Photocredit: Kevin Zollman

The proposed Digital Economy Bill to tackle online piracy by having internet service providers (ISPs) suspend or slow the internet connections of any users accused of illegal filesharing will cost consumers up to £500 million over the next 10 years, The Times reported.

The Bill, which has drawn the ire of consumers and ISPs alike and could become law next year, will require ISPs to send warning letters to consumers caught illegally sharing copyrighted material. ISPs say they will be forced to pass the cost of this letter campaign onto customers with a £25 annual increase in broadband subscription price. The Government estimates that 40,000 households will give up their broadband connections to avoid the higher fee.

Read more about the Bill here.

An impact assessment of the Bill estimates the anti-piracy act will bring an extra £1.7 billion in sales to the music and film industry in the next ten years. But consumers will bear a burden between £290 and £500 million in extra fees during the same period of time, reported The Telegraph.

Industry executives criticized the Bill for placing such high costs on the consumers’ back. Charles Dunstone, chief executive of Carphone Warehouse, whose subsidiary, TalkTalk, is a leading broadband provider, said, in a statement used by several newspapers, that the consumers should not have to “bail out the music industry.”

UK broadband provider BT called to bill a “collective punishment that goes against natural justice.” John Petter, managing director for BT Retail’s consumer division, told The Times that the bill is poorly thought out and compared it to the dangerous dogs legislations, which, he said, “was introduced quickly and was not effective.”

“Put yourself in the shoes of a small businessman who has a rogue member of staff,” he said. “Your internet access could get cut off because of the actions of one individual. It really feels like the UK is out on a limb with these proposals compared to the rest of the world.”

Conservatives also agreed that Government should lessen the burden on consumers. Shadow Culture Secretary Jeremy Hunt said, “It is grossly unfair that Labour expects millions of innocent customers to pay extra each month because of the actions of a minority. By their own admission this will make broadband unaffordable to tens of thousands of people”, reported The Telegraph.

A spokesman for the Department for Business, Innovation and Skills defended the Bill saying, “The overall benefits to the country far outweigh the costs,” reported The Mail.