BT is starting to roll out services offering speeds of up to 330Mbps while Virgin Media has turned its city-centric cable network up to 120Mbps.
In October both BT and Virgin launched a legal challenge against Birmingham City Council’s plans to build a super-fast broadband network.
The council had successfully applied for European Commission State Aid funding for the scheme, but Virgin Media argued that there is “significant overbuild” with its current network.
There are no details yet about how the money will be split.
The plan is to have networks up and running by 2015, the year the government has targeted to make the UK the fastest broadband nation in Europe.