Superfast Broadband: Rural Communities

Lord Vaizey of Didcot Excerpts

Tuesday 21st February 2017 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Brady. I am delighted to speak in this important debate and I extend my thanks to the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing it. This issue causes me and too many of my constituents too much frustration. Whole swathes of my constituency are excluded from the so-called digital revolution. Superfast broadband remains a pipedream. It is something we hear about and may even dream of, but we have yet to partake of its delights.

The situation has been improving across Scotland, not least due to the concerted and determined efforts of the Scottish Government. Statistics that say that 83%—modest as that is—of Scotland has superfast broadband mean nothing to those who do not have that luxury. It is certainly viewed as a luxury by those living in more remote areas. Indeed, if someone lives in a remote area, such statistics make their own lack of access to superfast broadband all the worse, as though they and their community’s challenges are being mocked by the progress elsewhere.

It is true that 83% of Scotland does now have access to superfast broadband, but Scotland is being left behind, as the figure for the UK is 89%. This gap is narrowing, but make no mistake: there is an unmistakable and identifiable gap. In my own constituency of North Ayrshire and Arran, the Scottish Government’s commitment to 100% superfast broadband coverage by 2021 is welcomed, and rural Scotland is impatient for it.

There was a great missed opportunity when the UK Government rejected Scottish National party amendments to the Digital Economy Bill that would have required the Secretary of State to introduce a broadband voucher scheme to allow an end user to access broadband, other than that supplied by the provider of the universal service order under part 2 of the Communications Act 2003. A consultation by the UK Government has been announced, which I welcome wholeheartedly, but our proposals would provide a replacement for the previous UK Government broadband connection voucher scheme, which ran from 2013 to 2015 and encouraged small and medium-sized businesses to take up superfast broadband, helping more than 40,000 such enterprises.

Our businesses in rural areas rely on good, reliable broadband connections, and there is still much to be done. We have made progress, but, as many of my constituents would testify, we are not there yet. Digital connectivity is an integral part of economic development. For a modern, thriving, successful economic future, we need first-class digital infrastructure. Superfast broadband is about growing our economy and economic opportunities. It is about connecting people, about social inclusion, about empowering our young people and the next generation. First-class digital infrastructure is required to keep all parts of our economy competitive and thriving in a global market. That must include our rural areas.

I am tempted at this juncture to speak about mobile signals, but time forbids me. Suffice it to say that on the island of Arran there are huge notspots, which is simply not good enough.

I want to turn for a moment to what I believe is the UK Government’s lack of foresight in this matter. Rural mobile connectivity is suffering and struggling because successive UK Westminster Governments have seen the licensing of mobile spectrum as a cash cow rather than as critical infrastructure and something that is absolutely essential for our communities and our whole country. It seems that the only criteria that were considered when the 3G and 4G spectrum was auctioned were raising large sums of money.

[Mr Edward Vaizey (Wantage) (Con)]

Will the hon. Lady give way?

[Patricia Gibson]

I will finish my point and then take the right hon. Gentleman’s intervention.

It seems that little consideration was given to how great the coverage could and should be. How is it that the German Government required 98% coverage, but the UK settled for 95%? Greater funds were traded for lesser coverage, and that has had the effect that whole swathes of the country and my constituency are missing out. It is simply not good enough.

[Mr Vaizey]

It is a simple matter of fact that the Ofcom auction was conducted on the basis that it would not be based on how much money could be raised. It was solely based on conducting the most efficient auction. Raising money was specifically excluded.

[Patricia Gibson]

Perhaps the right hon. Gentleman will explain, if he gets an opportunity to speak later, why the German Government succeeded, whereas the UK Government appeared to fail.

Scots have access to a 4G signal only 50.4% of the time, suffering some of the lowest access to mobile data in general, and as of December 2015 nearly half of Scotland’s land mass had no data coverage whatever, compared with only 13% of the UK as a whole. That is simply not on, and I am keen to hear what the Minister thinks of those statistics. I want to hear what reassurances the Minister can give to my constituents in North Ayrshire and Arran, who are so poorly served in this so-called digital revolution. What reassurances can he give to all the people across Scotland who are so poorly served that it affects their ability to connect with people, their ability to study and their ability to run their businesses as effectively and completely as they would like?

Scotland lives and competes in a global environment, and all parts of Scotland need to be part of the digital revolution to compete properly. I look forward to hearing what the Minister will say today to my constituents to show that he understands that.

--- Later in debate ---

[Calum Kerr]

Okay. I have run out. I was not sure; my apologies.

[Mr Edward Vaizey (Wantage) (Con)]

Sit down!

[Calum Kerr]

It is always a pleasure when the former Minister is here.

Let me make one final point, if I may. As we consider fibre deployment and the idea of vouchers, I will say that I am fully behind vouchers, but it is important that they do not lead to a trap whereby rural schemes such as Broadband 4 the Rural North, or B4RN, or the scheme on North Skye and in the Borders, are opened, so that any network can go on top, because it kills their business model. That must not happen. I know that is a big point of contention at the moment, so can we have vouchers and can we have them open? Let us ensure that the digital divide is closed and not cemented through bad policy.

[Louise Haigh (Sheffield, Heeley) (Lab)]

I, too, congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing the debate and allowing us all to get these frustrations off our chest.

This debate is welcome, because the last time the House discussed broadband was prior to the publication of Ofcom’s “Connected Nations” report, which has been referred to today and which offered a progress report on the Government’s delayed roll-out of broadband. The debate has clearly indicated the continued frustration of hon. Members throughout the House, and I feel their frustration. The Ofcom report showed that Sheffield is the major city with the lowest superfast broadband coverage in the country. That is a useful reminder of a point that has been played out today—that although this problem predominantly affects rural areas and particularly island communities, as has been so passionately expressed, it is also a truly national issue, encompassing all nations, regions, cities, towns and villages of the UK, and so requires a national strategy.

The “Connected Nations” report found that although Scotland performed worst in the UK and England best, the headline data masked internal variations that cut across the traditional boundaries of rural versus urban. Indeed, of the 3.5 million homes that cannot receive superfast speeds, 1.7 million of them are in urban areas. In total, 36% of rural Scotland is in the slowest of slow lanes, and 25% of rural England, while 400,000 small and medium-sized enterprises in town and country do not have access to superfast broadband, with 200,000 being unable to access even the basic speed of 10 megabits per second. Almost a quarter of a million UK premises cannot get even the pitiful download speed of 2 megabits per second, and more than 600,000 premises cannot get 5 megabits per second.

There is little secret that we are facing a slow-moving productivity crisis, and little wonder when 75% of our small businesses report that broadband is critical to their needs and yet nearly half of small businesses have complaints about internet service as it currently stands. Some 33% of the business parks that were designed to be a test bed for innovation productivity are still unable to access superfast broadband, as the hon. Member for Eddisbury (Antoinette Sandbach) set out. She also highlighted the important distinction between technical access and availability, and the take-up of broadband speeds in our communities. It is not yet clear to me that Broadband Delivery UK, whatever its future iteration with relation to the universal service obligation, will take those issues into account and properly measure them.

We are failing our businesses and, even more importantly, our potential businesses if we do not keep pace with them and provide the digital infrastructure that they require. Businesses rely increasingly on substantial download and upload speeds—although the USO does not take upload speeds into consideration—in order to store information on cloud systems and conduct multi-user calls while transferring and processing data, with multiple employees online all the time.

The sheer scale of data transferred over fixed-line broadband is detailed in “Connected Nations”, and it has grown as broadband speed has increased. The average monthly data consumed per household jumped by 36% over the past year to 132 gigabytes, and the total volume of data transferred was a staggering 2,750 petabytes. That all clearly adds up to a need that will become more and more stark by the end of the decade. With the need so obvious, it is surprising that Ministers continue to pursue the pitiful designation of 10 megabits per second by 2020.

I perfectly understand the frustration of the right hon. Member for Orkney and Shetland that 37% of his constituents still cannot access the bare minimum speed that Ofcom defines as being necessary for participation in a digital society. Moreover, the Government are offering his constituents that bare minimum only by 2020. Half the properties in Orkney and Shetland do not have access to superfast broadband, so as it stands it will be the same old story, repeated again and again: rural communities are an afterthought, and those with poor coverage are always playing catch-up, as technological advances require a faster and faster internet service.

As the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr), the Scottish National party Front-Bench spokesman, said, Ofcom agrees with that. In its technical response to the USO, it said that

“government may want to consider the extent it”—

Government intervention—

“should be designed to take into account further future growth”.

Ofcom made it clear that the Government would get better value for money by intervening once and ensuring that there is not a continual state of review, advice and reinvestment as requirements grow over time.

[Mr Vaizey]

For the past six years, it has been Labour party policy to provide 2 megabits per second to 100% of the UK. In the short period that she occupies her current post, does she know whether it is planned that Labour party policy will change?

[Louise Haigh]

I can inform the right hon. Gentleman that Labour’s policy did indeed change last year, and for the past seven years Labour has not been in power; that might have escaped his notice. The Government have had plenty of time to address this issue. It is quite clear that their current “wait and see” strategy is exactly the wrong choice to provide value for money and other benefits for our consumers. Broadband and data usage is only going one way.

When we last debated this issue in the House, the Minister argued that the relevant legislation provides for the USO to be revised upwards. However, following a series of parliamentary questions, it would appear that the entire basis for the claim that 10 megabits per second is sufficient to participate in a digital society is drawn from research conducted by Ofcom in 2013. In 2012, 31% of UK premises had no take-up of fixed broadband services at all and 10% of all UK premises had take-up of speeds of less than 2 megabits per second. In that context, 10 megabits per second would represent a quantum leap, but not any more.

We should also look at how quickly the designated minimum speed has changed in previous years. From 2010 to 2013, it jumped from 2 megabits per second to 10 megabits per second, as Ofcom and the Government recognised the expanding demand and need. It is therefore very likely that the Minister intends to introduce secondary legislation that is already outdated.

To truly future-proof the legislation on the USO and properly serve communities that have been stuck in the slow lane since the advent of the technological age, Ministers will have to be much more ambitious. If the roll-out began at the end of 2017, that would benefit 1.9 million residents and businesses. It would benefit residents in Lewisham, who still cannot access superfast broadband, and those in the East Riding of Yorkshire, which has the lowest superfast take-up in the country.

Ofcom itself has referred in its technical report to the “clear benefits” of a more highly specified USO of 30 megabits per second and a 10 megabits per second upload speed. It is time that the Government’s ambitions matched those of millions of consumers and small businesses. The UK simply cannot afford to stay at the back of the queue.