Home » Community Networks »Public Policy & Gov't »Rural Broadband »Video » Currently Reading:

UK Scraps Phone Tax to Fund Rural Broadband

Phillip Dampier June 24, 2010 Community Networks, Public Policy & Gov't, Rural Broadband, Video No Comments

The License Fee pays for the BBC's television, radio, and online operations, but now the British government wants a portion of it to be directed towards broadband as well.

Britain’s new coalition government announced Wednesday it was scrapping a proposed £6 a year phone tax to help expand rural broadband in the country.

“We need investment in our digital infrastructure,” said George Osborne, the Chancellor of the Exchequer. “But the previous government’s landline duty is an archaic way of achieving this, hitting 30 million households who happen to have a fixed telephone line. I am happy to be able to abolish this new duty before it is even introduced.”

“Instead, we will support private broadband investment, including to rural areas, in part with funding from the digital switchover under-spend within the TV licence fee.”

Osborne is referring to the average £11.63 monthly fee British citizens pay to help fund the operations of the BBC’s radio, television and online operations.  A surplus of up to up to £300 million is anticipated to remain after the UK completes its transition to digital television in the next two years.  That money would be diverted to expanding rural broadband under the government plan.

But campaigners for better rural broadband service complain that will not raise nearly enough to provide broadband across the countryside.  The 50p monthly telephone tax proposed by the former Labour government would have raised nearly £1 billion per year.

Charles Trotman, of the Country Land and Business Association, told The Telegraph it will not be enough money to connect all rural areas. He said remote communities risk being left behind in ‘broadband deserts’ unless more is done to help villages set up connections themselves.

Other critics contend the surplus from the digital TV transition may not exist two years from now.  Thus far, mostly rural regions in England have made the transition to digital, costing the government publicity campaign less than expected.

Rather than the tax, Osborne claims the government can spur investment from the private sector by “making regulatory changes to reduce the cost of roll-out.”  He did not specify what those changes might be.

The government claims it is committed to providing up to 2Mbps broadband service across the entire country, but the lack of action in many areas have forced small towns and villages to launch their own municipal broadband services, sometimes funded by residents themselves.

http://www.phillipdampier.com/video/BBC Municipal Broadband 4-2010.flv

The BBC covers two British communities doing it themselves — providing enhanced broadband because private providers wouldn’t.  One in Highworth offers free Wi-Fi for up to two hours daily, while in Lyddington residents raised £37,000 to obtain enhanced DSL service.  (5 minutes)

http://www.phillipdampier.com/video/Signal -- Connectivity on the move 6-10.mp4

Highworth (Swindon) relies on Signal, a high speed WISP/Wi-Fi network that offers up to 20/2 Mbps unlimited access with no Internet Overcharging schemes like usage caps or overage fees for £5.99 per month, or up to two hours daily access for free.  (4 minutes)

Search This Site:

Contributions:

Recent Comments:

  • Duncan: Cut the cord today, and used this blog post as inspiration. TWC jacked my bill from $140 to $180, and that was the final straw. Goodbye, TWC, but ...
  • Jimmy Bae: That really isn't the proper use of the term ennui. You can't sooth someone's extreme boredom and disinterest....
  • Martha: What if you say you are going to cancel your cable service for a streaming service, such as Roku or SlingTV? Will they likely to come back with an off...
  • Paul Houle: @Lee, it is worse than that. It is not that they cannot afford to give you fiber, it is that they can already make so much money selling you infe...
  • Lee: Frontier will not deliver that 5 Mbps to me. It will not matter what modem I have or what they have in the dslam located at the school. The copper lin...
  • Paul Houle: @Joe, don't buy the hype over G.Fast. Instead of "Fiber to the Press Release" it is just "Copper to the Press Release" G. Fast is a great techn...
  • Joe V: Here's the irony : I watched the Frontier go in front of California politicians broadcast play out and two things that got underneath my skin : I...
  • Matt: It won't increase it any more than what were paying for(1.5 Mbps) right?...
  • Joe V.: Replace the frontier supplied DSL modem and buy your own. The modem they give you is locked down and does not deliver the promised speeds....
  • Matt: I wish Frontier would upgrade our internet over here in Doyle, Ca! We've had 1.5(not even that) Mbps for 12 years!!!!!! And out here in the middle of...
  • TekTalk: I have the blazing fast 5 Mbps Frontier DSL in WV. Frontier won't even say it IS broadband. They know they can't call it that. They only call it "H...
  • Phillip Dampier: It is odd to write that way I agree, but it happens when there is a high demand from media outlets for our official comment, which they can obtain fro...

Your Account: