Telecoms group BT plans to invest 1.5 billion pounds to roll out super-fast broadband to up to 10 million homes by 2012, it said on Tuesday.
The operator said that it will suspend its share buyback programme with effect from July 31, given the strategic priority of this planned investment, but remains committed to its dividend.
The company said the programme represents the largest ever investment in super-fast broadband, which can deliver speeds of up to 100 Megabytes per second through fibre cables.
"We now want to make a step-change in broadband provision which will offer faster speeds than ever before," Chief Executive Ian Livingston said in a statement.
BT noted a supportive and enduring environment is "essential" for the investment, which adds around 1 billion pounds to its existing expenditure plans for fibre deployment, to take place.
