LATEST: Telecom says it is too soon to say whether it will compensate people affected by a massive broadband outage this morning.
The outage, which began at about 1am, could have affected up to two-thirds of Telecom's broadband customers, or about 300,000 households, spokeswoman Jo Jalfon said. But she said it was unlikely all of them would have tried to use the Net before Telecom began restoring services at 8am.
Jalfon believed all customers should now be able to get back online, though some might have to restart their modems.
The outage also affected some eftpos services. Jalfon said that would have depended on the technology retailers were using.
A Z Energy spokesman said the outage had disrupted eftpos at more than half of its 300 service stations which had been "substantially inconvenient". Eftpos was working normally at major supermarkets.
Telecom said the fault was caused by a systems upgrade, which Jalfon later described as systems maintenance.
It was about 3am before technicians knew anything was wrong, she said. Jalfon was unsure when Telecom first alerted customers to the problem.
Customers quickly took to Twitter to voice their frustration.
"Argh, internet down. Telecom recorded message gives no indication of when it will be back up," said Selina McEntee.
"Get on it, Telecom_nz. Bc nobody is answering the phone customer service!" said another user.
About half of Telecom's broadband customers lost service for about two hours on November 30 because of another early-morning fault that the company said occurred during scheduled maintenance on a computer server.
Will the bus shelter walkway planned for The Square be ready by the end of June?Related story: Covered walkway for Palmerston North bus users by winter