The government has created a new broadband tax before the next general election to help fund a next-generation network. Fixed line operators will be charging customers an extra 50p a month, which doesn’t sound a lot, but that small tax will help the government to raise £175 million to help fund the next generation system.
Minister for Digital Britain, Stephen Timms, said -
We want to make high speed networks nationally available. The next-generation fund will help that and we’ll legislate for it this side of a general election.
Speaking at a BCS Chartered Institute for IT debate, MrTimms concluded that the tax would be presented to parliament as part of a Finance Bill. The government points out that due to telecom prices falling dramitically over recent years, the tax will be barely noticeable compared to the rise in prices of other media services and household utilities.
This tax is being questioned by the Internet Service Provider’s Association (ISPA), who feel that the government are penalising broadband customers due to the competitive nature of broadband pricing. Within any market, prices drop due to consumer need and choice, just look at the difference in mobile phone tariffs, which seem to offer better deals by the month. Whether this tax needs to be funded by consumers is questionable, but a government organised next generation broadband system can only be a good thing for the UK, both for business and pleasure.


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