Telecommunications Infrastructure (Leasehold Property) Bill

Lord Adonis Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 19th May 2020 Lords Chamber

[The Deputy Chairman of Committees]

The next speaker on my list is the noble Lord, Lord Fox, but as the noble Lord, Lord Clement-Jones, pointed out, he is joining the debate after the interval. I therefore call the noble Lord, Lord Adonis.

[Lord Adonis (Lab)]

I spoke at Second Reading, so I do not need to follow the noble Lord, Lord Clement-Jones, in making a Second Reading speech. I agree with all the points he made; his amendments probe the Minister in all the right directions.

However, a new big Second Reading theme has emerged since that Second Reading debate, due to the coronavirus crisis and the pressure it is putting on private operators. There has been a good deal of media speculation in the last two weeks as to what might happen to Openreach, in particular whether BT will seek new partners to fund its rollout plans or possibly even sell off Openreach entirely. That would be a dramatic change in circumstance from the position before the crisis, when BT was keen to maintain its position with Openreach and the argument was much more about how one could get a commitment to rollout while Openreach was still linked to BT.

In her reply, can the Minister give us a sitrep on the position in respect of Openreach, what BT’s intentions are and what impact she believes it will have on the rollout schedule and plans in respect of superfast broadband? This has a big bearing on the subsequent amendments and those we might want to take forward on Report. I hope she can give us an update on those issues.

[Baroness McIntosh of Pickering (Con)]

My Lords, I echo many of the sentiments expressed by the noble Lord, Lord Clement-Jones, and thank him for tabling these amendments. Leasehold properties are a very grey and disaffected area of property rights. It is extremely important to state at the outset that my interest is primarily in putting leasehold properties, particularly in rural areas, on the same basis as any other property.

As the noble Lord, Lord Clement-Jones, said, Covid-19 has thrown a spotlight on the importance of connectivity and access to all forms of communication, particularly mobile signals, wi-fi and broadband. Without a shadow of a doubt, in north Yorkshire and other deeply rural parts of the country, many properties, not just leasehold properties—we lived in one for a couple of years in north Yorkshire—are very remote from the exchange and their connectivity remains woefully slow. I ask the Minister directly to ensure that leasehold properties will be put on the same basis as any other property, particularly in rural areas.

I support this group of amendments in a probing way—particularly Amendment 1, which will cover tenants. On Amendment 5, as the noble Lord, Lord Clement-Jones, alluded to, leaseholders may not be in an occupation. What is the position under the Bill as it stands, without Amendment 5, if the occupant was retired?

With these few focused remarks, I take this opportunity to ensure that the Bill fulfils its purpose—to put these property rights on an equal basis with other rights—but also to ensure that in rural areas we have the maximum connectivity in every aspect, whether mobile signal, wi-fi or broadband, which is the Bill’s intent.

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[Baroness Barran]

My noble friend makes an important point. It is something we keep constantly under review and I will take her comments back to my colleagues in the department, so that they are aware of her remarks.

[Lord Adonis]

I am glad that the Minister has a sense of humour. Those of us in this Committee will regard her predicament of having a very weak connection as fully justifying the Bill. I do not know whether she is in a shared property that does not have fibre throughout, but we cannot properly conduct this Committee stage because even among ourselves we do not have a sufficiently strong internet signal, despite having weeks to prepare. This demonstrates why, as a country, we need to get going on this.

I did not pick up the first time round what the Minister said about BT, because of her dropped connection. When she repeated it in response to my noble friend Lord Liddle, she left me somewhat concerned. She said that the stories in the FT were “inaccurate”, but she would not say in what respect; she simply referred to other press comments. I see exactly what she is seeking to do: she is trying to keep clear of revealing to us private information, which the Government or the regulator will surely have, about what is going on in this context. However, I think she will understand that we do not really regard this situation as satisfactory.

As my noble friends Lord Liddle and Lord Stevenson rightly said, although Openreach is formally a private company, our whole understanding is that rolling out enhanced gigabyte connectivity crucially depends on Openreach. If we do not have confidence in its capacity to do this, the Committee will certainly not be satisfied that the Government have a strategy. To be fair, I do not think that the Government themselves would be satisfied with the situation either.

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Moved by

[Lord Adonis]

2: Clause 1, page 1, line 17, at end insert—
“( ) the operator intends to provide an electronic telecommunications service that can deliver an average download speed of at least one gigabit per second.”

[Lord Adonis]

This amendment provides that the powers in the Bill can be used only in respect of an operator which,

“intends to provide an electronic telecommunications service that can deliver an average download speed of at least one gigabit per second”,

which leads on from the points made earlier by the noble Lord, Lord Clement-Jones, and other noble Lords, about this being part of the nation’s intended rollout of fibre capacity, so that fibre and superfast broadband become a core public utility like the others. Exactly the same amendment was moved in the House of Commons Standing Committee by Chi Onwurah, but I make no apology for bringing it to this Committee, because of the Government’s response. I do not need to go through all the arguments as to why we need the one gigabit requirement. That is what we mean by full-fibre connectivity. The Government have accepted that; anything less will not provide the new level of public service utility that we all want.

The odd thing, though, is the Government’s reluctance to see this defined in the Bill. I had assumed that they accepted that it was the target but did not think it necessary to define it in the Bill. However, what the Parliamentary Under-Secretary of State, Matt Warman, said in the House of Commons in his response to the Bill committee on 11 February leads me to have much bigger concerns than before. He said:

“We sympathise with the spirit of the amendment. There is currently little evidence that anyone seeks to install services that are not gigabit capable.”


However, he went on to say:

“If a group of residents or a telecoms operator sought to install a service that was not gigabit capable, although that is extremely unlikely, I do not think the Government should seek to withhold better broadband from a block of flats, for instance, simply because that is the only option available”.—[Official Report, Commons, Telecommunications Infrastructure (Leasehold Property) Bill Committee, 11/2/20; col. 7.]


He made other statements in exactly the same spirit later.

This raises a fundamental issue, which I will press the Minister on. Are we or are we not talking about full-fibre connectivity with gigabit capability? That surely must be what we seek to achieve as the public utility standard across the country, not just in urban areas, but, as the noble Baroness, Lady McIntosh, so rightly said, in rural areas too. I do not think that Parliament would now regard this as satisfactory and something that should be left to private companies. They may come forward with other proposals and make other provision, but we in Parliament should be concerned about getting the full-fibre connectivity at the 1 Gbps standard.

Just to remind the Committee, Japan has currently reached 98% coverage with that standard, and South Korea 97% coverage. On the latest figures, the United Kingdom has reached only 11% coverage. In a former life, when I was the chairman of the National Infrastructure Commission, this was one of the highest priorities for infrastructure catch-up that we identified as a country. The other, which is related, was our appalling level of 4G coverage; I imagine that the Minister would have had dropped connections as serious as those from her current internet connection.

Can I press the Minister to say why the Government will not accept this gigabit-per-second capability standard in the Bill? Does she stand by what Matt Warman said in the House of Commons: that it is because the Government do not want to put that requirement on private operators? If so, does she realise that it immediately gives rise to the question whether we can accept that the Government are sufficiently committed to meeting this full-fibre gigabit-per-second standard? If they are not, I suggest to her that the Government’s whole strategy will start to fall apart at the seams. I beg to move.

[Lord Livermore (Lab)]

My Lords, I am pleased to follow my noble friend Lord Adonis, to whom I am grateful for tabling Amendment 2. The Government have talked a lot about improving broadband speeds across the nation—something which, in light of the current situation, has become more important than ever. Despite this, as my noble friend Lord Collins of Highbury noted at Second Reading, there has been a gradual but very definite downgrading of the Government’s ambitions.

When the Bill was first published back in January, it should have been an important step in realising the stated ambition of widely available gigabit-capable broadband. The Government have their new Commons majority—not that they needed it, because the issue of improving our telecommunications infrastructure is not contentious. Instead, not only was the legislation severely limited in its scope; it played it safe on the services to be provided under it. The Committee can imagine our disappointment, and the bewilderment of many who had expected so much more from the department.

The Labour Front Bench has signed this amendment, as we need greater clarity on the Government’s plan for high-speed broadband and other forms of telecommunications infrastructure in the months and years to come.

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[Baroness Barran]

My Lords, I will now respond to Amendment 2 and the points raised by noble Lords.

This amendment would limit the use of the powers contained in Part 4A only to operators installing gigabit-capable services. As the noble Lord, Lord Adonis, stressed, the spirit of this amendment is to test the Government’s commitment to providing gigabit-capable broadband. I am obviously disappointed that he found insufficient the remarks of my honourable friend the Minister for Digital Infrastructure in the other place.

The Government remain completely committed to bringing faster, gigabit-capable broadband to the whole country as soon as possible. Our ambition remains nationwide coverage by 2025. However, we do not believe that we should force consumers to take out specific services.

Clause 1, as currently drafted, supports our ambition. It provides a bespoke process in the courts that will allow an operator faced with a landowner of a premises within the scope of this Bill who repeatedly fails to respond to notices, and a tenant waiting for a service to be connected, to gain interim code rights for the purpose of connecting that building to their broadband service. To limit provision only to services

“that can deliver an average download speed of at least one gigabit per second”

runs the risk, particularly in the short term, of limiting access to better broadband, which, as all noble Lords have agreed, is extremely important.

This Bill, like the Electronic Communications Code, which it amends, is technology neutral and therefore speed neutral. It makes no distinction between the type of service being deployed but recognises the consumer’s right to choose the service they want from the provider they want. Of course, many consumers will want the speed, reliability and resilience offered by full-fibre or gigabit-capable connections, and it should not be the role of government to limit their ability to choose.

In a similar vein, although gigabit-capable services are being rolled out across the UK, they are not yet being deployed everywhere. In practice, the amendment would mean that households in areas yet to be reached by gigabit-capable networks would have to wait—maybe for a long period—even though a superfast or ultrafast service might already be available. Our experience and current practice suggest that an operator would be very unlikely to install outdated technology, and therefore such a delay would be unnecessary and extremely frustrating for consumers.

Finally, were this amendment to form part of the Bill, we consider that it would not have the effect intended by noble Lords. It amends paragraph 27A, which is an introductory provision and explains in very general terms what Part 4A of the code does. The amendment in itself does not amend any of the Bill’s substantive provisions, such as paragraph 27B of the code. Its drafting would not therefore operate within the rest of the Bill.

I understand what noble Lords are seeking to achieve in tabling the amendment. The Government absolutely share the aspiration of achieving gigabit-capable broadband across the whole country, but it is important that the Bill, and the Electronic Communications Code more widely, stay technology neutral for the sake of the consumer’s right to choose and to ensure that we do not allow the perfect to become the enemy of the good.

A number of noble Lords raised the question of the universal service obligation, which is the safety net that we legislated for and which went live on 20 March. It ensures that everyone across the UK has a clear and enforceable right to request high-speed broadband of at least 10 megabits a second from a designated provider and up to a reasonable cost threshold of £3,400. We keep the speed and quality parameters of the USO under review all the time to make sure that it keeps pace with consumers’ evolving needs, and our officials work closely with Ofcom regarding the implementation of the universal service obligation.

With that, I hope that the noble Lord will agree to withdraw his amendment.

[Lord Adonis]

Before I make my concluding remarks, perhaps I may ask the Minister three further probing questions. I am obviously extremely grateful to her for her full response, but she raised three questions in my mind.

First, she raised some technical concerns about the amendment—in particular, that it amends not the code but only the introductory provisions. That raises an obvious question. If I return with this amendment on Report, properly drafted—indeed, I might invite the noble Baroness herself to provide a draft that the Government think is adequate—would the Government then be prepared to accept it? Indeed, if they proposed it themselves, they would not have to accept it.

That is important because there is an inconsistency in the noble Baroness’s argument in respect of the other two points. She said that it is unlikely that operators would want to install what she called “outdated technology”. I take that to mean technology that is not gigabit-capable. Not only is that unlikely but, if they were to do so on any large scale, of course the Government would then not meet their target, which is to have gigabit-capable coverage.

If the Government are committed to their target and believe that operators are unlikely anyway to want to take forward what she calls outdated technology, what is their objection to having this specification in the Bill? I do not understand what it is. I will give the Minister a moment further to consider her answer to that.

I was very concerned about a point she made about the Government being speed neutral. When Matt Warman spoke in the House of Commons, he did not use the phrase speed neutral but said the Government were technology neutral. I am sympathetic to technology neutral but totally unsympathetic—as I suspect colleagues in the Committee will be—to the idea that the Government are speed neutral. Speed neutral means that the Government may not actually be committed to having superfast broadband rolled out across the country in the first place. Indeed, if the Minister considers what she means by speed neutral and elucidates it a bit further for the Committee, it may be that we get to a position where we have underlying concerns about whether the Government are committed to their own target.

Can the Minister tell us what she means by speed neutral? Does she mean that the Government would be perfectly happy to have a national rollout of something less than gigabit-capable coverage? If she does not mean that and is committed, on behalf of the Government, to gigabit-capable coverage—which I think is what the Committee wants to see—why will the Government not accept an amendment of this kind, properly drafted, which does no more than hold them to their own public commitments?

[Baroness Barran]

With regard to the noble Lord’s first point about the technical amendment, he is of course right on one level. We—or, I am sure, the noble Lord himself or his team—could make technical amendments to make sure the Bill is coherent and consistent. We could address those points. However, the central issue is one of not delaying the implementation of the rollout and staying true to technology neutrality. I gather that speed neutral is a consequence of tech neutrality, so it would insert into the Electronic Communications Code a tech-specific provision that does not exist anywhere else in the code. The code is about regulating relationships between operators and landowners, not about technology. I will set out these points clearly for the Committee and the noble Lord in a letter.

[Lord Adonis]

I am extremely grateful to the Minister for her last point about setting this out in a letter. It is very important to the Committee that the Government do so. I do not at all like this idea of speed neutrality, which implies that the Government’s target might not be worth the paper it is written on and that Parliament is about to grant the Government powers that in principle we support but whose purpose will not necessarily be met unless we can maintain the commitment to gigabit-capable coverage. I think the Minister understands that, because, while she said that speed neutrality is a consequence of technology neutrality, she has not said that the Government are not committed to gigabit-capable coverage across the country.

If the Government are committed to gigabit-capable coverage nationwide, it follows logically that it is not speed-neutral. The Committee is looking forward to hearing, in the Minister’s reply, how the Government will square that circle. What she says in that regard will have a big bearing on how we take this matter forward at Report, but on that basis, I beg leave to withdraw this amendment.

Amendment 2 withdrawn.

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[The Deputy Chairman of Committees (Lord McNicol of West Kilbride) (Lab)]

I call the noble Lord, Lord Adonis.

[Lord Adonis]

I do not intend to speak on this amendment.

[The Deputy Chairman of Committees]

The noble Lord, Lord Fox, is listed to speak, but I understand that he does not wish to contribute at this stage. Lord Liddle?

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[Baroness Falkner of Margravine (Non-Afl)]

I shall beg noble Lords’ indulgence for a few minutes. I did not have an opportunity to speak at Second Reading, as I was advised not to come to Parliament, but I was assured that this would be an opportunity for me to do so.

I welcome the Bill and its aims to improve access to faster broadband and provide greater choice for tenants and leaseholders. My interest in the Bill, as people will see from my amendment, is very specific; it is to do with what we as a country see as critical infrastructure and how we protect our strategic interests to keep our critical infrastructure safe as technology becomes more complex.

I served on the Joint Committee on the National Security Strategy from 2013 to 2016, when Huawei first came on to our radar, and two significant changes happened in that period. We saw the invasion of a sovereign state on the edge of Europe—the Russian annexation of Crimea—and the installation of President Xi Jinping as head of the Chinese Communist Party, bringing a more assertive, and perhaps what some would describe as more aggressive, tone into China’s international relations. Both have had a profound impact on geopolitics and potentially on security.

China’s companies have long been on our radar in the West for theft of intellectual property, from both business enterprises and research institutions. While I accept that there has always been a level of industrial espionage, with leakages from more advanced economies into those that are new challengers in particular sectors, the international community has attempted to deal openly with China on this. President Obama sought, and attained, an assurance from President Xi that the Chinese Government would clamp down on intellectual property theft, but there is little evidence that much has changed.

The difference is that China is now actively using its economic clout to advance its strategic and geopolitical interests, many of which run counter to our interests, and indeed our freedoms, here in the UK. Huawei is the world’s largest telecommunications company, and there is no reason that it should not be a trusted partner if it were like any other global telecoms firm. The point is that it is not. It has a long history of transgressions, not only in the West but more broadly. Moreover, it is subject to Chinese state security and other intelligence-related laws. These were updated in 2017 and now require Huawei, like other Chinese companies, to hand over data flowing through it to the Chinese state. It is effectively an arm of the state for the purposes of data capture and exploitation. If that was not the intention of the law, as Huawei tells us, the Chinese Government have done nothing to repudiate or amend the law in the period since. In other words, it is the intention of the Chinese Government to control worldwide data that Huawei collects, if they wish to.

There are examples of how this works. The African Union built a new headquarters in Addis Ababa in 2012. An accountant noticed that there was a huge energy consumption surge between midnight and the early hours of the morning in the period between 2012 and 2017. It transpired that data on Huawei’s servers was being transmitted back to Shenzhen covertly in those hours, hence the server activity.

There are many other examples of Huawei’s cyberactivities. The Equifax consumer credit hack recently resulted in millions of US consumers’ data being stolen. Additionally, 12.3 million Britons had their credit card details stolen. That hack was linked to Huawei and the People’s Liberation Army. I find it instructive that when BT involved Huawei in its 21st Century Network plan in 2005, information about Huawei’s involvement was withheld from Ministers and came to light some time later—in a 2013 report of the Intelligence and Security Committee, at the time chaired by Sir Malcolm Rifkind. If the Minister is not aware of its contents, I suggest she apprise herself of it, because it is fairly sobering.

I turn to my specific amendments. I know the UK Government’s position is that we want to roll out increased speed and capacity in our networks to benefit our businesses and consumers. I agree with that. However, the internet of things is here and requires improved capacity. I also agree with that. But Huawei’s involvement in this, even limited to 35% of the non-critical part of the infrastructure, is not something I feel comfortable with. It is incumbent on us to take our strategic national security vulnerabilities seriously, as we are planning not for the next five to seven years but for the next 20 to 30. There are several reasons for this. One is that we should not be so reliant on others for our sensitive and critical needs. One has only to look at the impact of the US-China trade war, and the impact on supply chains exacerbated now by Covid-19, to know that deglobalisation is starting. We in the UK are erecting barriers to our trade with the EU, yet think nothing of allowing companies that are more or less arms of other states into our systems, instead of developing our own capacities as France is attempting to do.

Another reason to be wary is that alternatives do exist. The US is proceeding with Ericsson, South Korea is using Samsung, but most importantly our Five Eyes allies have all rejected the Huawei option and are assessing alternatives. There is no burning imperative to take the decision now, and I fear it was rushed through. We will have to either repeal or regret this decision, unless we come up with safeguards that satisfy our concerns. The demonstration effect of letting Huawei into our system will lull other countries into the view that it is a safe alternative.

The Government tell us that the 35% of market share of Huawei infrastructure will be non-core and non-sensitive, but they do not acknowledge that the crucial difference between 4G and 5G is that, due to the internet of things, 5G networks are largely software-defined, so updates pushed to the network by the manufacturer can radically change how they operate. If a network is run by an untrusted vendor, that vendor can change what the network can do quite easily using software updates. The Australians have stressed this point over and over—namely, that you cannot safeguard against intent. If a provider is bound by its state’s law to do something, it is not its capability that is relevant but its intent. It is a combination of capability, where 5G is more vulnerable, and the intent of a provider that has to do a state’s bidding by law.

The Government also tell us that GCHQ has advised the National Security Council, and that they are acting on the advice of the NSC. However, it was pointed out in a Commons debate by Bob Seely MP on 10 March that the GCHQ Huawei oversight board has voiced deep concerns. According to him, the board found that it could

“only provide limited assurance that all risks to UK national security from Huawei’s involvement in the UK’s critical networks can be sufficiently mitigated … The Oversight Board advises that it will be difficult to appropriately risk-manage future products in the context of UK deployments, until the underlying defects in Huawei’s software engineering and … cyber security processes are remediated. At present, the Oversight Board has not yet seen anything to give it confidence in Huawei’s capacity to successfully complete the elements of its transformation programme”.—[Official Report, Commons, 10/3/20; col. 201.]

As recently as February 2020, the US Government have claimed in a report that backdoors intended for law enforcement officials in carriers’ equipment, such as antennae and routers installed since 2009, can be accessed by certain vendors.

Amendments 9 and 14 are based very much on Labour and Conservative Party amendments as of 10 March in the other place, and are designed to remove high-risk vendors from the United Kingdom by 2022. Amendment 14 would require vendors who use Part 4A code rights to explain to the satisfaction of the regulator, which will probably be Ofcom, in a publicised plan how they will remove high-risk vendors should they form part of the network. BT has now extended the period that it will take to remove a high-risk vendor from its network to the end of 2022. It needs that period to disentangle itself from those partners. The amendments will ensure that even if high-risk vendors are allowed into the network in the early stages, as the Government propose, there is a clear plan for disentanglement from the outset.

I will conclude by explaining to the Committee why I have tabled these amendments. We all acknowledge that Virtual Proceedings are inadequate for proper scrutiny of legislation. My experience is that, even in normal proceedings, Ministers are sometimes not quite as well informed as they might be. On 27 January 2020, in response to the Statement on Huawei, I asked the noble Baroness, Lady Morgan of Cotes, for her assurances regarding Huawei’s participation in terms of its market share. She replied:

“I give her and the whole House the absolute assurance that high-risk vendors never have been and never will be involved in our most sensitive networks”.—[Official Report, 27/1/20; col. 1300.]


She clearly did not know from the Intelligence and Security Committee’s 2013 report that BT had involved Huawei from quite far back. Huawei is present on the ground in our networks. I am sure that she did not intend in any sense to mislead the House, but many of us who are concerned about these matters would be reassured by having these amendments in the Bill, although I accept that it is perhaps not the ideal vehicle for them—in fact, it is concerned with some things that I wholeheartedly support. If the Government accepted the amendment it would strengthen the Minister’s hand in giving a clear plan to the telecommunications sector regarding its obligations. It will reassure many in the country who have a clearer view of our security risks.

I should have said that I do not intend to press the amendment.

[Lord Adonis]

The noble Baroness, Lady Falkner, has made an extremely powerful speech. She has also been extremely ingenious in finding a way to bring this big geostrategic issue into the consideration of a Bill that has a very limited scope. However, given that it is to do with telecoms infrastructure and that one of the single biggest issues in upgrading our telecoms infrastructure is the degree to which we will be reliant on partnerships with Chinese companies, she is perfectly entitled to do so.

I assume that the clerks have ruled that the noble Baroness’s amendment is within the Bill’s scope, otherwise she would not be proposing it. Perhaps when she concludes at the end of this group, she can tell us that it has indeed been ruled within the scope of the Bill. If that is the case, I urge her to bring it back on Report, because, beyond the crisis, there is no more important issue facing Parliament than our relations with China. Indeed, the issue is related to the Covid crisis because the origins of the disease in Wuhan and the way the Chinese regime has dealt with it are central to the Covid-19 crisis. A critical issue that we are having to grapple with is how we get to the facts and the reforms to the international world health architecture that will be necessary which relate to the facts of the outbreak of this disease.

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[The Deputy Chairman of Committees]

My Lords, the noble Lords, Lord Adonis and Lord Alton of Liverpool, have expressed a wish to speak again, so I will call them in order and the Minister will answer after each noble Lord has spoken.

[Lord Adonis]

My Lords, I shall make a brief comment and ask a question in response to what the noble Baroness has just said. She and the noble Baroness, Lady Morgan, both talked about assessments of telecoms and infrastructure security that have been made historically. Does she accept that relations with China are dynamic and appear to be particularly so at the moment, in dealing with the Covid epidemic and its fallout, which could have a significant bearing on future relations, not only with us but with the West. Are the Government cognisant of that?

Because I have not been following these things very closely, my question is this. Have the Government given a categorical undertaking to introduce a telecoms security Bill before the summer?

[Baroness Barran]

I think the noble Lord knows that the Government are absolutely cognisant of how international relations with multiple partners, including China, evolve. The current situation is obviously unprecedented. Forgive me, but I must ask the noble Lord to repeat his second question.

[Lord Adonis]

My question was: have the Government given a categoric undertaking to introduce a telecommunications security Bill before the summer?

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[The Deputy Chairman of Committees]

Lord Adonis.

[Lord Adonis]

I do not wish to speak on this group.

[Lord Stevenson of Balmacara]

I will be brief as well—the Committee has heard enough from us already. As the noble Lord, Lord Clement-Jones, said, this is a probing amendment to see where the Government’s ambitions point. There does not seem to be any logic in the current drafting and the amendment is a good way to try to extend it, but there are other ways. If the Government, either now or at later stages, accept amendments that mean that all legal occupiers of a property and the operators themselves can also initiate Part 4A orders, we will not need this amendment.

I will use this time to ask a question that was raised in the discussion on an earlier amendment, as I did not get the answer from the Minister at the time it was raised. She may not have that information to hand and, if she does not, I will be happy for her to write. I think that we are all conscious that not everything in this Bill will achieve the promised land of the gigabit-compliant internet that we are all looking for, so other things need to happen, but they will not be addressed in other places. Perhaps the Minister could give us a tour d’horizon of them, if necessary in writing. How and when will we get the legislation for all new homes to have open-access fibre connections? Will there be a harmonised UK-wide regime for permitting street works to lay fibre? How will we ensure that fibre-builders can make use of the utilities infrastructure—for gas, water and electricity—to facilitate access? We need to know that these things are happening if we are to be confident that the Bill will achieve what it aims to do, so can the Minister write to me about them?

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[Lord Clement-Jones]

My Lords, again, I shall be extremely brief in the hope of eliciting a positive and ambitious reply from the Minister. This measure will inevitably be frustrating for operators because the current changes to the ECC allow access only where land is held in common ownership with the target premises. If we are not careful, in many cases that will be a barrier to the proper laying of cable.

To refer back to the Minister’s previous reply, I do not know what the evidence is but operators who have approached us on this question think that it is an important aspect. They may well need to access third-party land across multiple fields, for example, and it will help deployment, particularly in rural areas. That is where we are most mindful of the difficulties—where you cannot get a direct connection and you have to cross a field or other property which belongs to a third party and not the owner of the premises involved.

I would be very grateful to hear from the Minister just what the Government’s evidence has been and what the response to the consultation was, and why they have not managed to include this very sensible provision in the Bill. I beg to move.

[Lord Adonis]

I have nothing to add.

[Lord Livermore]

My Lords, I am grateful to the noble Lord, Lord Clement-Jones, for tabling and introducing this amendment. It is relatively straightforward, but it could have far-reaching consequences for operators.

As the noble Lord outlined, the Bill currently defines “connected land” as being in common ownership with the target premises. Operators who have contacted us have expressed concern that this will limit their ability to roll out new technology, particularly in rural areas, where infrastructure may have to cross multiple fields to reach the desired building. They believe that removing the common ownership provision will also help accelerate their deployment of high-speed services to small businesses and other commercial properties.

Given our previous debates on the economic benefits of improving connection speeds, we should ensure that this Bill facilitates such work. There was clearly a rationale for including this provision in the Bill, so I hope that the Minister will be able to clarify the position and its practical impact on the provision of new connections. Should she accept that the requirement may have unintended consequences on the ability of operators to roll out new infrastructure, I hope that officials can look again at the detail and engage with the sector to address its concerns.

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[The Deputy Chairman of Committees]

Lord Adonis?

[Lord Adonis]

I will not be speaking to this amendment either.

[Lord Kennedy of Southwark]

My noble friend Lord Stevenson of Balmacara has tabled both the amendments in this group. I support my noble friend in his efforts to tease out information from the Government through these probing amendments, and I look forward to the Minister’s response. For my part, I want to be clear that, in both points under discussion here, by acknowledging the communication but not saying whether they agree or refuse, the granter has not stopped the process moving forward; my noble friend made that exact point in his contribution. All I am looking for is confirmation that that is not the case—that the process cannot be stopped by this becoming the default.

When speaking on an earlier group of amendments, the noble Lord, Lord Clement-Jones, made the point that broadband should be treated as an essential service—an essential utility just like water, gas and electricity, and that we have to be ambitious. I agree that this is a good Bill and that we are having a good discussion with some good amendments, but I am not sure whether we are meeting the challenge. I look forward to the response to this group from the Minister—whether the noble Baroness or the noble Lord. I remember that the noble Baroness, Lady Barran, when she was responding on the second group of amendments, made the point that we must not let the perfect become the enemy of the good. I agree with that quote from Voltaire in this context; it is spot on. But the point is that we have to be good. My fear is that is that we are being timid with some of this legislation, not good. I want to see the fire in the Government’s belly. I have not seen much fire today.

So, we are not pursuing perfection, but we have to be doing good. If we do not get this right, we will not do this issue justice and we will be back here again in a year or two’s time to take things further. I am looking for reassurance from the Government that there is fire in their belly, that they are getting on with things, and that this cannot stop the proposals in their tracks.

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Moved by

[Lord Adonis]

15: Clause 1, page 5, line 26, at end insert—
“(3) Any operator exercising Part 4A code rights is obliged to ensure that alternative operators can easily install the hardware needed to provide their own electronic communications service.(4) The definition of “easily” in sub-paragraph (3) is to be provided by Ofcom.”

[Lord Adonis]

The purpose of the amendment is to probe the Government’s thinking and provoke some debate on the issue of competition and open access in the provision of services on the back of the new infrastructure which the Bill makes possible. It is the same amendment that my colleague Chi Onwurah moved in the Standing Committee in the House of Commons. I draw colleagues’ attention to the very interesting debate in that Committee on 11 February 2020 at cols. 20-23. The interesting point about it is that the amendment itself is almost motherhood and apple pie. It is very weak. It is a declaration of what those of us with a history of engagement in telecoms competition issues think is the state of play anyway. The amendment says:

“Any operator exercising … code rights is obliged to ensure that alternative operators can easily install the hardware needed to provide their own electronic communications service … The definition of ‘easily’ … to be provided by Ofcom”,


the regulator.

The significant thing about that debate is that the Government opposed the amendment. Indeed, it was pushed to a Division in the House of Commons Standing Committee and there was a straight vote on it. Highly peculiarly, given the usual position of the parties on these issues, all the Conservatives voted against having any requirement for open access and competition in the Bill, even though Chi Onwurah’s amendment, as I read it, was a statement of existing government and Ofcom policy.

Reading the Minister’s response—this is Matt Warman, the Under-Secretary in the department of the noble Baroness, Lady Barran—left me more concerned than before. I would like to probe the noble Baroness further on two particular points that came out in his response. First, he made a straightforward anti-competition declaration about the policy intended to result from the Bill. In col. 22, he said:

“Far from improving competition in access to gigabit services, the amendment”—


this amendment I am now moving before your Lordships—

“may actually have the unintended consequence of doing the opposite. As the hon. Member knows, much of the cost of connecting premises is in the initial installation. The amendment could therefore seriously undermine the case for operators to make that initial installation, as they risk being undercut by second or third movers who would not have to bear the same costs.”—[Official Report, Commons, Telecommunications Infrastructure (Leasehold Property) Bill Committee, 11/2/20; col. 22.]

That is a classic statement of the reason that operators, including Openreach, always give for not allowing others to be able to access their wayleaves and technology, but it is not one that the Government have supported in the past. Do the Government believe that allowing operators to ban competition and introduce anti-competitive requirements in contracts is justified as a means of getting this investment? That is a direct question for the Minister. I would like to know what the Government’s policy is. Do they support anti-competitive practices?

On the operation of the existing law, in col. 21 Matt Warman said:

“The Bill aims to support leaseholders to access the services they request from the providers they want”—


a straightforward statement of pro-competition policy.

“It already ensures that leaseholders are not per se locked in to services provided by a single provider; nothing in the Bill prevents a leaseholder with an existing gigabit-capable connection from one service requesting an alternative network to come in and request code rights as well.”—[Official Report, Commons, Telecommunications Infrastructure (Leasehold Property) Bill Committee, 11/2/20; col. 21.]

Can the Minister point me to the provisions ensuring that

“leaseholders are not per se locked in to services provided by a single provider”?

How does that provision square with the Government’s resistance in the House of Commons to this amendment, on the grounds that anti-competitive practices were justified to support operators making investments in extending fibre to the home? I beg to move.

[The Deputy Chairman of Committees]

I call the noble Lord, Lord Haselhurst. He is not there. We will move to the noble Lord, Lord Liddle. I beg your pardon; I call the noble Lord, Lord Stevenson of Balmacara.

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[The Deputy Chairman of Committees]

I have received no notification that anyone wishes to speak after the Minister, so we return to the noble Lord, Lord Adonis.

[Lord Adonis]

I am extremely grateful to the Minister. As she says, there are drafting issues, but I am sure that if they were the only concern we would all be happy for the Government to do the drafting for us. There seems to be a contradiction in the Government’s position. May I ask the Minister to clarify it? Is she saying that under the Bill as drafted, and the terms of the agreement with the proposed Part 4A order, alternative operators will or will not have easy access to new infrastructure? To prevent people unfairly undercutting initial investors, it is important that they should not. It is not clear to me and that point seems to go to the heart of the Government’s argument. Are they arguing that operators will have easy access, so that what is proposed here is irrelevant; or that operators will not have easy access, which is intentional because if they did, there would be undercutting? Which of those is the Government’s position?

[Baroness Barran]

The Government’s position is that there is fair access, in that any provider can apply for a Part 4A order of their own to deliver a service. Alternative operators have equal access to the existing operator or other alternatives.

[Lord Adonis]

That is a very helpful response because it seems to indicate a possible way forward in a redrafted amendment that underpins fair access. In my proposed new sub-paragraph (3) to new paragraph 27F, instead of saying

“that alternative operators can easily install the hardware”

it should say that they can install their hardware on a fair basis. My sub-paragraph (4) would then be the definition of fair, to be provided by Ofcom. I do not want to press the Minister too far, but can she at least undertake at this stage to look at such an amendment, without making any commitments to come back on Report, and write to me about it?

[Baroness Barran]

What I am saying is that we believe that we already have a fair system and that this could best be explored in the accompanying regulations. However, I will be happy to write to the noble Lord on the point.

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[Lord Adonis]

I am very grateful to the noble Baroness but she opens herself to the argument that I am seeking simply to insert into the Bill what the Government have said they intend to do anyway, and I may come back to this point on Report. However, on that basis, accepting what the noble Baroness has just said about writing to me and acknowledging the contributions made by my noble friend Lord Stevenson and the noble Lord, Lord Fox, I beg leave to withdraw the amendment.

Amendment 15 withdrawn.

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[Lord Stevenson of Balmacara]

My Lords, I shall speak also to Amendment 18. The noble Lord, Lord Clement-Jones, will come in on Amendment 19, which has a similar bent but a slightly different way of moving forward on the same issue.

These are probing amendments to ask why there is a need for a statutory limit on the expiry of Part 4A code rights. It has reached the stage where Part 4A code rights are clearly necessary, now and in the future, and not limited to 18 months, which might well be interrupted by all sorts of things, not necessarily excluding matters such as those we are currently experiencing. We are saying here that this stems from our having had representations from operators about the imposition of the 18-month time limit. While there may be one, no explanation has been given for why that period has been chosen and I look forward to hearing from the Minister what it was. The proposal has been included in the Bill without any consultation, which causes us concern. That is why we have tabled Amendment 18, which suggests that before any final decision is taken, there should be a wider consultation on this.

What we surely want to see is no roadblocks, uncertainties or hindrances, real or apparent, for those who might, wilfully or otherwise, wish to frustrate progress on getting access to above-ground fibre broadband for the home. If there is to be a sensible time limit, it ought to be practical and should not create costs. If there has not been consultation, there should be, so the amendment suggests that, instead of putting into primary legislation a figure that seems to have been plucked from the air, we should have a proper process that would arrive at something that people would understand and might support better. I beg to move.

[Lord Adonis]

I do not wish to speak on this group.

[The Deputy Chairman of Committees]

In that case, we will move on to the noble Lord, Lord Fox.