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New 50p Tax on Landlines

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  • New 50p Tax on Landlines

    http://news.bbc.co.uk/1/hi/technology/8102756.stm


    Report lays out UK digital future



    Lord Carter tells the BBC's Sophie Long why his Digital Britain report calls for phone line charges and punishing file sharing piracy.

    Every Briton with a fixed-line phone will pay a "small levy" of 50p per month to pay for faster net access.
    The national fund created by the levy will be used to ensure most Britons get access to future net technologies.
    The proposal is part of the Digital Britain report outlined by Culture Secretary Ben Bradshaw in Parliament.
    The report also includes a pledge to curb unlawful file sharing by giving regulator Ofcom given new powers to identify persistent pirates.

    Culture Secretary Ben Bradshaw announces legislation to curb unlawful file-sharing

    To encourage take-up of broadband services the government has appointed online entrepreneur Martha Lane Fox as the digital champion.
    Mr Bradshaw told the Commons that the government intended to upgrade all national radio stations from analogue to digital by 2015.
    The report, commissioned by the government last year and written by communications minister Lord Carter, offers a blueprint for the UK's digital future.
    "Digital Britain is a statement of intent and ambition, a commitment to infrastructure and access, and an overdue recognition of the industrial importance of the creative industries," said Lord Carter.
    The main points outlined in the report include:
    • a three-year plan to boost digital participation
    • universal access to broadband by 2012
    • fund to invest in next generation broadband
    • digital radio upgrade by 2015
    • liberalisation of 3G spectrum
    • legal and regulatory attack on digital piracy
    • support for public service content partnerships
    • changed role for Channel 4
    • consultation on how to fund local, national and regional news
    One of the biggest surprises in the report was the promise to introduce a levy on fixed telephone lines in order to pay for broadband rollout.
    It will amount to a 50p a month tax for every household in the country with a fixed phone line.
    "It is a contribution which we are asking people to make - it's six pounds a year - offset, as we make very clear in the report, by the likely continued reduction in headline prices because of the competitive market we have in this country," said report author Lord Carter.
    Alex Salter, from broadband measurement firm Sam Knows, doubts the levy will create enough money to bring next-generation access to every home.
    "It answers the main question from the last report which was who is going to pay. This is less expensive per capita than similar schemes, for example in Australia, but is unlikely to generate the full budget required - this will still have to come from the providers," he said.
    Communications minister Stephen Carter said that some £200m of funding would be spent to extend coverage to the 15% of UK homes which do not receive broadband at 2Mbps.
    The government has pledged to complete this by 2012.
    The majority of the money will come from funding ring-fenced in the BBC licence fee for the digital switchover.
    Some of this money will also be used to support regional news on commercial channels.
    Backstop powers
    To combat the growing problem of illegal file-sharing the government has given greater powers to Ofcom and internet service providers.
    It will allow them to identify illegal downloaders and pursue a "write and sue" approach for the worst offenders.
    But the British Phonographic Industry, which represents the UK music industry, was not impressed.
    "The government appears to be anticipating its failure by lining up backstop powers for Ofcom to introduce technical measures later," said the BPI chief executive Geoff Taylor.
    The shadow culture secretary Jeremy Hunt said the document was a "colossal disappointment."
    World class?

    Gordon Brown on the impact of the Digital Britain report

    Prime minister Gordon Brown said that the report would pave the way to making Britain's digital infrastructure world class.
    "Britain is going to lead the world. This is us taking the next step into the future to being the digital capital of the world. It is making sure no family or business misses out," he said.
    Currently Britain stands at about seventh in global broadband league tables, below nations such as Korea, Japan, Sweden and Norway.


    The digital and communications industry in the UK is said to be worth around £52bn a year. Report author and communications minister Lord Carter estimated that some 22 million Britons rely on the industry for their daily work.
    Digital Britain was launched in October 2008 to establish a framework for the UK's digital economy. There then followed eight months of lobbying and consultation with an interim report published in January.
    Lord Carter is due to quit his post during the summer recess.
    The report was a joint effort between the Department for Culture, Media and Sport and the Department for Business, Innovation and Skills.


    Full Report



    CJ

  • #2
    Re: New 50p Tax on Landlines

    Millions face telephone tax under Government's broadband plans for internet - Times Online

    The Conservative Party | News | News | Hunt criticises "digital dithering from a dated government"
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