North may lose out in plan for digital Britain

Jun 17 2009 by Adrian Pearson, The Journal

GORDON Brown’s plans for a digital Britain could be paid for by North East households left behind in the broadband revolution.

A £6 a year telephone tax will be placed on most UK households to fund the roll-out of superfast internet connections.

And while the fund will be used to persuade internet providers to bring broadband access to places currently losing out, critics have warned rural Northumberland and parts of County Durham will be among the last to see the benefits.

Last night it was claimed even some North cities, including Newcastle, face a delay. Business leaders are worried internet providers with limited funds will choose easier-to-connect and more prosperous cities to achieve “quick hits” to show the Government they are acting on their recommendations while doing little to connect cities with outdated internet connections.

And as the region looks to see when it will benefit from the Government’s plans for universal access to broadband by 2012, one council has revealed its aim of providing free broadband access may never happen.

North Tyneside Council was leading the way when it announced around 90,000 homes would receive free broadband access. But the new Conservative mayor has had to face up to harsh budget constraints.

Tyneside Tories claim the previous Labour administration had no money to pay for free broadband across the borough, a flagship policy for former mayor John Harrison.

It is believed new mayor Linda Arkley has reviewed the “unquantifiable” cost of the scheme and decided that since Government funds are unlikely to appear the plans may have to be put on hold.

The funding setback comes amid warnings from internet experts that parts of the North East are falling behind other cities in the digital changeover.

Alex Salter, from broadband measurement firm Sam Knows, said the “phone tax” was unlikely to provide enough money to fund access for all parts of the UK.

It follows comments earlier this year from digital review boss Lord Carter that there will “certainly be 25% to 30% of the country where there will be no economic case for building a next-generation fixed network”.