The UK government is reconsidering how it can deliver broadband services to rural communities in light of its failed auction for wireless internet spectrum licences.

In a White Paper published last week - A Fair Deal for Rural England - the government promised a review of broadband services in rural areas.

The Paper, introduced by Deputy Prime Minister John Prescott, said that Downing Street will "review the need for an expanded universal service obligation to include access to high-speed internet connections in light of the coverage delivered by the market".

In November, the government raised only £38m for licences covering the main metropolitan areas of the UK. There were no takers for licences covering most areas outside the big cities.

The money raised was in stark contrast to the £22.5bn collected from the third-generation mobile licence auction earlier in the year. And the lack of a widespread service offered by the new wireless internet entrants has led to questions about the government's commitment to providing a universal service to those wanting to take part in the e-economy.

A Department of the Environment spokeswoman told Network News: "This review is designed to fill in the gaps."

It is not clear how long the review will take, but user groups have pledged to take part in consultations with the government. The Communications Management Association says it will participate in an enquiry ordered by the Department of Trade and Industry into the failure of the wireless internet auction.

The Paper is also committed to providing more CCTV systems in rural communities, and the delivery of video and telelinks for the provision of healthcare.

First published in Network News