BT's Openreach division has increased its target for installing fibre broadband by pledging to connect 3m premises by the end of 2020.
Openreach, which runs Britain's communications infrastructure, said the target was a 50% increase on its previous plans. It will recruit 3,000 engineers in 2018 to work on the programme to connect up to 40 towns, cities and boroughs with faster, more reliable broadband.

Birmingham, Bristol, Cardiff, Edinburgh, Leeds, Liverpool, London and Manchester will make up the first phase of the Fibre First plan. Openreach said targeting 3m premises by the end of 2020 would set it on course to meet its aim of at least 10m connections by the mid 2020s.

Openreach said getting the job done would require support from communication providers such as TalkTalk and Vodafone, the government and regulators to encourage rapid take-up, revenue generation and supportive policies.

"As with any infrastructure investment, if Openreach is unable to secure an acceptable return, it will need to review its ongoing capital commitments to the programme," it said.

Openreach is owned by BT but is independent of the formerly state-owned company. After long-standing criticism that Openreach was too slow to upgrade infrastructure and fix faults BT agreed with the regulator Ofcom to split it off, raising hopes that Britain's broadband will catch up with other countries such as Japan.

Clive Selley, chief executive of Openreach, said: "Openreach is getting on with the job of building an ultrafast Britain. Working closely with central and local government and our communication provider customers, we will identify the cities, towns and rural areas where we can build a future-proofed, fibre to the premises network that's capable of delivering gigabit speeds to all homes and businesses at an affordable cost."

Related share prices
BT Group (BT.A) share price