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TUBE passengers could make mobile phone calls and work online while underground under Government plans for a “digital revolution”, it was announced today.

A scheme for mobile phone technology on the London Underground had been shelved as not cost-effective, but now the Government has said it will step in.

Officials will meet Transport for London (TfL) and mobile phone experts to get the plans back on track.

Under the vision outlined by communications minister Lord Carter in his Digital Britain report, universal broadband access will be provided by 2012.

A 50p-a-month "broadband tax" on all fixed copper and cable telephone lines would be used to subsidise the installation of networks in areas where it would not be commercially viable. In time for the London Olympics, everyone should have access to 2mbps (2 megabits per second) broadband.

At present internet access at this speed is out of reach to more than one in 10 UK households.

The Government also has plans to extend 50mbps next-generation broadband to 90 per cent of Britain by 2017.

Commercial internet providers, including BT and Virgin Media, have promised to open up large parts of the country to this service, but the report estimates only two-thirds of the UK would have access to it if left to the market alone, leaving the countryside lagging behind in particular.

Prime Minister Gordon Brown has made the harnessing of technological advances a key policy. He said the internet was “an essential service, as indispensable as electricity, gas and water”.

BT welcomed the report, but said it was important that money from the next-generation fund only went to companies that were prepared to open their networks to their rivals.

Ian Livingston, the company's chief executive, said: "This is an ambitious report which describes a strong vision for the years ahead.

"It is important that the Government finds ways to encourage investment in super-fast broadband, particularly in the parts of the country where the economics currently do not work.

"Today's report recognises this and Lord Carter should be praised for offering a creative solution."

But some groups said hard-pressed householders would not welcome having to pay a "broadband tax".

Ed Mayo, chief executive of Consumer Focus, said: "The Government has accepted that broadband is now an essential service and that unless next-generation broadband reaches the whole population a digital divide will be created for consumers.

"However, cost-conscious customers will be asking why they are being asked to foot the bill by the Government."

Other plans outlined in the report include: a regulatory attack on digital piracy; a digital radio upgrade by 2015; and £130m of BBC licence fee to pay for ITV regional news.

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