The British government is currently embroiled in talks that will determine the fate of high speed broadband internet availability in Britain’s rural areas as the government will formulate the best way to utilise the cash which is being raised under the Next Generation fund.
The government has set up "consultation practices" that will determine the best way to use the billion pounds that will be raised for bringing high speed (minimum of 2mbps) broadband to UK’s population.
The Next Generation fund, which was announced in the Digital Britain white paper in 2009, will generate cash by levying a tax of 50 pence on all fixed line phones in the UK.
The government hopes to raise a cash deposit of £1 billion by the help of the fixed line tax and plans to give the rural areas the benefits of high speed internet along with rest of UK.
According to a recent research by a leading financial analysis firm, the fund which will be collected through fixed line tax, will allow the UK government to provide 90 percent of UK’s population with high speed internet.
The research had also revealed that if the private sector was to distribute Next Generation broadband connection, only 70 percent of UK citizens will get the much needed broadband service.
The figures do not really add up. £6 per annum per line installed, that's around £200 million per year at the very best (assuming one landline for two people). The UK Government will need to wait for five years at least to get this £1 billion cash fund. By then, the already meager 2mbps broadband will feel even more inadequate.