BT to upgrade 10 million homes with fibre

BT is planning to spend £1.5bn on significantly upgrading its broadband network to support next generation super-fast Internet.

The plans aim to give 10 million UK homes fibre access by 2012 with bandwidth of up to 100Mbps -- and potentially up to 1,000Mbps in the future.

BT says the planned investment is part of its strategy to deliver next generation broadband service across the country to help join "the world super league for broadband speeds".

But the company has said comms industry regulator Ofcom needs to look at changing the regulatory environment in order to ensure a "fair rate of return" for companies looking to roll out the technology.

These measures include removing barriers to investment and making sure organisations investing in fibre can make a return on the money they spend.

A BT spokesman told CNET.co.uk's sister site silicon.com these barriers include a universal service obligation to put copper wire into new homes, something which is high cost but which fibre takes away the need for.

Ofcom CEO Ed Richards said the plan shows the UK is moving in the right direction with these new networks forming a critical part of the UK's infrastructure.