BT's latest investment in a next-generation broadband network is a positive development but does not go far enough, according to an industry commentator.

Michael Phillips, product director for BroadbandChoices.co.uk, said the government needs to invest in the new broadband upgrade because internet service providers will not be able to sustain the cost.

He suggested the true cost of installing fibreoptic cables throughout the UK will be around £15 billion, whereas BT has committed to investing £1.5 billion.

Mr Phillips went on to state his belief that the government is not currently inclined towards investing in the broadband infrastructure, while BT and Virgin Media are the only internet service providers with the means to do it.

He added: "I can't see people like Sky or Talk Talk digging up roads because they just don't have the resources to do that sort of thing."

According to the Broadband Stakeholders Group, the UK could reap significant social and economic value from the widespread deployment of next-generation broadband.

It says the long-term benefits of a new broadband infrastructure could outweigh the cost of its installation.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)