BT has signed a deal to share in the use of North Scotland's Faroe Telecom's new under-sea fibre optic cable, bringing broadband to the Northern Isles.

Once completed, the 760km cable will stretch between the Faroe Islands, Orkney, Shetland and the Scottish mainland.

BT's long-term lease is part of its £1bn on its strategy for Scotland that also includes upgraded equipment in more than 1000 exchanges across the country.

“Over the next five years, our 21st Century Network will represent one of the biggest ever investments in the economic infrastructure of the UK by a private company," said Brian Fitzpatrick, managing director of BT wholesale markets.

“We believe it is the most complete, exciting and ambitious business transformation programme anywhere in the global telecoms industry.”