A deal has been signed which it is hoped will propel Coventry onto the same global platform as Stockholm and Hong Kong for its broadband network.
CityFibre, the AIM-listed pure fibre infrastructure provider, has acquired the city's 86-mile metro fibre network from Coventry City Council.
Now called Coventry CORE, it was originally built about six years ago, having been commissioned by the council, and currently serves nearly 300 buildings such as council offices, schools and community centres.
CityFibre will continue to provide connectivity to these sites, granting the council a long-term right of use, but will invest in and upgrade the network with the aim of connecting thousands of local businesses to 'gigabit' internet speeds of 1,000Mbps.
Businesses connecting to the new network will have access to next-generation broadband which is said to be 100 times faster than the UK average and on a par with the world's fastest cities such as Hong Kong and Stockholm.
A socio-economic study of businesses in the Swedish capital found annual savings at those connected to the city's superfast network were circa £7 million.
Branded 'Gigabit City' by Cityfibre, the company has already carried out similar projects in York and Peterborough meaning Coventry will be the company's largest metro network once work has finished.
Coventry is already participating in the 'SuperConnected Cities' programme, which offers businesses vouchers towards the cost of connecting to high-speed broadband services delivered by local internet service providers
CityFibre said it had committed its full participation to the scheme worth £3 million to Coventry businesses and will be providing greater choice to voucher users with affordable gigabit speed services.
Coun Damian Gannon, the city's cabinet member for strategic finance and resources, said: "Ultrafast gigabit speed connectivity is vital for Coventry businesses to enable them to compete and succeed, not just on the national but also on the international stage.
"As a Gigabit City, Coventry can now set itself alongside the most digitally advanced locations around the world and we look forward to the numerous social and economic advantages that such a status will bring, driving economic investment and catalysing business start-ups."