More than half a million prospective rural broadband subscribers could be losing out because of the lack of available coverage, according to the Countryside Agency.

The agency has launched a best practice study of broadband and is monitoring its development in rural areas.

A spokesman for the DTI said: "The DTI welcomes the Countryside Agency report which highlights many of the best practice examples of rural areas working to get broadband for their communities. The government has made good progress on broadband availability with some 80 per cent of the population now having access to mass market broadband, however we do recognise that more needs to be done in rural areas.

"To support this DTI has set up a dedicated Rural Broadband Team working closely with partners including DEFRA and the Regional Development Agencies. The Team will focus on the problems and issues for rural areas including supporting local campaign groups. The Team is currently producing a broadband toolkit to help rural communities and businesses understand the issues surrounding access to broadband and the rural environment.

"The DTI £30 million UK Broadband Fund has been used by Regional Development Agencies for pilot broadband projects, a number of which were included in the Countryside Agency report, to learn what will work in extending availability.

"Government is spending £1 billion on public sector broadband connectivity over the next three years. The DTI Broadband Aggregation Project is aggregating this demand and the fundamental aim of the Project is to lever this expenditure to secure wider broadband availability for the citizen and small and medium sized enterprises especially in rural areas."

Forum Response: Countryside Agency

Richard Wakeford, chief executive of the Countryside Agency, said: "With broadband suppliers unlikely to get all the UK online, it is up to rural communities to work together with funding partners and suppliers to get themselves on to the superhighway.

"Currently only seven per cent of villages are linked up to broadband, but with the right know-how rural communities can, and do, create their own broadband supplies.

"To help them the Countryside Agency has commissioned a best practice study with case studies and details of how to develop partnerships and get funding.

"Broadband is vital if we are to help many rural areas regenerate and survive. Broadband allows local businesses access to markets and services, provides better training opportunities for local people, stimulates the growth of community organizations and encourages young people to stay within their own communities."

Forum Response: National Farmers' Union

Andrew Opie, head of the technical department at the NFU, told ePolitix.com: "The NFU is concerned at the continuing problem of restricted access to broadband in rural areas.

"We are worried that this will prevent diversification projects being developed on farms, a key issue for all farmers and government.

"Farmers will also be directly affected as the internet is becoming an increasingly important business tool, not only for general trade but also to accommodate the increasing number of regulatory forms which are placed on line.

"The NFU would like more attention paid to this important issue and innovative approaches investigated for the supply of broadband in rural areas."

Forum Response: Countryside Alliance

Simon Hart, chief executive designate of the Countryside Alliance, told ePolitix.com: "We are acutely aware of this problem. Rural businesses are finding life difficult enough at present without having to worry about the unlevel playing field of broadband availability in rural areas.

"It is good to see the Countryside Agency taking the initiative with this best practice study - they echo what we have been saying for some time: that many communities have banded together to get access to broadband.

"This shows the determination of the rural community, but it should not be down to them to beg for services that are so readily available in urban areas.

"Broadband suppliers must realise that there is a massive demand for broadband in rural Britain and should take immediate steps to address the lack of supply - the mutual benefits of rolling out supply to rural areas should be obvious to anyone with good business sense. The rural community is not asking for special favours - just parity with urban areas."