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Director of ISP Eclipse Internet UK Blasts 50p Broadband Tax

Posted: 17th Dec, 2009 By: MarkJ
eclipse internetThe director of Eclipse Internet , Clodagh Murphy , has warned that the government’s proposed £0.50 +vat per month tax on all fixed phone lines, which will help to fund the rollout of next generation broadband services, could risk forcing those who have not yet adopted broadband to "cease their landline and only use mobile technology."

Clodagh Murphy told ISPreview:

"I believe it is critical for everyone in the UK to have access to quality broadband. The USC (Universal Service Commitment) is part of this, but it is only the starting point. It is critical that the quality of service (QOS) element is included so that people can truly enjoy the benefits that are offered by broadband. Super fast broadband is great, but surely the starting point has got to be getting everyone using the technology and benefiting from it.

We also believe that in order to stimulate the economy to grow we need to ensure that there is a real focus on narrowing the digital divide. Therefore it is critical that the government works locally and nationally to encourage those people who have not yet adopted to adopt. There are so many advantages, from better education for children through greater reach of information, to savings from online shopping (e.g. reduced costs of purchase) for poorer families, to creating a wider social network for older people and thereby combating issues of loneliness. The list is endless.

This in turn will have a positive knock on impact on the economy and country as a whole. It may be that a 50p tax on landlines acts as an inhibitor to those people who have not yet embraced broadband, and pushes them to cease their landline and only use mobile technology."

The government aims to raise around £175m per year from its Next Generation Fund tax, which it hopes will push future broadband services out to 90% of Britain by 2017. However the tax has a lot of opponents and Murphy's voice is definitely not the only one being raised. Many would rather the government relaxed its tax on fibre optic ducts/lines than impose a new one.

We suspect that it would take more than the tax itself to force an individual into scrapping their landline, especially with many Mobile Broadband alternatives being of such a poor quality right now. Separately, mobile voice contracts are often expensive, although the call and text bundles usually make up for that.

Interestingly Ofcom's recent Q2 – 2009 telecoms data did reveal that the total number of fixed telephone lines fell by 339,000 during the quarter. It would not be surprising to see an increase in this trend following the introduction of a new phone line tax.
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