The Department for Enterprise paid Manx Telecom almost £265,000 to install underground fibre cables last year.
The figure was given by Enterprise Minister Tim Johnston in response to a Tynwald question for written reply from Glenfaba and Peel MHK Kate Lord-Brennan.
He said infrastructure funding was granted in some areas under the National Broadband Plan to provide fibre where it wasn't commercially viable.
And he added payments were made in 10 areas where the company later applied for planning permission to put up telegraph poles.
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