The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Levy to Pay for Broadband in Remote Areas on Cards

31 July 2015 | Updated 01 January 1970

According to a BBC report, the government may be forced to introduce a levy to meet its target for superfast broadband use in rural areas.

The target by the government is for superfast broadband to reach 95% of the population by 2017.

This may seem ambitious but on the Department for Media, Culture & Sport website, the commitment is still there: ‘…the government wants to extend coverage as far beyond this as possible. We’re working with suppliers to see how we can do this through a series of pilot projects. The pilots will run until March 2016. Further evidence and findings will be published during 2015 and 2016.’

In March this year Chancellor George Osborne made it perfectly clear what he wanted to see. “We’re committing to a new national ambition to bring ultrafast broadband of at least 100Mbps to nearly all homes in the country, so Britain is out in front.” However, it was a pledge which the government’s own strategy paper described as ‘challenging’.

In practical terms it would seem that a levy of £500 million might be imposed on those providers introducing superfast broadband, although general taxation may be another option.

Speaking to the BBC, Andrew Ferguson of the ThinkBroadband believed any levy on industry would undoubtedly be passed on to customers, increasing monthly bills. “If a £500 million levy was to be raised over two years, it would add around £1 per month to every broadband bill if we assume providers passed on the levy in full and we see no reason why they would not,” he said.

Delivering on fine objectives will be the test for both the government and the providers as was pointed out in March after the Osborne commitment. “What we want is delivery,” said Sarah Lee, Head of Policy, Countryside Alliance. “Rural communities have been over-promised and transparency of delivery has really failed them. We are very supportive of a universal service obligation but research shows for everyday uses 10Mbps is the optimum level.”

Picture: A levy might have to be imposed if the government target for remote areas receiving superfast broadband is to be achieved

Article written by Robin Snow | Published 31 July 2015


Related Tags

Related Articles

The UK’s 2025 Switch to Telephone Cloud

January 2025 is set to see potentially the biggest shake-up to the UK telecoms network for decades. During 2025, the Government and telecomms industry leaders...

 Read Full Article
The Key Workers That Keep Your Wi-Fi On

With the recent surge in home working, it would be fair to say that our home internet networks have been experiencing a heavier than usual usage.  Telecoms and...

 Read Full Article
Brum Comes Tops Of Regeneration Opportunities List

New research has revealed Birmingham as the council area with the most opportunities for regeneration for investment in empty commercial and residential properties. UK...

 Read Full Article
2020 Vision For Property Data - Please

Commercial property professionals have revealed the data they would most want in 2020 to make their lives less complicated. In commercial property, data is helping...

 Read Full Article
It's Quicker By Tube

The Mayor of London has launched a £10 million boost for full fibre connectivity across London - a ‘Fibre Backbone’, using Tube tunnels and public...

 Read Full Article
The Speechmark Makes You Speechless

Fronted by curved glass and framed in slate black, The Speechmark is arguably now one of the most striking buildings in Southwark – an area of London already...

 Read Full Article
BT Hangs Up On Property Connections

BT is to get rid of at least 270 offices around the UK by 2023 and consolidate down to just 30. The first eight locations nominated in the telecom giant's...

 Read Full Article
To Have And To Have Not - Connectivity Not Always A Given

BT may have decided that all its offices need to have super-fast connectivity but that is not a luxury all London landlords can offer, writes Nick Dutfield. Arguably...

 Read Full Article
Thunderstruck, Telent, TECS, TraQ-it, Toyota - Total FM News

Telent For Tech; TraQ-it At Toyota; Savills Sets Sail In Workplace Sector; CBRE Thunderstruck By AC/DC Deal; and All MoD Cons In Cyprus & Falklands - all the headline...

 Read Full Article
No Fooling - Broadband & Telephone Fault Compensation Agreed

No it's not an April Fool's day prank on those that work at home or SMEs - broadband and landline customers will get money back from Monday April 1 when things go...

 Read Full Article