A significant share of the UK's rural population will not be reached by high-speed, super-fast broadband, according to Lord Carter.
The communications minister penned Digital Britain, a report into the future of the UK broadband market.
In a recent interview with the Daily Telegraph, the senior cabinet member conceded that some areas of the country will not enjoy fibre cable broadband in the near future.
He said that there would "certainly be 25-30 per cent of the country where there will be no economic case for building a next-generation fixed network".
However, Lord Carter suggested that this group would still have access to broadband connections fast enough to watch internet video.
"In less than ten years, we will be in a complete 'on demand' television world," he predicted.
The BBC recently unveiled plans for an HD version of its popular iPlayer service.