Highlands internet service provider HighNet has teamed up with fibre network provider CityFibre in a bid to transform Glasgow into a so-called Gigabit City like Aberdeen and Edinburgh.

The Inverness-based business has taken on eight employees and spent £250,000 fitting out 4,000 square feet of office space in the city’s St Vincent Street as its project partner CityFibre prepares to begin laying 13km of pure-fibre cables across the city centre next month.

The new network, which will offer ultra-fast internet connectivity that is up to 100 times faster than that offered by existing infrastructure, will be operated by CityFibre and made available to HighNet’s customers. Currently HighNet, which serves only businesses, has 2,500 customers across the city.

David Siegel, managing director of HighNet, said the relationship between his company and CityFibre is that “they dig it and we connect it”.

“CityFibre will lay ‘dark fibre’ into the ground along the route that we have provided for them with customers that are ready to come on board,” Mr Siegel added. “They are our customers and we provide the connectivity.”

James McClafferty, CityFibre’s head of regional development in Scotland who was previously Scottish regional partnership director for BT, said his company would begin laying the infrastructure between the end of September and the end of November with connections expected to go live in early 2017.

Seventeen streets have been earmarked for the first phase of construction, with West Nile Street, St Vincent Street, Ingram Street and Albion Street among them. CityFibre also plans to upgrade existing networks that it has acquired in Paisley, the south side and west end of the city.

Mr McClafferty added that while HighNet had guaranteed to provide the business with 100 customers in the first instance, the plan is to commercialise the network by making it available to all internet service providers operating in the city.

The move has been welcomed by Glasgow Chamber of Commerce. Deputy chief executive Richard Muir said: “Ultra-fast internet connectivity is an extremely useful commodity for the business community…. This type of development further strengthens Glasgow’s extensive credentials as a digital hub where businesses can thrive.”