Enterprise Minister Arlene Foster hopes to improve broadband services in rural areas through the £1.9million Broadband Fund, by announcing the first two companies to be awarded financial assistance from the Broadband Fund, North West Electronics and Avanti Communications Group.

The Broadband Fund, which is co-financed under the European Regional Development Fund Sustainable Competitiveness Programme 2007-2013, offers practical financial support to organisations undertaking broadband technology trials in Northern Ireland.

The Fund aims to support trials which demonstrate how a range of technologies can be used to deliver next generation broadband services; and deploying "in-fill" broadband solutions into a number of priority rural areas in Northern Ireland where distance from the nearest telephone exchange prevents a line-based broadband service.

North West Electronics, based in Londonderry, specialises in the delivery of fixed wireless broadband access services. By extending its existing network in the north-west, it will offer a significant range of commercial broadband services to business and residential customers in some of the most rural parts of the west of Northern Ireland.

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Avanti Communications Group, based in London, delivers communications using satellite and wireless solutions.

It will undertake technology trials to demonstrate how satellite broadband infrastructure can be used to bring low cost second generation (2G) and third generation (3G) mobile telephony coverage to rural areas.

Announcing the first successful projects, Arlene Foster said: "Broadband is an increasingly integral part of our economy. Its integration with Information and Communication Technologies (ICT) accelerates the performance of ICT and facilitates improved business efficiency, productivity and globalisation of services.

"It is a key driver for the development of the knowledge economy and is recognised widely in international studies for its potential to accelerate economic growth.

"The Broadband Fund is a critical enabler to the achievement of commitments for widespread deployment of next generation broadband services under the programme for government.

"It provides practical business support, allowing participating businesses to demonstrate the range of technologies that will be important to the delivery of such services.

"Under the first call for applications we prioritised 25 areas, mainly in the rural west, as preferred sites for trials and "in-fill" services. I am particularly pleased to report that the applications submitted by the successful companies target 80% of the selected areas.

"One of our key objectives for the Fund is to encourage the emergence of affordable high speed services in rural areas. Provision of next generation broadband connectivity in these communities will enable local enterprises to grow, while domestic users will be able to fulfil commercial, educational and social requirements.

"I congratulate North West Electronics and Avanti Communications on their success and look to them to build upon their proven track records in delivering broadband services."

(PR)