decision to accept only national proposals on the new service is a backhanded way of handing Telecom the contract.

The Government previously planned to take proposals from regional providers as well, but Mr Joyce says they wouldn’t be able to meet the coverage targets.

Ms Curran says the move effectively clears the way for Telecom to win both the urban and rural schemes.

“There’s no rationale, there’s no explanation to the public as to why taxpayers money will be spent differently.

"As I’ve said in the past, it certainly appears from the outside as if a deal has been struck with Telecom.”

Steven Joyce is advising regional providers to partner with national ones on their bids.