THOUSANDS of people in the region’s rural areas will be wired into the high-speed broadband revolution under a £24m deal announced today (Friday, April 26).

Eight North-East councils have clinched a deal with BT to extend high-speed fibre broadband to around 94 per cent of premises by the end of 2016.

The Digital Durham partnership, led by Durham County Council and including the Tees Valley, Sunderland and Gateshead, also aims to provide a minimum of 2Mbps broadband speeds for all.

Most areas will get Fibre to the Cabinet (FTTC) technology, promising download speeds of up to 80Mbps and upload speeds of up to 20Mbps.

Some areas will get Fibre to the Premises (FTTP) technology, promising up to 330Mbps.

The first areas to benefit will be announced following a surveying period.

Research suggests within 15 years fibre broadband could boost a typical town’s economy by £143m, creating 225 new jobs, 140 new businesses and 1,000 more home-based workers.

The £24m includes £5.9m from BT, £7.8m from Durham and Gateshead councils, £9.1m from the Government’s Broadband Delivery UK and £1.3m from other public sector agencies in Tees Valley and Sunderland.

In addition, Durham is still hoping to secure an extra £1.53m from the Government’s Rural Community Broadband Fund, which would further extend the cutting-edge technology. A decision on this funding bid is expected in May.

Don McLure, Durham County Council’s corporate director of resources, said: “Breaking down the broadband divide will give our residents, communities and businesses opportunities that they’ve only been able to imagine up till now.

“Fibre and improved broadband will help us strengthen our economy, grow and develop our businesses while enhancing community activities. This is an important milestone for all who live and work in this area.”

Bill Murphy, BT’s managing director of Next Generation Access, said: “This project is vital to the future economic strength of all the local authority areas involved.

“It will enable businesses to compete on a level footing regardless of location – making this large part of the North-East a more attractive proposition for business re-locations and start-ups, including the creation of new, high-tech jobs.”