Scrapping telephone tax good news for VoIP solutions

VoIP solutions could benefit from the announcement that controversial plans to introduce a telephone tax have been shelved.

Labour planned to implement a 50p per month tax on phone lines to pay for the roll-out of super-fast broadband, but this has been scrapped by the new coalition government.

VoIP traffic could increase as more people will be able to access affordable broadband, while faster download speeds ensure for a more reliable call connection.

During his budget speech, George Osborne confirmed that the deployment of next-generation broadband will be financed by surplus TV licence fee funds.

He said: "We need investment in our digital infrastructure. We will support private broadband investment, including to rural areas, in part with funding from the digital switchover under-spend within the TV licence fee."

The portion of the TV licence fee which was intended to ease the switch to digital TV will be used to pay for the move.