I hope it goes nowhere, otherwise I can see myself being an expert witness to parliament, again!
The proposal is "that every home with a broadband connection could automatically help to fund the BBC, even if nobody in the house watches live TV, via a new £11 (monthly) “Home Internet Levy” on their existing ISP bill".
As someone that runs an ISP this immediately rings alarm bells. So let's look at how this could possibly work.
To be clear: I am not covering the merits of the BBC - there is much one could discuss on such things - let's assume the BBC continuing is sensible - let's look at this proposal on that basis.
What they imagine?
My guess is that those proposing this assume that the vast majority of households have a single internet service from a big company ISP, so getting the ISP to add an £11 levy to the bill is simple.
The reality...
The reality is different. There are hundreds of ISPs, large and small, some very small (think a dozen people on a WiFi in a village). The admin is not going to be simple. But there are also a lot of edge cases, and these need to be addressed - even a small minority impacted by, say, paying twice, would cause some uproar.
Multiple lines
Some households have more than one internet service. It could be multiple lines from one ISP, which is not too hard to address at the ISP level. But as an ISP we have no idea if someone has internet at their house from another ISP. If we are to avoid double billing such people (and I really think we should, after all we never double billed people with two TVs) we need a way to sort this. So does a customer tell one ISP they have service from another, send a copy of the bill - that is not difficult to forge, but also impossible for the ISP to validate. Maybe we need a national database of which ISP is the tax collector for each property - that won't be simple.
Business lines
Another small snag is business services. At present a business premises may need a TV licence if they have a TV, but most business premises do not have a TV or need a TV licence, so we need to exclude businesses from this new levy. After all it says home with a broadband connection.
So do we exclude business premises - well this is more admin, and there are databases which identify a premises as commercial. But remember, a lot of people work from home. Indeed, a business service from an employer in addition to a home internet at the same house is one reason you may have two internet services at a house. Mind you, my house, an ex pub, is listed as pub/nightclub on BT's database still, yay, no £11/month for me.
So maybe exclude a business service? Is this down to how the ISP sells it? We sell home and office (business) services. The business ones cost more, but not £11 more - so all our home customers would be mad not to switch to a business service and save money - we'd love that as we charge more for a business service but would not have to send any of it to the BBC.
OK, what if only services sold to a business? Again, people work from home, and there are sole trader businesses. If one can save £11/month by putting down a business name, everyone will.
OK, what if only to limited companies? You know a lot of solicitors offices are a partnership not a limited company - they will love their internet service having an £11/month tax. Of course, it would also be easy to order home internet, and pay for it, but put in the name of a random limited company - hard for ISP to police as companies do this - ordering internet for an employee at home. As long as paid for, not an issue - but when not paid for then the ISP is chasing a random company that has no clue. Putting that fraud encouragement aside, it is less than £11/month to create a limited company and the annual filing!
Shared service
This sort of comes down to small ISPs, but what of blocks of flats with a fibre, paid for by the community or housing association. One £11/month fee? Or does the HA have to collect the tax per home?
There are a lot of WISPs (Wireless ISPs) that do this on such a small scale as well.
Mobile service
This is another huge issue. Mobile internet access would not be included, well we assume not. If it was, you have households paying not just twice, but three or four times over because multiple people have mobile phones.
However, a mobile based home internet is a thing - a 5G router with a SIM and WiFi access points. This is a viable home internet service already - usually in cases of good mobile coverage and poor internet "lines", i.e. where feeding a new fibre is hard. It competes with traditional landline / fibre services already. If mobile services are excluded, that changes the economy here. It will cause people to prefer mobile home internet as cheaper. It skews the market which can impact businesses and infrastructure as well.
Of course, someone will say there are ways to differentiate a 5G router and a mobile service - but how? There are mobile phones and iPads that never leave the house, so not by location. And you can usually put a normal mobile SIM card in a suitable router/WiFi without mentioning it to the mobile company. Even if you cannot, just get an old mobile and suitable SIM in hotspot mode as your cheap home internet.
Auditing ISPs
Another issue is that there are a lot of ISPs, and you won't even know of them all with ease, how do you audit that they are (a) charging all home customers £11/month, and (b) if they are, that they are passing on the full amount? Who is going to do these audits, and who is going to pay for them?
Existing special cases
Of course, TV licensing has special cases for blind people and old people. Scrapping these exceptions in any new scheme would also cause uproar. How the hell can ISPs check these things?
One reason this is all silly
The whole TV licensing thing is odd anyway, it was a Wireless Telegraphy Act thing, a licence to operate radio receiving equipment. That alone is odd, licensing transmission equipment sort of makes sense because of limited spectrum and risk of interference, but no reason to licence receiving equipment (apart from a money making scheme, oh, that's the point).
This got expanded to cover ways to get TV over wires (cable TV, etc), which itself made the whole Wireless Telegraphy thing even dafter. It has moved to, I think a Broadcasting act, and I think now Communications Act, not sure.
Now, remember, whilst this started small, radio equipment licence, it quickly became an All homes in the UK fee - basically everyone had a TV (almost) so everyone had to pay a TV licence.
At that point it would have made sense to move BBC funding to being from general taxation. But that did not happen. Instead, as usage of TV changed the rules have got more and more convoluted over time.
The objective is to try and make it All homes in the UK again, clearly. The idea of taxing home internet is clearly based on the ideal that everyone has home internet.
But why do that - why make it a convoluted tax, which needs huge admin, and a lot of exceptions and special cases which make for loopholes. We have per home taxes already, if they went up by £11/month but no TV licence, a lot of people would be happy as paying slightly less.
This would be a hell of a lot less hassle, and for a lot of people less money and one more thing not to worry about. No more criminal TV licence evasion - problem solved.
Well, that, or make it that people who want BBC services, pay. Bear in mind, when TV receiving licences started, BBC were the only station - actually it started before the BBC were a station even and really was a radio receiving licence. But for some time it was only people accessing BBC services that paid a licence fee.
But either way - public service or paid for service - it should be one or the other not this convoluted legal and administrative nightmare.
Cynical
Let's be cynical for a moment - why now and why this proposal?
The now is kind of down to the existing funding model becoming more and more convoluted and unworkable. That is pretty easy. That said, this is probably just convenient as could be said any time in the last 10 years.
The this is harder - the really obvious answers are either pay for access or public service from general taxation. This proposal is neither. It is creating a new tax, and a means to collect it.
Why would anyone want a new tax - well they are useful - find a way to make a new tax that is (a) justifiable for some public good, and (b) actually less money for 90% of people, and you get away with it.
But what happens when you have a new Home Internet Tax in place - well simple, you can increase it. Boiling frogs. It may be for the BBC now but really is not linked to that even in the existing convoluted ways. So yes, you can increase and extend an Internet access tax as you want, once it is in place.