TalkTalk's Executive Director Strategy and Regulation, Andrew Heaney, said:

"We wholeheartedly support the investment to get speeds up to a minimum of 2Mbps across the country – Lord Carter’s so-called Universal Service Commitment or USC. Hopefully, the funds will now be enough to meet this target and possibly increase the minimum floor. TalkTalk are working with BDUK and other operators to help make sure that consumers and taxpayers get the biggest bang for their buck.

However, many are pushing for much of this public money to be spent on subsidizing ‘superfast broadband networks’ (aka next generation access) in more rural areas. We think that in such a tough economic climate this would be the wrong focus.

Instead, alongside the USC we think the funds should be focused on ‘digital inclusion’ – helping the 10m of our fellow citizens who do not use the Internet to start using it and enjoying the benefits it delivers. RaceOnline2012 estimate that using the Internet can save homes over £500 per year as well as helping to be better educated and informed and be more engaged with society and family. In some ways, being able to use the Internet is becoming as important as being able to read.

The simple maths show that spending on digital inclusion is the right priority. In rural areas NGA networks cost upwards of £1,000 per home passed. Based on experience elsewhere only 10% or 20% of homes might take up the new faster network. That means that it will effectively cost £5,000 to upgrade a home from 2Mbps to may be 40Mbps. For that same amount 10 or 20 people could be helped to use the Internet for the first time and enjoy the immense benefits it brings."