BT broadband use for VoIP providers

There was a boost for VoIP providers in the UK as BT announced it is to invest £1.5 billion in fibre optic infrastructure, providing a "new chapter" in the UK's broadband story.

The investment should provide ten million UK homes with faster broadband, which means that 40 per cent of UK homes will have an ultra-fast service by 2012 - allowing their connection to deal with VoIP traffic.

However, the investment will only be made if Ofcom - the UK's telecommunications regulator - permits BT to get a worthwhile return.

BT says that Ofcom must nurture a "supportive and enduring regulatory environment" - including a fair rate of return for shareholders.

"Broadband has boosted the UK economy and is now an essential part of our customers' lives," said Ian Livingston, chief executive of BT.

"We now want to make a step-change in broadband provision which will offer faster speeds than ever before."

While BT will be laying countless new wires, most broadband users say they prefer life without them.

A survey by IP PBX company Linksys found that 59 per cent had a wireless home network for internet use.

The lack of cables was the main reason cited.