Benzoates

The government wants to realize its dream of faster broadband for the people – with the people’s money. At least that is what a Digital Britain Report recommendation aims to achieve by announcing that a 50 pence monthly surcharge (amounting to £6 per year) will be imposed on all broadband subscribers in the UK. This extra money would generate the finances required for building future broadband networks with technologically superior infrastructure, so that the government’s £200 million dream of internet access for all at 2Mb sees the light of the day.

The report’s creator Lord Carter however highlighted a point that he says is implied in the report. He assured that with market competition on the rise, there would be a significant fall in headline prices that will adequately compensate any monetary loss brought about by the surcharge to the customers.

owever, the EC authorities are in the dark about the likely effects the imposition of the fee would have on competition rules. Compliance with the rules is of paramount importance to the EC, and the authorities are checking up on this. Adding to that, they are also not yet clear if this levy will be able to help in achieving the goal.

The imposition of this charge may cause the government to violate the laws of general prohibition of state aid above a certain limit. A legal framework that is closely monitored and assessed in the European Union governs the issue of state aid. A possibility of violation may occur in the way in which the government decides to implement the recommendations of the report. Unless and until the government actually implements it, it will be difficult to predict beforehand the consequences that this broadband levying may bring forth, said a competition spokesperson while analyzing the levy issue. 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 dongle pay as you go for mobile broadband.

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