TalkTalk is in discussions with Infracapital over a plan that could lead to full-fibre broadband being deployed to more than three million premises across the UK.
The provider and Infracapital are looking at jointly setting up an independent company that would be responsible for creating the 1Gbps ultrafast broadband infrastructure.
TalkTalk would have a 20 per cent stake in the company, while Infracapital would own the remaining 80 per cent.
Charles Dunstone, Executive Chairman of TalkTalk, believes the move will help put the company "at the heart of Britain's fibre future".
"Building a full fibre network [will bring] faster, more reliable internet to millions of homes and businesses," he commented.
The move has been hailed by Culture Secretary Matt Hancock, who said the investment will play a big part in future-proofing the UK's connectivity needs.
"It’s fantastic to see Talk Talk stepping up to the plate," he stated.
"We want a healthy, vibrant, competitive next-generation broadband market and are working hard to deliver the investment and good jobs that come with it."
The investment also enables TalkTalk to build on the success of its recent full-fibre trial in York, where its network currently reaches 14,000 homes.
Details on exactly where the new broadband infrastructure will be deployed have not yet been announced.