The Next Web

£42 Phone Line Tax to Upgrade UK Broadband Network

Broadband tax is set to be rolled out in the UK to upgrade the internet infrastructure to a high-speed fibre optic network to satisfy the country’s increasingly demanding thirst for bandwidth.Digital Britain

With the majority of the country relying on copper phone lines to supply themselves with their daily dose of on demand TV, gaming and digital download services.  The Government is going to tax each phone line £42 over the course of 7 years to fund £1billion worth of work.

It’s part of a pledge from the UK government to guarantee every household in the country access to a 2mb connection by 2012.

Mr Dunstone, Chief Executive of UK ISP Talk Talk believes that the £0.50 monthly tax to phone line customers will result in a 100,000 households giving up broadband.

“As well as being unfair we estimate that the increase in price will mean that over 100,000 mostly low income homes will be forced to give up their broadband lines.”

While this is an alarming prediction, especially as this initiative is aimed to increase the access the UK public have to broadband, it’s also important to stress how primitive the current infrastructure is.

When comparing this ‘next-generation’ broadband network for the UK against others around the world, even with this redevelopment, the UK will still going be lagging way behind the world’s leading internet innovating countries.

Global Internet SpeedsA recent post to the TNW Shareables blog emphasises how far behind the UK will be even with this work completed.  For example, Japan currently offers an average download speed of 61mbps,  with Korea (47mbps) and Finland (22mbps) leading the way.  Closer to home, France are able to offer their citizens an average speed of 18.4 mbps.

Virgin Media can offer speeds up to 50mb in certain areas of the UK via a wallet robbing fire optic installation though this still leaves the UK with an average speed of circa 3 mbps.

The upgrades that the Digital Britain report recommended, is still a sizeable step in forward in the right direction and it is concerning to see the Conserative party, who are widely expected to take office at next year’s general election, will abolish this tax without alternative plans at current.

With the highest number of internet users in Europe and innovation online flourishing as a whole, there is a real danger that even with this essential work being undertaken, the UK’s infastructure could be just under as much strain and behind as it is now.


  • I think this is nonsense! First off, UK have vowed to have 2mb connections in all homes by 2012, Japan have made a similar promise to their nation...that they'll all have access to a 100mb line by 2012. Japan much bigger than the UK and yet it's possible for them to do such upgrades yet we get stuffed with 2mb AND have to pay tax on our lines to get it?!

    UK Government with yet another mistake.
  • Remember you are on a slow island ;) So of cause the internet connection have to be slow ? No just joking. Its terrible not to get the speed you want or you need. But I think its ok when you have to pay for driving into the London city its ok to pay for faster internet ? Hmm thats what I say. So we can start a donation for the UK broadband ? ;)
  • William
    I am sure ill be seen as very controversial saying this, but if it really was that easy to switch people off things with a 50pence / month tax, why are people still smoking??!

    Anyway, 2MB is ridiculous. I dont get it. Why does a country like france manage? Do we have some sort of useless copper wires or something? I REALLY do NOT understand the problem here..
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