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October 27, 2009

Broadband tax may not deliver

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by David Allen

One of the ideas behind the Digital Britain plan was that no matter where the consumer lives it should be their right to be able to connect to the broadband network, in the same way that all households are entitled to a phone line.

The proposed broadband tax of 50p on phone lines will raise £175 million per year.

However, this will not encourage the internet service providers to invest their own cash in new technology, according to Jeremy Hunt, the shadow Culture Secretary, and Nick Herbert, the shadow Environment Secretary.

The Conservative’s plan would be to work on a similar model as in France.

This would mean deregulation of BT, forcing the telecom giant to open up its network in order for ISPs to be able to connect to the network and provide better services.

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