Incommendation

The government may believe that the Next Generation Fund would help build a competitive digital communications infrastructure across Britain, but BT thinks otherwise.

The government’s scheme to tax subscribers in order to finance the laying of fibre optic broadband across the UK has raised doubts from BT Broadband, which is not convinced if the money raised will be sufficient to finance such an ambitious project.

BT’s group director of strategy and portfolio Olivia Garfield said at a briefing at BT’s London headquarters this morning that only 80 to 85 per cent of fibre optic broadband coverage is possible with the money raised through the proposed 50p per month tax levy, instead of the 100 per cent coverage as claimed by the government. According to her, the government would need more than a 50p levy to bring the final third of the country under hi-speed broadband connectivity.

Garfield added that BT had nothing to do with the levy decision. She told the press that BT was informed about the proposed broadband tax levy just on the eve of the official Digital Britain report release.

BT is now waiting for Ofcom to provide further details on the Next Generation Fund. Meanwhile the parliament is going to investigate the effectiveness of Next Generation Access and Digital Britain plans, including the 50p broadband tax concept. Lack of details regarding the distribution of the fund money is what is worrying BT, and hence it is looking up to Ofcom for answers.

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