News
Mandelson sets broadband tax plans in motion
08 January, 2010
Lord Peter Mandelson, business secretary, has launched a 12-week consultation with internet providers and telecommunications companies to finalise how the proceeds from the Next Generation Fund should be spent. He wants to sign it to law before a general election which is widely expected before June. The 1 billion-pound Next Generation broadband fund, part of last year’s Labour’s Digital Britain agenda, will be paid for by levying 50p per month on all fixed telephone lines.
The report’s proposal to roll out a super high-speed broadband network to at least 90% of the UK’s population by 2017 is the aim of the Next Generation Fund.
Mandelson reportedly said that the investment was essential to preserve Britain’s international competitiveness, thereby preventing a new digital divide emerging between those with fast and those with slow connections. He felt that the market was already delivering superfast Internet speeds of 50 megabits per second to half the country but that it was not certain of reaching the communities that are not currently served.
The Department of Business, Innovation and Skills has apparently reported that by relying solely on private sector investment, the Nex Generation broadband network would only reach about 70% of the population by 2017.
The Conservative party has said it will scrap the proposal if it wins the election.