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Digit Al graphic character
Let’s get Digit Al: the graphic character used by the Government to promote the switch to digital television
Digit Al graphic character Gordon Brown

Phone tax could pay for 'Digital Britain'

Amar Singh
17 Jun 2009


The Government was preparing to face a backlash from Britain's main broadcasters today for failing to reach a conclusion on whether the BBC will have to give up part of the licence fee.

Speaking at the launch of his long-awaited Digital Britain report, Communications Minister Lord Carter admitted that he had failed to reach a clear decision on whether the BBC's rivals can be saved by public money.

He said: "If we were absolutely clear that contestability of the licence fee is the only answer we wouldn't put it up for consultation.

"We are not 100 per cent sure, having looked at it now we have not yet seen a proposal that provides a funding level that is needed.

"We believe that a consultation should take place. We will absolutely take licence fee payers' views and absolutely take the BBC Trust's view. We will also consult Ofcom which has a responsibility to Parliament on this."

Lord Carter added: "If people can come to us with another idea we'll say great, let's look at it."

There will be a consultation on sharing out a "small portion" of the licence fee after 2013, Culture Secretary Ben Bradshaw said - too late to guarantee the future of commercial broadcasters ITV and Channel 4.

Lord Carter also revealed that government plans to roll out broadband across the country could be paid for through a new tax.

The White Paper suggest that all homes with fixed copper telephone and internet lines could pay a 50p per month tax to fund the Government's commitment to providing "high speed next generation broadband to the vast majority of the UK population".

Lord Carter said: "A 50p per line levy will produce £150 to £160 million a year to provide fibre optic networks for the rest of the country."

With regards to ITV, which says it can no longer afford to produce regional news after 2012, Lord Carter pledged only to "discuss with the BBC Trust whether a proportion of the projected underspend in the Digital Switchover Help Scheme could fund a range of pilots to test options for contestable funding for news before 2012".

The White Paper proposes a series of new bodies called Independently Funded News Consortia to help produce news for England, Scotland and Wales and local and regional news.

Channel 4 was told that its financial crisis could be resolved through a merger with BBC Worldwide.

The White Paper also announces the appointment of internet entrepreneur Martha Lane Fox as the Government's new champion for Digital Inclusion.

The businesswoman will head a taskforce to ensure that digital media is available in socially and economically disadvantaged communities.

Reader views (44)

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Well, the crass BT tv ad shows us where they want us to go, relying completely on the internet - the twat is trying to make up with his divorced mum of two girlfriend, simpering away because he is having to earn money (to pay for her to be princess for a day at their wedding, no doubt) on a distant shore, only to be foiled at the last online plea by the bloody thing going haywire! USE A LANDLINE, IDIOT, far less finicky than wireless broadband - or better still, WRITE HER A LETTER!
The fact is, the government, BT and the BBC all wants us to be hooked on the web either by computer or, worse still, mobile phones.
This will eventually lead to every techno-junkie being hooked, monitored and trash-ad targeted 24/7 - "It`s good to talk", well, maybe, but not anytime anywhere to anyone about anything, we all need our privacy, we all need to drive safely, we all need escape from the communiclutter (I’ve just invented a new word!)
Then we’re really in for it – overloaded servers, bad service, racked up unnecessary expense by the “yoof” and feckless, Oh, and of course on-line bingo!
No, Mr Brown, we don’t want all this (even so we can “participate” in HD with the Olympics), we want Quality over Quantity, and why therefore should we pay for what we don’t want, or even need?
Not with my money you don`t!

- Darius Midwinter, London UK, 17/06/2009 11:02
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john major introduced a tax on petrol to combat green house gases. he said it would go in a seperate pot so people could see the benefits.nu labour changed that and it went straight in to general taxation.and remeber brown has said petrol increases are needed to combat yes youve got it,greenhouse gases.so a tax on a rented item ie a bt line is just the tip of the nu labour tax iceberg.also did u noticed the tax did not go to a commons vote? no neither did i.democracy! theres more in north korea than the uk

- Mikee, peterborough uk, 17/06/2009 10:00
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Another reason form me to get my landline cut off. My BT bill last quarter was exorbitant with all their 'add-ons' making up the final bill. I rarely use a computer at home. What about people who don't use the Internet? Why should they pay for those that do. We pay enough to watch rubbish programmes on the television without yet another back door tax.

- Sue, Orpington, Kent, 17/06/2009 09:00
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Maybe we should rip out our copper lines and all go wireless? That would probably give us a few months grace before they come up with plans to tax mobile internet users as well. Seriously though, why should we have to pay an extra 50p per month so that the government can ensure that everyone has access to 2Mbs Broadband? Other countries such as Canada or Japan receive at least 20Mbs as standard and have done so for some years. Perhaps if they were going to offer 100Mbs, we might just be a bit more interested? As it stands, this "speeding up" proposal is just plain embarrassing and makes us the laughing stock of the world!

This is another too little, too late(increasingly creaky)knee jerk reaction to another suitably useless and expensive report, commissioned by this dreadful government. For pity's sake just call an election and go!

- Steve Belton, Greenwich, London, 17/06/2009 08:31
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The only BBC shows worth watching are the golden oldies ... that are broadcast on all the other channels who pay for themselves through advertising anyway. So I don't know why they just don't shut the Beeb down.

- Marianne, SW France/London, 17/06/2009 08:23
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Gordon Brown had been trying to tax and control the internet for some time. His last brilliant idea was computer tax. That did not get off the ground. Along with ID Cards, national NHS database, ICC TV etc, it is his idea of democracy, or as some of them call it, people's democractic state.

- Properganda, paris, 17/06/2009 01:52
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Do what the 3rd world has already worked out. Go 3G wireless and have internet access for essential stuff like email or research. Differential low rates for country users, very easily implemented because of the cell network ID system.
Just another dumb ass socialist tax from Broon.

- James Ritchie, Oyster Bay Cove, NY, 17/06/2009 01:06
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Another Brown TAX

- Mr S.Port, London, 16/06/2009 23:31
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Tax and tax again.

Will it never end ?

- Bernard Parke, GUILDFORD, 16/06/2009 22:45
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DAB radio must not be allowed to replace FM radio.The quality (with the low bit-rates generally used to squeeze in a maximum number of stations)is far lower than with FM. Also, with portable DAB radios, the signal varies massively all the time according to the place it is in. For example, when I listen to AM or FM when walking in the woods,the signal is rock solid, whereas with DAB the signal comes and goes even in a strong signal area.This is unacceptable.

- Peter, Watford UK, 16/06/2009 22:45
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Get Carter !

- Sally70, Bedford, 16/06/2009 22:39
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John, Bromley asks why BT did not invest in 'modern' cables at the same time as the cable companies - if I remember rightly government regulation at the time prevented BT from doing so; of course this approach meant that cable companies selected only the profitable areas, they had no requirement to deliver the equivalent universal service obligation.

- Rob, London, 16/06/2009 22:22
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No to more stealth taxes. £5 on phones, what next on mobiles? BT and the other telecoms companies should pay

- Mikeinhackney, United Kingdom, 16/06/2009 22:20
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I have listened to the Culture Secretary being interviewed on the radio and it is obvious that this whole matter has not been thought through properly as is the case with everything this lame government does. He has no idea of the technology involved and has not even heard of DAB2 neither does he care about anybody who have analogue radios and will not be able to afford the new system. Furthermore, what about the millions of cars with analogue where it will be impossible to change the unit? The levy is, of course, a tax and that is the whole point of the exercise. Does he think we are completely stupid?

- Roger, Winchester, England, 16/06/2009 22:18
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John, Bromley - easy answer - they had seen mobile as the new future, put money in to Cellnet (remember that?)but screwed it up. Now they have created a seperate company (Openreach) for the 21st cebtury landline network, but have screwed that up too. BT is an empty money losing shell.

- Dave Davies, Basingstoke, Hants, 16/06/2009 21:46
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Tax tax and more tax, is there not an idea that these total moorons can come up with that does not include charging us a tax.

- Steve M, LONDON, 16/06/2009 21:38
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What a complete pile of excrement! yet another sign that this appalling government have totally lost the plot. We already pay more taxes than ever before to fund things such as Broadband roll out and if Labour really want to do that then they should cut something else in order to pay for it. To also fail to properly address the disgrace that is the licence fee and the BBC's wholly unacceptable and unjustifiable monopoly of that money is the clearest sign yet that Labour cannot be trusted with the stewardship of anything at all any more.

- Matt, London, UK, 16/06/2009 21:32
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wow, I never even thought about taxing phone lines! I wonder how many households in the UK have a phone line! hang on a minute, what about doors! Everyones got a door! Lets tax 10p month for everone who has a door!

That seems much fairer!

- Ben, London, W1, 16/06/2009 21:04
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No more taxes Brown, just call the general election now you miserable control freak.

- Taxed To Death, London, 16/06/2009 18:20
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Seems to be all about feathering the nests of the broadcasters' media companies and BT. Why didn't the the highly profitable BT invest in modern cables at the same time as the original cable companies? And I bet its priorities for cabling will be in those profitable areas that have already been cabled by their competitors.

- John, Bromley, 16/06/2009 17:57
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This will go the same way as the Lottery.

Next thing you know, it'll rise to £5 a month to fund the Olympics, and ID Cards, and then Brown will want another £5 a month for African schoolchildren, then another £5 a month for Scotland....

- Andrew, London, 16/06/2009 17:47
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This will be another tax like Road Tax. Initially designed to ensure fast access by road to the whole of Britain. Later subsumed into a general pot while access gets slower and slower. How long before we can expect fines for downloading too much on the Internet? Oh, I see they are thinking about that already ...

- Matthew, Wokingham, 16/06/2009 17:47
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What about those people who don't have a computer at home (like me), will they be exempt from paying this stupid tax? Nope, thought not. Personally, I far prefer analogue Ceefax than the digital version, far more pages and information.

- Sarah, Enfield, 16/06/2009 17:35
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People will interpret the broadband tax as Licence Fee 2.
Yes-of course it has to be paid for but why should people who have already got it pay more --when they pay broadband rental anyway?
In addition, why should anyone who has NOT got broadband pay anything until they are 100% guaranteed that it will be delivered.
This is a fudge.

- William Grierson, Kimpton-UK, 16/06/2009 17:28
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Another Broon stealth tax. It'll start off at 50p a month and rise to several hundred pounds a year. To fund what? Most TV is unwatchable-endless reality shows, channels devoted to evenings full of CSI crime something or other or the moronic J Ross & G Norton. So the mnoney is really to pay exorbitant salaries and pensions at the BBC and other jobsworths in Government. Bah!

- Strongbow Sullivan, Paris,France., 16/06/2009 17:14
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Why should the government fund fibre-optic cabling? Other countries leave this infrastructure up to the telephone companies. I thought that selling off BT all those years ago would have unshackled us from any responsibility in this area.

Seems that in the government's desire to command and control everything we do that they have forgotten that they don't own or run the phone network anymore.

- Nobby Clark, Perth, the Scottish one, 16/06/2009 17:13
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Yep, if there is a lot of it, tax it, the base as well as the profit so when the profit has gone you increase the tax on the base, as was done for fuel.

I suggest another tax, 500% on MPs and Lord's expenses, backdated!

- Hugh, Middx, 16/06/2009 17:02
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When you try to access digital teletext by the time the pages arrive you have forgotten why you wanted them. stick with analogue

- Peter, Hertford, 16/06/2009 16:58
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No more taxes.

Enough is enough.

If you live in the Country, tough. If you want fast internet access then you need to move to a city.

Broadband is not essentail for the Countryside... for thousands of years people have managed without it. Why tax everyone to provide this political statement? Another Nu Labour stupidity.

- Stephen, Swindon, 16/06/2009 16:47
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Having paid to get broadband and the equipment required why should I have to pay 50p per month on top of what I already pay
BT should have sorted this out years ago and I don't see why I should stump up to fill their coffers now

- Rod Gray, Berwick upon Tweed, 16/06/2009 16:44
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I've just dropped Sky after about 4 years of using it infrequently, Sky1 was the only channel I really watched and that's just mostly repeats now, I've got PlayTV for my PS3 so I can record from Freeview but frankly I feel I'll be using it infrequently as most TV is now such absolute dross.

- Bob, Cheam, 16/06/2009 16:34
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Like my tag states - television viewing should be free. Not taxed by the that ancient gentleman's club known as the BBC.

- Taxfreetv, London, 16/06/2009 15:57
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I think we can now safely regard Ofcom as a division of News Corporation.It is going to be a Sky Digital Britain with free to view Freeview and Freesat limited to the BBC and a few other vestigial public service channels and it will be "Pay Rupert" to see anything else.Broadcasting in Britain has been wrecked by the Sky Digital monopoly sucking the cash out of the UK's commercial broadcasting system with its twin income streams from subscriptions and advertising revenue.Far from looting the BBC Licence Fee there should now be comprehensive redistribution from Sky's "profits" to the other commercial public service broadcasters otherwise they will fail as comprehensivly as football outside Sky's Premiere League cash cow is failing.But what grubby politician will dare?

- Chris Davies, Stalybridge UK, 16/06/2009 15:48
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Darius - you are absolutely correct.

Our family used to look forward to watching television.
Now sometimes days at a time , we do not switch any on , because there is nothing watchable on.

Things have to change , but I don't think the politicians or business people running things have an interest in changing things for the better.

The politics and business in British TV must be given a good shake-out or the standard will continue to deteriorate. Bread and circuses come=s to mind , however history proves all empires end one way or another.

- J B Blackett, Hendon, 16/06/2009 14:50
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"Top slicing" is just a fancy way of saying that having obtained money by threats via the BBC licence tax, that money is not being spent on the BBC at all. Instead, it will be subsidising commercial TV channels and their shareholders which are, the last time I looked, the BBC's rivals.

If Channel 4 wants to survive, I suggest they start broadcasting programs people want to watch, and dump programs like that tedious annual freak show "Big Brother".

C4 was created with the specific goal of being "different and innovative", something they've forgotten a long time ago. C$ does not have some God-given right to exist, and if they can't attract enough viewers or advertisers it's too bad and they should go bust like any other enterprise. I do not expect my licence fees to be handed over to subsidise failing broadcasters such as Channel 4 who put out unwatchable garbage like "Big Brother".

- Kate, London, 16/06/2009 13:29
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please don't say it's the same Lord Carter who published a report a couple of years ago that decided we should all submit our tax returns by the end of October
that caused great panic and debate and was pretty much scrapped in the end as it wasn't thought out -at great cost no doubt
I know we have to keep all the old chaps in great style but couldn't they go and do something useful instead - no I don't really know what they could do but someone must have a suggestion

- Scottish Girl, woking surrey, 16/06/2009 12:44
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Has Brown not broken enough?

Never mind Internet piracy what about MP's piracy. I just wish Brown would sit on his hands and do nothing until we get the chance to boot him out. The idiot is still hurting us with his ever move. He is still failing to listen to the public

- Ge, Kernow, 16/06/2009 12:10
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If any ITV company fails it is their problem for delivering dross and they should be allowed to go to the wall. No way should they be allowed any access to the Licence fee.

- Paul B, London, 16/06/2009 11:52
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Why do we have to go digital?

What was wrong with analogue?

Which is faster than digital, and doesn’t break up the pictures as easily etc.

Why does the Government always want consultations; that go on forever without reaching a final conclusion with those consulted?

As Margaret Thatcher used to say; these things should be self financing; there are many organizations like the DVLA etc; that are not financed by the tax payer.

To be honest; Television today is mostly repeats and poor quality programs; if they shut the lot down, I personally; would not miss any of it at all.

The Cinema died, Dance Halls died, Bingo died; Music Halls died; TV will die in its turn, once we all switch off and do other things.

Don’t you all get sick of the State changing everything that is not broken; and replacing it all with new things we do not need at all?

The only thing they do not change; is themselves.

- Mickyinlondon, london, 16/06/2009 11:50
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Darius - when I am PM, you will be my Minister for Culture, Media and Sport.

There is too much TV already. 24 hours "news" from BBC, Sky, CNN and others. The BBC often has 3 simultaneous news programmes broadcasting live with the same stories, but with a completely different presenter, studio and crew - how is that offering value for money?

BBC Radio news also broadcasts the same news simultaneously on Radios 2, 3, 4 and 5, but again with different staff - why not just have a shared service?

Why does ITV need to have regional news if the BBC are doing it too? There is only so much local news that can be reported in one day.

Channel 4 makes some good programmes, but would be better off selling them to the Beeb or ITV and concentrating on production. These channels could then replace the trashy Trisha and Kyle programmes with good quality TV. If chavs want to watch 24-hour reality TV, let them subscribe to Murdoch's muck at their own cost - don't allow the terestrial channels to follow the satellite broadcasters down to the lowest common denominator.

- Nobby Clark, Perth, the Scottish one, 16/06/2009 11:49
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We have too many channels, too many programmes, too many news outlets, too much sports coverage the money is spread too thinly, and the whole thing needs to be culled.
Cut out daytime TV, trash reality shows and wall-to-wall news/sports coverage.
This will have the added advantage of encouraging the lazy and the feckless to do something more useful with their lives (i.e. fruit picking for benefits) instead of getting fat lolling on the sofa watching Tricia or their brethren on Jeremy Kyle all day!
Too much of a good thing is bad; too much sun makes a desert.

- Darius Midwinter, London UK, 16/06/2009 11:08
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Papers papers papers. Oh Crash Gordon GO AWAY!!

- Phil, Islington, London, 16/06/2009 10:59
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Disgusting really - 'Lucrative Commerical Arm' - yeah they funded with tax that you can't avoid even if you don't watch the rubbish! They can't lose!

No wonder its lucrative - its tax tax tax Britain!

- Joanne Smith, London, 16/06/2009 10:56
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When you see some of the salaries the BBC are paying out, I suggest they have enough money already.

- Shallotman, Basildon, 16/06/2009 10:08
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