Broadband Levy Proposed by the Digital Britain Report, Shelved?

The UK government seems to be getting ready to shelve the controversial broadband levy, proposed by the Digital Britain report with a view to fund the next generation broadband network of the United Kingdom. The government’s plans were to slap the phone lines in the country with a GBP 6 per year levy.

It is understood that the current thinking by the government has been triggerred by the concerns of a number of Labour MPs over taxing the consumers by GBP 6 a year, at a time when the general election was so close. The disinterest of the Conservatives in the imposition of a broadband tax at this point of time, also carries much significance as the tax measures required sufficient support, if not consensus in the parliamentary convention,to be placed in the pre-election budget by the government.

The fresh turnouts suggest that it is more likely that Stephen Timms, who had taken over from Lord Carter, the burden of pushing through with the Digital Britain plan of providing 2Mbps broadband connections to every household in the UK, would go through the formalities of shelving the plan itself at least until the general election. Moreover, when asked if that meant a permanent burial of the tax proposal, he said that was also possible.

Meanwhile, responses to the likely postponement of the tax proposal by the government have been flowing in from various segments. The CLBA opined that the digital divide between rural and urban areas of the country would increase if the promised 50p monthly levy was not imlemented at the earliest. This statement carries much significance as BT and Virgin Media are rolling out superfast networks in the cities and other urban areas, while there is no economic wherewithal needed to push this costly infrastructure into the countrysides.

Above all, the Tory pre-election mindset of not supporting any fresh tax before the election also does not augur well for the Universal Broadband plans. The Conservatives’ theory on the subject is different and refers to BT opening up its ducts that bear the local phone wires, to its rivals for letting them use the ducts to install their fibre-optic lines as well.

Pic Credit: PA