According to a report in the Financial Times, BT’s chairman, Sir Christopher Bland, has said that the company were looking at increasing broadband speeds to between 40 and 50Mbps.

Such a scheme could cost around £4 billion, and thanks to regulation and the high cost, BT would have to make a viable case for implementing it.

FTTC (Fibre To The Cabinet) and VDSL2 are great technology, but in a market where customers want to pay as little as possible for their broadband, BT would need to prove it could recoup the massive cost of development more quickly through value added services such as video on demand.