Feeds

Oftel having a ‘laugh’ over new funding proposals

Get knotted

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Plans to force ISPs to pay for the running of telecoms watchdog, Oftel, have been branded a joke by some in the industry.

Yesterday, Oftel published proposals based on new European Union legislation that forces any company in the "electronic communications sector" with annual turnover of more than £5m to contribute to the cost of running the telecoms regulator.

The proposals would mean that a number of ISPs - including AOL UK, Freeserve and Pipex, for example - would be forced to pay a fee for the first time.

While ISPs would have to pay-out, around 100 telcos would be freed from the financial burden, said Oftel.

The new fee structure is due to be introduced from July 25 and would remain even after Oftel - which has an annual budget of around £20m - is replaced by the new giant communications regulator, OFCOM.

Speaking out against the move Pipex boss, David Rickards, told The Register that he "laughed" when he heard of the proposals.

He said it proved Oftel and Government were out of touch since they were effectively taxing broadband. On the one had Government wants the UK to be a top broadband nation, on the other, it is adding an additional financial burden to those trying to roll-out broadband.

And he also questioned whether the industry would be getting value for money from the regulator. "After all, Oftel doesn't have a brilliant track record," he said.

At the moment it is unclear exactly how much ISPs would be forced to pay based on their turnover, although insiders claim that AOL UK and Freeserve could be stung for a six-figure sum. Even ISPs such as Pipex could be slapped with an annual bill running into tens of thousands of pounds.

One industry insider described the move as "affordable but unwelcome".

In a statement Freeserve said: "We're happy to pay Oftel so they can carry on doing a great job." [that's a joke, right? Ed] ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.