Every home in the UK is to have broadband internet access by 2012 under Government plans.
Lord Carter's Digital Britain report 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 aim to ensure everyone had quick enough internet access to watch videos online.
The report also proposed the creation of a new body to deal with the problem of people illegally copying and sharing music and films over the internet. The new rights agency would be funded via a levy on internet service providers (ISPs) and the music and film industry. Lord Carter also said new legislation was likely to be brought in requiring ISPs to take action against customers who repeatedly infringe copyright by sharing 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 new broadband obligation would involve all the major players in the field, the report said.
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Lord Carter said: "At the moment there is no universal service commitment to broadband at all. We're saying it should be provided by the entire industry. It could be via fixed line connection or wireless."
Paul Murphy, the minister for digital inclusion, said the sector had an important role to play in supporting people through the recession.
"Digital Britain outlines some important issues around the regulatory and technical aspects of creating a digital Britain," he said. "Through the digital inclusion agenda, which I am taking forward, we are focused on the social benefits which this new technology brings and its potential to tackle social issues and enhance life chances and opportunities."
The Government will look into regulator Ofcom's recommendations for a second Public Service Broadcaster to rival the BBC which would involve Channel 4 becoming part of a larger organisation. In its report last week Ofcom left the door open for partnerships involving BBC Worldwide, the corporation's commercial arm and Five.
The Digital Britain report said that while it made sense to begin looking at public sector bodies such as Channel 4 and BBC Worldwide, the Government was also looking at a "range of options".
