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Lord Carter Slams 2Mb UK Broadband Delay and Axing of the 50p Phone Tax

Posted: 03rd Sep, 2010 By: MarkJ
digital britainLabours former Communications Minister and author of the original Digital Britain (June 2009) report, Lord Stephen Carter, has told a Westminster eForum that he does "not agree" with delaying the 2Mbps UK broadband for all (Universal Service Commitment) from 2012 to 2015.

Lord Carter lamented:

"I remember at the time that the 2012 USC was launched, we were pilloried for not not being ambitious enough for the opposition. We as a country will want to have universal connectivity, and we will need it at a level that is far greater than 2Mbps."

Carter also criticised the new coalition governments decision to scrap Labour's proposed 50p +vat per month tax on all fixed telephone lines in the country. The tax would have generated £175m per year that could have been put towards rolling out next generation broadband networks (Next Generation Fund), although it was somewhat unpopular.

Carter added:

"The proposed landline levy was not perfect, but it was a targeted solution for a very specific need. That need is not going to go away. The answer is going to need to be found at some time by somebody."

As an alternative the new government has proposed to, from 2012, use part of the BBC's TV Licence fee (3.5% Digital Switchover Budget) to help fund a rollout of "super-fast" and universal broadband solutions to areas of the country that are unlikely to benefit from private sector investment. However the BBC funds are worth a lot less (approx £130m).

While debate surrounding the defunct tax will probably continue, the new government's decision to delay Labour's 2012 2Mbps USC target to 2015 came as less of a shock. Delays to the Mobile Broadband spectrum auctions were already evident before the election and no practical progress had really been made towards solving the underlying problem.
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