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The Welsh Assembly Government has launched a new project designed to improve the quality and coverage of broadband in rural parts of the country.

Backed by £2 million of funding, the Broadband Support Scheme has been developed to encourage communities to actively work with service providers and encourage them to invest in networks in their areas.

Expected to be launched officially later this year, it is believed that funding of up to £1,000 will be available per application.

Ieuan Wyn Jones, Deputy First Minister for Wales, said the government was committed to improving broadband across the country despite the pressure that the recession has placed on its budget.

He added that broadband is vital for the country to "develop the knowledge economy, improving the ability of businesses and individuals to network and innovate".

Details of the scheme have come around a month after BT confirmed that it has installed super-fast broadband in both Caerphilly and Barry.

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