MPs savage 50p broadband levy

The government’s digital strategy has taken a double pounding this week, with MPs criticising its proposal for a 50p broadband tax on fixed telephone lines accompanied by a climb-down on banning persistent file-sharers from internet use.

The Commons business, innovation and skills committee published a report examining the broadband provision. While broadly supporting the government’s digital economy initiatives, and the commitment to universal service levels of 2Mbps, the report expressed concerns about:

• the fairness of the proposed 50p monthly levy on fixed lines
• the lack of a definition of the proposed 2Mbps universal service commitment
• the wisdom of financial intervention to promote higher speed "Next Generation Access
• obstacles the business rating system would put in the way of developing the broadband network.

The report noted: “While the committee welcomes the government’s action on digital inclusion, it is concerned that the funding for these important measures is dwarfed by the proposed budget for Next Generation Access.

“The committee rejects the government’s proposal for a monthly 50p levy on fixed telephone lines to pay for Next Generation Access. It considers the levy to be a regressive tax which will ‘place a disproportionate cost on a majority who will not, or are unable to, reap the benefits of that charge’.”

While the smoke was clearing from that salvo, PublicTechnology.net reported that the government responded to petitions from users and service providers not to ban individuals based on their use of peer-to-peer file sharing.

 “We will not terminate the accounts of infringers – it is very hard to see how this could be deemed proportionate except in the most extreme – and therefore probably criminal – cases. The increasing role of the internet in access to society should not be underestimated. Cutting off households deprives families of education, government services and freedom of speech,” announced 10 Downing Street.
 
Suspension of accounts were among the options that would be considered if notifications and legal action did not work, and advice was being sought from Ofcom and others about whether undefined “technical measures” might be able to overcome the problem of illegal file-sharing.