The British Government launched a consultation on Thursday on how it should spend £1 billion to take superfast broadband to almost all areas of the country.

The Next Generation Access fund will be generated by imposing a 50p duty on all fixed line phones.

The Government wants to bridge the gap between the urban and rural areas by providing all households with access to 2mbps broadband by 2012.

Speaking on the topic, Business Secretary Peter Mandelson said, "This investment is about bringing the future of broadband to areas of the country that would otherwise miss out."

The Government stepped in after estimates revealed that private investment would be able to bring broadband to just 70 per cent of the households by 2017.

Plans for the Next Generation Fund were announced in the Digital Britain white paper released last year.