Broadband suppliers facing new tax

Telecoms regulator Ofcom has outlined new proposals to levy a tax on broadband providers as part of a review into the funding of public service broadcasters (PSB).

The watchdog noted that the financing of PSB - which includes unprofitable television programmes such as current affairs and children?s television - required an overhaul in order to better reflect how people access broadcast content.

Research by Ofcom found that funding for commercial public service broadcasting has declined by £130 million since 2003, which has put the future of shows such as Channel 4's flagship Dispatches in doubt.

Chief executive Ed Richards said: "Public service broadcasting is at a crossroads. Viewers still want a mix of high quality UK-made content, but the traditional television model is not enough to meet all their needs. Today?s proposals outline options for a securely funded PSB future."

Another suggestion includes forcing the publicly funded BBC to share part of the television license with other commercial broadcasters.

Ofcom intends to consult across the industry before the end of its first consultation period on June 19th.