How effective will tax levy on phone lines for broadband be?

Some industry officials have reported that many are now questioning just how effective the proposed tax levy on phone lines will be when it comes to improving the future of broadband for all.

When it comes to finances to aid the future of the broadband industry, things have been very difficult in the UK, and whilst the nation has not relished the thought of being left behind other major countries lack of funding has played a big part in just how effective advancements in the UK broadband industry have been.

However, last week Lord Stephen Carter released his Digital Britain Report, and this report stated that everyone in Britain that had a fixed line telephone would have to pay fifty pence a month in taxes, the proceeds of which are said to be going towards funding the government’s Broadband for All plan.

There have been mixed reactions to this tax levy, with some people believing that the fifty pence tax on all people with fixed line telephones will ultimately mean that within the next ten years most households will be able to enjoy access to high speed broadband. However, the sentiment is not universal, as many other experts have questioned whether the broadband for all plan is even a viable one.

One industry official said: “There are around 34 million fixed lines in the UK and at £6 a year this is going to raise in the low hundreds of millions each year. This is some way off BT’s budget of £1.5bn to put fibre in 40% of homes by 2012. There is going to be a two-tiered internet for a long time, whether the government likes it or not.”

Source – http://news.bbc.co.uk