BBC.BT is to invest £1.5bn in fibre optic cables, giving up to 10 million UK households access to faster broadband.
The plans would bring 40% of homes in reach of an ultra-fast service by 2012.
BT is also planning to put fibre-optic cable into about 1 million homes, making the service even faster for those customers.
However, the communications group has made clear it will only make the move if regulator Ofcom allows it to get a decent return on that investment.
Remaining customers would be offered broadband speeds of between 40 and 60 megabits a second (mbps), it said.
In order to pay for the project BT has said it will suspend its £2.5bn share buy-back programme in July - by which time it will have returned more than £1.8bn.
Please promise us we'll have a good strong strangle hold and will be free to charge what we like for years to come, kthx?
meh, it's good news, but it's not. The government should fibre the country and lease it back to private firms to run it all IMO </ill thought out but seemingly sensible enough on the face of it idea>.