Digital Economy Bill

Antoinette Sandbach Excerpts

Tuesday 13th September 2016 Commons Chamber

[Chi Onwurah]

I thank, or at least I think I thank, the Minister for that intervention, but it is clearly not going to be on the BBC and that is clearly a question of funding. The Government are cutting funding to the BBC significantly. If that is not going to be the case, I look forward to an announcement from the Government that they are withdrawing those measures. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), the shadow Secretary of State for Work and Pensions, has described this as

“a slippery slope towards further outsourcing of a social security system under siege.”

The Bill is not only notable for its inability to respond to the challenges it sets itself; it should be infamous for not even considering the challenges the digital economy presents. It has little to do with the digital economy itself and much to do with the Government’s culture of cowardice when it comes to addressing the key challenge of the digital economy: data. The only measures on data seem designed to extend the current public sector data sharing chaos to a complete free-for-all. Our data are at risk with this Bill. We do not own the data and we are not safe. Anyone can take them and the Government decide what others should see of them.

The Government want to make sharing public data easier if “benefit” can be shown, but that benefit will be decided without proper public scrutiny—indeed, without any debate. Where has the debate been?

[Antoinette Sandbach (Eddisbury) (Con)]

A number of fuel poverty initiatives have requested data sharing so that help and assistance can be targeted. Does the hon. Lady not agree with that kind of initiative?

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[Rishi Sunak (Richmond (Yorks)) (Con)]

The average smartphone user in the UK uses their device for more than two hours daily, so when we talk about rural communities without access to a mobile signal, let us be absolutely clear about what we mean. We are talking about the fact that people in swathes of our country are unable to participate in an activity that the rest of us consider so indispensable and so vital that we engage in it for 10 minutes of every waking hour.

The Bill before us today contains two important steps towards closing that gap. The first is action to reform the electronic communications code to reduce land rents and to free up capital to invest in infrastructure, and the second is Ofcom’s new powers to capitalise on the opportunities for dynamic spectrum access.

Let me turn first to the provisions for reducing the cost of land used by mobile operators. In going beyond the Law Commission’s recommendations and moving wayleave valuation to a compulsory purchase basis, the Government have acted boldly in the public interest. This one change will do the following: reduce rental costs; tackle the vexatious issue of ransom rents; and begin to close the gap between the rent for an electric pylon—in the hundreds of pounds—and that of a mobile telecoms mast—up to the tens of thousands of pounds.

Let me be clear: some of my constituents will lose out from this Bill. It is no secret that small rural businesses, farmers and landowners have benefited from the extra income that renting land to mobile infrastructures can provide. It is an important source of income, and I take very seriously the concerns of the National Farmers Union and the Country Land and Business Association. What is equally plain, however, is that, in boosting investment in rural coverage, the potential benefits to rural communities can outweigh those costs. We must not expect the rural people whose income will be reduced by this Bill to receive nothing in return. The analogy is made with the compulsory purchase powers in the utility and energy infrastructure side of our country. However, the National Grid is a regulated asset, which means that any cost savings it enjoys as a result of compulsory purchase powers are automatically, by regulation, passed on to customers. In the case of the mobile operators, that is not necessarily so. Interfering with property rights, as the code does, is a major step for this House to endorse. I therefore urge the Government to ensure that the Bill benefits not just the network operators’ balance sheets, but the public interest. Operators will save hundreds of millions of pounds as a result of these changes, and in return there are a few things the Government can do to keep their feet to the fire. First, the Government can ensure that they live up to the obligations of mobile coverage that, by 2017, 98% of UK households have access to 4G and 90% of our land mass is covered by voice and text.

[Antoinette Sandbach]

Does my hon. Friend agree that it is a great source of frustration that mobile phone companies, when they sell 3G or 4G contracts knowing there is only 2G or no provision, say that it is just an opportunity to access 3G or 4G where there may be such provision? Does he not think that is mis-selling?

[Rishi Sunak]

My hon. Friend makes a valid point and I share that frustration, which my constituents have also brought to me.

There are further steps that the Government can take. I endorse here the comments of the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr). The Government could suggest progress towards a model of independently owned infrastructure, such as is found in the United States. Independently owned masts are, on average, 10 metres taller. They can host multiple clients, unlike network-operated masts, so they reduce costs in the system, expand coverage and broaden access, and are a welcome development.

I urge the Government to look at the example in Australia where Vodafone and Telstra have combined to form a national roaming agreement, allowing network sharing in the country’s most remote regions. When the next spectrum licence auctions come along, we must ensure that coverage is paramount in the conditions. I concur with the comments by the hon. Member for Berwickshire, Roxburgh and Selkirk: we should look at the example in Germany, where they use outside-in provisions to cover rural areas before moving to the dense, profitable urban areas.

The second part of the Bill that I want to mention is the slightly technical area of white space. It gives me great personal pleasure to talk about these clauses, for my brother-in-law, as a young PhD student in the United States, was one of the first people in the world to develop a working white space system, which allowed the transfer of data on this innovative new use of spectrum. White space refers to radio spectrum frequencies that have already been allocated to users but which are not always used. For example, digital terrestrial television signals use different frequencies in different parts of the country, so as not to interfere with one another, and that leaves an opportunity for a new generation of mobile devices to use that white space spectrum in particular parts of the country. That process is known as dynamic spectrum access.

Much as I criticise Ofcom in other areas, I would commend it for being incredibly farsighted and enabling the UK to be a leader in capitalising on this innovative new technology. It has set up several trials in the past few years.

The Bill will specifically allow Ofcom to register and regulate geolocation databases. Databases allow the new devices to query exactly what spectrum is being used in what area, and it is a practical and necessary step required to make white space devices much more widespread. White space spectrum is very powerful. It can travel hundreds of miles and through walls. For that reason, it is a technology that we must capitalise on, and I commend Ofcom and the Government for taking steps in that area. It will be of enormous benefit to my rural constituents.

In conclusion, as technology and innovation open up new frontiers and possibilities, it is the role of this House to ensure that every member of our society, rural or urban, can reap the rewards. The foundations laid by the Bill make that outcome a more realistic probability and I am delighted to support the Bill this evening.

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[Antoinette Sandbach (Eddisbury) (Con)]

I very much welcome this opportunity to take part in the debate. Like many of my parliamentary colleagues, I agree with the majority of the principles outlined in the Bill. However, I must caution that it is the way in which they are applied that will ultimately make the difference. In my rural Cheshire constituency, many people feel left behind. There has been huge progress with Connecting Cheshire, but 18,000 households in my constituency remain without access to superfast broadband. At present, they feel that providers can bat around excuses and let themselves off the hook without explaining why my constituents are living in digital blackspots. Those households also seem to be the ones without a mobile signal. That digital exclusion represents a double whammy for them.

We have seen banks being hauled up for mis-selling PPI insurance. I would quite like to see mobile companies being hauled up for mis-selling contracts to customers such as those in my constituency who, more often than not, cannot get a signal. They are being sold 3G and 4G contracts even when the providers know that no such service exists in their area. The chief executives of many of the phone companies have openly written to me to say that they provide only a 2G service there. I urge the Secretary of State to close that loophole and to ensure that the Bill makes provision for those people either to get out of their contracts quickly or to access the 3G or 4G service that they have paid for.

In relation to broadband blackspots, Connecting Cheshire offers a voucher that allows access to satellite broadband. I would like the Bill to offer the opportunity for technology-neutral vouchers, so that customers can decide whether to use them to obtain a wireless connections through radio broadband. That is a very effective provider of broadband that can, in many areas, provide a solution to the last 5% of customers. I have heard many other Members call for those who are at present excluded to be the first to be brought in under any new contracts, and I would like to add my voice to those calls.

Like many others who have spoken today, I have farmers in my constituency who cannot upload the information that they need on, for example, cattle passports or on claiming their single farm payments. More and more VAT returns can now be completed online, and digital exclusion really affects those peoples’ businesses, given the amount of time they have to spend working with a really rubbish connection. This is hugely costly to us as a nation.

I also want more sense from BT. Old connections to exchanges can often run over many miles through copper wire. However, modern developments mean that there are often much closer exchanges that may already be fibre-enabled, but there is no power to require BT to move exchanges. I want that loophole closed so that constituents who are closer to a modern exchange can get connected.

[Calum Kerr]

I absolutely agree with the hon. Lady on vouchers. My worry is that a USO through BT will have a minimum standard or that a satellite USO will just hit the minimum. With a voucher system, communities would be empowered to come together and could use it as a foundation to aim higher than 10 megabits and get fibre to premises. We must not lock the scheme down and restrict the creativity of people in our communities.

[Antoinette Sandbach]

I hope that Connecting Cheshire will allow communities to band together and use vouchers in areas where superfast broadband has not yet been delivered. I urge the Secretary of State to allow that flexibility and to require BT to provide the money that would otherwise have been available for connection. I welcome the USO—it is a great step forward—but it must be set at 15 megabits and must also include minimum upload speeds.

Finally, on protecting children, we have heard much about age verification, but an NSPCC report indicated that eight children a day are being groomed online—not through access to child pornography, but through social media. Ofcom needs much better powers to deal with online child grooming and social media sites, such as Instagram, Facebook and Twitter. When someone is below the age of consent—under 16—there should be parental access or some form of parental portal, but that is completely absent from the Bill. I appreciate that that is difficult when ISPs are located abroad, but with the problem of eight children a day being groomed online not being substantively addressed, other than through the valuable work of organisations such as Childline, we need to be able to close the door that allows abusers into children’s bedrooms.

[Liz Saville Roberts]

I am sure that the hon. Lady will agree that it is a real source of concern that the only way of addressing issues with Facebook for people who have suffered through the misuse of profiles is to go to Ireland’s Data Protection Commissioner. We do not have the means to deal with such matters in this country.

[Antoinette Sandbach]

The Secretary of State’s previous role was at the Home Office, which has an interest in online criminality and the vulnerability of children, so I hope that she will take note of the comments made today. There is much to welcome in the Bill. New regulations on data protection, which will largely replace the Data Protection Act 1998, may provide an opportunity to close some of the windows. I urge Ministers to consider such provisions given the large number of online grooming cases and the potentially devastating consequences.