Households without access to modern-day, super-fast broadband in rural areas of Britain will benefit from a £1 billion investment, the government believes.

The funding was announced today (January 7th) by business secretary Lord Mandelson, who said it will upgrade the UK's digital infrastructure so that more than 90 per cent of the population have access to the latest broadband technology.

According to the government, this is "essential" if Britain is to remain a major player in the world economy, as only 70 per cent of people are expected to make private investment in broadband before 2017.

Lord Mandelson says: "This investment is about bringing the future of broadband to areas of the country that would otherwise miss out. We cannot underestimate the opportunities this will bring for homes and businesses which is why we are taking action to make sure everyone benefits."

The Next Generation Fund will provide homeowners in the countryside or hard-to-reach areas with sufficient broadband to enable them to keep up with urban regions.

Currently, about half of the country has access to broadband with a speed of 50 megabits per second but the government fears those in more isolated locations will struggle to catch up.

Investing in broadband will create jobs and give the economy a boost, while putting the UK at the forefront of the digital revolution.

Proposals to help those in rural areas were initially put forward by local council leaders last year and will make the UK only the second country - after Finland - to carry out such a scheme.

Categories: Broadband

Related Articles

• Superfast broadband demand creates more Virgin jobs - Thursday 9th February 2012
• BT Wi-Fi hotspots surpass 3.5m - Wednesday 8th February 2012
• TalkTalk launches govt-backed 'active choice' parental controls - Wednesday 8th February 2012
• Broadband Support Scheme extended in Wales - Tuesday 7th February 2012
• BT holds trial of 'FTTP on demand' services - Monday 6th February 2012