Broadband tax situation clarified by govt report

Broadband networks for the next generation would reach 70 per cent of the UK's population by 2017 without any government intervention or public funding, according to a new government report.

Westminster is currently planning to introduce a controversial 50p-a-month tax on phone lines in order to pay for its promise that 90 per cent of households will get superfast broadband by 2017, undoubtedly boosting many organisations using cloud computing and business management software.

The disputed levy will result in a coverage increase of only 20 per cent, however, when compared to what private markets would give.

It follows a raft of criticisms from MPs that the levy is unfair and that the government should not be spending public money to provide services that commercial markets would otherwise sort out.

Dr Stuart Burgess, the government's appointed rural advocate, recently revealed that age diversity and businesses alike are affected in rural areas by constrained broadband speeds.

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