Broadband - Business, Innovation and Skills Committee Contents

Supplementary memorandum from the Department for Business, Innovation and Skills

  You recently asked a further set of questions as part of your Committee's Digital Britain inquiry.

  I am pleased to offer the following comments.

Q1.   Digital Britain provides economic data on next generation roll out eg Fig 4, page 62 Digital Britain what is the source of this date? We're seeking to be directed to a particular document.

  This was taken from the analysis carried out for the Broadband Stakeholder Group (BSG) Report The costs of deploying fibre-based next-generation broadband infrastructure. Whilst the exact chart does not appear in the Final report, the charts used in the Digital Britain report is essentially figures 4.5 and 4.6 from the BSG report but presented on an incremental, rather than cumulative basis.

Q2.   Did the document "The costs of deploying fibre-based next-generation broadband infrastructure" by the Broadband Stakeholder Group inform the Government's economic modelling?

  Yes. The spread of the BSG membership ensured that the data provided for the analysis was accurate and is therefore credible.

Q3.   Will the 50p levy be tax exempt?

  No. VAT will apply to the landline duty, as it does all other excise duties.

Q4.   Will funds raised by the 50p levy be ring-fenced for the delivery of Digital Britain's objectives?

  We expect the amount raised by the landline duty to be made available for the delivery of the NGA objectives through the Next Generation Fund. Few taxes are formally ring-fenced.

9 December 2009

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