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‘Broadband tax’ could fund public broadcasting
(11-04-08) - Internet service providers could face a new tax to help resolve funding problems in public service broadcasts, which could result in higher broadband costs for consumers.
Industry regulator Ofcom suggested the new levy under proposals published yesterday about the future of public broadcasting.
Ed Richards, Ofcom chief executive, said: “Public service broadcasting is at a crossroads. Viewers still want a mix of high quality UK-made content, but the traditional television model is not enough to meet all their needs. Today’s proposals outline options for a securely-funded PSB future. Now is the time for a wide-ranging debate looking carefully and dispassionately at all the options.”
The “broadband tax” is just one option being considered as a way of funding important public programmes on commercial channels, like ITV1’s regional news, children’s programmes and those covering the arts, history and science.
Levies were also suggested for other parts of the media such as commercial broadcasters, equipment sales, broadband firms or UK internet content providers, but any tax wouldn’t be imposed for a few years yet.
Other suggestions included forcing the BBC to share its licence fee funds with commercial broadcasters, subsidies from general Government taxes and cheaper access to the regulator’s assets such as Freeview slots. Ofcom ruled out any new form of direct public taxation.
Ofcom will make its final funding recommendations next year.
Michael Phillips, BroadbandChoices.co.uk product director, said: “Broadband prices have fallen steadily over recent years, but if a levy like this is imposed - along with the additional costs of maintaining ever-increasing bandwidth demands, and fighting internet piracy - then eventually ISPs will have to start increasing their headline rates.”
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