The federal government is spending $27 million to bring high-speed internet to around 1,500 households in 70 rural and remote communities in Newfoundland and Labrador.

Federal cabinet minister Seamus O'Regan says spreading internet access to remote communities has been a priority of the Liberal government because it allows people to thrive no matter where they are.

The Newfoundland MP was joined in St. John's by Premier Dwight Ball Tuesday for the announcement, which will also see $1.57 million come from the province and $11.52 million from other contributors.

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Most of the federal funding comes from Connect to Innovate, a program which aims to provide speeds of five megabits per second or more to underserved communities.

Ball says the improved internet access will allow residents "to become more engaged in the digital economy, seize new business opportunities, and connect with friends and family around the world."

Navdeep Bains, the Minister of Innovation, Science and Economic Development, said access to high-speed internet is an essential, and not a luxury.

"High-speed internet service is a basic tool that all Canadians should have access to, regardless of their postal code," he said in a statement.

Ball says 99 per cent of the population will now have access to broadband internet.