Sarkozy’s broadband tax plan snagged by Eurocrats

THE EU COMMISSION has warned that France’s quest for universal internet access would be hampered by a presidential proposal to tax broadband usage. The plan is to supplement the licence fee for public broadcast television and radio which has a funding shortfall due to the decision to abolish advertising in order to 'raise standards'.

Speaking in Paris this week, EU Telecoms Commissioner Viviane Reding, condemned President Sarkozy’s proposal arguing it contradicted his own ambition to make broadband available to all French people.

"One cannot wish to solve the problem of (low) broadband penetration in France and want to create a tax on broadband at the same time, I think that goes against any logic and I say it loud and clear," Reding warned.

The flamboyant French president has vowed to introduce the measure by the end of the year and would be the first country to levy a tax on internet usage. He said it would be an “infinitesimal tax” but no specific tariff figures have been announced, which failed to calm corporate France’s nerves. France Telecom’s Chief Executive Didier Lombard said he believed the French telco operator “might have to change its model if such a tax were imposed,” a coded warning that cheap rate flat fee broadband may have to be put on hold.

In a rare display of solidarity with the ‘Le bosses,’ the proposals have not gone down well with public broadcast workers who staged a one day strike in February. They complained that the abolition of advertising will lead to job losses and were not convinced the internet tax proposals would make up the revenue shortfall.

France has long protected its national film industry and introduced laws to prevent radio stations from being awash with international English-language music, but its public broadcast channels have been seen as too ratings led and reliant on US imports.

The president wishes to encourage far more high quality domestic production, similar to its British neighbours where the publically-funded BBC is wholly paid for by a television licence. In France it is partially funded by licence and every incoming administration tries to find alternatives to make up the funding shortfall.

Although the compulsory payment of a TV licence by British viewers has been seen increasingly seen as archaic and draconian by sections of the public, the alternatives to fund the BBC such as advertising, levys and state funding are seen as worse options. µ