Britain puts broadband tax on table

If Britain's consumers want more available broadband services, they're going to have to pay for it. To help reach the goal of building out enhanced broadband services to 90 percent of the country by the end of 2017, the U.K. government plans to impose a $9.80 tax on all residential fixed lines.

Known as the Next Generation Levy, the U.K. government will charge every home with a wireline connection $1.00 a month to reach its broadband goal. The Next Generation Levy will be introduced in the Finance Bill and is expected to pass into law next year. Initially unveiled in the Digital Britain report, the government says the tax will raise approximately $277.3 million a year.

In his Pre-Budget Report speech this week, Chancellor Alistair Darling said the proposed tax could provide more employment opportunities while expanding the reach of broadband. "We are modernizing the UK's digital infrastructure and, in the process, creating thousands more skilled jobs," he said. "We have provided funding to help extend the opportunities of the broadband network to more remote communities."

For more:
- Business Week has this article

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