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A funding shortfall is jeopardising the chances of the government achieving its super-fast broadband goals, a new report has claimed.

The Con-Lib coalition wants to deliver download speeds of at least 24Mb to 90 per cent of the UK population by 2015.

But the London School of Economics (LSE) believes an additional £1.1 billion of government money will be needed to hit this target.

At present, the coalition has allocated £680 million to the national broadband upgrade - £530 million for rural areas and a further £150 million to create 20 super-connected cities.

An additional £300 million may also be allocated to the rollout of next-generation broadband from the BBC licence fee between 2015 and 2017.

However the LSE believes more money is still needed if super-fast broadband is to reach people living outside of major urban areas.

"The government expectation of deploying ‘the best super-fast broadband network’ in Europe by 2015 seems optimistic," it stated.

"The target of 100 per cent coverage by basic broadband by 2015 is likely to be met, but it is less clear when the government targets of 90 per cent coverage by super-fast broadband, and 100 per cent coverage by fast broadband, are likely to be met."

Continuing, the LSE said there may, by 2017, be enough users of super-fast broadband to justify public funding for reaching the remaining ten per cent.

"However widespread coverage may be, approaching 100 per cent take-up is likely to take until around 2025, because of the large proportion of older people who are not online."

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