O2's Be Broadband unit has unbundled its 500th telephone exchange making its service available to 33 per cent of UK households, the company has confirmed.

O2 CEO Matthew Key said: "We are working at unbundling 200 more exchanges by June and we are already testing new technologies that will enhance the network and our speed."

Be Broadband hopes to enable over 800 exchanges by the end of the summer. It offers ADSL2+ technology to maximise the potential of BT phone lines and is deploying its own network in the UK.

The company recently launched its Annex M service which offers commercial users upload speeds of up to 2.5Mb/s, the fastest in the UK. This service will soon be offered to domestic users.