Fibre optic cables will be installed in Dundee sewers beginning early next year, which will provide high-speed internet access, clocking in around 100 Mbps (megabits per second), to homes, businesses and organisations throughout the city.
The technology, already in use by the city's council and The University of Dundee, is set to provide access to 55,000 homes by 2010.
The work, being done by H2O Networks, is costing the city 30 million, but Convener of Dundee City Council's economic development committee, Joe Morrow, said the investment is worth it.
"Dundee is already a recognised leader, not just in biotechnology and digital media, but in the use of technology to benefit its communities," Morrow told the BBC. "I am sure that the plans revealed in this announcement will provide even more opportunities for the business community in Dundee to gain competitive advantage and to keep the city at the forefront of the broadband economy."
Chief executive of H2O Networks Elfed Thomas said the system will bring a much-needed update to the broadband technology of Dundee.
"Our solution is a totally new network that does not try to connect old and new cables," Thomas explained. "With speeds in excess of 100 Mbps, it brings us right into the 21st Century and beyond."
Thomas also added that the effects of the program will be seen beyond the populated city of Dundee. "Dundee is the most densely populated city in Scotland, but this project will see us bringing connectivity to more remote areas as Fibrecity is an all inclusive solution," he said.
IT PRO previously reported on the UK's first Fibrecity' program announced early last month, making Bournemouth the first entire city with a FOCUS (Fibre Optical Cable Underground Sewer) system.
Bournemouth's system will also be provided by H2O, and will provide access to all of the city's businesses and over 88,000 homes, at the same cost of around 30 million.
