The town was hit hard by 250 job losses when the KTH factory closed

The move is part of a regeneration plan for Llanidloes in the wake of car-part plant KTH's closure in September with the loss of 250 jobs.

The initiative is thought to be vital to attract new high-tech investment to the town which is still reeling from its recent economic setbacks.

This is a significant development for local businesses Martin Herbert, broadband users' group

The move has been welcomed by Llanidloes Broadband Users' Group (LBUG) which was set up in September to press for the town to get broadband access.

Since its inception, 137 people from the area had joined the group.

Training

"This is a significant development for local businesses and individual users interested in using the internet to its full potential," said Martin Herbert of LBUG.

According to Mr Herbert the technology will allow small businesses in the area to market their products across the world.

British Telecom will upgrade the Llanidloes exchange on 18 February

The town will be able to access broadband from February 2004

Nick Venti of Llanidloes regeneration group Llani Ltd said the local resource centre would try to set up training and mentoring events for people to use broadband.

"I am hopeful that by February these courses will be in place for people," he added.

A WDA spokesman said: "BT's decision to upgrade the Llanidloes exchange to broadband capability is a huge boost for the town and local community.

"The Welsh Assembly, WDA and partners had included the need for broadband within the Llanidloes Regeneration Plan in order to attract new high-tech investment and employment opportunities into the town as well as securing existing investment following the recent closure of the KTH site."

Wales' e-minister, Andrew Davies had promised to lobby BT after a visit to Llanidloes in July.

"I am pleased to see that BT have been able to bring forward the date when the Llanidloes exchange can provide broadband services for the area," he said on Wednesday.