Broadband Comparison, News & Reviews

The Government has been warned that adding a 50 pence tax to all fixed phone lines in order to help fund next generation internet connections, will only result in about one hundred thousand low income homes cutting their broadband lines.

The warning comes in the wake of the Digital Britain Report that was published in June, which suggests that by raising the tax on fixed lines funding would become available for faster broadband speeds across the country. Raising the tax to ?40 per home on fixed lines for seven years would raise one billion pounds.

Chief executive officer of TalkTalk, Charles Dunstone, stated that the tax would be unjust because it will allow richer customers to receive better broadband services in rural areas while punishing those who have lower incomes in cities.

According to Dunstone as a result of the tax many low income homes will have to give up their broadband access.

TalkTalk stated that it still stands behind the government target of reaching 2Mbps of broadband speed in every area of the UK, but added that more public funds need to become available to make it a reality otherwise private sectors will be stalled waiting for funds.

Dunstone went on to say that public funds will waste consumer?s money and slow down the progress of broadband roll-out stating that the private sector needs to stand behind expansion.

Filed under: Broadband News and Reviews by Alan

In order to meet the funding needs of the Digital Britain Report?s aim of rolling out next generation broadband, a new 50 pence per month levy was introduced on every consumer who uses copper phone lines. The new levy is aimed at bridging the gap in areas where operators are not expected to install the broadband on their own.

The shadow culture secretary, Jeremy Hunt, said that however, if the Conservatives win the upcoming general election the tax would be scrapped, even though it is expected to raise approximately ?175m to fund the introduction of next generation broadband in rural areas.

Instead, the Conservatives would like to encourage the market to take on the tasks, as well as make regulatory changes that may help with the motivation of market leaders.

Regulatory committee Thinkbroadband has actively argued that the Government should be offering incentives companies for deciding to use fibre optic cabling, which currently is taxed at non-domestic tariff rates, making it more costly for operators to consider using and installing.

Filed under: Broadband News and Reviews by Alan

Lord Mandelson called a meeting of the top executives of the largest five mobile broadband networks in the UK to coordinate the government?s effort to get broadband to everyone at acceptable rates by 2012.

The meeting is the second of its kind to take place in the last few weeks and will pick up where Lord Carter left off after the commission of the Digital Britain Report.

Lord Mandelson?s department advocated last week that guidelines be set up across the UK that punish those who infringe copyright laws by cutting of their broadband connections.

Another proposal set in motion by Lord Carter for an additive ?6 levy on landlines to pay for faster broadband across the country is set to fail as it is not expected to get passed by Conservatives who are looking towards the next year?s elections.

According to the initial Digital Britain Review, achieving broadband use across the country is reliant on broadening the range of broadband signals into the more rural and remote areas of Britain.

However, in order to achieve this all five networks must agree to split the original spectrum that was given to O2 and Vodafone back in the 80?s when they first began operating wireless networks. The 900MHz spectrum allows signals to be carried farther.

Also to be discussed will be the manner in which the way the government auctions off 800MHz spectrum that will be freed up after the switch from analogue to digital TV.

Filed under: Broadband News and Reviews by Alan

Following just weeks behind the Digital Britain report, the MPs of the Enterprise Committee and the Commons Business department are about to look into broadband speeds across the UK.

Their aim is to decide if the speed of 2Mbps outlined in the report is a high enough and sufficient enough goal. It will also debate if the broadband tax via fixed phone bills is fair.

The tax denotes that all users of a fixed phone line will owe a 50p tax each month to help fund weak broadband spans in mostly rural areas that have been neglected by the major broadband provides.

The news follows criticism of the report that the funds generated will not be enough to fund the project and that 2Mbps is too small of an aim for the Government by the year 2012.

Co-founder of the broadband SamKnows website, Alex Salter, however, has stated that he believes the tax is the one of the best and only ways to increase the broadband speeds in rural areas. He also says that the public should keep in mind that 2Mbps is only a minimum and that the results could be higher.

Salter also questioned that the goal, while reasonable, may actually be threatened not by finding, but from changes in the political makeup of the Government as the years pass and the party politics refocus their efforts.

Communications Minister, Lord Carter, was responsible for writing the initial Digital Britain Report which took eight months to complete.

Filed under: Broadband News and Reviews by Alan

The final version of Lord Carter’s, the Communications Minister, Digital Britain report was finally made public yesterday but those who are familiar with the content in the interim version of the report will notice that there is not much difference between the uncertainties of the interim report and the final report.

Most of the emphasis is the same in both versions with the primary content based around the goal of connecting the entire country of Britain to broadband but not too many details about how the UK Government will complete its noble goals of offering access to all UK citizens at speeds of at least 2MB.

The report did include recommendations that mobile broadband spectrum be allocated which delighted Vodafone and O2 as they are overly satisfied with the receipt of 900 Mhz spectrum they were allotted but major mobile carriers Orange and T-Mobile out in the cold until more allocations will be given after the switch to digital to analogue TV is completed.

The Digital Britain report also addressed the problem of how to regulate and control copyright infringement and piracy with additional power placed in the hands of Ofcom to regulate broadband issues. It also included new funds that total up to £200 million towards connecting parts of the UK with broadband that current have substandard broadband quality.

For the most part the report looks positive and if correctly enacted will greatly improve the condition of the broadband access in the UK, but the argument remains that the standard that it set the bar at is too low and there is a lack of clear direction.

Filed under: Broadband News and Reviews by Alan