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Difficulties within the BT Group Global Services business will not curtail the development of a next-generation fibre-optic cable broadband network in the UK.

That is according to the broadband provider's chief executive, Ian Livingston, who was speaking at the World Economic Forum.

Mr Livingston was asked whether the £340 million hit suffered by the Global Services business would effect other spending plans, including the proposed high-speed broadband internet network, to which he replied: "No, I don't think so."

"We still have strong plans to invest in fibre in the UK and also, actually, to still expand our global presence," Mr Livingston continued.

BT has revealed its aim of allowing ten million homes access to faster, fibre-optic broadband services by the year 2012 - testing has got underway in north London and Wales.

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