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13:30 20th October 2009
The IT industry appears to be broadly in favour of the government's controversial levy on all fixed-line telephone connections to increase the roll-out of broadband technology across the country.
With the Conservatives - currently tipped to win the next election - opposing the plans, a number of businesses have come out to defend the proposals, insisting the subsidy is necessary to improve the IT industry in the UK.
The UK's planned high-speed internet network will not become available outside highly populated areas without public funding, independent broadband services information company Point Topic has warned.
This follows BT's announcement last week that public subsidy would be needed to help it roll out services to more people across the UK and reach the most rural parts of the country.
Tim Johnson, chief analyst at Point Topic, described the statement as "a shot across the bows of the Tory party" ahead of next year's general election.
Experts in the IT industry are keen to see further roll-out of broadband services throughout Britain in order to ensure the country is able to compete for future growth in the IT industry.
A recent report commissioned by technology giant Microsoft suggested the IT industry would lead the world out of the global recession over the next four years.
Written by Derek Oldman
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