HAMPSHIRE will be among the first areas in the country to be switched to a £740m next generation telephone network.

Phone giant BT has outlined plans to invest £740m over the next five years to provide the south east with a communications network enabling Internet speeds three times as fast as those currently achievable.

The south east programme is part of BT's multi-billion pound 21st Century Network programme, which will see the replacement of equipment at more than 650 exchanges.

Ultimately, more than three-and-three quarter-million lines in the south east serving homes and businesses will be transferred over to the new network.

James Brathwaite, chairman of the South East of England Development Agency, said: "I applaud this huge investment in this new south east network from BT. This is pivotal because information and communications technology is the largest single contributor to productivity and growth. It is a key enabler of both innovation and enterprise."

Patricia Vaz, BT's South East regional director, said: "BT's investment in the world's most modern communications infrastructure will benefit everyone in the region and will create an environment capable of transforming the way we live, work, learn and play. It will also help to attract and retain inward investment in the region and we urge business leaders - and consumers - to get ready to capitalise on the benefits of the new network."

BT is making the service available in rural communities as well as towns and cities and aims to start switching people over to the new system in January 2008.