PATIENTS could be examined by their GP over the Internet under ambitious Government plans for super-fast broadband in the countryside.

Business Secretary Lord Mandelson yesterday launched a consultation into how a £1 billion fund – raised from a controversial broadband tax – would best be spent.

One idea being considered is the expansion of "telemedicine" which would provide "real-time interaction between doctor and patient so consultation and even examinations can be undertaken online".

The Government believes the technology could bring huge benefits for the elderly and people living in rural areas.

Other proposals include the expansion of two-way video conferencing to allow more people to work from home, reducing carbon emissions through decreased traffic congestion.

Lord Mandelson said the £1 billion fund "is about bringing the future of broadband to areas of the country that would otherwise miss out".

But critics claim the £6-a-year levy on telephone landlines is "regressive" and could cost British businesses £70 million a year.

The Digital Britain Report, published in June, set out plans for a Next Generation Fund, raised through a landline duty of 50p per month on fixed lines as a "fair and sensible national investment".

The Government said estimates suggest that private investment will only reach up to 70 per cent of the population by 2017.

But Lord Mandelson added: "We cannot underestimate the opportunities this will bring for homes and businesses which is why we are taking action to make sure everyone benefits.

"Already the market is delivering super-fast Internet speeds of 50Mbps (megabits per second) to half the country but we cannot be certain that it will reach the communities that are not currently served, which is why we are putting in an extra £1 billion to support the market.

"By upgrading our networks we will put the UK at the fore of rapidly developing technologies which will bring jobs, boost business potential and grow our digital economy."

Countryside campaigners have long argued for greater investment in broadband.

Stuart Burgess, chairman of the Commission for Rural Communities, last year told the WMN: "Rural communities ought to have a similar opportunity of access to speed as they do in urban areas and there shouldn't be that differentiation."

He called for investment on the same scale as was spent in the 1960s and 1970s on building motorways.

But Conservative shadow culture secretary Jeremy Hunt criticised the broadband levy.

Shadow culture secretary, Jeremy Hunt said: "I can't believe the Government is pressing ahead with such a damaging and misguided tax.

"Not only do they admit that it could have a negative impact on broadband roll-out but they also reveal that it could damage UK businesses in the middle of the worst recession to happen since the 1930s."

The Government's consultation says that a firm with 250 employees would be expected to pay a "fairly small, in relative terms," landline duty in the region of £1,500 a year assuming one line per employee.

It continues: "However, it is possible that in a limited number of cases, the proposed landline duty may represent a significant financial impact."