Sky and TalkTalk are joining forces on a groundbreaking new project to deliver up to 1Gb fibre broadband services in York.
The two broadband providers are linking up with CityFibre to form a new joint venture company, which will build a state-of-the-art, fibre-to-the-premises (FTTP) network in the city.
Tens of thousands of homes and businesses will be able to access ultra-fast broadband speeds as a result, should they choose to sign up to the service.
The first York customers are expected to be connected in 2015.
Sky, TalkTalk and CityFibre are also intending to extend FTTP broadband to a further two UK cities, and say they will release further details "in due course".
Stephen van Rooyen, Managing Director of Sky’s Sales, Marketing and Brand Group, said the initiative will help Sky understand the potential for "cutting-edge" broadband technology.
He claimed Sky is aiming to provide customers with an even better quality of service, and the partnership with TalkTalk and CityFibre will allow this to happen.
"Sky has led the growth of the sector since the launch of Sky Broadband, becoming the UK’s favourite provider of TV, broadband and home phone," Mr Van Rooyen added.
"We see plenty of opportunity to continue to develop our offering."
Dido Harding, Chief Executive of TalkTalk, said her company has "a long history" and proven track record of disrupting new markets, and this is "the next step in that journey".
"We are excited to be working in partnership with Sky and CityFibre to build this new network that will offer significantly higher speeds at much better value than is currently available," she stated.
"This marks TalkTalk taking its first steps into investing in building infrastructure as part of our mission to make British homes and businesses better off."
Greg Mesch, Chief Executive of CityFibre, said he believes FTTP broadband can have a transformative effect on broadband quality in the UK.
He noted that CityFibre will be working with two of Britain's largest and most forward-thinking service providers on the project.
This will allow the firm to extend its existing metro fibre infrastructure and "introduce a new generation of gigabit speed services to homes and businesses", Mr Mesch added.