More than 100,000 homes will be forced to give up their broadband internet under plans to introduce a controversial tax, says TalkTalk
More than 100,000 homes will be forced to give up their broadband internet under plans to introduce a controversial tax, says TalkTalk.
Charles Dunstone, the broadband provider's chief executive, said the "unjust and regressive" plans to add 50p per month to all landline phone bills will backfire on the Government and delay next-generation broadband roll-out in rural areas.
His criticism comes as TalkTalk prepares to outline the company's concerns to the Department for Business, Innovation and Skills (BIS).
Mr Dunstone said: "This is an unjust and regressive tax on all phone customers which will subsidise mostly richer rural households that can afford high-priced super-fast broadband services.
"As well as being unfair, we estimate that the increase in price will mean that over 100,000 mostly low-income homes will be forced to give up their broadband lines. This is wholly inconsistent with the Government's plans to tackle digital exclusion by increasing uptake and use of broadband."
He added: "Crucially the scheme is likely to delay next-generation broadband roll-out in rural areas rather than hasten it as private investors will wait for public funds to be made available.
"This will mean that much of the tax will be wasted investing in networks that the private sector would have built itself anyway."
He went on: "I understand that this levy was devised at the last minute after the Treasury refused to make funds available, presumably because it thought it was a bad use of public money."
A BIS spokesman said: "It is vital for jobs and growth that Britain has a world-class digital infrastructure. We have always said that those on social telephony tariffs will not have to pay the levy. This includes people on certain benefits and pensioners on the lowest incomes.
"The Government remains committed to the timetable for introducing the 50p levy on fixed lines. It will ensure that over 90% of the country has access to next-generation broadband by 2017."
