The European Commission has set a target for 25 per cent of the continent's businesses, authorities and homes to adopt IPv6 – the next generation internet protocol - by 2010.

The previous protocol, IPv4, has been in use since 1984 and supports a total of 4.3 billion web addresses. But only 16 per cent of these are still available for the creation of new connections – a situation that could potentially curb the growth of the web.

The new protocol will remove this problem by making available a near-infinite selection of new addresses. The transition will take time, but such a move is essential for Europe to make the most of next-generation technology, said Viviane Reding, European commissioner for information society and media.

"In the short term, businesses and public authorities might be tempted to try to squeeze their needs into the straitjacket of the old system, but this would mean Europe is badly placed to take advantage of the latest internet technology, and could face a crisis when the old system runs out of addresses," she said.

"If Europeans are to use the latest internet devices such as smart tags in shops, factories and airports, intelligent heating and lighting systems that save energy, and in-car networks and navigation systems, then we already face a thousand-fold increase in demand for IP addresses. I call on member states to make sure that public authorities and industry have IPv6 widely sewn up by 2010. "

Policy makers, industry representatives and large users will convene to discuss the issue at a Commission-hosted event on 30 May in Brussels.