Birmingham has seen huge numbers of BT Broadband customers across the UK cut off.
The company said those affected numbered into the hundreds of thousands – about 5% of its total customers.
Business users were particularly badly affected, with many reporting considerable lost revenue as a result.
BT said the service has now been fully restored, advising customers to “turn their hub or modem off and on again”.
The first reports of lost connections began to appear at about 13:00 BST.
By 15:00 many customers on consumer packages reported being able to gain access, but business customers had to endure longer delays.
In a statement, the company said: “We can confirm that, as a result of a power failure at one of our major exchanges, some customers may have experienced loss of broadband service for a brief period this afternoon.
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We have been doing our very best to keep customers informed.”
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“All services have now been restored, with the majority of BT’s consumer broadband customers’ service being restored within just one hour.