BT is aiming to transform the UK broadband landscape "from super-fast to ultra-fast".
Gavin Patterson, Chief Executive at the telecoms giant, said the widespread deployment of G.fast technology will allow homes and businesses to access much faster speeds.
BT is to test the innovative solution in two pilot locations - Huntingdon in Cambridgeshire and Gosforth in Newcastle - with the trials commencing in summer 2015.
It is hoped that G.fast will allow BT to deliver speeds of up to 500Mb to most of the UK within a decade. Should the pilot schemes prove successful, a widespread deployment will get underway in 2016-17.
“BT is a world leader when it comes to fibre innovation and we are excited about the next stage in our story,” said Mr Patterson.
"We believe G.fast is the key to unlocking ultra-fast speeds and we are prepared to upgrade large parts of our network should the pilots prove successful."
He claimed the UK is ahead of its major European neighbours when it comes to broadband, and needs to stay ahead as customer demands evolve.
"G.fast will allow us to do that by building on the investment we have made in fibre to date," Mr Patterson added.
"It will transform the UK broadband landscape from super-fast to ultra-fast in the quickest possible timeframe.”
BT has been testing G.fast technology at its innovation centre at Adastral Park, Suffolk.
Laboratory tests have shown that it has the potential to deliver "significant speed increases" from existing and new fibre street cabinets, as well as from other points closer to the customer.
BT believes the technology can be deployed in a more efficient and rapid manner than previously thought. It is likely to deploy G.fast from various points in the network, with multiple rollout options to be assessed during the pilot schemes.