Labour Details Broadband Plan

Yesterday Labour released their 2010 Manifesto in anticipation of the forthcoming election. With the election on the horizon the main political parties all seem hesitant to use the 't' word. Considering the unpopular nature of Labour's proposed 'Broadband Tax' I was interested in seeing if this was mentioned at all.

The Tax is to return should Labour win the election with 50p per month being charged to all homes with landline connections. This is needed, Labour says, in order to cover the cost of providing broadband for all. The Manifesto (PDF link) states that:

Britain must be a world leader in the development of broadband. We are investing in the most ambitious plan of any industrialised country to ensure a digital Britain for all, extending access to every home and business. We will reach the long-term vision of superfast broadband for all through a public-private partnership in three stages:

* first, giving virtually every household in the country a broadband service of at least two megabits per second [2Mbps] by 2012;

* second, making possible superfast broadband for the vast majority of Britain in partnership with private operators, with Government investing over £1 billion in the next seven years;

* and lastly reaching the final ten per cent using satellites and mobile broadband.

The proposed tax would generate £175m per year to improve the coverage and infrastructure of the current broadband system. The 10% of people who live in areas which cannot be reached by normal broadband will be able to connect using mobile broadband. The problem with this theory is that, whilst mobile broadband coverage has improved a great deal, the areas which are not covered are likely to be the remote rural areas which are also not covered by normal broadband.

PM Pledges to Provide Fast Broadband for all by 2020

Gordon Brown is expected to make an announcement on Wednesday in which he will promise to provide high speed broadband for every house in the country by 2020. The PM is expected to equate broadband with "the electricity of the digital age" and suggest that speeds of over 50mb are to be provided for all.

The idea of 'broadband for all' is not a new one, the Government's Digital Britain Report was published in June 2009 and recommended providing high speeds for all. As I wrote back in July "They believe that broadband is essential for everyone from school children to big business in order to strengthen the economy and reduce poverty. Children from homes without an internet connection tend to get, on average, lower grades. Businesses need fast connections in order to compete with the global market."



If Labour win the next election they plan to create a 'broadband tax' in order to raise money to improve the country's broadband infrastructure. The tax, which has be opposed by the Tories, will take the form of a 50p per month levy on landlines. The PM expects this tax to raise between £175m and £200m per year. Given the easy availability of contract SIMs this could be yet another nail in the coffin of fixed line services.

The Government also plans to move public services online giving each person in the UK a personal webpage from which they will apply for Passports, submit tax claims and claim housing benefit etc. This plan would save the government millions of pounds although it would also result in lost jobs and potential lack of data security.

"Faster broadband speeds will bring new, cheaper, more personalised and more effective public services to people. It will bring games and entertainment options with new levels of sophistication. So one vision for Digital Britain would create two nations: one digitally privileged, one digitally deprived. And this will mean a massive penalty in economic development to those who are denied access because of a failure of government to rise to the challenge where markets fail. The alternative is our vision: ensuring, not simply hoping for, universal coverage."
Gordon Brown

It is not yet clear how Mr Brown intends to provide 'broadband for all'. Previous plans have included expanding mobile broadband coverage to include deprived rural areas, given the speeds expected to be promised mobile broadband alone would not be enough.

TalkTalk Criticize Broadband Tax Plans

The Government 's plans to introduce a broadband tax in order to cover the cost of providing 'broadband for all' has been criticized by telecoms company TalkTalk. The planned tax, announced as part of the Digital Britain report, would cost users around £0.50 per month and is likely to be leveled at those receiving fixed line broadband.

TalkTalk's chief executive Charles Dunstone (who seems to enjoy being provocative) has said that the £6 per year tax could force low-income households to give up their internet connections:

"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. 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."

Whilst it is admirable to defend those who are on low incomes who stand to gain from having a broadband connection, the figures just don't add up. An extra 50p per month is unlikely to dissuade people from getting connected. Cheaper alternative such as pay as you go mobile broadband are available and the benefits of an internet connection are hard to ignore.



Only 10% of people polled by Ofcom this summer intended to cut back on broadband costs. With the money people are able to save by shopping online a broadband connection could pay for itself.

BT have previously suggested that the tax be paid by those who own a mobile phone in order to spread the cost. The Conservatives have opposed broadband taxation so the outcome of the general election might decide the fate of the tax.

Broadband Tax To Be Law By Next Election

The minister for Digital Britain Stephen Timms has said that the new broadband tax will be law by the time the election comes around. Speaking at a debate in London Mr Timms said that the tax is still a priority and will be 'presented to parliament as part of the Finance Bill'.

The proposed tax which aims to raise cash to improve the nations broadband infrastructure will cost those with fixed phone lines 50 pence per month. The idea for the broadband tax was proposed in the Digital Britain report in order to finance the government's plan to provide 'broadband for all' by 2012.

Those without a fixed line will not have to pay the tax another reason why mobile broadband is best when it comes to saving money if not for download speeds. Pay as you go mobile broadband users will be able to avoid the tax which may help to provide them with a fibre optic connection (eventually).

The tax has proved to be controversial with the Conservatives saying that they would oppose it. Some have said that broadband providers should foot the bill as they stand to profit from increased broadband coverage whilst others have questioned the ability of a 50p tax to pay for a fibre optic network.

Steve Weller of uSwitch.com says that the proposed tax is 'a classic case of robbing Peter to pay Paul.'

"We are talking about a digitally dependent economy and society, and as such, the Government should be looking to share the burden across businesses and consumers alike."

Mobile broadband Tax Plan May Be Scrapped

As previously mentioned the Government has been planning a broadband tax in order to raise money to help provide 'broadband for all' by 2012. The idea of a planned tax was first put forward in the Digital Britain report as money is needed to improve the broadband infrastructure including the provision of better quality mobile broadband services to rural areas.

The planned tax would be paid by all those with a broadband connection and would be around 50p per month. Some have criticized the plan as they do not feel that the public should be funding infrastructure improvements when it will be the broadband providers who will stand to profit in the long run. Others have said that the tax is unlikely to raise enough money to make a real difference.



Speaking to The Times the Communications Minister Stephen Timms said:

“If the question is, is the levy definitely going to be legislated for this side of the election, I can’t say for sure. Things that are contentious will have to be left until after the election”

The Conservatives have said that they are against the broadband tax so the outcome of the election could decide the future of the tax. The debate will no doubt continue in the meantime.

50 Million Mobile Broadband Users Predicted in the Middle East by 2013

Mobile phone ownership rates are high in the Middle East and rising fast, in the UAE for example the penetration rate is 198.6 percent meaning there are on average two handsets per person. The latest worldwide success story in the telecoms world is undoubtedly mobile broadband and predictably it is taking off fast in the Middle East.



It has recently been predicted by Informa Telecoms & Media that mobile broadband subscription levels in the region could reach 50 million by 2013. To put this is perspective this would be more people connecting via a mobile broadband dongle than currently connect by any method.

"In the MEA region, there is no doubt that mobile broadband adoption will grow faster than the global average. We have observed that in some of the regional markets, mobile broadband services are attracting the majority of net additions. Very soon, mobile broadband will become the preferred option to access the internet, and I would estimate that by 2015 the total number of subscribers will reach 50 million."

Zoran Vasiljev of Value Partners

The lack of infrastructure in the Middle East means that mobile broadband is seen as a good alternative to a fixed line connection. As the coverage levels and speeds increase data traffic is expected to raise by 1,587 percent. The flexibility and portability of the best mobile broadband packages make them a big hit with business customers in the east.

"Mobile broadband has been a true success story over the past two to three years, and mobile data and wireless subscriptions will overtake fixed line data subscriptions in both numbers of customers and in revenue. The ever-growing and unmet demand for access coupled with lack of fixed infrastructure investments (improvements) have contributed to this trend and I do not see this changing or reversing. Demand for mobile broadband will exceed that of fixed line services."

The report also suggests that mobile broadband subscriptions will overtake fixed line connections globally by the year 2011. 65% of connections are expected to be mobile by 2013.

Television Channels Try Free Content As Online TV Usage Increasing

Another day, another broadband study, this time about those who watch television programs online. For those of us who are old enough to remember dial-up watching full length TV programs online without any significant loading time still seems amazing. Now that speeds have increased around 15% of those 'with a reliable broadband connection' use the BBC's iPlayer service to watch programs online.



Television channels are starting to realize that they need to put their content online for free in order to reach viewers who are watching less television. They know that if they don't offer their content online somebody else will and they might as well be getting the ad revenue. Channel 4 have recently put a large percentage of their back catalog online via their 4OD service after failed experiments with an online pay-per-view service.

The stats from this study would seem to contradict those of a recent study by YouGov into online viewing. 53% of those asked by YouGov said that they would not watch more online TV even if they had a faster, more reliable connection. Whatever the stats say it seems to me that the idea of watching a program at a fixed time via a television will one day seem as old fashioned as dial-up.

Broadband Increasingly Popular in Rural Wales

Ofcom's recent survey showed that broadband take up has continued to increase despite the recession. Connections are up 10% from last year with around 68% of households being online and 1 in 10 having a mobile broadband contract. The stats for Wales show an even bigger increase in connections with 30% more households getting online within the past 12 months.

Those in rural Wales are slightly more keen with 60% having a broadband connection compared to 58% of city dwellers. This goes to show that broadband coverage is perhaps more wide ranging than previously thought. Ofcom's coverage maps would seem to suggest that most of rural Wales is not covered by a 3G signal from any of the main providers. Despite this 11% of the Welsh population are using mobile broadband including those outside of the main urban areas.

Consumers Choose Mobile Broadband Over Holidays and New Clothes.

Ofcom have released the results of their latest survey and once again it shows just how popular broadband had become. The results show that whilst the Recession has affected people's spending habits a broadband connection is still seen as a necessity rather than a luxury. Consumers were asked what they had cut back on in order to save money in these economically tough times and most were unwilling to give up their internet connection entirely.



47% of those who responded to the survey said that the would cut back on going out for dinner and 41% said they would cut back on holidays in order to save. A quarter said that they would spend less on new clothes and 19% planned to spend less on their mobile phone. In contrast only 10% planned to cut back on broadband.

Around 68% of households now have a broadband connection, up 10% from last year. Mobile Broadband is the fastest growing sector with around a quarter of a million new connections this May alone. This means that just over 1 in 10 households now have a mobile broadband contract which is amazing when you consider that the technology is only a few years old.

The perceived lack of money means that consumers are becoming increasingly interested in getting better deals particularly when it comes to long term pay as you go mobile broadband packages. This will no doubt benefit those with the best mobile broadband packages but those who's offers are less competitive stand to lose out.

New Broadband Test Gives Hope To Those In Rural Not-Spots.

A test network has brought Broadband to those living on the remote isle of Skye in Scotland. The network was created by The University of Edinburgh in conjunction with the Highlands and Islands project in order to show that a quick and reliable broadband connection is possible in remote rural areas. It was created using a low-cost ring of wireless phone relays connected to the current internet connection at the Sabhal Mor Ostaig college.



The Government has pledged to provide 'Broadband for all' by 2012 as part of the Digital Britain project. This includes rural areas where fixed line and mobile broadband are not currently available. Bringing broadband to these areas is vital and, it would seem, not as difficult as once thought.

"Access to the internet is fast becoming a basic utility in cities, but in rural areas it is often unavailable. People living remotely need web access to run businesses, use mail order, to access educational support, or to contact friends and family. Broadband speed is doubly important in remote areas where radio, TV and telephones may not work well. Our study shows how high-speed access can be made available to remote areas."
Prof Peter Buneman, Edinburgh University.

Many areas of Scotland are still without an internet connection in part due to lack of investment. Broadband providers are unlikely to recoup costs from sparsely populated areas so government funding is vital. This test shows that providing coverage to rural areas is possible but further research and funding will be needed if the government is to meet it's target by 2012.

BT Suggests that Mobile Phone Users Should Help to Spread the Cost of the Broadband Tax

In the Digital Britain report published last month Lord Carter who is the Communications Minister proposed a 50p per month tax on all fixed phone lines. The aim of the 'Broadband Tax' is to help cover the costs of providing high-speed broadband to the nations computers.

What is needed in order to improve our broadband infrastructure is nothing short of a complete overhaul. The current copper phone lines were not designed to transport large amounts of data at high speed, they were designed to handle voice calls. The problem is that there is some debate about who should be paying for the new system.



BT has suggested that in order to reduce the tax per customer more people should be taxed. Their solution is to place a tax on mobile phones as well. Some of the £1.5bn which is expected to be raised by the tax may be available to mobile operators as well as fixed line companies as they are both able to join the bidding process for a share of the funds.

BT's director of industry policy and regulation (snappy title!) Emma Gilthorpe has said "the government should consider the opportunity to widen the base for the tax and possibly reduce the amount that each individual household pays". The problem with this theory is that most households own a combination of a fixed line and several mobile phones so in the end the same people may be paying the same amount as they would with the standard fixed line tax.

Those without a fixed phone line, mobile broadband customers for instance, might end up paying towards the improvement of the infrastructure if BT's proposals are considered.

Vodafone launch signal booster

Mobile phone provider Vodafone has announced plans to launch a signal boosting box called the Access Gateway. The Access Gateway will boost mobile phone signal strength for those in low signal areas. The box, which will cost around £160, plugs into a home broadband line. Signal strength is boosted via the home phone line for those with a broadband connection.

This seems like a strange move for Vodafone who, some will argue, could have used the money spent on developing this product on improving their signal strength. I would also question the usefulness of a device that boosts signal strength for mobile phone but requires a fixed phone line. I would have thought that those with a home phone would be less likely to be concerned by lack of a mobile phone signal.



Having said that those in rural areas who struggle to maintain phone signal might be very interested in this product. Those who like to keep their home phone line free of business calls could also benefit from the increases in mobile signal strength. Any opposition is likely to come from those who feel that signal strength improvements should be paid for entirely by their operator.

Mobile Broadband Demographic Widens

When mobile broadband was first launched it was mostly the preserve of white collar workers. Business men up and down the country were connecting on trains and during business meetings to collect their emails and exchange data. The portable and flexible nature of mobile broadband suited those who were often on the road or who commuted to work.


Now mobile broadband is used by a wide section of society. Some of the best mobile broadband deals come with free laptops targeting those who do not have a fixed landline or a computer yet. Increasing coverage and rising speeds make mobile broadband a real contender when considered amongst the full range of options.

The demographic is now hard to pin down as dongles are used by an increasingly large percentage of the population. Those at university are a booming market as they are able to move freely whilst maintaining their connection without being locked into restrictive contracts. Pay as you go mobile broadband allows them to keep control of costs by paying in advance.

Cheap Offers Increasing Broadband Takeup.

The increase in competition in the Broadband industry is benefiting consumers and increasing the amount of homes going online. Cheaper offers are expected to mean that only one quarter of the population will not have some form of connection by the end of the year. The UK is currently 11th in the world rankings when it comes to Broadband penetration with around 60% of households having an internet connection.

The big Broadband success of the past few years must have been Mobile Broadband. Deals which include a laptop for a monthly fee have been well targeted at those who do not have a fixed phone line as well as those who's only use for a computer would be in order to access the internet. The availability of pay as you go mobile broadband is improving with approximately 99% of the country able to receive data. Fees of around £15-£20 are more palatable to consumers than the idea of buying a laptop outright then paying a monthly fee on top.

Mobile Broadband specialist 3 has unveiled it's latest plan which may be their best mobile broadband offer. Users can get 15gb a month for £15 rising to only £22.50 with a free laptop. With deals like that (and many others for different providers, for instance Vodaphone) there is no longer any excuse not not be connected.

How To Lock Your Wireless

A recent survey has shown that a large number of broadband users in the UK have left themselves open to piggybacking. If you don't know what that means then you may well be one of them, here is everything you need to know about Wireless security.

When someone uses your unlocked wireless connection to access the internet it is called piggybacking. This can be a bad thing for you for several reasons.

• Your connection may be slowed down. Sharing your bandwidth with others can be frustrating and slow.


• You may end up paying extra. If you have a monthly limit on your downloads someone using your wireless may cause you to exceed this. Remember some 'unlimited' broadband packages have fair usage limits.


• If the person piggybacking is downloading illegal content you could be liable for prosecution.

If you use wireless broadband via your telephone line you need to know how to lock your wifi router. Here is how it is typically done. If this doesn't work for your set up try visiting your manufacturers website.

1. 1) Using your internet browser log on to your router's set-up page. This may be located at http://192.168.1.1if not it will be a similar number which should be in your instruction manual. (If you don't have this it can usually be downloaded from the manufacture's website).


2. 2) You may be asked for a log-in and password. This will be in the instruction manual and will normally be along the lines of 'admin' and 'password' unless you have already changed it. Next look for a section called 'security setting' or 'Wi-Fi Protected Access' or another similar term. Enter a password making sure it isn't anything obvious. You can test passwords with a password checker.


3. 3) Save the password and you're done!