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Every community in the UK will gain access to super-fast broadband by 2015 under plans outlined today.
The private sector is to deliver broadband to two thirds of the UK. Other, mainly rural, areas will receive public funds to build a "digital hub" with a fibre optic internet connection.
Ministers say they aim for the UK to have Europe's best broadband network.
Explaining why the government had abandoned the plans of the former administration that promised 2 megabits per second broadband for all by 2012, he said: "It's silly to hang your hat on a speed like two meg when the game is changing the whole time.
He added: "What we've said is that just giving people two meg is not enough, what people use the internet for is changing the whole time."