The Government is planning to impose 50 pence per month broadband tax on every household with a fixed line telephone to fund broadband installation to rural properties.
Some experts believe that Gordon Browns idea of broadband for all is just not achievable while others think that the tax will help to provide fast networks to most homes within a decade.
BT plans to upgrade 40% of UK homes to FTTC by 2012 (Fibre to the cabinet Technology) but this will not include difficult to reach rural areas.
Virgin Media plans to upgrade to speeds of 50Mbps. Virgin supplies broadband to 50% of urban and suburban homes.
It is estimated that the Government will raise about £170 million per year with the £6 per year tax although it is expected that some people will give up their lines to avoid the tax. Some experts think the tax may not be enough because it will be expensive to provide broadband to homes miles away from existing networks.
Gordon Brown has said that broadband is as essential as water, electricity and gas and the Government has earmarked £200 million to roll out broadband at speeds of 2Mbps to approx 2.5m homes who currently do not have access.
He believes that the Digital Britain report could make the UK the broadband world leader. However the final decisions will not be made for some time and we may have a new Government by then.
3 Comments
As ever, regardless of the question, the government answer is more tax.
Note the ‘tax’ for ‘broadband for all’, will be given to the private sector.! Subsidies for Virgi etc?
I suppose the next ‘tax’ will be to buy computers for those households haven’t got one otherwise what’s the point of paying for everyone to have access to broadband?
So i am now taxed £6 a year to use my broadband? This is just another stealth tax! Are we sure these 30% of people who have no internet access want internet access?
Why should everyone else fork out just because someone who chooses to live in a nice and often desirable countryside location can’t watch iPlayer? Ridiculous. Find a commercial solution to providing these people with access (satellite, for example) and charge them for it.
If the next tax is on “rural space” in order that those who are surrounded by green fields have to help fund gardens for us inner city dwellers in flat, then fair enough…