The money will help pay for a range of pilot projects to be tested across the country, with potential technologies including using 4G mobile signal to deliver 'fixed wireless superfast broadband', using fibre direct to premises, and satellite technology.

A government programme is under way to bring superfast speeds to 95 per cent of the UK by 2017, and is now focused on reaching the final 5 per cent of the most isolated communities.

Culture secretary Maria Miller said: "Our nationwide roll-out of superfast broadband will benefit everyone from school children to business owners, parents to patients. An estimated 10,000 homes and businesses are gaining access to superfast speeds every week but now we need to focus on the hardest to reach communities.

"If we want to ensure that all communities can benefit then we need to think imaginatively about alternative technology, and the pilots enabled by the £10m fund will be instrumental...