BT offers to match £830m subsidy for enhancing broadband penetration

Company will also upgrade internet connections in out-of-the-way areas

Telecommunications company BT will match an £830m subsidy from the UK government to provide 90 per cent of the country's population its high speed broadband, reports the Times.

The service provider which has began a trial to increase current internet connectivity speeds by ten times, has said that it would approach the government to release funds generated from television licence fees to introduce broadband in areas with low commercial prospects.

BT is set to make a formal pledge to match the subsidy amount next Monday, when the coalition will put forth its broadband strategy.

The company will launch a 1 gigagbit service pilot programme in Kesgrave in 2011, in a bid to increase broadband speed in Eastern England.

BT will also upgrade internet connections to fibre-optic cable in 40 towns which were previously deemed economically unviable, thereby also connecting nearby hamlets and settlements.

"BT will find the funds to make this work," said the company's director of strategy Olivia Garfield, while acknowledging that the competition for the subsidy would be fierce.