Local authorities will be able to bid for government money to develop superfast broadband in their areas.
Culture secretary Jeremy Hunt said that councils could bid for funding to install fibre-optic networks, particularly in rural areas and that he wanted to see a digital hub in every community by 2015.
‘A superfast network will be the foundation for a new economic dynamism, creating hundreds of thousands of jobs,’ said Mr Hunt.
The announcement was welcomed by Birmingham City Council’s deputy leader, Cllr Paul Tilsley.
‘I am sure Birmingham will make the most of the opportunity that this proposal brings,’ he said.