Fibre specialist Hyperoptic will aim to give 500,000 UK homes access to 'hypersonic' speeds of up to 1Gb within five years.
As many as half a million households could benefit from ambitious plans to extend an ultrafast fibre optic broadband network.
Specialist provider Hyperoptic, which already connects 20,000 homes in London, has secured a £50million investment to help it reach 500,000 premises nationwide.
The fibre optic broadband offers 'hypersonic' speeds of up to 1Gb. That's more than 80 times faster than the current national average and over 10 times faster than BT Infinity.
Hyperoptic is hoping to have reached 10 UK cities by the end of 2013.
Boris Ivanovic, chairman and co-founder of Hyperoptic, said: "As momentum continues to build for 'smart cities' and an increasingly technology-fuelled economy and society, the need to futureproof our infrastructure has become absolutely critical.
Louis Armstrong, one of the company's directors said Hyperoptic was paving the way for the UK to make a "significant leap" forward in terms of broadband speed.
Hyperoptic's service is built on fibre-to-the-premises (FTTP) technology, which means the customer's property is connected directly to the fibre optic broadband network.
It's more expensive to deploy than more common fibre-to-the-cabinet (FTTC) broadband, where a phone line made from copper wire is used to complete the journey from provider to customer, but FTTP broadband offers much faster speeds.
BT Infinity is an FTTC service, which offers 'superfast' broadband with speeds of up to 76Mb to around two-thirds of the country. BT's network is currently being extended to reach 90% of the UK population by the end of 2015.