UK telco BT has launched its first fibre-optic broadband service under the name 'BT Infinity', offering downstream speeds of up to 40 Mbps and upstream speeds of up to 10 Mbps at a price of GB£ 19.99 (US$ 32.32) per month.

The new services are delivered over BT's new Fibre-to-the-Cabinet (FTTC) network, and while the new network's current reach is not given, it is expected to cover 4mn homes and business by the end of this year.  BT Openreach, the company's local access division, has committed itself to making fibre-based broadband services available to at least 10mn homes by the next Olympics in the summer of 2012 - 75% of these are expected to be covered by the Fibre-to-the-Cabinet network, and the remaining 25% of these are expected to be covered by its new (and even faster) Fibre-to-the-Home network.

“The Internet is essential to our customers’ lives and they are demanding more and more as richer and even more compelling services become available," said Gavin Patterson, CEO of BT Retail.  "BT Infinity gives customers the capacity and reliability they need in an instant and at a great value price they can afford.  We want to give our customers the best possible online experience and are committed to rolling out super-fast speeds across the UK.”

BT has committed itself to spending GB£ 1.5bn on rolling out its new fibre-based (FTTC and FTTC) networks, adding that if politicians deem much wider broadband access to be a priority (as they have in other countries such as France, the US and Australia), then support from the public sector will be required.  Ian Livingston, Chief Executive of BT, has said that the landline levy being applied on every fixed-line in the UK will be one possible method of raising the funds necessary to connect 90% of the UK to a fibre-based Internet connection.

The telco will make its new BT Infinity connections available to all customers in enabled exchange areas from January 25th.  It also reportedly plans to offer a business package, entitled 'BT Business Total Broadband Fibre'.