The deal is the latest in a string of successful broadband bids for BT, which will once again put the spotlight on Broadband Delivery UK (BDUK), the body armed with setting up a competitive process for superfast broadband rollout.

questioned BDUK's success in increasing competition in the broadband marketplace, which has seen a number of ISPs pull out of the bidding process and to date has only seen BT win public funds.

However, Surrey County Council estimates that the contract could add £28 million to the region's economy annually and will see speeds of up to 80Mbps delivered to nearly 100 percent of businesses and homes by the end of 2014.

"The county council has done a deal that will make Surrey the best connected county in the country," said Peter Marin, Surrey's deputy leader.

"This will be a great boost for business, from start-ups in small offices through to multi-nationals. It can be crucial to the continued success of Surrey businesses and a huge attraction to those looking to move in."