The 50p per month broadband tax that is to be used to help fund next generation fibre optic broadband in the UK has been criticised by The Conservatives who say that it will fail to deliver high speed broadband to every home.
Jeremy Hunt, the shadow Culture Secretary and Nick Herber, the shadow Environment Secretary wrote a column in the Daily Telegraph:
“The incentive for operators to invest is destroyed as everyone focuses not on consumers but how to get more state handout.
The tax has been earmarked to encourage investment in modern fibre optic networks – but telecom operators will have no incentive to make any investment of their own if there is the chance to tap into subsidy.”
They belive that the technology providers will just want handouts from the giovernment to help fund the new technology instead of investing in it themselves.