Agriculture & Rural Development Minister Michelle Gildernew announced that the project involves the introduction of new technology to increase broadband speeds in a number of rural areas.
"Modern life has become very dependent on telecoms and rural areas are no different, with the rural population just as keen to grasp the mantle of the latest technology.
"Access to improved telecoms provides a key catalyst for rural businesses, communities, and a means of communication with the rest of the world for those isolated from urban centres," she said this week.
"With broadband, smart phones and social networking all increasingly becoming integral parts of many people's everyday life, it is vital that rural communities are not left behind.
"I am constantly reminded by rural dwellers of the importance of good communications and of the increasing reliance many place on telecoms in their day to day lives.
"That is why I decided that funding specifically targeting rural areas should be made available from my Department to provide increased access to these services in rural areas," the Sinn Fein Minister explained, noting that, as a result of this funding, BT has agreed to match the investment by providing a further £1m to upgrade an additional 40 cabinets.
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This combined investment of £2m will deliver increased access to next generation broadband services in rural areas. The investment rollout will be completed by April 2011 under the terms of the current contract with BT, announced in December 2009.
Graham Sutherland, Chief Executive Officer of BT in Northern Ireland said: "Northern Ireland continues to lead the way in Europe for fibre enablement.
"This additional funding means that over 85% of businesses will have access to faster broadband speeds by April 2011, equipping them with next generation services that they can use to underpin their growth.
"The rollout of fibre outside the main urban areas is particularly important given the key role that communications can play in economic re-generation in rural areas by attracting foreign direct investment and stimulating home grown innovation and entrepreneurship."
Outlining the potential offered by broadband investment to rural business, Minister Gildernew added: "Improved telecoms are also a major factor in improving rural businesses and increasing their competitively. I hope that these investments will stimulate other operators and businesses in rural areas to exploit this asset now.
"I urge people to explore how best to make the most profitable use of these services. Particularly at a time when new lines of business need to be explored, new opportunities sought out and new ways of working discovered and exploited to the full.
"I look forward to seeing the impact of the investment in the months ahead," she concluded.
The £2m comes on top of the £48m Next Generation Broadband Project, announced by the Stormont Enterprise Minister, Arlene Foster in December 2009.
BT invested close to £30m in the project, with a further £16.5m coming from the Department of Enterprise Trade and Investment (DETI), under the European Regional Development Fund's European Sustainable Competitiveness Programme and £1.5m from the Department of Agriculture and Rural Development, under the European Agricultural Fund for Rural Development Programme.
(BMcC/KMcA)
