Comment from Schellion Horn, telecoms director at Deloitte, the
business advisory firm, on Landline Duty:
"The Landline Duty leads to 50p per month being charged all
copper lines, residential included, but low income households will
be exempted from the levy. It will be charged and collected by the
fixed line operator, passed to OfCom, which will then be put in the
'Next Generation Fund'. This is expected to raise
£175m per annum.
"There are a number of issues that will need clarification
surrounding the 50p broadband tax. There is likely to be an
administrative burden on fixed line operators to amend billing
systems and identify lines which are subject to the tax. Low income
households will have to be on an approved social telephony scheme
to obtain the relief – the details of which are not yet
clear – although the news that lines used solely to
provide television services will be exempt from the duty is
welcome.
