Communications regulator Ofcom has launched a consultation on the future of the UK’s broadband networks.

The watchdog wants to prepare for the growing demand for higher-speed services such as video streaming that will potentially stretch the current telecoms infrastructure to its limits.

The large investment required by broadband providers is viewed by some experts as a potential barrier to developing next-generation access networks. Some countries are more advanced than the UK in implementing technologies such as fibre-optic links to residential homes, and Ofcom wants to ensure this country is able to remain competitive.

"Next-generation access offers tremendous new opportunities for UK business and consumers, and its potential impact on the economy is very significant,” said Ofcom chief executive Ed Richards.

“Investment in next-generation access will represent a substantial commercial risk and the market should decide where and when it will be made. We want to ensure there are no barriers to investment and provide a clear regulatory environment which will help encourage investment,; he said.

"But we also want to ensure that the benefits of competition which consumers have enjoyed with current generation broadband can also be achieved as we move to higher speed next-generation access."

Competitiveness minister Stephen Timms announced earlier this month plans to hold a meeting of broadband industry stakeholders to discuss the challenges for developing next-generation broadband networks.