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10,000 new homes will be built on the development, which is the first in the UK to install last-mile fibre optic cable connections to all new residences.

The service will be offered on a wholesale basis to ISPs, who will then offer packages to customers, though prices have yet to be confirmed.

BT says it is trialling the service to assess consumer demand for high-speed broadband.

"This is our first deployment of fibre rather than copper to residential customers on a new build site. It will enable communication providers to gauge what demand exists for very high speed broadband, and to

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assess what commercial models may be appropriate in the future," says Steve Robertson, chief executive of Openreach.

Although there are already around 120,000 businesses around the UK which use fibre optic connections, Ofcom are currently engaged in a consultation about how best to proceed with fibre optic infrastructure development.

BT has previously resisted investment in fibre optic cables to the home, although it has installed it in other areas, claiming that the investment will primarily benefit ISPs.

Instead it has been developing its 21CN network, based on existing copper infrastructure, that will provide a maximum speed of around 22Mb/sec.

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