Britain needs a "fundamental upgrade" to its wired and wireless broadband networks if it is to lead the global digital economy.
According to Innovation Minister Pat McFadden, a broadband overhaul is required along the lines of the plans laid out last month in the Digital Britain report.
Writing on computerweekly.com, he said that there are 2.75 million households in Britain that are still unable to receive a 2Mb broadband service.
Responding to criticisms of proposals to provide 2Mb broadband to everyone in the UK by 2012, he added: "This is a floor to connectivity, not a ceiling for ambition, but it does go further than any country in Europe has on universality."
Mr McFadden also called on the digital and communications sectors to work closely with the government as new and improved broadband is rolled out across the UK.
"Only by doing this will we ensure that Britain will be at the forefront of the global digital economy, generating wealth and employment opportunities for this and future generations," he concluded.
Last month, former Microsoft employee Jerry Fishenden told the website that he was "puzzled" by the government's plans to introduce a £6 annual tax for all fixed-wire phone lines.