Superfast Broadband

Catherine West Excerpts

Monday 12th October 2015 Commons Chamber

[Nick Herbert (Arundel and South Downs) (Con)]

I thank the Minister for everything he has done and is doing to promote the need for broadband in our constituencies. There is general agreement across the House that superfast broadband can no longer be regarded as a luxury, but is becoming increasingly essential for public services, individuals and businesses. There is a danger that a digital divide is opening up for the households that will not be able to access superfast broadband under the proposals.

It is an achievement that such a large number of additional premises have been connected to superfast broadband and that so many will be by 2017. I recognise the Government’s subsidy and support for that, as well as the work of the Minister. He tells me that some 19,000 premises in my constituency will receive superfast broadband by 2017 owing to the public funding. However, that means that some 6,500 premises in my constituency will not be able to access superfast broadband. That is not 5% or even 10% of premises in my constituency, but 15% or one in seven.

[Catherine West (Hornsey and Wood Green) (Lab)]

Is the right hon. Gentleman aware that this is not just an issue for rural communities? Even in the London Borough of Haringey, there is a massive gap in provision in the Alexandra Palace area, which is increasingly seeking to be a destination for leisure and so on.

[Nick Herbert]

The hon. Lady makes her point well, but she will forgive me for being concerned about rural areas, since I have a rural constituency of some 250 square miles.

I wish to raise two issues. First, the time has come for us to address seriously how the digital divide will be closed. There is an existing programme and I recognise that it is steadily increasing the number of premises that can access superfast broadband, but it is clear from the Government’s figures that there will be a gap. As hon. Members have said, what our constituents want to know is how that gap will be closed.

Here is a clear case of market failure. The market says that it does not have the resources to supply the remaining percentage of difficult-to-reach households. There is a case for ensuring that public subsidy is directed at securing access for those areas that are hardest to reach, and that will undoubtedly involve a mix of technologies. I doubt that satellite technology will provide sufficient access speeds for the future, but we need to hear how the Government will ensure that rural areas are not permanently disadvantaged. Some households in my constituency can barely access broadband at all—they have the lowest possible speeds—let alone access superfast broadband. They need to hear now about future plans, recognising that their neighbours have successfully achieved that superfast access.

I believe there is a lack of competition in this area and that a shake-up of the market is needed. It is not satisfactory that 75% of new superfast broadband customers on the Openreach network are BT or BT subsidiary customers. Openreach has seen a decline in investment in that area, particularly with the copper wires that are still necessary because we do not have fibre-to-the-premises connection. The customer service provided by Openreach is simply unacceptable. One of my constituents had a delay of up to 20 months when receiving a phone line from BT, and 2,500 Sky broadband customers in my constituency who rely on Openreach have reported a fault. We know that Sky provides about one third of that service in my constituency, which means that 7,500 constituents have been affected by poor customer service. That is a constant report from my constituency.

Some 82% of my constituents wait for more than 12 days if they want to switch from BT to Sky, and there is evidence that investment by BT has been going not to the essential infrastructure necessary for Openreach but towards the acquisition of sporting rights for BT Sport on which more money has been spent. We should not be willing to accept that situation, and the merger between BT and EE is likely to make things worse because Openreach will be a smaller entity within the overall size of the group and will not be focused on such issues.

The time has come to persuade Ofcom to take a serious look at the lack of competition in this area and make a referral to the Competition and Markets Authority. We would not accept such a lack of competition in the energy sector, yet there are fewer providers in the telecom sector for broadband than in the energy sector. The electricity market was referred to the CMA; it is now time for a similar referral for broadband to ensure that we increase investment in the area, that we have a disruption to encourage new entrants to the market, and that we future-proof new technology so that we close the digital divide.