A new report has suggested that the installation of a next-generation fibre-based broadband service could cost as much as £28.8 billion in the UK alone.

The Broadband Stakeholder Group (BSG) has stated that the figure could go up from the base prediction of £5.1 billion depending on the technology used, after an in-depth analysis by Analysys Mason.

Point-to-point fibre would be the most expensive option, although a national deployment of fibre-to-cabinet broadband technology would only cost the lowest figure quoted, which BSG noted to still be in the region of three to four times more expensive than the current systems in operation.

Rural networking was cited as a major expense.

Matt Yardley of Analysys Mason said: "The magnitude of the costs, and how the costs differ between urban and rural areas, will be important for operators, media players and public sector organisations looking to develop their future broadband strategies."

Based in Aldwych, central London, Analysys Mason provides market intelligence and strategy advice.

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