Milford Sound Piopiotahi now has mobile phone coverage thanks to a new 10-metre cell tower.

Cruise Milford co-owner Lisa Egerton said the 3G satellite link service went live on Christmas Day, giving operators up to 500 metres coverage around Deep Water Basin.

Haylee Preston, Milford Sound Tourism's chief executive officer, said it was pretty exciting and the improvement in connectivity would not only enhance the visitor experience but also have health and safety benefits.

Traditionally communication in the area has been limited to just satellite phones, landlines and the internet.

Full wireless broadband and calling services to the remote destination will however have to wait until the rollout of a fibre cable, which is not due to be completed until mid to late 2022.

The Milford tower is part of a government funded - Rural Connectivity Group project, that will eventually see nine cell sites built along State Highway 94, finally giving Milford Road users, tourist operators and emergency services, areas of mobile coverage between Te Anau Downs to Milford Sound Piopiotahi.