The £6bn of investment from existing funds will be used partly to deliver broadband to every primary and secondary school in the country by 2006.
Mr Blair also promised to wire up every doctor's surgery, hospital and courtroom as well as other public sector organisations such as the police and the pensions department in the next four years.
The news will give a boost to content and infrastructure providers who stand to benefit by winning government contracts.
But it will also reignite the debate over the government's decision to allow the BBC to lead the development of the online curriculum, which will deliver broadband content to schools.
Educational publishers and broadcasters argue that by doing so the BBC is stifling competition in the area.
A report published today rating the progress of major industrial nations in developing e-government showed that while Britain had made headway in transferring government services online, too few people were using them.
It has also been hit by high profile failures such as the chaos surrounding its attempts to introduce online tax returns and to put the 1901 census online.
"Our new strategy will focus on driving up access in key categories across the NHS, education, transport, benefits, tax and criminal justice," said Mr Blair.
"It will include, for example, services to enable drivers to conduct all their dealing with government online including tax discs, vehicle registrations and driving licence applications," he added.
Other innovations would include email prescriptions and appointments for doctors and systems whereby police and witnesses in criminal trials would be called by text message when it was time to give evidence.
The government hopes that by connecting schools and GPs to broadband networks, it will encourage BT to offer the technology in rural areas. Other options for out of the way towns and villages include satellite and wireless connections.
"This is the transforming technology of our age. Its potential is still hugely under-exploited. Its capability to transform our businesses, public services and societies immense. It is the key long term economic and social challenge," Mr Blair concluded.
Quelle: Guardian Unlimited
