Birmingham city council’s use of public funds to create a broadband network is set to face legal action from BT and Virgin Media.

The two communications giants are to launch legal action against the creation of a competitive broadband infrastructure funded from the public purse.

The issue was raised last week and is expected to be introduced in the House of Lords debate today by Lord Howarth.

James McKay from Birmingham city council commented: "Birmingham is extremely disappointed in Virgin Media's decision to appeal this landmark ruling. The city has worked in a very positive and collaborative way with them over the last few years to help inform and develop our business case and we are surprised that they have now chosen to appeal at such a late stage."