Digital Economy Bill

Debate between Lord Gordon of Strathblane and Lord Aberdare

1st reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords
Tuesday 31st January 2017 Lords Chamber

[Lord Aberdare (CB)]

My Lords, as I indicated at Second Reading, I very much support the proposal for a broadband universal service obligation. The amendments in this group raise a number of questions in my mind about how the USO will work. Like several other noble Lords who have spoken, I am not convinced that all of these can or should be left to Ofcom, or to enabling powers, to resolve. For example, is the USO intended by government to be a safety net for users for whom no other service is available? Or is it seen as part of a more ambitious and aspirational strategy aimed at ensuring that the UK is, and remains, a global leader in the quality of its broadband availability? If the latter, Amendment 1 would look attractive, setting the sorts of targets that I believe we should really be aiming for. But even if the Government are leaning more towards a safety net approach, as seems to be the case, I would be inclined to support Amendment 2, which includes not just superfast download speeds but provisions for such other key features as upload speeds, response times, information rates and data caps. As the Local Government Association points out in its briefing, and as other noble Lords have mentioned, upload speeds are at least as important to businesses, especially smaller businesses, not least in rural areas.

Ofcom itself, in its technical advice to the Government, looks at three possible USO scenarios, as laid out by the noble Lord, Lord Mendelsohn. I share the view that the USO should offer more than the basic, standard service. While Amendment 1 might be seen as representing an ideal—a very worthy ideal—Amendment 2 sets out a perhaps more realistically achievable target, which I would support. I also fully support the proposition at the end of Amendment 2 that whatever initial specifications are set should be reviewed annually and increased in line with growing need, as well as the requirement in Amendment 8, tabled by the noble Lord, Lord Fox, for an annual report on the implementation of the USO. Indeed, I would also support the review of Broadband Delivery UK, proposed in Amendment 9, and the duty proposed in Amendment 11 to ensure that the USO is, in fact, achieving its aims.

Who will the USO fall upon, and who will be designated as universal service providers? Will it be just BT and KCOM in Hull—at least initially, as envisaged by Ofcom—or is it expected that others will be designated; and if so, who might these be, how will they obtain USP status and on what terms?

Finally in this group, I also welcome Amendment 10, which is designed to ensure that the needs of SMEs are addressed as a priority under the USO. I look forward to hearing from the Minister how the proposed USO will help to take the UK further up the global league table from the position described by the noble Lord, Lord Mendelsohn, which I think was 23rd going on 38th.

[Lord Gordon of Strathblane (Lab)]

My Lords, I support Amendment 1, and indeed the other amendments in this group, without in any way taking away from the credit due to the Government for introducing the USO. I think we are universally in approval of what the Government have done, and they deserve great credit for it. However, as I mentioned at Second Reading, this is a rather unambitious target. That of itself is not worrying—after all, it can be left to Ofcom to increase the target—except that it will alter the way that we go about things. We need a step change in how we go about things. Ten megabits can be achieved by wringing more miracles out of copper wire, and we would change nothing. This is not even in tune with the Government’s own thinking. Again, the Government deserve great credit for what they announced in the Financial Statement about new funding to look at what we can do with 5G. 5G could revolutionise our industries and the Government have put money behind that. The department would find itself pushing at an open door if it asked the Treasury for more funding at this point.

My last point in this brief intervention is simply to say that, having looked at the broadband advice to the Government and the three scenarios, I was, frankly, pleasantly surprised by how little option 3 costs. If that is all it costs, why not go for it and get the Treasury to cough up?