Release of Spectrum Band

Debate between Calum Kerr and Nigel Huddleston

Tuesday 15th November 2016 Westminster Hall

[Nigel Huddleston (Mid Worcestershire) (Con)]

I, congratulate the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr) on securing this important debate.

As the hon. Gentleman has already mentioned, there are obviously many benefits to releasing the 700 MHz band, but we should not lose sight of the fact that there are some current users of the spectrum who will be negatively affected. Chief among them are the UK’s programme making and special events, or PMSE, sector. It is the backbone of our creative industries, using wireless radio equipment such as microphones and in-ear monitors to stage concerts, festivals, west end musicals, sporting events and a whole host of other key cultural events in the United Kingdom.

I recently met the British Entertainment Industry Radio Group, or BEIRG, the industry body that represents the sector. It is profoundly concerned that unless adequate mitigating steps are taken, the industry faces severe problems as a result of the 700 MHz release. Most notably, without the allocation of adequate replacement spectrum for the sector’s use, standards of production will fall, as more wireless devices are forced to operate in a much smaller amount of spectrum, increasing the risk of interference.

Ofcom has allocated the 960-1164 MHz band, for which the sector is grateful, but no other Administration or regulator in the world has shown any intention of following Ofcom’s lead and allocating this band for PMSE use. That means that the market for new equipment to operate in the new spectrum will be UK-only, which means it is too small for any serious manufacturer of wireless equipment to make the business case for, or to commit to making new products for. PMSE users therefore face being forced to vacate the 700 MHz band in quarter 2 of 2020, without being able to use the new spectrum because no equipment exists that can operate within it. With lead times on equipment of around three years for most manufacturers, the UK faces a situation whereby spectrum-intensive events, such as TV broadcasts, festivals and west end theatre, will be unable to continue offering the world-leading production values that consumers have come to expect.

[Calum Kerr]

The hon. Gentleman is making an important contribution. I could not possibly have got every aspect of the matter into my own speech without talking for far too long, so I welcome what he is highlighting. Does he agree that there needs to be—there already is an element of this—a fundamental review of all parts of spectrum and a strategy for not just tomorrow but further into the future, to address those kinds of concerns, as well as looking at existing allocation across all media areas?

[Nigel Huddleston]

The hon. Gentleman makes a very good point. We need to be careful about the unintended consequences of some of these changes. Some of those consequences can, with careful consideration, be anticipated; others will probably come in time, but that needs to be carefully reviewed and monitored.

The PMSE sector comprises many small operators, which are not all in the robust financial circumstances we would like them to be. Without assistance, they face some difficult times in the future. The Government and Ofcom’s recent announcement that a compensation scheme will be introduced is hugely welcome, and I thank the Minister for that. Although the importance of increasing mobile phone and broadband coverage is clear for all to see, we must ensure that unintended consequences do not have a negative impact on our hugely successful creative sector and that PMSE operators are able to continue their world-class work. I would be grateful, therefore, to hear from the Minister whether the Government have any further plans to assist the PMSE sector with the transition.

Digital Economy Bill (Fourth sitting)

Debate between Calum Kerr and Nigel Huddleston

Committee Debate: 4th sitting: House of Commons
Tuesday 18th October 2016 Public Bill Committees

[Calum Kerr]

We also support clause 1. I will not repeat the points I made during the debate, but I want to bring a couple to the fore and ask the Minister one specific question, which I hope he will answer. We should not just be looking at closing the divide in the short term; we should be looking at a longer-term fix. We should consider what a minimum speed is today, but we should also be looking to what that might become in the future.

The hon. Member for Sheffield, Heeley pointed out that the EU target is 100 megabits per second by 2025. While we can aim for 10 megabits per second, if we do not set a horizon of where we want the target to go, we risk putting sticking plasters all over the country and getting solutions that will have no lifespan. We will all be back here in a few years’ time, saying, “I wish we’d listened to the hon. Member for Sheffield, Heeley who wanted an annual review.” We would know that this provision had not been delivered.

Let us try to avoid that scenario and ensure that as the USO goes through the process, what Ofcom designs not only looks at where we are today, but where we want to go in the future. When the Minister gives the main event speech tomorrow at the INCA event, which is advocating a strategy for gigabit Britain, he should set forward a truly ambitious vision of what the UK can offer in this space. Perhaps his response will provide me with some reassurance.

As we have looked at amendments, I have tried to ensure that not only have the Scottish Government and other Administrations been consulted, but they are part of the formulation of the USO. Consultation can be tokenistic or it can be fully engaged and evolved. We need to be fully involved in the design of this process, so that where we set an ambition, a target of 30 megabits per second, the USO supports it—for example, through foundational funding through a voucher scheme. Where any one of the regional councils want to do the same and set an ambitious higher target, the USO should support that, rather than offer a solution that forces them into a corner.

Will the Minister reassure me that the USO designed by his Government with Ofcom will support devolved Administrations and regions and provide foundational funding—not just 10 megabits, take it or leave it?

[Nigel Huddleston]

There is obviously a growing consensus and recognition of the importance to all our constituents of the universal service obligation. As always, the devil is in the detail. I understand that some of those details will be provided or revealed in secondary legislation. I do not buy some of the concerns expressed today about a possible lack of scrutiny in the progress of the USO. As a member of the Culture, Media and Sport Committee, alongside other members of this Committee, I am confident that we will continue to do that job robustly and effectively to raise issues and concerns.

I cannot imagine how many times we have heard issues related to broadband and mobile brought up in the Chamber, in Westminster Hall and elsewhere in this place, so we can scrutinise in multiple ways. We also have to be careful that we do not constrain our ambition by thinking of current technology and current speeds. It is important that we go with the flow and update our ambitions accordingly as technology develops.

Digital Economy Bill (Third sitting)

Debate between Calum Kerr and Nigel Huddleston

Committee Debate: 3rd sitting: House of Commons
Thursday 13th October 2016 Public Bill Committees

[Calum Kerr]

Q The very good document from the Minister and DCMS gives us a bit more information on the USO and talks about upload, download, latency and capacity. One of the other factors is cost. I get frequent complaints from constituents, as I am sure my colleagues do, that they do not receive a service that, as Ronseal would say, “Does what it says on the tin.” To what extent are you going to go to a granular level and look at the service, and also include cost as a key metric, so people are getting what they pay for or paying for what they get?

Lindsey Fussell: I understand. The Government have made public the letter that has been given to Ofcom and have specifically asked us to look at the cost of different technological solutions. That will clearly give a range of factors to weigh up when the Government decide how to implement the USO. Some of the issues you go to about how the USO will be enforced and how we will measure performance against it are implementation issues that we will have to consider once we know what type of USO we are implementing. It might be worth saying that, to the extent that we designate a universal service provider, either in one or in several areas, we would have the ability to enforce if they do not meet the commitments they signed up to and to provide the appropriate remedy.

[Nigel Huddleston]

Q I have a question for each of the witnesses. Starting with Mr Close, under the Bill, Ofcom will be given quite significant new oversight responsibilities over the BBC. Can you confirm what skills and attributes Ofcom currently has in terms of broadcasting, and are you confident, given this substantial increase in responsibilities, that you will have the skills and resources to do this job in the future?

Tony Close: There are two parts to my answer. I will begin with the specific provisions in the Bill and then talk about skills. The Bill removes some constraints that were placed in the Communications Act 2003 on our ability to regulate the BBC. We already regulate the BBC but we are subject to some constraints. At the moment, for example, we cannot consider the competitive impact of a significant change to the BBC’s website. The Bill removes those constraints so we can discharge the full range of functions that the charter and agreement would give Ofcom.

Are we currently sufficiently skilled to regulate the BBC to a high standard? Absolutely. We have been regulating broadcasting and making complex editorial judgments for the past 13 years, covering 2,000 separate television and radio broadcasters. Do we need more people and more skills to ensure that we do a great job from day one? Yes, and we are doing that at the moment by ensuring that we have the right number of people and the right skill mix.