A major new review of the challenges and opportunities in the digital and communications sectors has been announced by the UK Government.

New peer Lord Stephen Carter will lead the report, which will look at how business and the Government can work to support the 'digital economy', which is worth £52 billion a year to Britain.

The study aims to understand how to deliver completely open access to public service content, to guarantee open markets, to properly inform all consumers about digital technologies, and to foster an effective and responsive regulatory system.

The announcement comes shortly after the publication of the Scottish Broadcasting Commission's own report, which recommended the creation of a new public service digital channel for Scotland, funded by public money.

"Communications have been revolutionised in the last 20 years, with consumers and businesses alike embracing the opportunities and taking advantage of the reality of the new technologies," Stephen said.

"Digital Britain is about capturing the opportunities on offer for UK PLC and the public, and advancing our standing as a world leader in these industries.

"Our ambition is to see Digital Britain as the leading major economy for innovation, investment and quality in the digital and communications industries. We will seek to bring forward a unified framework to help maximise the UK's competitive advantage and the benefits to society."

Culture Secretary Andy Burnham added: "We need to move quickly if we are to maximise the benefits of convergence. Over the last year we've worked with experts to get a clear understanding of the issues to address and obstacles to overcome if our businesses and citizens are to take full advantage of technology.

"Now is the time to move from the think tank phase to the delivery phase, and focus on the actions needed to bring benefits for both the economy and an enriched society."

It is estimated half a million people work in the digital and communications industries in the UK, with these sectors accounting for almost six per cent of GDP.

The report's publication is scheduled for early in 2009.