The government has allocated £830m to fulfil its promise of providing the best superfast broadband network in Europe by 2015.
Culture secretary Jeremy Hunt outlined the plans at the launch of a report entitled Britain's Superfast Broadband Future (PDF), talking of a "digital hub" in every community in the UK.
"A superfast network will be the foundation for a new economic dynamism, creating hundreds of thousands of jobs and adding billions to our GDP," he said.
"But it is not just about the economy. Around the world there are countless examples of superfast broadband helping to build a fairer and more prosperous society, and transforming the relationship between government and citizens."
Hunt also announced that £50m will be earmarked for a "second wave of superfast broadband market testing projects".
As part of the announcement, BT has promised to match any funding it receives from the £830m pot in what Hunt described as a good example of how a public-private approach to network investments could help meet the 2015 deadline.
"It's a great example of public funding and initiative stimulating private sector investment," he said.
BT estimates that it could extend fibre to up to 90 per cent of UK premises if the company is given supplementary funding.
Hunt also mentioned community groups and smaller providers such as Rutland Telecom, Geo and Vtesse as evidence that the market is finding ways to meet the challenge of superfast broadband in all areas.
The government report noted that mobile services can bring broadband to remote areas, but that it is not a complete solution.
"[Mobile and wireless networks] should very much be seen as complementary to any deployment of superfast broadband over fixed-line technologies," it said.
"While the headline speeds won't reach the levels enjoyed by fibre-based services, the greater mobility and variety of devices will deliver significant innovation in services and applications."
The report also gave its backing to the use of satellite technology for broadband delivery, arguing that it "will need to be part of any solution aiming at universal coverage".
"Satellite is a viable option for the most remote users and for those in some other not-spots," it added.
The report was welcomed by Cisco UK chief executive Phil Smith, who warned that by 2014, 90 percent of internet traffic will be made up of video, meaning businesses will require much more bandwidth as standard.
"This new target shows that the government understands this and is looking to build a network that will allow the UK to make the most of the next generation of internet applications," he added.
"This could transform the way public services such as healthcare and education are delivered to be the most effective and accessible to citizens."
However, Charlie Davis of analyst firm Ovum was more cautious, warning that higher penetration of superfast broadband could lead to an increase in incumbent market share.
“There is nothing new in yet another government stating its intention to be the ‘best in broadband’; many other markets in Europe have cited aggressive development of broadband infrastructure as a key means of achieving differentiation in the global economy," he added.
"Nor is there any transformational aspect to the announcement of £830 million of public funding to ensure ubiquitous coverage; the market is expected to deliver broadband to two thirds of the country.”
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago