The service will supply 24 regional centers with broadband as part of the NSW Government and Broadband Network which provides high-capacity connections between Sydney and regional areas.

The agreement is between the federal government and Australia's Academic and Research Network which represents Charles Sturt University and Soul Converged Networks.

NSW Minister for Commerce, John Della Bosca said the service will build on established network points in Lithgow, Bathurst, Orange and Dubbo that allow carriers access to the infrastructure.

"The project partners have established an 'open access agreement' which will allow carriers to access the infrastructure, which will deliver competitive broadband to the Central West," he said.

Della Bosca said the NSW government approached the federal government to fund the project three years ago.