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10 Mar 2010
Digital Britain minister Stephen Timms has defended the government's controversial landline duty, arguing that it is the best way to fund the delivery of high-speed broadband to 90 per cent of the UK by 2017.
Timms said at the National Digital Inclusion 2010 Conference today that the 50p per month duty is a small price to pay to help provide the country with a next-generation internet infrastructure.
"The cost of the landline duty is minimal in relation to the benefits it will provide for business. It is important that we get on with overseeing the development of next-generation services," he said.
Timms added that access to high-speed broadband is vital in helping many businesses, particularly those in rural areas, to compete and thrive in the current economic climate.
"Businesses in rural areas often say that the thing they really need to be able to compete with those in urban areas is high-speed broadband, so they can send gigabytes of data across the network," he said.
"The £1bn landline duty is intended to provide just that by enabling the creation of next-generation internet speeds in areas that private sector funding would not otherwise reach."
Last week, Timms announced the formation of Broadband Delivery UK, a body that will oversee investment in the next-generation network and the universal service commitment of 2Mbit/s broadband for all by 2012.
Prime minister Gordon Brown underlined the government's desire to narrow the digital divide in a pre-recorded video played to delegates at the Digital Inclusion event.
"We are committed to ensuring that the UK becomes the world's first entirely online nation. We intend to make high-speed broadband available to everyone, and we will also capitalise on the opportunities of the digital age to offer services online," he said.
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Do you agree?
50p for starter
well ok 50p wot about the next year and the year after.is it a one off or will it cost more in the in the years to come.And when the uk is 90% or target reached broadband will the cost be removed.
Posted by: darren 31 Mar 2010
ISP
I like the idea of 50p tax but i think this should be given to the isp and not the consumer. Since we never going to get them to upgrade their networks.
Posted by: ben 13 Mar 2010
50p Landline tax
If it can deliver to 90% of businesses,why not 100% and also 100% of towns,cities,rural communities in consumer after all consumers will need the same speed as companies also.
Posted by: david 11 Mar 2010
rip-off
It would be nice if I already got the service I was paying for. It's supposed to be 'up to 8Mb' (note it never says minimum) and I am down to 6Kb at times. If the ISP companies wish to increase these derisory values then they should fund it, it's them who will reap the profits. It's just another ill-thought out labour scam
Posted by: Peter Hindley 11 Mar 2010
More tax/less speed
Oh wow another tax yay. I love new taxes on top of all the other ones. Maybe if this country didnt dole out (more than average earnings) money to single mothers with 5-100 kids or spending a stupid amount of money on pointless wars which NOBODY wants then there might be some money in that black hole they call a treasury to fund projects that actually help people get the stuff they need. Better yet use the money to actually fix the economy by getting more jobs available and not handing billions out to companies who knew what they were doing when they handed out 110% mortgages to people they knew couldnt pay back. Heres a thought why don't all these taxes get put back into the country? Oh wait that is what taxes are for. the international bankers with obama and brown will all get whats coming to them and if I had half a chance I'd gladly sacrifice my life to destroy the bankers and all their mafia family and friends. They've ruined this planet and theres still loads of you out there who are ignorant, scared or just plain stupid. WAKE UP PEOPLE. THIS IS THE ONLY LIFE YOU GET SO SWITCH OFF THE PROPAGANDA BOX AND GET UP FROM YOUR SOFA'S TO FIX YOUR COUNTRY
Posted by: Marios Kalogerou 11 Mar 2010
Why should we pay twice?
This tax is totally wrong! Why should people who have paid for an internet connection over the years, back as far as pay by the minute dial-up, and have upgraded and taken new services as they've become available, now have to pay for other people to get broadband? Broadband is nowhere near as expensive nowadays as a dial up connection was back then. Anyone can afford it if they choose too, just economise elsewhere, miss a night at the pub, smoke less, give bingo a miss, the options are endless. People who are on cable don't even get their internet via the phone line, so why should they be taxed on it, they've already invested in the cable infrastructure by being a customer. Another ill-thought out Gov't tax!
Posted by: Mark S 10 Mar 2010
Why only 90%?
If we are to pay this tax then it should be for everyone, although there may be a good reason why one percent can't get it. I trust it will ensure that absolutely everyone in Surrey can get hi-speed broadband without having to pay for a new line to bee put in. There are all sorts of legacy devices fitted to phone lines and most of them will only cope with dial-up rather than current broadband.
Posted by: Pete 10 Mar 2010
Broadband tax
It's only 50p a month! why should we concern ourselves unduly?? It has been said that this is another poorly thought out Government Tax. I do not agree, I consider this a carefully planned Tax which has little to do with looking after the interests of the people. It is 50p today but what a stupid millstone around our necks will it be in future years. My view is that all forms of communication within our borders should be as free, wherever possible. Not just IT, but all forms of communication, Telephone, Internet, Radio, Television, Road Haulage, Power, Trains and Fuel used for travel etc. This is the road down which we should be travelling if we are to be a powerful nation again. Imagine how dull we would be if we had to consider the cost of each and every thought that we might make, before we made it. It would not be too far fetched to suggest that our poor country has been taken over by organised crime.
Posted by: Brendon Cunningham 10 Mar 2010
Help Businesses ???
Gordon Brown says the tax is needed to help businesses get high speed internet. Surely the answer then is to only tax businesses. Why should the non-business community have to pay this EXTRA tax.?
Posted by: Alex 10 Mar 2010