The Shetland Islands Council could soon be asked to approve plans to connect the isles' broadband infrastructure to a fibre optic cable from the Faroe Islands in Norway.
Capacity on the cable is currently being leased by BT but councillors are worried because the provider has not made any firm plans to help improve Shetland's internet services.
Last year, an ongoing study was launched by a company from Faroe into the feasibility of connecting the cable at Maywick, the Shetland Times reported.
Head of Economic Development Neil Grant has now said that a £1 million investment in broadband improvements is very important for Shetland.
Specifically, the money would be used to help set up around 20 or 30 miles of cable from Maywick to Lerwick, which would be used to help establish a broadband "point of presence".
Mr Grant told the newspaper: "One of the biggest economic benefits is in the type of new industry that we could potentially attract on the back of such an investment.
"There are also existing businesses that bid for work and submit bids electronically that this sort of infrastructure would clearly benefit as well."