Sen Conroy says the program will fund new infrastructure for a list of priority locations.

"The locations were chosen, drawing on advice from the Regional Telecommunications Independent Review Committee which has undertaken extensive consultation throughout regional Australia over the past months," he said.

"The Rudd Government has a preference for coverage being provided to population centres where there are also community services such as schools, police, health and council services.

"Stretches of regional highways with no existing mobile coverage have also been identified for potential funding."

Currently, terrestrial mobile coverage reaches 99pc of the population.

Satellite mobile phone services cover the entire Australian landmass and population and are available from a number of providers.

The Satellite Phone Subsidy Scheme remains available to provide funding to increase the affordability of mobile satellite telephony for people living or working in areas that do not have coverage from terrestrial mobile phone networks.

The priority locations for the Mobile Connect program are:

* Towns: Warburton, WA; Looma, WA; Yungngora, WA; Alpurrurulam, NT; Kintore, NT; Ampilatwatja, NT; Docker River, NT; Umbakumba, NT; Palumpa, NT; Minjilang, NT;

Highways; and

* Highways: Brand Highway, WA, between Eneabba and Dongara; North West Coastal Highway, WA, between Roebourne and Port Hedland; Great Northern Highway, WA, between Broome and Kununurra; Landsborough Highway, Qld, between Cloncurry and Winton; Stuart Highway, SA, between Port Augusta and Marla; and Monaro Highway between Cann River, Vic, and Bombala, NSW.

* Guidelines for the Mobile Connect program are available at www.dbcde.gov.au/mobileconnect