LONDON (Reuters) - Fibre broadband provider CityFibre (>> CityFibre Infrastructure Holdings PLC) said it had picked the English new town of Milton Keynes to launch its gigabit-capable home fibre network in partnership with Vodafone (>> Vodafone Group).

CityFibre will invest at least 40 million pounds in building its network in Milton Keynes, the first roll-out in a plan to connect around 12 cities and 1 million premises with fast broadband marketed by Vodafone.

The two companies announced their partnership in November, putting pressure on Britain's biggest network provider, BT's (>> BT Group) Openreach, which nearly all operators rely on to provide broadband connections in Britain.

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(Reporting by Paul Sandle; editing by Kate Holton)