The Welsh Assembly Government has awarded a £30m contract to supplier Geo to support businesses in Wales via a high-speed fibre network.

Under the terms of the 15-year initiative, Geo will construct an open access network to serve companies across Wales. Rather than selling bandwidth directly to users, the system will act as a platform from which internet service providers and telcos can sell their services.

The scheme will begin with the connection of up to 14 business parks in the north of the principality. Initially the network will offer a connection rate of 10Mbit/s or faster, but this speed will be upgraded as technology advances.

The project has been partly funded by the European Regional Development Fund, with additional investment from Geo and the Welsh Assembly Government.

“This is a landmark day for businesses in Wales," said Ieuan Wyn Jones, deputy first minister and minister for the economy and transport.

"We all want a vibrant and booming economy in North Wales, and a high-speed communications infrastructure is one of the most important components of that," he said.

"This implementation will enable organisations in Wales to affordably utilise the communications services that other parts of the UK already enjoy, and will encourage external investment and relocation to the country.”