BT is to provide super-fast broadband to up to 90% of homes in Cornwall and the Isles of Scilly, in the biggest rural fibre optic roll-out in the UK to date.
The project, due for completion in 2014, could provide a blueprint for future rural broadband projects.
The £132m funding pot is being shared between BT and the European Union.
The government said it was “a big step” towards its goal of having the best broadband network in Europe by 2015.
