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Next-gen broadband could be rolled out to 90 per cent of the UK by 2017 using money raised by the government's proposed broadband tax.

According to Point Topic, market demand should be enough to deliver fibre-optic broadband to 73 per cent of the UK by 2017, with a cross-subsidy and the £170 million raised each year from the £6 annual broadband tax sufficient to raise that figure to 90 per cent.

However, the research company revealed that its findings were based on the assumption that broadband users will be willing to pay £1.50 per month extra for next-generation broadband.

In order to justify this increase in price, Point Topic suggested that consumers should be provided with the continuous high speeds that come from having dedicated bandwidth, allowing them to make the most of video and gaming services.

Tim Johnson, Chief Analyst at the company, said: "People shouldn't be asked to pay this tax unless they're going to get something really worthwhile for it."

Recently, BT pledged to provide a guaranteed service of 15Mb in areas where fibre-optic broadband is available by 2012, v3.co.uk reports.

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