AS IS so often the case in government communications, there’s a devil in the detail of the Digital Britain White Paper.

The document published earlier this year set out ambitious plans to make sure all UK homes had access to broadband speeds of two megabits per second by 2012. Just in time, perhaps, to enjoy highpoints of the London Olympics taking place the same year – and creating a digital infrastructure headache all of their own.

It is currently estimated that more than 2m people in rural areas have inadequate broadband.

That's one way of looking at, or trying to gauge, the extent of the digital divide in Britain. But it may be considered a rather narrow view.

Is the significance of broadband speeds in rural areas linked to making sure relatively wealthy second home owners can spend more time away from their offices? Quite possibly, I'd suggest.

Isn't it as critical to ensure our digital networks offer fast connectivity to less prosperous areas in towns and inner cities, where deprivation levels remain a barrier to engagement and economic growth?

An attempt to narrow the digital divide, outlined in the White Paper, has come under extra scrutiny this week.

The Government proposes a new tax of 50p a month on phone bills to bankroll development of our digital networks. It could raise £175m.

Critics argue it amounts to over-zealous state intervention and raise concerns that it will only deter the private sector from spending to upgrade our networks.

Telecom operators will have no incentive to invest their own cash if they can tap into a subsidy.

The Conservatives, on the other hand, propose more deregulation comparable to France, where France Telecom has been forced to open its ducts so ISPs have been competing to lay high-speed networks.

Subsequently, their rural coverage is better than here.

The majority of broadband users in the UK rely on a broadband infrastructure provided via existing copper phone lines, which is inherently slower. Some estimates say that around 166,000 households are unable to access the internet at all, and a total of 11% of all homes can only get the slowest speeds. That, surely, is the issue that must be tackled if Britain is to remain a top player in the digital age.

MATT JOHNSON is chairman of Mando Group.