Victoria's Bracks Governement has announced a facility to develop and test broadband telecommunications and photonics products.
The REDlab test facility at Heidelberg will be established with the help of $2.75 million Science, Technology and Innovation (STI) grant from the state Government.
The Victorian Minister for Innovation, John Brumby, said the lab would generate hundreds of high-tech jobs and will result in tens of millions of dollars of exports.
Brumby said the test facility had been established to address research and development concerns of companies wishing to enter the broadband communications market.
"[It will] act as a catalyst for the growth of the photonics and the telecommunications sectors in Victoria," he said.
"REDlab has already been instrumental in creating a 'fibre-to-the-home' product, which will increase Internet access and video-on-demand services at 50 to 100 times the speed of currently available technology."