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03 July 2009
Phone tax revenue won't cover broadband rollout
At a briefing this morning to discuss the next stage of its fibre-optic broadband rollout, BT said that the 50p levy on fixed phone lines proposed in the recent Digital Britain report will not be sufficient to provide fibre-optic connections for the whole of the UK.
Strategy and portfolio group director Liv Garfield indicated how great the shortfall in revenue was likely to be:
"If you're going from 55 to 85 per cent, then I can see that that could be delivered. I can see a way to get to 80 to 85 per cent with that kind of money, but we will struggle to get to 100 per cent – in fact it would be impossible to get to 100 per cent."
Although the Government estimates the levy will generate £150m-£175m annually, Ms Garfield's comments will revive fears that Britain is heading for two-tier broadband, with consumers in smaller towns and rural locations more likely to suffer from slower speeds that are unsuitable for modern web developments.
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