Jun 17, 2009 • 1 min read

Digital Britain: Licence fee and phone tax to fund high speed net rollout

The Digital Britain report proposes funding a 2MB broadband rollout through unspent BBC digital switchover money and a 50p monthly levy on landline phone users.

And finally from 'Digital Britain', a few words on the roll out of 2MB broadband - one of the big proposals in the report. Carter says that everyone in the UK should have access to 2MB broadband internet because as more government, commercial and content services transfer to the net anyone without that kind of net access is disadvantaged.

The issue, though, is that while much faster internet is already available in many parts of the UK, in more out of the way places, especially in Northern England and the Scottish Highlands, the cost to commercial companies - BT and Virgin Media mainly - to put such a service in place is unlikely to result in sufficient new revenues to make doing so commercially viable.

With that in mind the government is proposing to help fund the roll out of higher speed internet, partly by using some of that aforementioned licence fee money put aside by the BBC to fund the digital telly switchover (not all of which has been spent), and partly by charging all land line phone users a 50p a month levy. A proposal which seems to have come as a bit of a surprise to some in the telecoms sector.

Asked if, in a time of recession, such a levy wasn't going to be very unpopular with the public, Carter observed: "How will the public react? We will find out. Our view as a government is that it's a good exercise of judgement".

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