Legal move 'could be launched against government broadband deal'

Broadband provider BT has said it may resort to legal action if the government continues with its proposed nationalisation of the UK's broadband system.

The government has pledged to provide broadband services to every home in the UK by 2012, a move which would necessitate extensive alterations to the existing network in order to provide mobile broadband services to rural areas not covered by fixed-line services.

However, a spokesperson for BT told the Guardian: "The proposal to extend current 3G licenses indefinitely represents a gift of several billion pounds from the UK taxpayer to the mobile operators."

The company is calling for such mobile broadband services to be opened up for auction, allowing all broadband companies to bid for a share of the market and increasing competition within the sector.

The introduction of mobile broadband services to rural areas could increase interest in VoIP solutions as a form of communication.

Earlier this month BT became the first internet service provider in the UK to have a customer base exceeding five million users.

Impact of mobile broadband on VoIP solutions uptake.