Cable company ntl has signed an £85m contract with Internet provider AOL to extend broadband around Britain.

Ntl has been at pains to roll out its superspeed Internet provision to its customers and the deal will offer both companies greater opportunities.

The agreement will allow AOL Broadband to reach all 7.2 million households capable of receiving the service via ntl's network.

It also provides for an extended agreement for ntl business' existing ordinary Internet users.

Ntl has its regional headquarters at Preston Farm Business Park, in Stockton, and provides television, telephone and Internet services to cable customers.

Karen Thomson, chief executive of AOL UK, said: "This agreement will give AOL the widest coverage of any broadband service provider in the UK and help us to build a leadership position in the high-speed market.