Under the fibre rollout, around 360,000 houses nationwide can now access UFB but only 5 per cent are connected to it.
In Masterton, just two per cent of homes with the ability to get UFB have got it.
About 4200 homes have fibre running past their premises and 114 are connected to it, says Elissa Downey, media spokesperson for Chorus.
Chorus expects all of the town's 10,971 homes to have access by June 2016.
Paul Brislen, CEO of the Telecommunications Users Association of NZ, said it's going to be costly for ISPs to provide gigabit internet plans, in his National Business Review blog.
He said they will need to buy more network equipment to be able offer it to consumers.
"Selling UFB is going to be a big chore for ISPs."
Project leader for Gigatown Masterton, John Hart said he had no inside knowledge of local ISPs' situations.
"But I do know a range of ISPs are already offering UFB in Masterton and are keen to support the winning Gigatown with gigabit internet plans."
He said the price would not be a barrier.
"The starting packages for UFB are around $75 per month, and that includes a telephone line.
"Many families pay close to that, or even more right now for just a landline phone."
The winning town is tipped to become a digital hub with the gigabit internet attracting new businesses leading to a boost in the local economy.
It will also get a $200,000 business development fund.
Mr Hart said any kind of business that relied on very fast internet, like a game design company, for example, would be attracted to Masterton, if it wins the competition.
This would create job opportunities for the whole Wairarapa, he said.
"It's easy to imagine commuters travelling into Masterton from all over the region."
Chorus has been using the US city of Chattanooga as an example of what gigabit internet can do.
The city was in decline but was transformed when the fibre network, originally installed to help manage the city's energy grid, was used to deliver gigabit-fibre.
It attracted businesses, resulting in almost 7000 jobs and a population increase.
Mr Hart said existing businesses would benefit as well.
"I know of a sign-writing business in Masterton that receives most of its work in the form of large digital files.
"Gigabit internet would immediately make their workflow faster and more flexible if they didn't have to wait for these large files to download."
Schools could also live-stream lessons from anywhere, allowing schools to tailor services to students, said Mr Hart.
