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The government said it will invest up to £800m into its Project Gigabit, which targets areas that are too expensive for internet providers to reach and would be left behind with poor digital infrastructure.
Under Project Gigabit the government hopes to achieve full gigabit coverage across the country by 2030.
It is hoped the new round of funding will provide access to lightning-fast gigabit-capable broadband to around 312,000 homes and businesses.
Residents and businesses in the most remote areas of Britain, such as the South Wales Valleys, Exmoor National Park and the Forest of Bowland will gain access to the fastest connection on the market.
Around £170m of the funding is allocated for 70,000 hard-to-reach premises in Wales. Wales has the lowest percentage of gigabit coverage in the UK but it is the first time the region will benefit from the project.
Project Gigabit is already working on building faster networks for up to 910,000 hard-to-reach premises across England.
Dozens of contracts representing more than £1.9bn investment have now been signed with 11 suppliers to deliver the upgrades.
It comes after the Levelling Up White Paper in February 2022 set out the government’s aims to improve digital connectivity across the country.
According to the IFS, the digital gap in very fast broadband access has halved since its publication.
In May 2022, 85% of premises in London and 61% of those in the rest of the UK had access to gigabit broadband connections, and by June 2024, coverage rates had reached 90% in London and 78% elsewhere.
Between April 2023 and January 2024, 5G coverage outside the capital rose from 67% to 78%.
Secretary of State for Science, Innovation and Technology Peter Kyle said: “Over the past decade, the UK’s broadband rollout has clearly not happened fast enough and has overlooked too many areas, especially in Scotland and Wales. Robust digital infrastructure is essential for growth, productivity and competitiveness and this shortfall not only poses risks to our economic stability, but also entrenches existing inequalities across the country.
“We are fixing this by delivering for hundreds of thousands of homes and businesses up and down the country, focusing on the areas that were not prioritised by the previous government, such as Wales.
“Today marks a significant milestone in delivering on our promise to redouble our efforts to achieve full gigabit coverage by 2030 and lay the foundations for a more inclusive, dynamic and prosperous future for all citizens.”
Minister for digital infrastructure Chris Bryant said: “Communities across Wales are set to benefit from our deal with Openreach, from young pupils having an easier time completing their homework to seafarers in the Vale of Glamorgan feeling more connected personally and professionally.
“This government is determined to address the regional disparities we have inherited and provide the necessary infrastructure for all communities to prosper, including the digital infrastructure vital in today’s world.”
