Broadband Universal Service Obligation

Antoinette Sandbach Excerpts

Thursday 15th December 2016 Commons Chamber

[Matt Warman]

I am delighted to pass on that message.

[Antoinette Sandbach (Eddisbury) (Con)]

Will my hon. Friend give way?

[Matt Warman]

Oh, for heaven’s sake! Yes.

[Antoinette Sandbach]

I am very grateful to my hon. Friend for giving way. Does he agree that a number of innovative firms, such as ITS in my constituency, are rolling out wireless technology that allows some communities to band together and fill the gaps that the current programme, unfortunately, has not reached?

[Matt Warman]

I agree, and I will come on to that in a moment. The USO must enable those innovative solutions, otherwise it will not fulfil exactly the ambitions I know my right hon. Friend the Minister has for it.

In my constituency, despite having the least well-funded police force, an enormous rural road network, and very strong opinions on the EU and immigration, broadband is the single biggest issue in my postbag. My local superfast connection figures are still 6% below the national average, and for the neighbouring constituency of Louth and Horncastle they are 13% below the national average. All Lincolnshire’s MPs know from their respective constituents the importance of this issue, even though our county council has delivered its projects ahead of schedule and under budget. I think all Members agree that the USO is a huge opportunity to make an economic impact, narrow the gap between the urban and the rural economy, and reform Government services.

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[Antoinette Sandbach]

It is not just rural Scotland that suffers. In fact, most of my constituency has only a 2G signal—we do not even have 3G. Ofcom has launched a very useful app, which people can download to their mobile phones, that feeds data directly to Ofcom. I encourage everybody who suffers from poor signal to download it, so that Ofcom can have real-time information on the appalling quality of service some of my constituents are getting with their mobile phone coverage.

[Matt Warman]

I thank my hon. Friend. I will come to the importance of data in a moment.

Ofcom has not yet defined the “U” the “S” or the “O” bit of the USO. We must acknowledge that there will be areas that it is not economical to connect, just as we do with water or electricity, but that underlines the importance of a USO that is technology-neutral, minimising the need for ubiquitous fibre but planning for a fibre spine that powers wireless connectivity and in due course allows a genuine 5G revolution. By the time that 5G is around, the USO must also have risen with what we might call digital inflation, because 10 megabits per second is barely good enough today and certainly not good enough in perpetuity. In the manner of the Low Pay Commission, Ofcom should make recommendations each year to see the USO rise incrementally, and the Government might occasionally make a point of surpassing those recommendations, as it has with those of the commission.

Assuming that this USO is like those in other industries, in that it allocates a reasonable budget per connection, it will be vital that communities can pool their funding, in the manner that my hon. Friend the Member for Eddisbury (Antoinette Sandbach) mentioned, in order to encourage private companies such as those she mentioned to take innovative paths. This effectively would create a voucher scheme of the sort that the Minister talked about in a recent debate. It is certainly important that we explore the avenue of allowing communities to club together rather than leaving individuals to fend for themselves.

Connecting the final few per cent. of the UK will require an unprecedented host of diverse solutions, from satellite broadband to, I hope, full fibre. I hope that my hon. Friend the Member for Eddisbury will agree, however, that one size will not fit all, however marvellous the companies she mentioned might be. A single company might not necessarily be the right approach to provide a backstop for a USO. I suspect that many will express views on BT in this debate, but in reality even that one enormous company will not be providing every part of the solution.

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[Matt Warman]

I absolutely agree with both points. It is daft that we are not fibring up every new housing development by default, and it is short-sighted of developers, because we know that superfast broadband connections add value to the houses. There is virtue on both sides.

Like my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown), I would go slightly further than Lord Adonis’s National Infrastructure Commission did recently, and say that we should be slightly more creative in identifying areas of default provision.

Crucial to all this is the issue of data. There would be a real risk of cherry-picking if we were to publish simply a bulk set of every single connection and how fast it is; actually, that might provoke the sort of anti-competitive behaviour that none of us would like to see. However, it strikes me that publication of address-level data will provide constituents with an accurate picture of their broadband speeds now, and it should also provide them with a road map for the future, so that it would allow not only prospective purchasers of a house to see what speed they might get and what their upgrade path might be, but communities to pool their own data so that they can identify whether they should be going out to other companies to try to attract investment or whether they might be able to wait a little while because they know that a solution is coming.

[Antoinette Sandbach]

Does my hon. Friend agree that Actual Experience provides free software that can be downloaded on to people’s computers at home that feeds into Ofcom and provides real-time data? I am trying to encourage communities in my constituency that do not have access to 2 megabits per second broadband to use that free software so that we can gain greater and more effective data on this issue.

[Matt Warman]

My hon. Friend is absolutely right. Actual Experience, which has worked with Ofcom, provides an invaluable and often free service from which all our constituents could benefit. It is precisely that data that allows communities to join themselves together and work out whether they can go to companies and point out that they are an attractive place to invest, or indeed whether they need to persuade, as has happened in many parts of the country, a friendly farmer to help them dig the trench. It is a useful thing.

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[Ian C. Lucas]

It is essential that we put the infrastructure in place that will deliver for the whole of the United Kingdom; that is the thrust of my speech.

I represent Wrexham. We have heard about rural areas that do not have access to broadband, but Wrexham is a manufacturing and exporting constituency that has many businesses and many modern technology parks around it. Many of those businesses have been telling me over the past few years that they have not been able to access the type of broadband services that are essential for modern businesses to be able to compete.

[Antoinette Sandbach]

The Superfast Cymru project is led and delivered by the Labour-run Welsh Government in Cardiff, so if those businesses are struggling, I suggest that the hon. Gentleman speaks to the Welsh Government in Cardiff, who are rolling out that programme.

[Ian C. Lucas]

It is a matter of regret that the hon. Lady never misses an opportunity to be partisan. If she knew anything about this subject, she would know that the infrastructure and the whole basis on which broadband services are delivered are constructed by the UK Government; it has been their responsibility to deliver the policy of spreading broadband across the UK. It demeans the Conservative party to resort to petty, political point scoring, but that is what I have come to expect from her.

This is a serious, important subject, because I believe in the United Kingdom and in supporting areas right across the country—not just the richest areas, which is the policy of the Conservatives; whenever figures come through from Ofcom, we still see that the richest parts of the country have the greatest broadband provision. That acts against the interests of the nations and regions of the UK. It is the role of government, and the UK Government in particular, to correct the deficiencies of the market, but the coalition and Conservative Governments have failed to do that since 2010. That is why we have heard so many complaints from Conservative MPs at every Culture, Media and Sport Question Time since 2010 about the weakness of broadband provision and services.

I accept that there has been progress. Demand has not stood still since 2010. I know that the hon. Member for Wantage—

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[Ian C. Lucas]

Right honourable. It is always good have personal connections in politics these days; one always secures rewards.

Labour’s commitment to 2 megabits would have established universal provision, so that the entire UK would benefit from the expansion of broadband services. In reality, the richest areas have benefited most. We always accepted that 2 megabits was a starting point and would not be enough, but the important thing was the commitment to a universal service. Jettisoning that principle was disastrous. It reflected a failure to appreciate the essential nature of broadband in today’s economy and society. It accelerated still further the regional imbalances in the UK; this country has the most marked regional differences in income of all OECD countries. If we are to address economic and wealth inequality across the UK, the Government must act to ensure that we have a universal superfast broadband service. I welcome, therefore, the conversion to a commitment to universal service, but it is a shame that that did not happen in 2010, and that it has not been in place for the past six years.

BT has achieved much in broadband provision, and has extended that provision since 2010. However, it effectively has a monopoly over the infrastructure in many areas, yet it is not able to meet the required demand.

[Antoinette Sandbach]

Will the hon. Gentleman give way?

[Ian C. Lucas]

I will not give way. There are delays in consumer provision reminiscent of the pre-privatisation era of the early 1980s. Individuals tell me time and again that they wait weeks, sometimes months, for a broadband connection when they move house.

[Antoinette Sandbach]

Will the hon. Gentleman give way on that point?

[Ian C. Lucas]

I will not give way to the hon. Lady because she makes cheap political points.

In addition, many areas do not have the broadband infrastructure to secure superfast services. Until recently, Wrexham had only one broadband infrastructure system, which was unable to meet the demand from local businesses and individuals. The UK Government, who are responsible for devising the system, should have put in place a governance structure that created either the necessary infrastructure through a monopoly provider or a competitive market in which providers compete to build infrastructure. Their failure is that they have done neither since 2010.

I am pleased to say that in Wrexham, in the past two months, Virgin Media has begun to build its own infrastructure system, its first in north Wales, as part of the Project Lightning programme. I thank Virgin Media for responding to the pressure I have consistently put it under to introduce that system, but if we are to have a universal system right across the UK, it is incumbent on the Government and regulators to create the system necessary right across the UK. That they have not done so already is a failure on their part.

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[Mr Edward Vaizey (Wantage) (Con)]

I am grateful for the opportunity to contribute to this important debate. I shall make two or three recommendations, which will I hope be useful to my right hon. Friend the Minister. I do not particularly want to dwell on the past, but after the previous speech it is probably worth putting in context some of the points that have been made. It is worth pointing out, for example, that, in terms of the Labour party’s promise to deliver 2 megabits by 2012, we do not know whether that would have been fulfilled, as it was based on a highly questionable telephone tax, which would have seen a revolt from consumers. In any event, we now have coverage of 99.22% at 2 megabits.

The hon. Member for Wrexham (Ian C. Lucas) failed to explain what happened in 2010, which was that the new Government looked at the promise of 2 megabits and understood that it would not be nearly enough. In fact, I suspect that many of our constituencies, which were already getting 2 megabits, complained to us about poor broadband. What they want is a superfast connection of around 24 megabits that allows them to use many of the applications that we now regard as very commonplace.

[Antoinette Sandbach]

While we are talking about accuracy, does my right hon. Friend agree that it is inaccurate to say that the less economically wealthy areas have been disadvantaged, when the constituency of the hon. Member for Wrexham (Ian C. Lucas) has 95% superfast coverage while mine has just 78%?

[Mr Vaizey]

My hon. Friend is absolutely correct. The rural superfast broadband programme has been a great success. It has delivered access to superfast broadband to almost 5 million homes. The money invested by Government will be paid back because of the nature of the contracts. The hon. Member for Wrexham mentioned that he had persuaded Virgin to come to his constituency. Virgin is now investing £3 billion in extending its network, and that is partly inspired by the success of the superfast broadband network.

The point I really want to make is that I am sick and tired of people talking down this country and pretending that we are in some kind of digital desert. The latest culprit—I am astonished that the Government allowed this to happen—is Lord Adonis, a Labour peer—[Interruption.] No longer a Labour peer. Alright, he is an ex-Labour peer, but we know where his sentiments lie. He used the platform of the National Infrastructure Commission to publish a report yesterday claiming that we have worse mobile broadband than Peru. He based that on one set of analysis by Open Signal. I am not denigrating that company, but it relies on people downloading an app and then uploading the speed they are getting. Some 4,500 in Peru use the Open Signal app, and most respectable telecoms analysts would not go near a country unless they had data from at least 25,000 users. One of the mobile companies in Peru does not even provide 4G, but that is not even mentioned in the Open Signal app.

It is much better to look at a company such as Akamai, which points out that we have the fastest download speed in 4G of any country in Europe. It is almost double the next best in the EU five. Its report, which was published this week, says:

“the United Kingdom once again had the fastest average mobile connection speed at 23.7 Mbps (up from 23.1 Mbps in the second quarter)”.

We have between 82% and 93% household coverage for 4G. A total of 76% of mobile subscribers in this country have 4G subscriptions. That is double the next best country, which is Germany, at around 35%. We have companies such as Amazon investing in cloud services. We lead the world in e-commerce. If we are this so-called “digital desert”, as Lord Adonis claimed today to promote his report, how come we lead on all these metrics? I urge my right hon. Friend the Minister to give Lord Adonis a dressing down, and to tell him to check his facts and use a better analysis instead of running around promoting his report, pretending that we somehow live in a digital desert.