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Broadband providers and the government must decide on a regulatory framework which encourages investment into a next-generation broadband network for the UK, the chief executive of O2 has suggested.

In an interview with the Independent, Ronan Dunne stressed that it was vital that talks involving the government, communications watchdog Ofcom and several broadband providers reach a satisfactory conclusion.

He also backed up the proposal made by communications minister Lord Carter in his recent Digital Britain report - that the country should enjoy 100 per cent broadband access.

"Things like government and regulatory certainty are really important," Mr Dunne said. "If we sit on our hands and don't invest, there is a danger that Europe gets behind the investment curve.

"There is a demand for moving towards 100 per cent broadband, so working towards that has got to make sense."

O2 and Vodafone are currently in talks over a deal which would free up parts of the 900MHz spectrum for other mobile broadband providers.

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