According to a latest declaration, a share of the Government’s £1 billion fibre broadband fund would prove beneficial to the rural communities and hard to reach areas that do not have access to next generation Internet.

The main purpose behind the introduction of the plan which is funded by the controversial 50p landline tax, is to provide the next generation, superfast broadband access to around  90% of the UK by 2017. According to the Government, this is “essential if the UK is to remain globally competitive”. According to an estimate, the private investment will reach only up to 70% of the population.

Business Secretary, Lord Mandelson, said: “This investment is about bringing the future of broadband to areas of the country that would otherwise miss out. We cannot underestimate the opportunities this will bring for homes and businesses which is why we are taking action to make sure everyone benefits.
“Already the market is delivering superfast Internet speeds of 50Mb to half the country but we cannot be certain that it will reach the communities that are not currently served, which is why we are putting in an extra £1 billion to support the market.

He further added “By upgrading our networks we will put the UK at the fore of rapidly developing technologies which will bring jobs, boost business potential and grow our digital economy,” .
The areas with little or no broadband provision are expected to derive advantage from the investment, in an attempt of closing the digital divide assuring that rural communities are also taken into consideration. Michael Phillips, Broadbandchoices.co.uk product director, said: “While it is important that the Government works towards closing the digital divide, our concern is that the upgrading of the UK’s broadband infrastructure is a huge undertaking and this unpopular tax will barely make a dent in the likely total cost.
“The majority of telecoms suppliers have already increased their line rental charges increase significantly over the past year, and this is just another body blow to consumers.

He further advised “While you can’t avoid paying the tax, if you aren’t on paperless billing and paying your bills by direct debit then we would recommend immediately doing this. The savings will – thankfully – more than cover the new broadband tax costs. Alternatively, you could switch broadband provider to a cheaper package, and even get a better service at the same time,”.