Conservatives slam landline tax proposals

Conservatives have criticised the Governments landline tax proposals, saying it will only deter private companies from spending the money required to upgrade the country’s internet infrastructure.

The proposed tax would take 50p per month from landline owners in order to fun a high-speed broadband roll-out, and has been heavily criticised since it was announced earlier in the year.

Writing in the Daily Telegraph, Nick Herbert, the shadow Environment Secretary and Jeremy Hunt, the shadow Culture Secretary, say the “deeply unpopular” broadband tax will fail to deliver high speed broadband in every home.

“The incentive for operators to invest is destroyed as everyone focuses not on consumers but how to get more state handout”, they said.

Mr Hunt and Mr Herbert added: “The tax has been earmarked to encourage investment in modern fibre optic networks – but telecom operators will have no incentive to make any investment of their own if there is the chance to tap into subsidy.”

The Conservatives propose great deregulation comparable to France Telecom, who were forced to open its ducts, encouraging ISPs to compete to lay high speed networks. Their rural coverage is subsequently better than the UKs.

Last week, Stephen Timms, the Treasury Minister in charge of Digital Britain, said public funding would be made available to ensure superfast broadband connections in rural areas following the Daily Telegraph’s Campaign for Better Broadband for Rural Britain.

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