Phone tax for broadband

Ian Wylie

June 17, 2009

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EVERY household with a landline telephone faces a £6-a-year levy so that super-fast broadband can be extended across the country.

The money will be used to subsidise the installation of advanced fibre networks in areas where they would not otherwise be commercially viable.

The proposals were unveiled in the government's Digital Britain report into the future of the nation's communications and internet industries. They also included plans to use BBC licence fee cash so organisations could provide regional news programmes for ITV.

Pilot schemes are set to run in Scotland, Wales and one English region.

The Digital Britain report also recommends that all national and large radio stations will stop broadcasting on FM and MW by the end of 2015 as part of a digital radio upgrade timetable.

Warnings

Other measures include a crackdown to combat digital piracy, with written warnings for those who download music and video files unlawfully.

Repeat offenders will face being named and shamed and civil action taken against them through the courts.

If the plans for using licence fee cash are agreed, it will be the first time the fee has been diverted from the BBC and used for other purposes.

Under-pressure ITV has indicated it intends to withdraw from providing regional news as it can no longer afford to fund it.

The government is proposing that by 2012, independently funded news groups, such as local newspapers or radio stations, could take over.

About £130m a year could be set aside from BBC use to fund these regional TV media groups.

BBC cash could also be used to fund universal access to broadband by 2012, with the addition of a 50p a month levy - or £6-a-year - placed on all fixed phone lines to help pay for the next generation broadband.

The Digital Britain report also concluded that a partnership between Channel 4 and BBC Worldwide has `the potential to deliver significant value to both parties'.

Talks are underway about a series of possible joint ventures, including digital channels, advertising and DVD sales. Meanwhile, the Office of Fair Trading has concluded that no change in the law is needed in relation to local and regional newspaper mergers.

But a `modest relaxation' in the rules is proposed, with a Local Media Assessment to be introduced, which will be taken into account when a decision is made on possible deals. The value of local newspapers and media is highlighted in the report. It said: "Information is the lifeblood of a vibrant economy.

"A strong, viable and diverse news media is also integral to democratic life. When a newspaper goes under, we lose more than a tax-paying business.

"We also lose an institution's memory, archives, values and community relationships that have, in many cases, been built through generations. Worst of all, we risk losing the talent of seasoned editors and journalists. To sustain the vital civic function of journalism, citizens, government and business will need collaboratively to devise new ways of funding the news."

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Ace Shakespeare , manchester (17/06/2009 at 11:43)

The british way of ripping the people off? the government make the majority pay for the minority? so that big business can make money. NOTHING HAS CHANGED THEN!.If business want everybody online let big business pay for the cables ect.Dont expect joe public to pay for it.

john davis (17/06/2009 at 11:47)

Another stupid, nigh on impossible mission to get every one on broadband. Mr Brown remember the promise to rebuild or repair every single school in the UK, Sounded good but never happened, and never will, £6 a year will be the start of it trust me then it will be £12 then £2 a month and so on as all costings in this country end up way under estimate,answer me this too, what to those who dont have a landline , how are they going to get broadband.

Jay B, oldham (17/06/2009 at 11:55)

yet more Tax! as usual its a private business and yet we the tax payer have to pay for it!
other countries dont do this? so why do we?

Edina Clouds, GREAT Manchester (17/06/2009 at 12:13)

And then all the idle layabouts on benefits will probably be given laptops so that they can sit at home and surf porn,watch Youtube and play on line bingo at my expense!
This is just another tax and we've all been asked not to accept a pay rise this year.

AngusDangus, Salford (17/06/2009 at 12:18)

What about people who just use the telephone and do not want internet connection,are they still going to pay?.Great way of introducing a new tax.

JTC Formerley JimC (17/06/2009 at 12:27)

I will just get my phone cut off.

Simples ......

dessie, manchester (17/06/2009 at 12:38)

IS THERE ANYTHING ELSE WE CAN PAY FOR NU-LABOUR? YOUR A JOKE PARTY CREAMING OFF TAXPAYERS HARD EARNED CASH FOR YOUR OWN LUXURIES ETC..........

Doobydoo, Worsley (17/06/2009 at 13:07)

I wonder when the tax on breathing will be introduced? Timeline anyone??

Guten Tag, Manchester (17/06/2009 at 13:51)

It's another tax that will go up and up. And then syphoned off like car tax to pay for something else we don't need.

Steve (17/06/2009 at 14:01)

We should be able to claim this tax back on expenses, I'm sure some would!!!!!!!!!!!!!!

Ace Shakespeare , manchester (17/06/2009 at 14:20)

All people should protest against this "TAX" get your landline cut off and use just your mobile..This is exactly what we did four years ago and weve never looked back ..stop allowing these massive companies use you to tax you every time they need money......

johnnyboy, Ashton-u-Lyne, Lancashire (17/06/2009 at 14:29)

This may turn into an "internet license" to be taken off people who voice opinions deemed not acceptable to the government of the day with powers to smash up your computer equipment like they do to car owners now.This should be resisted in a free society, the government is also trying to high jack the British peoples part of the "free" World Wide Web or they may subcontract it to someone like Sky, the citizens of other countries would not stand by and allow another rip off! The MPs have shown us recently how their legislative powers can be lobbied or is that bought by the multinational organizations at will.

Professor Bob (17/06/2009 at 14:30)

Reading it through on the BBC,it says all broadband connections,which I presume includes Cable and ADSL connections.If you have a BT phone(No internet connection), and a cable broadband then you will pay a £1.00+vat for both.

johnnyboy, Ashton-u-Lyne, Lancashire (17/06/2009 at 14:45)

SAY NO TO ID card by the way, this information will be integrated with the phone and internet license and be used against your individual freedoms, hard won over centuries.

Is It Me? (17/06/2009 at 16:45)

What next,a window (not Windows) tax? T'internet is mainly a form of entertainment for the home and not an essential like,say,water. Why is he government so concerned that everyone should have it? More opium for the masses? This money,like road tax will be used for other crazy pet projects!

Retired, Wigan (17/06/2009 at 16:55)

I have a land-line and have broadband. I do not own the land-line so my question is "How can I be taxed on something I do not own? If there is a problem then it is up to the provider to rectify, not me via a tax. In closing, there are several companies who provide a computer and dongle for internet access. These don't need a land-line and can in some cases work out cheaper.

Pippa, Manchester (17/06/2009 at 21:35)

What definition of landline is being used here ? Are 'they' referring solely to a BT landline or are they including cable telephone lines?

Tim1980 (17/06/2009 at 23:33)

I'd say it was a good idea...

Of course if they are investing in this new technology then that would mean they'd have to stop charging line rental for bits of copper that we must have paid for hundreds or thousands of times over by now. And of course, if we pay for the fibre-optic cables to be laid, then there's no way they would be able to make us rent it back off them, is there?..(Yeah, I'll bet...)

citycentre, manchester (18/06/2009 at 12:31)

Tim1980

it does seem to me that phone users are to be charged this levy to part fund the installation of the new cabling, then people will have to pay a service provider to use it; in which case should the service providers not be putting up the initail money?

Paddy Fields, Mountain Terrace, Bismati. (18/06/2009 at 13:17)

So a little old lady with no internet access pays a tax of £6 (which costs £4 to collect) and it is given to private companies so that they can charge us £20 a month for faster broadband access.

Skpe here I come!!!

Black Flag (18/06/2009 at 14:07)

citycentre, I'm sure that service providers would be happy to provide the cabling, if they could recoup enough money from the customer to avoid making a loss on it, but in outlying areas, that seems not to be the case. That seems to be where the impasse lies; an ISP isn't going to provide a service at a loss, but the government wants to ensure that the service is provided below the going rate.

citycentre, manchester (18/06/2009 at 14:23)

Black Flag

A tricky one to be sure, I suppose as government supplies roads, water and such to less populated areas at below cost, if braodband is seen as a similar requirement then it should subsidise that also.

Maybe the trend of levying specific taxes to pay for specific spending could be a good thing, as it at least lets us see how the money is spent, rather than it disappear into some huge hole, and emerge somewhere else with no direct link

Black Flag (18/06/2009 at 14:47)

citycentre

Hypothecated taxes certainly have benefits, but the downside is that every time you introduce another tax, you add to the cost of collection, both within the person managing the tax (phone companies in this case) and within the government, so it's a balancing act.

I'd say that, if this is going to be funded through tax, it should be done through Council Tax and Business Rates, as with your example of roads. That way, the cost of the infrastructure would be shared between the people in the area which is benefiting from the expenditure.

RT, UK (21/06/2009 at 21:46)

The UK is the most taxed Country in the World.

Give the people a break Gordon, no doubt you will introduce a 'break' tax if you did...

Technobabble, Manchester (22/06/2009 at 10:01)

£6 a year....at 2007 prices. Like the congestion charge or the airport tax, this will rise in leaps and bounds once it comes in.

As for "land-lines", we've just been stung for £122 to have a BT land-line re-connected at my girlfriends new house. Then i get told we're stuck in a 12 month contract with BT. All i really wanted was broadband (with someone OTHER than BT), but you cannot get that without a BT line first. Pretty sure that's called a monopoly.

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