BT investment could highlight significance of FTTP broadband

The impact fibre-to-the-premises (FTTP) broadband technology could have on Britain's internet networks in the future has been indicated by BT's recent investment, according to new research.

FTTP technology involves running fibre optic cabling directly to consumers' premises and despite being more expensive than fibre-to-the-cabinet (FTTC) systems - which runs the fibre cable only as far as street cabinets before connecting to copper wiring - BT seems to be favouring it.

The internet service provider has allocated £200 million from FTTC to FTTP roll-out, which could mean more people can use VoIP solutions more effectively, while also indicating the role the technology will play in the future.

Tim Johnson, chief analyst at Point Topic, said: "When a major player under tight financial constraints decides to shift that much investment towards FTTP, you have to take it seriously."

The government has pledged to deliver broadband connection services of two megabits per second by 2012, but FTTP networks could enable millions of homes to access much faster speeds.