A new European Commission ruling has granted permission for a relaxation of current regulations governing the UK broadband market.
According to the review released today, 64 per cent of UK markets are competitive enough to prevent any single supplier becoming dominant, paving the way for deregulation in some parts of the country.
Currently, industry watchdog Ofcom imposes limits on suppliers providing wholesale broadband services which are sold to telecoms companies to provide consumer internet access.
Such regulations were introduced to prevent BT - which owns much of the UK's broadband infrastructure - from monopolising the UK market, the BBC reports.
The commission found that in parts of the country, BT now faces competition from four or more wholesale providers, making the market competitive enough to be deregulated.
EU telecoms commissioner Viviane Reding advised that the UK should "only regulate where regulation is necessary, where there are bottlenecks", Reuters reports.
An Ofcom spokesperson has said that while it supports the recommendations, it will be a while before a final decision is made.