Up to 1,300 businesses and community groups across the Highlands and Islands are in line to share £500,000 worth of grants to help them upgrade to broadband telecommunications.

The area's development agency, Highlands and Islands Enterprise (HIE), is making the funding available to accelerate the take-up of broadband services in the region.

Broadband offers computer users an 'always-on' connection to the internet at up to ten times the speed of a dial-up modem and is currently available in 30 per cent of the Highlands and Islands.

Earlier this year, HIE launched a promotional campaign, 'Speak up for Broadband' which has encouraged 7,000 businesses to register their interest in receiving the service.

Five exchanges in the area - Nairn, Forres, Fort William, Oban and Dingwall - have just become broadband-enabled with HIE's assistance.  Buckie is set to follow later this month, joining the existing broadband exchanges at Elgin, Inverness and Inverness Culloden.

HIE has invested in running a series of pilot trials to test other methods of delivering broadband, including enabling six communities to access the service through  innovative wireless technology.

Now, as a further incentive to small-to-medium sized enterprises (SMEs) and community groups, one-off grants are being made available.

Groups and businesses in communities where broadband is available from either a telephone exchange (through a standard copper-wire system known as ADSL) or through wireless transmission can apply for a payment of £300 to introduce the service.

In locations which can only access broadband through costlier options such as satellite and leased lines, a higher grant worth £1200 will be available.

Stuart Robertson, HIE's telecomms infrastructure manager, said the grants were a further signal that the agency was determined to ensure people and businesses in rural areas are able to play an active part in the broadband revolution.

"We've been very encouraged at the vigour with which businesses and communities in the Highlands and Islands have already spoken up for broadband, especially in the last few months," said Mr Robertson.

"The HIE network is already pursuing projects to increase the number of communities which can access broadband across the Highlands and Islands. 

"These new grants complement that strategy by offering local groups and SMEs extra help to reap the benefits of high speed internet access wherever the service is available."

Applications can be made through any local enterprise company in the HIE network.