Skip to content

The Digital Britain Ripoff.

July 11, 2009

Image courtesy of www.sxc.hu

 

As you may be aware The Digital Britain Report has been published and it looks as though a majority of the proposals will be taken forward.

Now I have a problem with a few of them the one I wish to touch on here is the 50p broadband tax that has been proposed, now I can hear you think 50p that’s not that much but from a point of principle I disagree.

I already pay a monthly line rental subscription for the convenience of having a telephone line into my home. I also pay for any telephone calls that are made using that line. Now for my broadband another company that meets my needs, provides this service for which I pay another monthly subscription.

Now looking at the subscriptions I pay each month, the company(s) that generates income from these charges I would have thought that they should be committing the investment for their infrastructure upgrades from within their operating costs or dare I say possibly putting more of the profits back into the business than issuing shareholders larger profits.

[Excerpts from digital Britain report (chapter 3a section 57-59)]

“At wholesale level, the UK currently has the second cheapest prices in Europe for broadband only DSL, the third cheapest for voice and broadband DSL, and the fourth cheapest for voice line rental. ADSL prices for a 10MBps service can be as low as £5.99. The cost-based basket of wholesale prices for today’s copper-network has fallen by £8 per line per year in real terms since 2005. Over the same period the retail price for combined voice and broadband has fallen by around £90 per annum in real terms.

Against that background, the Government believes that it is right to share a small part of that saving, and that a Next Generation Fund supplement of 50p per month on fixed lines represents a fair and sensible national investment to ensure that the overwhelming majority of the country can get access to next generation broadband. Low income households – those on social telephony schemes – would be exempted.

 Over time there has been modest fixed line to mobile-only substitution. Even so, a supplement of 50p per month can be expected to raise £150m-£175m a year for the Fund. This amount might be sufficient to make investment in connecting most of the Final Third by 2017 as commercially viable as connecting the first two thirds of the population. “

As you can see the costs that the government are talking about are quite a bit out from what I currently pay so where does the difference go?

If you are a telecom provider (and in the UK we are mainly looking at BT) I would have thought that as a part of the terms of the licence to provide services to the market is they must provide service across the country and make the network accessible everywhere not just where it financially benefits the provider.

If am I expected to finance a private company’s infrastructure which is what you and I will be doing, will we see discounts or will we have some sort of shares for the money that we will be contributing? I think not.

This is the UK government TAXING again because the incumbent telecoms companies who have a monopoly the majority of control are unwilling to invest the money needed into their infrastructure to meet the needs of the UK population.

I would again like to know your thoughts.

Image courtesy of http://www.sxc.hu

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Gadgets Extremes

We know more about Technical Gadgets.

Fantastic Television

Random thoughts of a genre tv addict

Writer Henna Sky

Harbouring evil sorcerers, frustrated squirrels, mythical beasts, grumpy Kings and welcome any warped, wayward and I'm a sucker for whimsical creatures, into my World. Is it you?

I Want Ice Water!

And Other Pleas From The Bowels Of Hell On Earth

USS Soapbox!

Captain Jim Furie - my journey through the expanse called life.

Bill McCurry

Fantasy Fiction That Bleeds Laughter

健康とフィットネス&栄養

Captain Jim Furie - my journey through the expanse called life.

nyrhalahotep

A Geek friendly blog

Randy's Film Commentary and Reviews

Film reviews and commentary for those who love the movies.

portable movies

For the love of Movies, TV and music

Geeky Book Snob

Learning stuff. Reading books. Blogging words.

fiftyshedsofgraham

a man, a shed, and way too much spare time

forcing myself happy

One day at a time...for 6 months! :/

The Friggin Loon

Fodder To Harden Your Arteries By

Blog Redirection

Gone to self hosted...

Believe in Yourself

Believe in Yourself

~Timshel~

Thou Mayest

The Cords that Bind

A site about all things bound up within me.

Mostly Bright Ideas

Some of these thoughts may make sense. But don't count on it.

%d bloggers like this: