UK: some question the merit of a tax for broadband

[bbc] One of the biggest surprises in the Digital Britain report was the news that everyone with a fixed line telephone would pay a broadband tax.

At 50p a month the amount is unlikely to break the bank but experts are already questioning what it will buy.

Some believe it will mean the majority of homes can benefit from fast networks within a decade.

Others question whether Gordon Brown's vision of "access for all" is achievable.

Antony Walker, chief executive of the Broadband Stakeholder Group, thinks that the money needs to be targeted at rural areas.

He believes that, spent wisely, the money should ensure that the 30% of the country estimated to be bypassed by commercial fast broadband plans can enjoy speeds of up to 50Mbps (megabits per second) by 2017.

BT already plans to upgrade 40% of UK homes to so-called Fibre to the Cabinet technology (FTTC) by 2012, although it will be targeting the easy-to-reach urban and suburban areas.

Virgin Media is also upgrading its network so it can deliver speeds of up to 50Mbps. Its network is available to 50% of homes in the UK, again mainly in urban and suburban areas.

Experts question UK broadband tax