The Government is defending its process for picking Telecom to set up the majority of the ultra fast broadband (UFB) network.

Telecom's split into a network company and service wholesaler and retailer now only hangs on a law change next month and a shareholder vote later this year, chief executive Paul Reynolds has told staff.

Fixed broadband connections have more than doubled in the last five years, to reach 61pc of households, new research has revealed.

Some new homes built in areas marketed as "fibre ready" do not have the wiring to support ultra-fast broadband, says an industry standards group.