(Adds background, Avanti shares)
LONDON, Dec 7 (Reuters) - Satellite group AvantiCommunications won a contract with BT to helpsupply broadband services to British homes that have slowconnections on terrestrial networks.
The company said on Monday that up to 300,000 homes thatcould not access speeds greater than 2Mbps would be eligible toreceive a contribution from the government to fund theinstallation of satellite broadband, with the consumer thenpaying monthly service charges.
Shares in Avanti were up 4 percent at 1044 GMT.
Analysts at Cenkos said the deal could generate about 10million pounds ($15 mln) in recurring revenue annually for thecompany, based on estimates that a third of eligible homes andbusinesses will take up the offer. The scheme is expected tostart later this month, Avanti said.
"This scheme offers immediate assistance to those homes andbusinesses in the most remote areas with the slowest speeds,"said Digital Economy Minister Ed Vaizey.
Britain is spending 1 billion pounds on its communicationsinfrastructure, both broadband and mobile coverage, and it wantssuperfast broadband to be available to 95 percent of the countryby 2017, up from 78 percent at the end of 2014.
BT has pledged to exceed that target, and in September itsaid it would work with the government to deploy broadband toremote parts of the country, including using a satelliteservice. ($1 = 0.6630 pounds) (Reporting by Paul Sandle; editing by Kate Holton and SusanFenton)
