Be Broadband is planning on making upgrades to its network in different areas around the country.
The provider has earmarked Brighton, Sheffield, Liverpool, Manchester, Leeds, Middlesbrough, Newcastle, Warrington, South Belfast, Glasgow, Edinburgh and Preston as locations for network improvements.
Be says that the work is a response to the network congestion problems which have affected customers during peak times.
Speaking on the capacity issue, managing director of Be, Felix Geyr, said that the provider is taking the matter seriously.
He commented: "It's true, though, that we have some capacity issues and that's why we've got this funding to improve the network.
"Our customers normally come to us for our high speeds and good performance and a lot of them are into gaming and downloading, so performance is very important to them."