The most headline-grabbing part of the Digital Economy Bill will be a clampdown on onlinepiracy. Last month, Peter Mandelson set out the government's plans for a scheme which would see persistent online sharers of copyrighted material sent a series of warning letters before having their broadband connections slowed down or even suspended.
Music companies welcomed Mandelson's move, which goes further than the measures suggested by Carter in June's Digital Britain report, but internet service providers have warned that the cost of implementing the measures will outweigh the benefits.
There are also fears that innocent internet users could have their wireless broadband networks hijacked by pirates and fall victim to the tough new regime. One of the UK's largest internet service providers, TalkTalk, has already warned that it will launch legal action if the plan is put into action.