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The Broadband Stakeholder Group (BSG) has praised the Digital Britain report calling it a "forward-looking, innovative and proportionate proposal that will benefit all".

It said that the proposals set out in Lord Stephen Carter's report could provide a template for governments in other countries struggling to come to terms with next-generation broadband deployment.

Antony Walker, Chief Executive of the BSG, which advises on issues relating to broadband in the UK, said that the regulations set out in Digital Britain could be just enough to "incentivise" more investment in the technology.

He claimed that the proposals are smart because they recognise the financial constraints of providing universal broadband access and seek to share the burden between public finances and commercial enterprises.

Commenting on the proposed broadband tax, Mr Walker said: "The cost to consumers is relatively small: less than the price of one cinema ticket per year.

"The scheme would generate sufficient funds to tip the balance of investment in many areas that would otherwise face an indefinite wait for next-generation broadband."

Digital Britain laid out plans for the broadband tax, which will see households and businesses charged £6 a year for their fixed telephone lines.

Last year, the BSG published research conducted by Analysys Mason which estimated that the cost of installing a nationwide fibre-optic broadband network could range from £5.1 billion to £28.8 billion depending on the technology used.

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