NTL, the cable operator, is to invest between £55m and £65m in "local loop unbundling", which will enable it to offer broadband and video services to homes using BT Group's "last-mile" copper wire connections to households.

Under the initiative, NTL will install its equipment in up to 300 of BT's 5,000 telephone exchanges, extending its reach to 10m households in Britain. NTL services are currently available in 8m homes.