A report by the Broadband Stakeholder Group, a Government advisory group, on how much fibre-based "next gen" broadband could cost the UK, paints a gloomy picture.

Apparently installing high speed broadband - capable of speeds up to 100Mbps - in every home in the UK could cost up to £29 billion, with a minimum cost of £5 billion, and rural areas more expensive to connect than urban ones.

Antony Walker, chief executive of the BSG, said: "This is the most comprehensive analysis produced to date on the costs of deploying fibre in the UK".

"The scale of the costs looks daunting but the report does shed light on how some of these costs can be reduced and what the likely extent of commercial rollout will be."

"It should focus minds of commercial players, policymakers and regulators on the potential solutions to these challenges."