The government has been given state aid approval from the European Commission (EC) to provide public funding for ultra-fast broadband in Birmingham.
Between £7 million and £10 million will now be allocated to the West Midlands hub out of the UK's £150 million Urban Broadband Fund, reports ISPreview.co.uk.
Chancellor George Osborne set up the fund earlier this year in a bid to create a network of super-connected cities with broadband speeds of between 80Mb and 100Mb.
Birmingham will be one of ten cities to benefit from the first wave of funding worth £100 million, along with the likes of London, Belfast, Edinburgh and Cardiff.
The remaining £50 million is set to be distributed among ten smaller cities, which have been invited to bid for a share of the Urban Broadband Fund.
Joaquín Almunia, EC Vice President for Competition Policy, said investments in ultra-fast broadband networks "contribute to promoting growth in line with the EU's Digital Agenda".
"If such networks are built with the help of taxpayers’ money, it is important to ensure thriving competition on the subsidised networks, so that local businesses and citizens can benefit from continuously improving broadband services at competitive prices," he stated.