Ofcom consumer panel raises concerns over 'broadband tax'

The Government must carefully assess the impact that the proposed broadband levy may have on people on low incomes, warned the head of Ofcom’s Communications Consumer Panel (CCP).

Anna Bradley said the Panel had already heard rumblings of discontent from consumers about the proposed charge and believed that, to avoid paying, some people may disconnect their landline phone.

Speaking at the Westminster Media Forum yesterday, Ms Bradley voiced her concerns about how well the levy had been thought out. She told Computeractive that: “We haven’t seen the Government’s assessment of this yet and want to examine it to understand how it reaches its figures.

"It may be the only way to raise the funds but there could be other means, so it has to be carefully investigated; especially with the current economic problems. Some people may be badly affected by such a charge; even though it is a small amount.”

The charge Ms Bradley was talking about was proposed in last month’s Digital Britain report headed by Stephen Carter. In the report Lord Carter suggested a £6 per year ‘tax’ on the phone lines to people’s homes.

The aim is to start a fund that would help pay for the infrastructure necessary to deliver next-generation broadband to areas of the country internet service providers (ISPs) feel are commercially unviable.

The report said it could raise about £150- £175m per year, for the Independent Next Generation Fund. This will be administered by Ofcom, the telecommunications regulator and operators could bid for to roll out super-fast broadband - with speeds of up to 100Mbits/sec.

Ms Bradley said that the CCP would be looking carefully at the proposal over the coming months.