Government tax plan to bring broadband to millionsScheme to increase broadband use could expose consumers to more online video.
The government has begun a consultation process for its proposed broadband tax that, if successful, could allow online video production companies to reach millions more people.
A 12 week consultation process began today (January 7th) between the government with representatives in the telecoms and Internet industries to discuss how best to spend the money levied.
The plan is to tax 50 pence per month on all fixed telephone lines and then use the money to help extend the use of broadband in the country to reach 90 per cent of the population by 2017.
Business Secretary Peter Mandelson said: "Already the market is delivering superfast internet speeds of 50 megabits per second to half the country but we cannot be certain that it will reach the communities that are not currently served."
However, not everyone is in favour of the scheme and the Conservatives said they will scrap it if they win the next general election.
Last month, Keith Warburton, president of the Technology Channels Association, said in PCR magazine the scheme would be useless without the hardware to back it up.