BT dubious 50p broadband levy will stretch far enough

BT has spoken out on the Government's plans to subsidise the roll out of fibre optic broadband across the country with a proposed tax and, unsurprisingly, it is doubtful the money raised will be enough to keep the project afloat.

Speaking at a briefing at BT's London headquarters this morning the company's group director of strategy and portfolio, Olivia Garfield, said she was dubious the proposed 50p per month tax levy would stretch far enough to bring fibre to the final third of the country: “If the Government's looking for 66 percent to 100 per cent [fibre optic broadband coverage], I will be very surprised if that amount can cover it.” She added a figure of 80 to 85 per cent would be more realistic.

Garfield revealed during this morning's meeting BT had no influence over the levy announcement. She told press attendants the provider was told about the proposed levy a mere twenty minutes before the official Digital Britain report release.

BT has confirmed it is now looking to Ofcom to provide more detailed information on how the money created by the Next Generation Fund will be distributed to the likes of BT and Virgin Media. And it seems it's the lack of detail that's rattling the most cages. This week it was confirmed Parliament will be launching an inquiry into Next Generation Access. Part of this will involve investigating whether or not Lord Carter's Digital Britain plans (including the 50p broadband tax concept) will actually work.