Government plans broadband internet in every UK home by 2012
Every home in the UK will be guaranteed access to broadband internet by 2012 under Government plans.
The Digital Britain report said everyone should have download speeds of up to two megabits per second - fast enough to watch video online - in time for the London Olympics.
The Prime Minister said digital technology would be as important to the nation's prosperity in the 21st economy as "roads, bridges, trains and electricity were in the 20th Century".
The report on the future of the internet and communications industries - which currently contribute s50 billion to the UK - also outlined plans to tackle online music and film piracy with a new rights agency.
The agency would be funded via a levy on internet service providers (ISPs) and the music and film industry.
Legislation is likely to be introduced forcing ISPs to take action against people who repeatedly infringe copyright by illegally sharing music and movie files.
ISPs would have to tell customers their activities were illegal, and collect information on repeat offenders. This information would have to be passed on to rights-holders - film and music companies - on receipt of a court order.
The interim report, drawn up by communications minister Lord Carter of Barnes, proposed to scrap BT's obligation to ensure every home has access to a telephone line and replace it with a requirement to provide broadband.
This so-called universal service commitment would involve all the major players in the industry, Lord Carter said.
Andy Burnham, the Secretary of State for Culture, Media and Sport, said Lord Carter's 22-point plan would help the country reap the economic and social benefits of the digital age.
Outlining the report to the House of Commons, Mr Burnham said: "The challenge now is this: how to build the networks and infrastructure that help businesses and consumers get the most from the digital age; and funding the quality content that enhances our culture and economy."
But opposition politicians criticised proposals for two megabit broadband, pointing out that national average access speed was already 3.6 megabits.
Jeremy Hunt, the shadow culture secretary, said: "Isn't the scale of the Government's ambitions pitifully low, simply saying it wants to ensure the whole population has access to half the current average speed by 2012?
"Why have we got such low ambitions, such a low target?"
Before the publication of the final report later this year, the Government will decide whether public money should be used to help create a new super-fast broadband network for the UK.
Ministers are concerned internet providers may not have the inclination or finance needed for such a project, which would need substantial investment in new infrastructure.
The CBI said the Government needed to make it clear how improvements to the broadband network would be paid for.
John Cridland, the deputy director-general, said: "Business wants to see a clear vision of how to move to a fully functioning knowledge economy.
"Extended access to broadband for businesses and households has to be the right way forward, but there must be a dialogue between business and Government about how this can be funded.
"The Government must also put in place the right conditions for essential investment in next generation broadband."
Lord Carter also addressed public service broadcasting in today's report, saying the government would look into regulator Ofcom's recommendations for a second public service broadcaster to rival the BBC.
Ofcom's suggestion would involve Channel 4 becoming part of a larger organisation, probably through a merger with BBC Worldwide, the corporation's commercial arm, or rival broadcaster Five.
The report said that while it made sense to begin looking at public sector bodies like Channel 4 and BBC Worldwide, the Government was also looking at a "range of options".
A plan to transfer existing FM radio stations to digital broadcasting, known as DAB, was outlined in the report.
Car manufacturers will be encouraged to make DAB radios standard in new vehicles.
Lord Carter said setting an "artificial" date for the end of FM broadcasting would be unhelpful.
Work needed to be done to ensure everyone in the country had the knowledge and skills to get the best out of the internet, the report said.
Age Concern said special efforts should be targeted at older people to help them engage with digital technology.
Gordon Lishman, the charity's director general, said: "There's a lot on the web for older people. Accessing services and shopping online to get the best deals can be a real lifeline for some. However, not every older person has a computer at home.
"We would not want to see a Digital Britain emerge where technology serves to entrench and exacerbate the exclusion of older people."
