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A row has erupted between BT and the government that could derail the domestic broadband revolution and the prospect of faster speeds in the UK, it has been reported.

According to a report from, BT will tell the government it is not prepared to invest in a next-generation network unless it is permitted to hike the charges other ISPs must pay to make use of BT's existing network.

Should BT continue to resist, it would represent a blow to government plans to deliver broadband speeds up to ten times faster than those currently being offered by UK ISPs.

BT has already approached Ofcom about raising charges to rival ISPs who were allowed to install their own equipment in BT's network as part of a move from Ofcom intended to increase competitiveness in the market.

BT claims that under the terms of the current system of pricing it is not realising the ten per cent return on the cost of its £11 billion network.

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