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A new £8 levy could be introduced for 100Mb residential Fibre-to-the-Home (FTTH) broadband connections, it has been reported.

According to industry news provider ISPreview.co.uk, this proposal was the outcome of a recent internet service provider (ISP) summit staged by Minister for Communications Ed Vaizey.

Discussions centred around the Valuation Office Agency's controversial fibre-optic broadband tax, which critics believe prevents smaller broadband providers from providing web services in rural areas.

ISP Rutland Telecom told the news provider that "in principle" it agreed with the introduction of a new FTTH levy.

"However we would welcome some form of differential ratings system which might stimulate investment in the Final Third - perhaps by lowering the rates on backhaul circuits for next-generation access networks in rural areas," the firm stated.

"It is clear that the [government is] keen to see evidence from real examples before shaping policy in this way."

The ISP meeting was originally due to take place on December 2nd, however this original date was cancelled due to heavy snow at the start of last month.

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