TalkTalk, Sky and Cityfibre have announced the creation of a new company that will launch an FTTP network in the UK city of York.

The network, which will deliver ultra-fast broadband to 20,000 premises or up 10 percent of York's population, is set to challenge BT's UK powerbase in fixed line telecommunications.

Fujitsu is building the network in conjunction with Cityfibre, a company that owns 29,000km of fibre arcoss the UK, and is expected to deliver connection speeds of up to 1 Gbps when it launches in 2015.

Sky and TalkTalk have promised to retail competing broadband services over the new infrastructure once it launches.

Further details including branding, exact launch date and Sky and TalkTalk’s customer propositions and pricing, will be confirmed “in due course”.

The project will be the first time that such a network has been made available city-wide in the UK and will avoid the need for the partners to use BT Openreach’s infrastructure.

They have already promised to expand into two other UK cities if the trial is a success.

TalkTalk Chief Executive Dido Harding said the partnership will offer “significantly higher speeds at much better value than is currently available”.  

Stephen Van Rooyen, Managing Director of Sky Sales, added: “Increased competition in the broadband market has brought benefits to millions of households who now enjoy better quality and value of service.

“This trial will help us understand the potential for cutting-edge technology to help us give customers an even better quality of service.”

In resonse, BT Openreach CEO Joe Garner pointed out that his company already offers FTTP in parts of York.

He added: "I welcome the competition. Customers and businesses in the City will have even more choice, which can only be a good thing.

“Openreach's fibre network covers more than 18 million premises and is open to all companies on equal and competitive terms.”

Sales at BT Openreach fell by one percent in the last three months of 2013.

A report from UK regulator Ofcom on Tuesday found that the country’s broadband speeds have increased 48 percent in the past year alone.

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