A sizable allocation of public funding for next-generation broadband services could be bad for the market, according to Sky.
The broadband ISP made the suggestion in the wake of Lord Carter's Digital Britain report, which also voices concerns over the effect of large-scale public investment in high-speed networks.
Sky has referred to the "wasting" of public funds diverted towards the market when private investors are keen to bankroll projects.
The company said in a statement: "While industry is in this experimentation phase, public intervention in the market or even the possibility of it could chill private investment.
"While commercial companies are testing the economics of NGA (next-generation access), there is a real danger that the deployment of public money could distort incentives and be wasted funding investments that would otherwise shortly be made by the private sector."
Sky called on Virgin Media to open up its cable broadband network to other providers in order to speed up the roll-out of super-fast services.