Super-fast broadband will be a reality for customers in Glasgow and Edinburgh by next year.
34,000 customers will be privy to the service, after BT installs fibre optic connections between exchanges and street-side cabinets.
The service will offer download speeds of up to 40Mbs (megabits per second) – 10 times faster than typical existing broadband connections.
BT plans to invest £1.5bn by 2012 to ensure 40% of UK homes and businesses have access to super-fast broadband.
Initially the service will be available to 30,000 properties served by exchanges around Glasgow University and in the Hillington Park innovation centre.
In Edinburgh, 4,000 customers in Stockbridge and the New Town will have access.
Steve Robertson, of BT Openreach, said the service would be available to rival internet service providers (ISPs), leading to competitive pricing.
“Once again, Scotland is at the forefront of one of the most important projects to take place in recent years,” he said.
“It will play a vital role in the UK’s future as a knowledge-based economy.”
The technology will initially offer downstream speeds of 40Mbs, which could later rise to 60Mbs. Upstream speeds will be up to 10Mbs, allowing improved upload times and video conferencing.