BT is aiming to turn the telecoms sector on its head by launching 300Mb fibre-to-the-premises (FTTP) broadband services in spring 2012.
The firm's Openreach arm, which recently launched commercial FTTP broadband with 110Mb speeds, believes far greater download capabilities can be delivered in the near future.
BT said that 300Mb ultra-fast broadband services will also be available to rival broadband providers on a wholesale basis, helping to support a competitive retail market.
Liv Garfield, Chief Executive of BT Openreach, said the announcement marked "a significant step in the UK's broadband journey".
"These developments will transform broadband speeds across the country and propel the UK up the broadband league tables," she added.
"All our fibre products are fit for the future and these developments show that to be the case. As always, we want to go further and faster and so our journey doesn't end here."
Ms Garfield explained that BT can "turn up the dial" should there be demand for faster broadband, allowing the sector to look to the future with confidence.
"No-one is keener than us to extend these super-fast speeds to rural areas and so we will be bidding for public funds to help extend these services even further," she stated.
"The challenge is a tough one but by working with the public sector it is within our reach."
Communications Minister Ed Vaizey welcomed BT's plans, describing the upcoming arrival of 300Mb broadband as "good news for the UK".
"High-speed broadband is essential for economic growth, which is why we want the UK to have the best superfast broadband in Europe by 2015," he added.
"Improving the UK's broadband infrastructure will help our high-tech, digital industries grow. It will ensure the UK is an attractive place to start-up and base the businesses of tomorrow."
BT is investing £2.5 billion to make fibre broadband available to two thirds of UK premises by the end of 2015.