Product Security and Telecommunications Infrastructure Bill (First sitting)

(Limited Text - Ministerial Extracts only)

Committee stage
Tuesday 15th March 2022 Public Bill Committees

[The Chair]

Thank you. Let us move first to the Minister to ask any questions that she may have.

[The Minister for Media, Data and Digital Infrastructure (Julia Lopez)]

Q Thank you for coming, Anna. It is good to see you again, and I am grateful to you for taking the time to meet me earlier. It would be helpful to understand how the curve of difficult cases has changed. You will know that in 2017 a lot of reforms were made to the electronic communications code and, initially, there were difficulties in finding the right balance between the rights of landowners and the interests of telecoms operators. A larger a number of cases arose, but certainly from my experience as a Minister, the number of difficult cases seems to have evened out. Is that the experience of Protect and Connect?

Anna Turley: Thank you for meeting us to discuss our campaign. I should have mentioned at the outset that we represent all the site owners around the country who host telecoms communication infrastructure on their land.

I am afraid that we are not seeing the same tailing off of difficult cases; a number of cases are continuing to come to us where leases are up for renewal, yet telecoms companies are behaving in quite an appalling way. We have cases of rent reductions, often starting at 90% to 95%, and that is par for the course—it is not a small handful of extreme cases. In a large number of cases across the country telecoms companies are coming in often with very aggressive legal notices, which are quite intimidating and making people feel that they are being steamrollered by those large companies. People feel that they have no ability to participate in the legal process, and are obliged to take those cuts of 90% to 95%. If you are small community group, a church or a sports club, the difference between £4,000 and a couple of hundred is huge and has a great impact, especially when you believed that you had that income for the next 10 years. The impact on people has been huge and it has been pretty devastating since 2017.

Our frustration with the Bill is that it fails to address the root causes of that problem. The valuation issue is affecting people deeply, and the Bill will not deal with that. Those cases will continue to arise, and in fact the Bill will expand the number of people who will be affected by the 2017 code through the Landlord and Tenant Act 1954 and the Business Tenancies (Northern Ireland) Order 1996. Between another 3,000 and 4,000 people in Ireland will be affected by the 2017 code changes, as well as thousands of others across the UK. Those cases will not diminish, nor will the huge drops in rent, and that is having a devastating effect on a lot of small landowners and property owners around the country.

[Julia Lopez]

Q Could you be a little bit more precise on case numbers? How many people have directly approached Protect and Connect to ask you to lobby on their behalf? You have said that there are still a large number of cases, so can you put a number on that?

Anna Turley: I would say that we are dealing with in the region of a few thousand. I have a number of case studies from Members’ constituencies around the country. I am afraid that I do not have a total overall figure, but there are 33,000 site owners around the country who are affected by this. Thousands of affected people have come forward to us via social media and lobbied their MPs. I would be happy to write to the Committee with a full number, but as I said, it is in the thousands. This is not a small number of unique people; this is par for the course. Colleagues here will represent their members in such cases, too. They are not a small minority that we have cherry-picked; this is happening across the board.

The campaign was set up because there was no way for, say, a church in Scotland, a rugby club in Wales and a farmer in Surrey to come together to stand up for their rights as landlords, to talk about how this was affecting them, and to have their voice heard by Government. Legislation was continuing to be developed, through pressure from mobile operators, which have long-standing and strong connections with Government through their large lobbying organisations. The views of ordinary people about the impact of the legislation on them were not being heard.

[Chris Elmore (Ogmore) (Lab)]

Q On the 90% to 95% reduction that you mentioned, will you set out some examples of the impact that is having on site owners, churches and community groups? What challenges will they face as a result of these significant reductions?

Anna Turley: Absolutely. Someone in Cambridgeshire wrote to us who has two masts on their farm:

“I have recently gained Planning Approval for 5 Houses on my land Immediately next to the mast positions. Not only do I appear unable to refuse to renew the Lease…their current offer is derisory at £750 per annum which is less than 10% of the current rent.”

Another, in Peterborough, said:

“It’s been two and a half years out of lease, they had agreed all the new terms of the lease, just about to sign off. Then all change and they pulled out, and offered £500 per year and not heard anything since. These tower operators make dodgy used car salesman seem like Saints.”

We have hundreds and hundreds of those. Churches, for example, are saying that they can no longer keep to their plans for the upkeep of their buildings. Sports clubs say that they will have to ask parents for more, so that their kids can play on the team. The impact of a rent cut from £4,000 to just £350 is devastating for small community groups and small businesses. They feel that nobody is standing up for them or listening. The impact of the new legislation will make that even worse.

--- Later in debate ---

[The Chair]

Thank you. I will move straight to the Minister for questions.

[Julia Lopez]

Q Thank you, Mr Stringer, and thank you to all the witnesses who have come here today.

John, you rather touched on the challenge: this is an area that is very dynamic. All of us are learning what the security risks are, and in Government—which often moves very slowly—it is a particular challenge to manage such a dynamic, changing picture. That is why in this legislation, we have set out some broad principles and basic requirements, but a lot of this has to be secondary legislation so we can keep up to speed with all the changes that are going to be happening to connected devices, and some of the risks that will come with that. I think it would be very helpful if you could set out for the benefit of the Committee how this picture has changed over the past few years, where you think things will be moving, the extent to which connected devices will be in our homes in future, and some of the security risks that will present.

John Moor: When I started out seven years ago, I was invited to take a look by the chairman of the organisation I was working for at the time, the National Microelectronics Institute. He was the CEO of an IoT company. I confess, I had not seen what the challenge was, so when he invited me—“John, go and take a look at IoT cyber-security”—I thought, “Why me? What’s the challenge? Isn’t this thing just a tiny part of a well-established body of knowledge about cyber-security, and why me?” My background is in electronic engineering—semiconductors.

As it turned out, when I went and had a look, it did not take me very long to realise, “My goodness, there is a real problem here.” I remember that at the time, a word I was using often was “egregious”. As effectively a student coming into it, trying to understand the space, I looked at the evolution of computing, broadly speaking. In one era, we had computers—desktops, laptops—and we connected them up, and the security around those was pretty dire at one point, but we started to get on top of that. It is not perfect now, but it is a lot better than it used to be, and we are all very familiar now with doing security updates. The next phase was mobile. Mobile was not quite as bad as the era of PCs. It was better—still a few problems, but much, much better. Then we got to this thing called IoT, and it took a complete reset. It was totally egregious.

I come from the world of embedded systems engineering, and one of the first events we did was a summit we ran at Bletchley Park in 2015, just to do a landscape piece—just to try to understand it from chips to systems, bringing in the regulator. We had a representative of what was then the Communications-Electronic Security Group, but is now the National Cyber Security Centre, to try to understand where the issues are. Part of the problem, I think, is what I learned there as an embedded systems guy. We had a pen tester there, and he said, “If a researcher comes knocking on your door, don’t turn him away.” I thought, “That is a really interesting thing. What is he talking about?” We were talking about vulnerability disclosure. For someone who comes from embedding air gap systems, security was not a thing. It does not take you long to realise that when you start connecting things up, suddenly you expand this thing called an attack surface. Attackers can come from many sources, not in proximity to the thing that you are working on. Suddenly, you have this massive attack surface.

The whole idea about IoT—internet of things—is about connecting things up, so by its very nature, you are vulnerable. These things can come at you from many angles. What does that mean? It means different things to different people. I tried to understand what this thing called security was about. I immersed myself in the security community and straight away I realised there were different groups. If people start talking to me about data, they are usually coming from a data security or information assurance-type background. If they talk to me about availability of systems—keeping systems up—they usually come from an operational technology. What I mean by that is the sort of things we find in industry—process and manufacturing.

Then we have this thing called IoT. One of our board members expressed it very well. He called it the “invasion of IoT”. What I took from that is that this technology is coming at us, ready or not. We established in those early days that we needed to have a response. The need is now. We could not wait for new standards and regulation, which is why we set up the IoT Security Foundation. Our centre of gravity is in best practice. It is saying, “Can we help manufacturers who do not yet see that the very fact that they are starting to connect things up poses a risk?” They did not, but now we are in a much better state. The body is developing.

I am delighted to be here to talk about this regulation. More needs to be done, without a doubt. A seminal moment for me was at the very first summit that I talked about. We had the chief technology officer of ARM, a chap called Mike Muller, give a talk in which he said, “The ugly truth is this: you will get hacked.” That was quite an epiphany for me, because coming from an engineering background, we engineer our systems to be virtually perfect, but what we are witnessing now is that security is a movable feast that evolves. Out in the wild, things change. New vulnerabilities are discovered. Yes, you can do all you can to engineer it up front, but guess what? Once it is in the wild, this thing called resilience is so important. What that means, especially in terms of this regulation, is the software updating part and especially the vulnerability disclosure. They are absolutely essential parts. That is part of what I have learned on the way.

I come to refer to IoT security as a “wicked challenge”. By that I mean that I do not think we will ever perfectly fix it, because it is always moving, but we can address it. We can mitigate the risks to a level that we are comfortable with and can accept. Again, another phrase I learned is, “Don’t let perfect be the enemy of the good.” This is all good. This is progressive. This is what the world needs. Being part of the regulatory process to get here today, it became apparent that getting regulation right is so difficult. It is so easy to get it wrong, but going through the process, this is a regulation that we can wholeheartedly back. We think it is absolutely the right thing. It takes a step; it gets us on that security journey. We often talk about an on-ramp of security. It is about maturity. In terms of regulation, this is a fantastic first step, but more will come. The way it has been set up is exemplary. We can evolve it over time as we have to ratchet up the security for the benefit of consumers and society. I hope that little ramble gives you some idea about my journey and where I think we are at.

[Julia Lopez]

Q It would be helpful if the other witnesses could also set out the context from their perspective. I am particularly interested in Google’s view, given it is a company with vast resources and a lot of expertise. There is a challenge for smaller operators about how to fulfil basic security requirements and how you think the basic set of requirements will help start that conversation with people who may not have even thought about the security of their devices before the legislative requirements come in.

Dave Kleidermacher: Let me start by saying I am so appreciative of the leadership role that the UK Government have taken to help us get to a better place for IoT security. I have been working closely with the Department for Digital, Culture, Media & Sport and NCSC for the past couple of years leading up to this. I have worked on how to measure security in digital technology for almost 20 years, and I believe that the lack of transparency in what the security ingredients are for digital technology has been one of the headwinds facing the entire digital world, even before the IoT was called the IoT. Of course, the IoT has made it much more urgent that we address this.

I agree that the minimum requirements we are talking about here are a really good starting point, but as we move forward and look at the secondary legislation, the really big challenge is how we scale this. The question about smaller developers is something that I am quite concerned about. At Google, we build our own first-party products but we also develop global-scale platforms. On Android, we have many manufacturers of devices across all different price points. We have millions of app developers across the world with whom we connect and work in all sorts of different environments.

One of the biggest challenges is how to monitor and measure these requirements, and how to make that work for small businesses in particular. That is the area I have personally been putting a lot of time into over the past couple of years. How do we build and establish an actual practical mechanism or scheme for measuring security at scale? There are a lot of details that go into that, but at the end of the day, we need a hub and spoke model. I can give you an example of a failure mode. The UK is, again, taking a leadership role, but many countries are looking at similar kinds of ideas and legislative concepts. The problem is that if every single country decides to create its own testing scheme for how to measure this, imagine how difficult it would be to have, say, a webcam or smart display, and then go to each country and provide documentation, provide the test results, explain how it works and go through a testing mechanism for every country.

As an example, for our Nest Wifi products, Google has had public commitments and transparency about our desire to have third-party independent security labs to test the products and assess compliance to these common-sense requirements. We have been doing that for a while now. We certify all of our products that way, but then a couple of countries at the leading edge of this started to ask us to certify again their schemes, and we did. That was a lot of work, to test to one scheme and certify and then do the same for another country with a different set of rules. The product did not change at all; it did not get any better because we were already certifying it. However, the work and the cost of doing that were significant. If we scale that to the full IoT, to all the countries which are interested in this—they all should be—then you can imagine how quickly it breaks down.

The hub and spoke model is looking at how we can work together to build a public-private partnership where there are non-government organisations, typically well-regarded international standards bodies, which take the great standards that we are developing, such as the ETSI EN 303 645 international specification on security requirements, which the UK has led in developing, and translate that into a practical conformance regime. An NGO can take that specification and the test specification—a sister specification, ETSI TS 103 701—and test a product once to have it certified for use in all of the different nations which adopt the same standard. That is the trick to this—the hard part that has to be solved as we move forward.

Dan Patefield: I think John and Dave have already mapped out the ever-growing risk landscape, so I will not reiterate that. From an industry perspective, there is clearly strong support for the ambitions of the Bill we have been discussing today, in implementing a minimum baseline that everyone should work to. Certainly, large swathes of industry are going beyond that, as Dave has outlined. I think I would join the other panellists in commending DCMS on the leadership that it has shown in developing the framework, not just with this legislation, but with the code of practice in 2018. I also commend it for playing a key role in developing the globally recognised standard in this space, EN 303 645—I always get that number wrong. The challenge that we have, and I am sure that we will come on to this, is that the code of practice—we supported its development and engaged industry in it—created an outline for best practice. However, it was never prescriptive; it was broadly focused. The practical challenge now is translating that into regulation that is workable for industry and consumers. I am sure we will move on to that, so I will leave it there.

[Julia Lopez]

Q Dan, you touched on the challenge about the need for simplicity, so that this very complex area is at least understood on a basic level—a general hygiene that everybody needs to apply. Ultimately, there is a need to thrash out a lot of this via secondary legislation. I wondered to what extent that basic requirement has helped you have conversations with other members of your organisation who may not have been aware of some of the challenges coming down the line. Also, does the basic three-point requirement that we will be introducing help the conversation with consumers about what they need to do, and some of the things that they need to be demanding of products when it comes to security?

Dan Patefield: Going back to the code of practice, I am confident that across all 13 of those areas many companies have made good progress, and will continue to develop best practice that goes far beyond those requirements. I think it is a good approach to start with the three requirements that are included in the Bill; it is not the case that industry will be surprised by what comes out in secondary legislation. The practical challenge is translating the non-prescriptive code of practice into something that will be more prescriptive by definition.

There are a number of areas where I think there is more work to be done to smooth the path to compliance, if you like. We have got various elements. We have got the standard—that is not going to be a surprise. We know the security requirements—they are not a surprise. What we have not got is the boring bit—the technical specification that people in compliance teams within manufacturers are worried about. Quite often they have to then communicate that to their HQs—which are often in different parts of the world—and say, “We have got legal certainty that this is how it is going to work and this is how we achieve compliance”. That is the bit that we have not yet got.

[Julia Lopez]

Q Just one final question for Dave Kleidermacher. You talk in your submission about not having static labels, but live labels. Can you take me through how that would look in practice for the consumer?

Dave Kleidermacher: It is a really important distinction, as we look at the so-called security ingredients in digital products. The analogy to food is a good one—but it also has its limits. What is good about it is that consumers deserve to have information at their disposal to be able to make better decisions about their health; in the case of food, that is their physical health, but in the case of digital technology it is their digital health. The concept that a consumer should easily be able to get a sense of the security status of a product is a very good idea. However, the main challenge is that food contents do not typically change—there can be a printed label that works okay. However, in the digital world, it could happen that you ship a product today and then there is a severe critical vulnerability, perhaps a hardware problem, that cannot effectively be mitigated or even patched. If that happens in the future, even a day after you have shipped it—this is a worst-case scenario—then if you try to put an attestation on the static label that the product is “secure” or meets these requirements, that attestation could be immediately incorrect. In fact, it could be dangerously misleading, and give consumers a false sense of security, so I believe that, while the ingredients label is essential, the user needs to have transparency. The consumer needs to have visibility here.

That label needs to be a live label. A simple example would be a QR code on packaging, although I am not sure how much consumers really go back to their packaging. We should also stress in-product experience wherever that is practical. It will not be practical in the case of every electronic product, but there is typically an app to manage many of our consumer IoT products. The app can provide an experience where the consumer can get the real-time, current status. That status can be as simple as a link that takes you to the certification page. As I mentioned earlier, we can have NGOs that establish the conformance programmes that we need to help to measure the security. It could just take you to the certification page to see the real-time status. If a product is deemed unsafe for use, it will become decertified, and the user will then know it.

[The Chair]

We now move on to the shadow Minister, Chris Elmore.