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The Labour party’s 50p surcharge is looming large over the general public as Digital Britain honchos are pushing for implementing the scheme as soon as possible. The government is determined to bring it into force before elections due next year. The Conservatives have made it clear that they do not intend to go ahead with the surcharge if they are voted to power.
The Labour party is going full steam ahead to see its rural broadband plans bearing fruit before the elections. Government officials have confirmed that the charge will be levied from October 2010 onwards on all lines in houses. If a single owner has more than one landline, he will end up paying the tax as many times as he has phone lines, even if he does not use all of them. This 50p tax will also attract an additional VAT.
The broadband charges thus collected will go towards establishing high-speed broadband throughout the UK, connecting even the most remote corners to the information superhighway.
Users cannot escape the tax by shifting to VOIP services like those offered by Skype, as all of these will also be taxed in the same way. Broadband users - whether the network uses copper, co-axial or fibre optic cables - will be paying the same tax as landline users, the Treasury has confirmed. While some retailers may raise package price or rentals, others may simply add the tax as a separate bill item.
If all goes well for the Labour party, the surcharge will bring in an additional £175m per annum, which will go towards the rural broadband initiatives and will help establish speedy broadband over 90% of the UK by the year 2017.
If you need more information on your ISP, or you want more information on your current broadband speed, the Broadband Genie comparative table of UK broadband providers includes an analysis of the products and services from the internet service providers. So take a look at their website; click on your provider, mine is BT Broadband and check out the latest on broadband UK.
According to a report published this week, Africa’s broadband service continues to be sluggish and very expensive. A recent race between a carrier pigeon and Africa’s best- known internet provider Telekom’s ADSL service ended in an embarrassing defeat for the provider.
The report published by the UN shows that Africa’s broadband services have a long way to go before they can be called adequate. The country has the fastest growing mobile market in the world with startling growth figures over the last five years. A 550% growth was seen in the number of mobile subscribers with 350 million users in 2008 as opposed to 54 million in 2003.
However, broadband has not matched this growth and remains slow and expensive across most locations in the country. As of now, it costs around $1,300 per month to maintain broadband connection in areas like Swaziland.
The UN report studied trends in Information Technology and Communications across the world. It concluded that poorer countries like Africa and India are showing remarkable growth in terms of mobile usage. However, the broadband sector continues to lag behind owing to poor infrastructural facilities. The lack of fibre optic cabling is being quoted as the chief cause behind the sluggish and unreliable broadband service in Africa.
The Head of the ICT Analysis at the United Nations presented the report yesterday with his comments on the findings. He pointed out that the substantial growth in mobile industry in spite of recession bodes well for the future prospects of both mobile and broadband sectors. Liberalisation, better infrastructure and economical handsets will make it even more affordable for people to opt for mobile phones.
Fibre optic cabling is also being viewed seriously in the country and it will soon become reality.Because the internet has become a basic need for most of us, and with the advent of mobile broadband and free laptops, it can be accessed whenever and wherever a person wants; we basically look upon broadband access as a ‘utility’, this makes the thought of people not having access a difficult concept.
While the mobile broadband market has not yet recovered from the surprise news of the proposed merger of T-Mobile and Orange, market analyst Analysys Mason has pointed out certain major hurdles in the path of the proposed merger, coming especially from the regulatory authorities.
Mason predicts that the proposed merger will overtake the other big players in the market including Vodafone and O2 broadband. Further, the merger is very likely to attract the attention of competition authorities, who in turn may not approve the proposal, as it will reduce the market competition substantially.
However, even if France Telecom and Deutsche Telekom get an approval for the merger of their UK business, the approval might come with conditions like providing wider rural broadband coverage, which the companies might not agree to as it would reduce the benefits that they would be able to derive from the deal.
Mason is of the opinion that this merger can pave the way for other mergers. Though it is unlikely that Vodafone and O2 will merge anytime soon, there are possibilities that the UK mobile broadband consumers will be left with a maximum of three to four options. The fact is further supported by the international trend of mergers in mobile broadband markets, particularly in Austria and the Netherlands.
Seeking better service and greater transparency, Virgin Media has increased broadband speeds of its non-cable ADSL internet service and has remodelled its selling approach towards potential customers.
The company’s ADSL service can now be availed with a broadband speed of up to 20 Mb. Moreover, the company promises not to exaggerate on the broadband speeds to increase sales. It also promises to provide correct information regarding technicalities of the broadband service at the time of sale.
This commitment comes after Ofcom reported last week that many service providers are giving a false picture to potential customers regarding broadband speeds. Broadband lines of most ISPs are not equipped to deliver speeds that are promised to customers. Ofcom’s report was thereafter followed by this new move from Virgin Broadband. The company’s ADSL broadband service will now include a verified broadband speed declaration; else the company will promote its products by declaring the speed to be the fastest broadband speed that they can offer.
The CEO of Virgin Media expressed his hopes that this new move would create a standard in the telecom industry in terms of keeping transparency and loyalty with customers. He reasoned that false speed claims by internet service providers misinform customers. He added that his company’s National Broadband Speed Promise would help customers to get the right picture and decide on the right product.