Round 4 of the federal government's Mobile Black Spot Program will deliver 180 new mobile base stations to enhance coverage, including at Baird Bay.
The Minister for Regional Services Bridget McKenzie announced the results of the latest round of the program on Friday, with work on the new stations expected to start this year.
Streaky Bay mayor Travis Barber said he was pleased to see Baird Bay had been included as there was no phone coverage in the area.
"It has been a massive issue and I am glad they were thinking about it and are getting something done," he said.
"There is no coverage between Port Kenny and Streaky Bay and I have been pushing this for two years.
"If there's an accident there is an issue - we had a death last year where someone died of a heart attack as there was a three-hour response to get an ambulance there."
Telstra will be installing a satellite small cell tower at Baird Bay.
Telstra chief executive Andy Penn said the use of small cell technology was an innovative, cost-effective approach to fixing black spots.
“A small cell is a miniature version of a standard mobile base station and Telstra is using the technology to cost effectively deliver 4G coverage to areas where existing coverage is minimal or not available," he said.
“Mobile coverage means people and businesses in regional and remote communities can do things many in the city take for granted. Whether it is streaming sports, movies and television, working remotely or just staying in touch.”
Baird Bay is one of 16 new mobile phone tower locations in the Grey electorate and Federal Member for Grey Rowan Ramsey said this was a fantastic result.
"The extra 16 towers will make an enormous difference particularly in some of our more isolated communities and I thank both Telstra and Optus for their continued interest and investment in growing the network," he said.
"In a technological age it is important we have as much coverage as practical to ensure businesses can compete on an equal footing and we have tools necessary to make decisions dependent on information."
Mr Ramsey said while this round of funding would have a significant impact there was still more work to do and he wanted to see gaps in coverage continued to be filled.
He said the government had established the Regional Independent Review Committee to map deficient spots and recommend investments for future improvement of telecommunications and thanked those who contributed to that process.
"It is very gratifying to see the level of investment coming as a result of that process and to reap the benefits of a state and federal government committed to the same outcome."
Mr Ramsey also praised the announcement from Minister McKenzie for a further $160m over two more rounds of Black Spot funding, plus $60m for a new Regional Connectivity Program.