Rural Broadband and Mobile Coverage
Debate between Chi Onwurah and Ian C. Lucas
Ian Lucas
We were on track to meet that deadline. It was costed, and the £200 million that would have been used to do that would have been taken from the same money that the current Government are using in connection with their broadband commitment. For the outside world—although not for this Government—a year is a very long time. I am not aware of any questioning by the industry of the commitment made by the Labour Government. The position was deliverable, but this Government have decided to put back that universal broadband target by three years.
Chi Onwurah
Is it not true to say that we have little or no information on the progress that has been made by this Government towards meeting their unclear and undefined target of the best broadband by 2015?
Ian Lucas
Absolutely. The Minister is always very polite in his answers to parliamentary questions, but he is also very good at drafting uninformative replies, something that I worked very hard to achieve when I was a Minister. I was not quite as good at it as he is.
The provision of universal broadband services is also very important to the public sector. Online services are a massive opportunity for government at all levels to provide better services more quickly and more efficiently. However, the Government can move in that direction only if they provide those services to everyone across the country. For example, I understand that the Government intend to move to the compulsory online registration of new companies. As the former responsible Minister, I understand the reasons—costs and efficiency—for this decision, but one can justify such a move only if there is universal broadband provision across the UK. A company with no access to the internet cannot be required by the Government to use it.
If we are to have universal broadband by 2015, what will it cost? Through parliamentary questions, I have established—I did get some information—that the cost of providing universal fibre-to-the-premises provision would be £29 billion, and that more realistically universal fibre-to-the-cabinet provision would cost £5 billion. We agree that there is a market failure and that the Government have sought to address it by setting aside the £530 million by 2015 mentioned several times today. However, we all accept that that is not enough, so we must look to the private sector for the necessary investment to bridge that investment gap.
On definitions, the Government are not just committing themselves to universal broadband; they are committing themselves to the best high-speed broadband in Europe by 2015. It will be helpful if the Minister tells us today what speed he regards as high speed for these purposes. If we are to work together for the benefit of our constituents to achieve that target, we must know what it means.
We know that insufficient public money is available to achieve the Government’s goals by 2015, so let us consider the position for private investment. How is that going? Here, I regret to say, there is a problem that was referred to by a couple of Government Members, including the hon. Member for Newton Abbot (Anne Marie Morris). On 1 April the Minister received correspondence—no coincidence perhaps—in which senior executives of leading communications companies, including Fujitsu, Virgin Media, TalkTalk, Geo and Vtesse Networks, wrote that “urgent intervention” was needed to require BT to revise the pricing for the use of its infrastructure. The companies also stated that without such intervention the Broadband Delivery UK process risked a lack of vigorous competition, and as a result would fail to deliver the investment, quality, speed of roll-out, innovation and value for money that the industry was capable of delivering, and which taxpayers deserved. That is a major problem for the necessary private investment.
The communications network under Labour was extremely competitive. For example, in the past three years, competition has seen the cost of mobile broadband fall from £50 per gigabyte to less than £10 per gigabyte.