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Government begins next-gen broadband consultation

By Reuters

Posted on 8 Jan 2010 at 11:29

The Government has launched a twelve week public consultation on the best way of spending the £1 billion broadband fund that will be generated through its forthcoming broadband tax.

The next-generation broadband fund will be raised by levying 50p per month on all fixed telephone lines, and is intended to bring 2Mbits/sec broadband to 90% of the country by 2012.

Business Secretary Peter Mandelson claims the investment is essential to preserve Britain's international competitiveness and prevent a new digital divide emerging between those with fast and those with slow connections.

"Already the market is delivering superfast internet speeds of 50Mbits/sec to half the country but we cannot be certain that it will reach the communities that are not currently served," says Mandelson.

The government estimates private investment already being undertaken by providers including Virgin Media and BT will bring superfast broadband to 70% of the population by 2017.

The consultation invites participants in the telecoms and internet industries to comment on how proceeds from the fixed-line levy should best be spent to achieve that goal.

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User comments

I think they should waste it on projects with no benefit.

Wait a year and see if I'm right.

By peterm2k on 8 Jan 2010

Great....

Oh good, the Government overseeing a technical project. Prepare for spiralling costs, deadline after missed deadline and ultimately a complete waste of the money that is raised through the Broadband Tax.

By everton2004 on 8 Jan 2010

Do they need a Consultant ?

I could be available at the right price!

By Dannyt on 8 Jan 2010

"Already the market is delivering superfast internet speeds of 50Mbits/sec to half the country..."

He missed out two important words, "up" and "to". I don't know anyone who gets 50mb/s.

By pepperalex on 8 Jan 2010

Thinking ahead

So... they decide they need this amount of cash, and we all have to pay so much per month to raise it.
Then they realise they don't know how to spend it

So how did they come up with the original figure?

By greemble on 8 Jan 2010

70% of the population

superfast broadband UP to 70% of the population by 2017.

Fixed

By greemble on 8 Jan 2010

According to the governments own publications, 80% of the population of Britain live in towns of more than 10,000. If you include smaller towns and large villages the number must exceed 90%, so why is it such an issue (other than greed on he part of the suppliers).

By milliganp on 8 Jan 2010

How is this a public consultation, if they are not asking consumers

Don't know who wrote the article at Reuters, but is asking the industry really a public consultation? I would have thought it better to ask the 30% who don't have a chance of getting 50mb this decade thanks to the lack of understanding by the government.

By adwoodrow on 8 Jan 2010

Incentive needed?

If the monthly broadband fee was linked to the actual average speed of your connection, there would be some incentive for ISP's to increase speeds. The Tax wouldn't be needed.

By KimBurton on 9 Jan 2010

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