Broadband speeds in Northern Ireland are set to quicken as a result of a £48 million investment.

The funding injection will see the introduction of new internet technology across the region over the next 18 months.

The project is joint funded by BT, the government and the European Union. Enterprise Minister Arlene Foster welcomed the development of the telecommunications infrastructure.

She said: "This is hugely significant. At a time of economic slowdown when private sector companies are scaling down their investments, this multi-million pound injection in our infrastructure has the potential to indirectly create up to 1,000 additional jobs per annum."

Under the project, BT will deploy special fibre technology to a majority of businesses with other fixed line solutions being used where appropriate. The government tender specified that businesses in urban areas should receive a minimum downstream speed of 10Mb/s and ones in rural areas 2Mb/s.

The minister continued: "This project is designed to deliver on the key Programme for Government objective to ensure 85% of businesses in Northern Ireland will have access to next generation broadband speeds by 2011.

"Broadband is an enabler - use of these new services will enable our businesses to increase their productivity, improving the competitiveness of the economy as a whole. In order to do so, it is essential that our businesses take advantage of the exciting new opportunities this project creates so all of Northern Ireland can reap these benefits."

Ian Livingston, Chief Executive, BT said: "Today marks a bold and visionary step in Northern Ireland's next generation broadband journey. Fibre-based broadband will underpin future competitiveness and economic growth. BT and DETI have developed an innovative technical and commercial solution that sets the pace for other economies to follow.

"I am delighted to announce our long term investment in Northern Ireland because experience from across the globe has demonstrated that partnerships are a very effective way for new technology to be deployed.

"We look forward to building on the legacy of the previous 100% broadband availability contract, and bringing the benefits of next generation broadband speeds to rural and urban businesses. Importantly, all communications providers will have open access to this future-proofed network, driving greater competition and choice for all."