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New phone line tax to pay for rural roll-out of Broadband
EVERY householder will have to pay a new tax to enable the Government to roll out broadband to rural areas, Ministers revealed yesterday.
The 6-a-year tax will be paid via monthly levies on fixed-line telephones as part of the Government's efforts to bring Britain into the digital age.
The proposal formed part of the Government's wide-ranging Digital Britain report, which made recommendations on everything from bringing broadband to rural areas to supporting the country's computer games industry.
Broadband internet already allows people living in towns and cities to use computers to watch TV, download movies and even talk to people on the other side of the world for free.
But at the moment access to broadband is available only for those living close to telephone exchanges. Under the Government plans unveiled yesterday, two-megabits-a-second broadband, fast enough to run most services online, will be expanded into every rural area.
At present internet access at this speed is out of reach to more than one in 10 households across the UK.
The new tax will go to an independent Next Generation Fund that would provide subsidies for operators to deliver fast internet to areas where it would not normally be commercially viable.
Prime Minister Gordon Brown yesterday described broadband as important as electricity and water.
He said: "Whether it is to work online, study, learn new skills, pay bills or simply stay in touch with friends and family, a fast internet connection is now seen by most of the public as an essential service, as indispensable as electricity, gas and water."
Mr Brown added: "Britain will be the broadband capital, Britain will make the investment that is necessary and every citizen in Britain will benefit from the fast connections."
However, the national chairman of the Federation of Small Businesses (FSB), John Wright, said a starting point of two megabits (2mbps) for universal broadband did not go far enough.
He said: "Research by the FSB shows that a third of small businesses already have 2mbps broadband speed, yet struggle to do core, day-to-day business activities.
"By 2012, 1 in every 5 will come from online commerce, but if small businesses are to compete, the Government must take bolder action."
The director general of the British Chambers of Commerce, David Frost, added: "The report does set out plans to meet the target of bringing two megabits of broadband to every household and business by 2012, but this is a very modest target.
"Given the rate at which content and technology usage is increasing, there is strong argument for a more ambitious long-term strategy."
BT chief executive Ian Livingston said next-generation broadband was vital to the country's economic future. "It is important that the Government finds ways to encourage investment in super- fast broadband, particularly in the parts of the country where the economics currently do not work," he said.
The chief executive of watchdog Consumer Focus, Ed Mayo, said: "The Government has accepted that broadband is now an essential service and that unless next- generation broadband reaches the whole population a digital divide will be created for consumers.
"However, cost-conscious customers will be asking why they are being asked to foot the bill."
The Digital Britain report yesterday also suggested communications regulator Ofcom will be given new powers to clamp down on people who persistently download music and films from the internet illegally.
The producer of James Bond film Quantum of Solace, Callum McDougall, said: "The Government has recognised that illegal file-sharing puts a disastrous strain on the creative industries."
New 6-a-year tax on every landline to pay for broadband roll-out
Part of licence fee to pay for TV programmes on other channels
All national FM radio stations to move to digital by end of 2015
New powers to clamp down on illegal downloading of movies and music
Martha Lane Fox made new digital inclusion champion
No relaxation of rules to allow local media groups to merge
Potential tax relief to British computer games programmers
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Saturday 26 May 2012
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