Jersey States give JT £19m for superfast broadband roll out
Other telecom companies had argued any government money should be available for all operators to bid for.
JT said Gigabit Jersey would bring high speed internet access to every home.
The new network will offer businesses and individuals broadband speeds of 1Gbps.
Treasury Minister Senator Philip Ozouf said superfast broadband would support government plans for economic recovery.
He said the States was on target to balance budgets by 2013 and that it could therefore invest in economic growth without getting into debt.
The aim was not only to attract new businesses but to help boost the economy and provide new jobs.
JT's CEO Graeme Millar said: "A fibre broadband network will be a huge step forward in the island's telecommunications infrastructure.
"It is a technology change on a par with the move from an analogue to digital TV signal."