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Tories would scrap 50p broadband tax

A Conservative government would scrap the planned 50 pence per month tax on every landline - which the current government plans to use to subsidise faster broadband in rural regions - "as soon as possible", according to the shadow culture secretary Jeremy Hunt.

The levy hasn't yet been implemented but is a cornerstone of the current government's Digital Britain strategy. Ministers estimate it would raise £175m per year fund to pay for fibre in sparsely populated areas which BT believes do not justify a privately-funded network upgrade.

Former technology PR man Hunt said in an interview with the Financial Times today that the tax would be immediately binned after the next election if the Tories win.

BT currently has so far announced plans to improve broadband speeds for 40 per cent of the country by 2012 with a mixture of fibre to the cabinet and fibre to the premises deployments. The investment is targeted at urban areas where the return is likely to be greatest.

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