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50pence/month tax on BB will go ahead

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50pence/month tax on BB will go ahead

http://news.bbc.co.uk/1/hi/technology/8404253.stm

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Registered: 02-10-2008

Re: 50pence/month tax on BB will go ahead

It helps if you add a brief quote as well - not everyone wants to read the link  Smiley
'he government's controversial broadband tax has been given the green light by chancellor Alistair Darling in his pre-Budget report.
The £6 a year levy will be imposed on all households with a fixed line phone.
The money made will be put into a fund to ensure rural areas of the UK do not miss out on super-fast broadband services.
http://news.bbc.co.uk/1/hi/technology/8403273.stm
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Re: 50pence/month tax on BB will go ahead

Sorry 'bout that and thanks for adding the quote Smiley

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Courage is resistance to fear, mastery of fear, not absence of fear - Mark Twain
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Registered: 02-10-2008

Re: 50pence/month tax on BB will go ahead

Thanks for bringing  it to our attention  Grin.
It's rather unfair in that it applies to everyone regardless of ability to pay. Unlike tax  ( as per other thread ! )
i
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Re: 50pence/month tax on BB will go ahead

I think he said the 50p per month would be applied to "landlines"..... so presumably, BT will be the tax collector for those with BT landlines, and the other "providers" will be the tax collector for their respective "landline" customers.... (even PlusNet will be doing their share of Tax Collecting for the government). 
so does this apply to "fibre optic cable"  suppliers?
Steve
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Re: 50pence/month tax on BB will go ahead

Daylight robbery in my opinion,i am fed up with this country and how it runs Angry
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Re: 50pence/month tax on BB will go ahead

You can be sure that, having established the principle, £6 per year will soon grow.
Steve
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Re: 50pence/month tax on BB will go ahead

You sure can hulls and this is what annoys me,it should never of been allowed,yet another way to squeeze money out us all Angry
Simon_M
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Re: 50pence/month tax on BB will go ahead

Quote from: steve74
yet another way to squeeze money out us all Angry

Well, at least you know where this particular cash is going, which is more than you can say for most tax.
With voice lines, it's always been the case that those nearer the exchange subsidised those in rural areas. That happened by BT (or the GPO as it was when the principle was established) charging everyone the same price no matter where they were. With the current Market Area banding that now exists for broadband, all that's gone out of the window.
It's ironic that it's the isolated rural areas that stand to gain most from internet access & they are the one group who haven't got it.
Community Veteran
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Registered: 30-07-2007

Re: 50pence/month tax on BB will go ahead

For now it will go to implementing broadband, but how long is it, since road tax was spent on the roads, or national insurance was spent on the national health service?
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Re: 50pence/month tax on BB will go ahead

Quote from: Simon
Quote from: steve74
yet another way to squeeze money out us all Angry

Well, at least you know where this particular cash is going,


What? you mean ..... like..... Road tax..... goes to make roads?  
OOps hulls beat me to it....  Smiley

EDIT.................. of course what Alistair Darling DID NOT say,. was that when he had collected enough money for getting broadband to the isolated areas that need it, he would immediately say... "thank you very much..... we don`t need any more.... I`m going to stop charging you 500p per month ...."
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Re: 50pence/month tax on BB will go ahead

To be clear I am one of the people that would benefit from this being on a Market1 exchange.
If everybody actually paid the true cost of essential services based on how much it was to provide any essential utility, be it gas, electric, sewage and phone, there would be uproar over that too.
So clearly my pint of milk, and the vegetables I buy,  should also be cheaper than that available in a town center somewhere as they have come out of the fields nearby or at least in the same county.  So if there are wind turbine close to me, my electric will be cheaper too of course. I only state this as an extreme example, nothing is ever a black vs white argument.
The 'ability to pay' part does bother me, but aren't there some low cost lines provided by BT to some very low income houses ... so you would hope those people at least are not subject to this tax.
But as another poster states "at least we have been told what this tax is for" ... we remain to see if that is true of course.
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Re: 50pence/month tax on BB will go ahead

Quote from: hulls
... but how long is it, since road tax was spent on the roads, or national insurance was spent on the national health service?

I think we all have a gripe on that subject.
I'd like to see that anybody who is living entirely on state benefits has their Sky subscription cancelled, Sky is far from being a necessity.
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Simon_M
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Re: 50pence/month tax on BB will go ahead

I'm enough of a cynic to think it doesn't matter very much what happens in the future. Once it starts to go into the general tax pool like road tax & NI, it'll get taken off you one way or another - whether it's on road tax, phone lines, vat, insurance tax premium; you'll be paying it one way or another.
In the short term, it may be the only way to get broadband where it's needed. It's not the way I would like it to be done, but if it's the only way it's going to happen, I'll put up with it. We can all start writing to our MPs later.
David_W
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Re: 50pence/month tax on BB will go ahead

Well, BT are already struggling (if thats the right word with their profits!) to get people to have landlines.  Mobile phones are so ubiquitious that people no longer *need* landlines, except of course to get internet, although with 3G and in the future 4G even getting internet without a landline isn't an issue.  All this will do is drive people away from having landlines and into having mobile phones, which cost a fortune to call (something like 80% of my phone bill is calls to mobile phones these days).
So what will we see in the future, a hi-speed internet system in rural areas where everyone is using a mobile phone instead of a landline because of another tax.
This issue lands squarely at the feet of Ofcom (or whatever they are these days).  If Ofcom had allowed BT to upgrade market 1 exchanges with no competition until costs were recovered, BT would be rolling out 1Gb/sec fibre optic to market 1 areas (probably not, but you know what I mean).  Now though for "competition" BT will be given tax payers money to upgrade the lines, rather than using their own lines, but then what?  There is no incentive once BT has given them 2mb connections (and that's all it will be) for BT to further invest in the infrastructure in rural areas.
The government wants 99% or 100% of people to have access to "high speed broadband" which by their definition is 2mb, and by BT's definition "up to 2mb".  BT should have been allowed to fund upgrading market 1 to FTTC or even FTTH without subsidies but also without competition.  If it costs BT £5 billion to upgrade Market 1, then BT will be the only company allowed to work out of Market 1 exchanges (no LLU) until BT have recovered £5 billion, well, lets make it £10 billion to give them incentive.  The consumer (us) will still have the choice of ISP (PlusNet!!) and BT keeps control of the exchanges (and lets face it, Market 1 doesn't really get much in the way of LLU investment anyhow).  With that method, the people who most need the investment (Market 1) are getting what they need (super fast internet), BT are upgrading them to FTTC/FTTH so can go back to ignoring them afterwards and people in Market2/3 are not subsidising Market 1 through a tax which, now its introduced, will never end.  The powers of competition will of course in the future upgrade Market 3 to FTTC/FTTH, it's just Market 2s that'd be left behind.