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50p broadband tax slammed


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#1 Kaido

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Posted 17 June 2009 - 17:32

Dunno is this the right place but...
The publication of the Digital Britain report has left a sour taste in the mouth of many who object to government plans to tax telephone lines.
The report said a 50p per month levy would be placed on all telephone lines to support rural broadband development.
BroadbandChoices.co.uk's Michael Phillips said the plans were "frustratingly vague".
"It's a bold move to tax all cable and copper lines by 50p per month to fund the infrastructure for superfast services to the estimated third of the population that will be left behind by the ISPs," he said.
"Unsurprisingly, the report has left any timescales for implementation – and the term of the proposed levy - frustratingly vague
Phillips continued.
Digital Britain: Main points
Forrester Research's Ian Fogg said there were several flaws in the plan.
"This is controversial and in my view will prove ineffective. BT aims to spend £1.5bn to reach roughly 40 per cent of the population that live in relatively cheap and easy-to-reach urban areas," he said.
"By comparison, the total return on £6 per annum for each of the 34 million or so fixed telephone lines will not go far given the scale of costs for fibre indicated by BT's plans," continued Fogg.
Fogg also predicted that BT's fibre deployment would exaggerate the difference between the speeds enjoyed in urban areas as opposed to rural locations.
"For the forseeable future, cities will enjoy markedly faster broadband than rural areas. Two-tier broadband is coming whether or not this government likes it," said Fogg.
The Country, Land and Business Association (CLA) agreed with Fogg, though it said it "welcomed the report's idea for a 50p levy on all fixed copper lines".
"Government investment is an essential prerequisite to rolling out broadband to all. This is a fair first attempt at trying to resolve the digital divide but more needs to be done if those in remoter parts of the country are to have a future in digital Britain," said the CLA's president Henry Aubrey-Fletcher.
Source

Edited by Drag#!, 17 June 2009 - 17:32.


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#2 WNxMastrefubu

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Posted 17 June 2009 - 18:25

bah, goverments wanna tax every thing to avoid straight taxing companies and people. they should be more direct
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#3 Libains

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Posted 17 June 2009 - 18:35

It's not a lot to be fair, and it will likely benefit those of us that don't live in an area of sufficient size that we would require Broadband usually. That said, I know some people will get frustrated by it, and to be fair, the amount of tax people are already paying is rather large - and another £6 in the pocket for the government may not go down well with them. Please beware of the politics, too folks.
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#4 Pav:3d

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Posted 17 June 2009 - 18:51

Goes without saying that an extra tax will piss people off. Another day, another tax in the UK...

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