British think-tank Demos has called for telecoms giant BT to be broken up and for control of the local loop to be given over to a not-for-profit company.
The local loop - the link from homes and businesses to telephone exchanges - is maintained and run by BT, which owns Esat in Ireland, but Demos believes this control is hitting competition.
In a report, Demos claims that handing control of it to a not-for-profit company would "maximise access to all telecoms service providers and increase network innovation".
Demos is concerned about the development of broadband - an enhanced way of receiving phone, computer and television access - under BT.
Mr James Wilsdon, co-author of the report and head of strategy for Demos, said: "The UK is sleepwalking towards a broadband monopoly, with little opportunity or incentive for innovation with the network.
"The Government has consistently ducked this issue and tackling it should be a top priority for [telecoms regulator] Ofcom from the start".
Demos wants Ofcom to carry out a cost-benefit analysis of breaking up BT and says there is already "compelling evidence" in favour of such a move.
PA
