BT Claims it Was Kept in Dark over the 50p Broadband Tax Levy
BT has expressed its doubt over the government’s proposed broadband levy, which will be used to subsidize fibre optic broadband across the country, saying that it wouldn’t be enough to fund the project.
Director of strategy and portfolio of BT, Olivia Garfield, while addressing a briefing at the company’s London headquarters this morning lashed out at the government saying that the 50p per month broadband tax levy would fall short of the target of covering the remaining third of the country. She also suggested that going from 66% to about 80 to 85% would be far more realistic. The plan of funding the project of laying fibre for broadband in 30% of the remaining area in Britain, by levying 50p tax, clearly didn’t find any takers in BT.
Garfield also blamed the government for keeping the provider in the dark about the proposal of the new tax levy. She claimed that they were told about it only minutes before the official Digital Britain report was released.
The scenario clearly suggests that the details regarding the issue haven’t been forthcoming thus making the situation chaotic. BT has already urged Ofcom to provide clarity on issues like division of money from New Generation Funds between the broadband providers.
A parliamentary investigation is now almost certain to be launched into New Generation Access. The investigation will look into the viability of Lord Carter’s report and will also cover the proposed 50p broadband tax levy.
