Communications regulator Ofcom has unveiled proposals to encourage companies to invest in the infrastructure needed to make "next-generation" broadband a reality.

The body is suggesting allowing companies the freedom to set their own prices in areas where there is genuine competition.

It has also pledged to outline the standards such offerings must meet and use the recent local loop unbundling project as the basis for providing access to the existing telecoms infrastructure.

Next-generation broadband could deliver speeds of up to 100Mbps but requires substantial investment by providers to replace existing copper wires with fibre optic cables.

Ofcom said it would publish a statement on superfast broadband in spring 2009 after consultation with various parties.