The project is aimed at offering access to super-fast broadband by April 2016 and the move would allow rural communities to access internet speeds of at least 24Mbps.
Lincolnshire County Council councillor Kelly Smith said the whole county would benefit from the superfast broadband deal.
"This project is going to dramatically improve broadband speeds across the county, bringing a wealth of opportunities for residents and businesses alike," Smith said.
"This is the start of an exciting new era for our county."
The project, which is part of the Government’s Broadband Delivery UK programme, is being executed through funds including £11.2m from the county council, £4m from the district authorities, £14.3m from national government and £18.8m from BT.
Additionally, the government has promised to offer everyone in the country with speeds of at least 2Mbps by 2015, by funding £530m for the project.
BT Next Generation Access managing director Bill Murphy said: "We’re already seeing the positive impact that faster, fibre broadband is having on businesses and residents in the county and now, thanks to this partnership, the benefits will be felt much wider, helping boost the local economy."
