Broadband tax is "unjust and regressive"

Tuesday 3rd November 2009, by Daniel King

The government's plan to add 50 pence a month to all phone bills to fund broadband networks in rural areas has been described as "an unjust and regressive tax".

Provider TalkTalk claimed that the levy will force at least 100,000 low income homes to give up their broadband lines.

Speaking about the issue, chief executive officer of the firm Charles Dunstone explained that the charges would mean only wealthier households in the countryside would be able to afford high priced and quick web services.

He added that the proposed tax would be inconsistent with the government's goals to help more people get access to the internet and to reduce digital exclusion.

"Crucially the scheme is likely to delay next-generation broadband roll-out in rural areas rather than hasten it as private investors will wait for public funds to be made available," Mr Dunstone stated.

"This will mean that much of the tax will be wasted investing in networks that the private sector would have built themselves anyway."

TalkTalk's director of strategy and regulation at the company Andrew Heaney met with Department for Business Innovation and Skills Committee yesterday (November 2nd) to outline the company's concerns.

Meanwhile, Helen Milner, managing director for UK Online Centres, recently commented on the gap between those who can afford a web connection and those who cannot.

She said that more needed to be done to get people from different backgrounds online, adding that individuals are at a distinct disadvantage if they are unable to take advantage of digital opportunities.

Categories: Broadband

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