
Tory MP John Whittingdale adds that the tax is expected to raise about £175 million a year "to fund high speed networks."
The bill is expected to face opposition, mostly from the Conservative party.
"I'm confident the Conservative party will oppose it. I object to it on the basis that it is another tax and is aimed at people who are using old technology," added Mr Whittingdale.
Reiterated Timms: "We want to make high speed networks nationally available. The next-generation fund will help that and we will legislate for it this side of a general election."
The bill is "full steam ahead," adds business secretary, Lord Mandelson.