Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Debate between Catherine West and Matt Hancock

2nd reading: House of Commons
Monday 10th July 2017 Commons Chamber

[The Minister for Digital (Matt Hancock)]

I beg to move, That the Bill be now read a Second time.

Everyone in the House knows the importance of being connected, whether through traditional means or, increasingly, through digital connections. Whether the issue is the next generation of broadband technology, better mobile phone coverage or preparing for the next generation of 5G, the Bill is all about improved connectivity. Whether we are talking about fixed networks in the ground or the next generation of mobile and wireless connectivity, what people care about is how well connected they are—good download and upload speeds, reliability, latency, and how quickly they get reconnected when there is a problem. It is a problem that we can all identify with, Madam Deputy Speaker. May I say what a great pleasure it is to see you in the Chair for the first time from the Dispatch Box, Dame Rosie?

Our task is to prepare for a world of considerably greater demand for digital connectivity. Just as Moore’s law states that the cost of computing halves each year, Nielsen’s law has seen the doubling of data demands every two years. World-class connectivity is important for people to function in the modern world, whether at work or at play. It will continue to transform our public services and bring efficiencies there, too, and it is important for all sectors in our economy. The challenge is always to stay a step ahead of need. We need the digital infrastructure that can support that, providing ubiquitous coverage so that no one is left out, and sufficient capacity to ensure that data can flow at volume and with speed and reliability to meet the demands of modern life.

All these connections rely on Britain laying more fibre-optic cable. Whether fibre all the way to the premise—to each home and business—or the fibre that underpins the mobile network, all modern connectivity runs off fibre. Around five years ago, the nation took a strategic decision to roll out high-speed broadband based largely on a part-fibre, part-copper network. Superfast broadband delivered in that way is today available to 93% of UK homes and businesses. We rank first among the big European states for superfast connections, and we are on track to reach 95% by the end of this year.

In mentioning that, may I pay tribute to my right hon. Friend the Member for Wantage (Mr Vaizey)? He did so much—he never lets me forget how much—to deliver the first-rate, high-quality superfast broadband connectivity to homes and businesses around the country that now allows us to say that 93% of people have access to, but do not necessarily take up, superfast broadband.

[Catherine West (Hornsey and Wood Green) (Lab)]

I thank the right hon. Gentleman for being so quick to take an intervention. May I suggest that he is being a little Panglossian and positive in his approach? As constituency MPs, we receive quite a number of complaints, and yet the grin on his face suggests quite the opposite.

[Matt Hancock]

That was me talking about what we have done so far—just wait until I talk about what we need to do in the future. I strongly agree with the hon. Lady that we need to do much more, which is what the bulk of my speech is all about. Indeed, it is what the Bill is all about. If she holds the view she espouses, I look forward to her marching through the Division Lobby later in support.

Precisely on the point raised by the hon. Lady, of course 7% of premises do not yet have access to superfast connections, so we are introducing the new broadband universal service obligation so that, by 2020, everyone has access to a minimum level of service. That will provide a vital safety net and ensure that nobody is left behind as the country takes these strides towards better connectivity.

Yet even this is not enough. Demand marches on. People’s needs and expectations have risen further, and will continue to rise. Yes, we need to celebrate what we have done so far, but we must also deliver deeper connectivity, now and in the future, to support a competitive market and to ensure that we get this infrastructure in the ground. We must work now to deliver the next generation of technologies, 5G and fibre over the decades ahead. This Bill is part of a suite of actions we are taking to boost Britain’s fibre. We will break down barriers to better broadband for business and get quicker connectivity for consumers.

First, in the Digital Economy Act 2017 we reformed the electronic communications code, which regulates agreements between people who provide sites and the digital communication operators. That new code will make it easier for electronic communications infrastructure to be deployed, maintained and upgraded. We are currently finalising the regulations needed to support the new code, which we plan to commence later this year when the work has been completed.

Secondly, with the separation of Openreach from BT we will see a more competitive market, with an Openreach that serves all customers well, rather than just focusing on BT. That decision has been largely welcomed by BT’s competitors and is the result of intense negotiations between Ofcom and BT. It is the right outcome and will ensure that Openreach delivers not just for its customers but for the whole country.

Thirdly, we are supporting the fibre roll-out through a £400 million digital infrastructure investment fund to help competitors in the market to reach scale and to deliver. The fund will improve access to commercial finance for alternative developers for full fibre infrastructure, helping them to accelerate roll-out plans and compete with the larger players.