The B.C. government has negotiated a $1-billion deal with Telus to expand high-speed internet service to rural areas and provide telecommunications to the government and its agencies.

The ten-year deal, which has yet to be signed, was negotiated as a single package over a three year period after Telus emerged as the successful bidder for nine smaller contracts tendered by the government.

The deal includes:

Upgrading fibre optic cables in 450 schools.

Adding cellular phone coverage to 1,700 kilometres of highway.

Increasing broadband coverage to reach 97 per cent of B.C. residents at affordable rates.

Under the contract, Telus will also provide long distance, conferencing, voice, data, cellular and strategic services for the government, the six regional health authorities, B.C. Hydro, WorkSafeBC, the Insurance Corporation of B.C. and the B.C. Lottery Corporation.

Earlier this year Telus said it plans to spend $670 million to expand its network in B.C.