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The government should halt its taxation of fibre-optic cable broadband networks if it wants to speed up Britain's next-generation development.

That is according to fibre-optic broadband supplier the i3 Group, which has warned that companies have less of an incentive to invest if they are taxed heavily for the construction of fibre-optic networks.

Tax levels on fibre construction could lead the i3 Group to reconsider their plans for a 100Mb broadband network.

"While not entirely mutually exclusive, the twin aims of faster connectivity – in order to support national business and educational needs – and revenue raising from fibre taxation, work in opposition to each other," explained i3 Group Chief Executive and founder, Elfed Thomas.

He went on: "The potential damage to the timely roll out of a national fibre network cannot be under estimated."

The i3 Group's Fibrecity project connected parts of Bournemouth with broadband offering speeds of up to 100Mb.

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