Households and businesses across the country will be connected to high-speed broadband in a multimillion-pound plan described as one of the most ambitious in Europe.

Deputy First Minister Nicola Sturgeon announced the £264 million investment which aims to ensure 85% of properties have access to fibre broadband by the end of 2015.

The total should rise to 95% by the end of 2017, she said.

Early priority will be given to rural small and medium-sized businesses to encourage economic growth in "hard-to-reach" areas.

It builds on previous commitments across the Highlands and Islands.

"Today's announcement signals the start of one of the most ambitious infrastructure projects in the whole of Europe," Ms Sturgeon said.

"It will connect communities across rural and urban areas, providing a platform for future economic development and regeneration.

"Next generation broadband enables businesses to compete on the international stage."

The project will be delivered by BT, which is investing £106.7m, and is being led by the Scottish Government with councils and the UK Government's Department for Culture, Media & Sport.

Ms Sturgeon announced the plan at the BT exchange in Pitt Street, Glasgow.

Bill Murphy, BT managing director of Next Generation Access, said: "We'll create a platform to support Scotland's economic and social prosperity well into the future."