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Head of TalkTalk slams broadband tax

The 50p broadband tax has another critic with the chief executive of TalkTalk claiming it will force at least 100,000 homes to give up their broadband lines.

By Jennifer Scott, 2 Nov 2009 at 11:41

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At least 100,000 homes will be forced to give up their internet connections if the 50 pence broadband tax is allowed to go through, according to the head of TalkTalk.

Charles Dunstone, chief executive of the internet service provider (ISP), believes low income homes will have to give up their broadband due to the 50 pence increase on all phone lines set to start in 2010.

In a statement on the company’s website, 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.”

He added: “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.”

The broadband tax was first suggested in the Digital Britain report released by Lord Carter back in June this year. The £6-a-year tax to go on every landline aims to raise £1 billion to pay for the rollout of rural broadband across the UK.

However, the extra tax has caused controversy, with the Conservatives saying they would scrap it if they win the next general election and now the TalkTalk boss speaking out.

“To tax all phone customers is not even robbing Peter to pay Paul, it’s just robbing Peter,” Dunstone concluded.

The chief executive is set to present his views to the Business, Innovation and Skills (BIS) Committee in a meeting today.

Click here to read on and find out if we really need a broadband tax.

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2 comments

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Not exactly swingeing

Businesses always moan about any tax - this needs to be read with that in mind. Personally I doubt that 50p is enough to make a difference for anyone, even low income households. Let's face it, it's equivalent to half a cigarette a week, and is probably in the region of 3 or 4% of what the average household is paying for broadband at the moment (even less if they're fool enough to use BT). Are households going to forego having broadband for that? Highly, highly doubtful, but businesses always like to moan and I'm sure Dunstone will use it as an excuse if his profits drop...

By ncollingridge on Tuesday Nov 3

Tax granny's phone line?

Not all landlines are used for broadband, not everybody cares about broadband, and even if broadband was available in places that were uneconomic to reach without subsidy, how many people would take it up? It's no good saying "we should deliver public service information by broadband", as people with no interest in or need of a computer would not take it up.

By Ip_nonsense574f8 on Tuesday Nov 3