Questions Arise over Levying of Broadband Fee
In a recent debate on whether the new step to be taken by the government as per the Digital Britain report is breaching the state aid law or not, the EC has decided to stay silent until the government clarifies how the proposal is supposed to work. It has also stated that until the government makes it clear as to how the broadband levy is going to work, it can not be conclusively said whether the state aid rules have been breached or not.
The step alleged to be in violation of EC rules would require all broadband users in Britain to pay an extra £6 per year towards subsidizing the proposed installation of an improved broadband along with better infrastructure throughout the length and breadth of the country. The total amount required for upgrading the overall broadband speed to 2Mb for the whole country is £200 million. The 50 pence a month levy per consumer is expected to help achieve the purported speed in much lesser time.
The author of the report, Lord Carter said that the main purpose of levy on broadband users is to decrease the headline prices and is needed in wake of the competitive market prevailing in Britain.
This imposition is being tested by the EU for violation of rules for limits on state aid for industry. The funding method used by the State should comply with the competition rules. A competition spokesperson said that it could not be said for sure at this juncture whether the imposition of such a fee to finance better broadband speeds was compliant with the rules. He also suggested that the answer to this question would depend upon how the mechanism is implemented. To keep up-to-date with the latest broadband news, refer to Broadband Genie, they also offer really good broadband advice and info on things such as broadband free laptop for mobile broadband.
