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Little Shuswap Lake in British Columbia, Sauble Beach in Ontario and St-Augustin in Quebec are among the rural communities that are scheduled to finally get fast Internet service in coming years.

The Canadian Radio-television and Telecommunications Commission yesterday approved individual plans by the biggest phone companies to bring broadband service to some 350 areas throughout B.C., Alberta, Manitoba, Quebec and Ontario. They will use about half of a $650-million pot of money collected between 2002 and 2006 by overcharging customers in cities.

Some of the funds will be used to improve communications services for people with disabilities, including a video service that would let people communicate via sign language through a third person.

But phone customers in urban areas will also get some money back, about $300-million of the so-called deferral account, according to Len Katz, vice-chairman of telecommunications at the CRTC. The amounts have yet to be finalized.

"The [CRTC] decision always said we wanted the money to go to broadband and accessibility services, and if there was still money left over it would be returned to the consumer," Mr. Katz said in a phone interview.

When the deferral account was created in 2002, the CRTC directed the phone companies to put amounts equal to any potential rate reduction into the account. The aim was to keep rates high enough to encourage new competitors to enter the local phone market.

The CRTC decided two years ago that the money should go to bridge the digital divide for rural areas. Consumer groups have appealed the decision, saying the money should go back to customers. Bell Canada is also appealing.

Bell, Manitoba Telecom Services Inc., Telus Corp. and Saskatchewan Telecommunications have until 2011 to complete the broadband rollout. The CRTC has instructed them to use the lowest-cost technology.