Telstra has won a contract to build Western Australia’s regional mobile communication project.

The telco and the WA government said the contract was for 113 new mobile sites to increase coverage to the state’s regional and remote areas.

“Construction of the first sites is underway and it is anticipated the project will be completed over the next three years,” the pair said in a joint statement on Tuesday.

“The project means the Telstra mobile network will increase its geographic coverage by about 22 per cent in WA – from 430,000 square kilometres to more than 525,000 square kilometres.”

The WA government will invest $39.2 million in the project.

Telstra aims to deliver a return of $106 million in value, consisting of direct capital expenditure and access rights to Telstra’s infrastructure.