Telecommunications Infrastructure (Leasehold Property) Bill (First sitting)

Debate between Chi Onwurah and Seema Malhotra

Committee stage & Committee Debate: 1st sitting: House of Commons
Tuesday 11th February 2020 Public Bill Committees

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I beg to move amendment 9, in clause 1, page 1, line 17, at end insert—

“(c) the operator intends to provide an electronic telecommunications service that can deliver an average download speed of at least one gigabit per second.”

This amendment is intended to ensure that operators could apply for Part 4A order only if they intended to provide gigabit-capable broadband.

It is a great pleasure to serve under your chairmanship for the first time, Mr Davies. This is my first time on a Public Bill Committee for a number of years, so I hope that you will be, if not indulgent, at least understanding of any errors that I should make.

It is also a pleasure to serve on such an important Committee. We are often told by Government Ministers and by wide-eyed techno optimists that we are going through a digital revolution in this country. When hon. Members are uploading videos to TikTok, and centuries-old parliamentary regulations are accessible via an Android app, it is hard not to feel that we have entered a brave new world of connectivity.

That is the case not just in this place, of course; the internet is central to our lives and those of our constituents. Some 99% of adults under 45, and 81% of the adult population as a whole, use it regularly. Those are impressive figures, so let us hear some more: 98%, 97%, 8%. Those numbers represent the full-fibre coverage of, respectively, Japan, South Korea and the United Kingdom.

The previous Labour Government brought first-generation broadband to 50% of all households within 10 years. Over a similar timespan, Conservative Governments have managed to bring full-fibre broadband, the current generation of technology, to only 8% of households, while our economic competitors have been achieving full-fibre coverage. We are 35th out of 37 in the OECD rankings of broadband connectivity. When it comes to broadband, the only global race that the Government are running is a race to the bottom.

In the past 10 years we have witnessed a lost decade for telecoms infrastructure. The Government have repeatedly left our national infrastructure needs to the market, resulting in a deepening of our country’s regional divide, which was already the worst in western Europe. Regional studies show a 30% gap in internet usage between the south-east and the north-west. In London, 85% of the population are internet users compared with 64% in my city of Newcastle. It is welcome that the Government have finally woken up to this problem, but I am still none the wiser about what “levelling up” actually means in this case.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

My hon. Friend is making important points, particularly about the regional disparities and inequalities. Is she aware of any differences in who is using the internet? There might be differences in relation to children being able to study at home and people being able to work at home, which is critical for self-employment and for small businesses that might be starting up.

[Chi Onwurah]

My hon. Friend makes an excellent point, and her past experience in the IT sector leads her to understand and see the divides that exist—for example, people on lower incomes are less likely to use the internet and have access to broadband. There is also a real rural divide, with our rural telecoms infrastructure not enabling the kind of economic success stories of small businesses that she mentions. Unfortunately, the Bill does not address that. Indeed, many of the operators, such as TalkTalk, Mobile UK and Hyperoptic, have said that we need to upgrade our infrastructure, but the Bill does not address that.

In the last six months the Prime Minister has held three different positions on what kind of telecoms infrastructure we need: when he was standing to lead his party, he promised to deliver “full-fibre connectivity” to all households by 2025; the Government manifesto talked of “gigabit-capable connectivity” by 2025; and the Queen’s Speech dropped the 2025 reference altogether, promising instead to accelerate the roll-out. Will the Minister clarify exactly what the Government’s target is for broadband connectivity? Whatever the target is, and whatever the lofty ambitions are, I am afraid that the Bill will not achieve them.

The Bill is designed to enable people who live in flats and apartment blocks to receive gigabit-capable connections where their landlord repeatedly fails to respond to telecom operators’ requests for permission to install their infrastructure. The network builders say they face significant challenges in connecting people living in flats and apartment blocks when they do not receive a response from the building owner to requests for access. According to Openreach, 76% of multi-dwelling units miss out on initial efforts to deploy fibre because of challenges in gaining access.

The Bill provides a bespoke process for telecoms operators to gain access to MDUs in order to deploy, upgrade or maintain fixed-line broadband connections in cases where a tenant has requested an electronic communications service but the landlord has repeatedly failed to respond to an operator’s request for access. For a telecoms company to install equipment such as cables on public or private land, formal permission through an access agreement with the landowner/occupier is required. Under such an agreement, the landowner grants the communication provider a licence to install, access and maintain equipment on their land. The Bill takes into account the fact that landlords are not always responsive or eager to meet their tenants’ needs.

The measures in the Bill are welcome and the Opposition will not be voting against it. In the context of the lost decade, however, we are truly dismayed by the Bill’s limited scope. It proposes only minor measures to ease infrastructure build-out by giving operators more powers to access apartment blocks when tenants request service. The sector has welcomed the Bill but without any great enthusiasm, saying that the difference it will make will be marginal. The trade body for the tech industry, techUK, says it does not go far enough, stating that

“from new builds to street works”,

many issues

“have not been tackled by the Government’s Bill.”

We have tabled several amendments to improve the Bill, but before I speak to amendment 9, I will briefly mention additional flaws that the Opposition have not sought to fix through amendments. There is the matter of consistency with other regulations. The internet is now an essential utility for modern life and, as such, telecoms operators should possess the same powers as those who provide other utilities, but the Bill does not go far enough on that. We appreciate that the Government acknowledge the necessity of broadening the rights of telecoms providers, but they have not actually done so in the Bill. They have given no statutory rights of access to telecoms companies and placed no obligations on landlords to facilitate access.

Do the Government recognise that the internet is an essential utility, and do they believe that telecoms should be brought into line with other utilities, for which forced entry is permitted on the grounds of ensuring that there is no threat to life or safety? Obviously, that might not be the case with telecoms, but I want to understand the comparison that the Government make between the telecoms utility and other utilities.

The amendment is intended to ensure that operators can apply for a part 4A order only if they intend to supply gigabit-capable broadband. Of course, we need to understand what gigabit-capable broadband is, but I am sure that the Minister will relieve us of that uncertainty. As I said, we have suffered 10 wasted years under Conservative Governments of various types, a unifying theme of which has been a misunderstanding of technology interspersed with a misuse of it.

Given that the Prime Minister has expressed three different positions in six months, what is the aim of the Bill? Does it aim to provide gigabit broadband? On Second Reading the Minister said that the legislation will be a “hammer blow” to crack our woeful broadband nut. I can only assume therefore that the legislation does not serve simply to give operators opportunities to lock in my constituents to slow broadband. The Minister said that it must deliver gigabit-capable broadband, so I cannot imagine that he will have any objections to enshrining that in the legislation by supporting the amendment.

I also seek clarification on whether anything in the Bill confines it to fixed-line operators. Will the Minister confirm whether, under the terms set out in the Bill, it would be possible for a mobile operator to install a mobile base station, for example, for the purposes of delivering gigabit-capable broadband, either to one building or another? How does the Bill ensure, in the case of wireless or mobile broadband, that services are limited to a particular building only?

The amendment would make it clear that the Government are proceeding with their commitment to deliver on gigabit-capable broadband and that the Bill cannot be used to deliver slower broadband, so it will contribute to our broadband infrastructure.

--- Later in debate ---

[Chi Onwurah]

These amendments seek to improve the legislation to enable others to make requests. As I understand it—I hope the Minister will clarify this— only freeholders and leaseholders can use the legislation as it stands.

Mr Chairman, I will not try your patience by expounding at length on the dire state of both home ownership and leasehold, or “fleecehold”, as many of my constituents call it. Home ownership rates among young people are a third lower than in the noughties, and for far too many, the leasehold system is broken. There are now 4.5 million households in the private rented sector, a jump of 63% in a decade, and we also know that tenants can easily find themselves in precarious and insecure circumstances through no fault of their own, or even with nowhere to live via a section 21 notice. All of this makes tenants dependent on the whim, or the pleasure, of their landlord. The upshot is that a large proportion of our population is condemned to renting for life, but with few rights and less certainty. We in this Committee can do something about that, at least when it comes to broadband.

Amendment 7 is intended to expand the definition of persons who can request an operator to provide an electronic telecommunications service to include rental tenants and other legal occupants who may not own the lease to the property they occupy. As the Bill stands—the Minister will correct me if I am wrong, I hope—only the freeholder or the leaseholder can make that request, so what of the poor tenant who is desperate for gigabit broadband to enable them to work from home or grow their business? What if their landlord is difficult to reach or indifferent to their predicament? Should the person actually living in the building not have some rights here?

Furthermore—while we are considering who can make these requests—why are businesses left in the cold, particularly those in business parks, where there has often been great unmet demand for broadband? I hope the Minister will provide clarity as to whether business tenants and traders based in properties can use this legislation to upgrade their infrastructure and grow their business.

Amendment 4 is more of a probing amendment, designed to understand whether the Government know what they are doing when it comes to broadband deployment. Before I entered Parliament, I spent a significant number of years rolling out broadband networks in the UK, France, the US, Nigeria, Singapore and Australia, so I know that building out a telecom network requires a plan; it would be nice if the Government understood that keeping networks secure requires a plan, too, but we will come on to that later. In any case, building out a telecom network requires a plan with a business case, predicted revenues, and—well, I am sure the Minister gets the picture.

As the Bill stands, the operators can plan to pass a building, but they cannot plan on getting any revenue from that building, because they cannot make the request to access the buildings that they pass. If the landlords do not respond, the operators cannot use this legislation unless and until a leaseholder or freeholder makes the request.

[Seema Malhotra]

My hon. Friend is making an important point, on which I would like to support her. The situation has been very different on the ground, and from the experience I have had with leaseholders in blocks, it is sometimes very difficult to get individuals to come forward. When they talk privately with each other, they say that they do want something to happen, and they want an operator to take the lead. In order to provide some flexibility to achieve the outcome we want to see, does she agree that it would be worth considering the right of operators to make the requests?

--- Later in debate ---

[Chi Onwurah]

I thank the Minister for his response. He said that the Bill does not confer a right to install equipment against a landlord’s will, and I am concerned that that effectively means that tenants do not have a right to superfast or gigabit-capable broadband, which I would argue is an increasingly important part of modern life. We joked earlier about the difference between access to water and access to broadband, but for many people broadband is an absolutely essential part of their working and social lives, and a forward-looking Government would ensure that citizens have a right to gigabit-capable broadband. Although the universal service obligation confers some rights, it does not deal with recalcitrant or unwilling landlords.

[Seema Malhotra]

Does my hon. Friend agree that there could be a compromise or third way on this? The terms of new paragraph 27B(4)(b)—

“otherwise acknowledges the request notice in writing”—

are superfluous if a landlord is seeking to push action further down the road. If that is an incentive for landlords to engage less positively with those seeking to build networks, would the Minister at least consider reviewing—if not deleting—sub-paragraph (4)(b)? If responses from landlords fall considerably under that option, rather than agreeing or refusing with the reasons that one would expect in a positive dialogue, will the Minister consider whether that option should stay in the Bill?

--- Later in debate ---

[Chi Onwurah]

It is a pleasure to respond positively, and not just in spirit but in practice, to the Minister’s amendments. They respond to concerns that we raised on Second Reading and those raised by others about increasing resources. The number of judges available to consider those requests and cases leaves much to be desired. Hopefully the Government’s amendments will make the limited scope of the Bill more effective, so we are happy to accept them.

New clause 1 responds to that by acknowledging that our judiciary is under severe strain at every stage. The new clause is designed with accountability and transparency in mind, so that we can see the impact of the new legislation on the resources available. The legislation sets out new legal functions. As with all good legislation, we must ensure that the new mechanisms are robust and well-resourced to ensure that the legislation does what it is meant to do, and does not fail when it makes contact with reality.

The new clause would require a report on resources to deal with proceedings arising under part 4A of the code be prepared and published within six months of the Act receiving Royal Assent. It aims to ensure that we see the impact on our judiciary. Although the information may be available, I am sure that the Minister is aware that nothing concentrates minds as much as laying a report before Parliament for scrutiny by right hon. and hon. Members. That gives an opportunity to see how the legislation works in practice. I am sure the Minister is proud of the legislation and the impact it will have, so he must welcome the opportunity to speak to that in the House.

We do not have an impact assessment for this legislation. It is a short Bill, but that does not mean that its impact may not be important. When I spoke to operators, they estimated that it might cost around £30,000 to take a request through the tribunal. That is their estimate—I have not seen any Government figures to confirm whether they consider that to be high or low, but that would have been a welcome part of an impact assessment. The sum of £30,000 for a tribunal to access an apartment block with 10 apartments means an additional cost to the operator of £3,000 per customer. That has an impact on the business case for that investment in the first place.

[Seema Malhotra]

I am not seeking to incur the Minister’s displeasure by bringing in wider issues on leaseholding, but when landlords may be taken to court for any matter, they potentially charge their fees back to their leaseholders. Perhaps we should make sure that there is some protection.

[Chi Onwurah]

My hon. Friend makes an excellent point. Without raising all the concerns surrounding leasehold, it is well known that freeholders may charge the leaseholders for the costs they incur when seeking legal judgments. In addition to the £30,000 that the operator would put on to the cost of the service deployment, therefore, the leaseholders and ultimately the tenants may also find themselves facing the costs incurred by the freeholder going to tribunal.

Telecommunications Infrastructure (Leasehold Property) Bill

Debate between Chi Onwurah and Seema Malhotra

2nd reading & 2nd reading: House of Commons & Programme motion
Wednesday 22nd January 2020 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a great pleasure to speak on the Bill as the shadow Minister for Digital. I start by declaring an interest: before entering the House, I worked as a telecommunications engineer for 23 years, rolling out telecoms infrastructure in countries as diverse as Germany and Nigeria, Britain and Singapore. I have a lifelong interest in and passion for digital and technology. I love a good network.

I am afraid that the 10 years I have been in Parliament has coincided with a rapid decline in the quality of our telecommunications infrastructure—not because of my move, but because successive Conservative Governments chose to leave everything to the market. As a consequence, at a time of digital revolution, of which the Minister spoke, when so much could have been achieved, we have instead had 10 wasted years. The last Labour Government oversaw a communications revolution, with first generation broadband reaching 50% of all households within 10 years. Labour understood the importance of supporting both investment and infrastructure competition. Under the Conservatives in the past decade, fibre has reached only 10% of homes and without meaningful support for competition.

Our telecoms infrastructure is letting us down, economically and socially, and it is our towns and villages that are suffering most, with farmers and rural businesses, the poor and the isolated in a digital no man’s land. We have lost a decade, and we need to make up and build out the full-fibre infrastructure that the country needs.

The Conservatives talk about unlocking the whole of Britain’s potential, and we are at the top of the class in business, research and technology, development, science and education, but how can we continue to lead on bottom-of-the-table infrastructure? The OECD ranks us 35th out of 37 countries for broadband connectivity, although ours is the fifth largest economy, and 85% of small and medium-sized enterprises said that their productivity was adversely affected by unreliable connections in 2019.

[Seema Malhotra]

My hon. Friend is making an important contribution to the debate. Does she agree that it is important to assess what this will achieve in practice, and to establish whether we will then be getting anywhere near the levels of full-fibre coverage in leading nations such as South Korea or Japan? Should we not measure the outcomes to ensure that the poorest and most distant communities can have the broadband that they need and deserve, and—as I said earlier—should we not also ensure that affordability remains at the core of the Government’s strategy?

[Chi Onwurah]

I pay tribute to my hon. Friend’s experience and knowledge of the digital sector, which makes her very aware of the importance of ending the current digital divide. I shall say more about that in a moment.

[Chi Onwurah]

The hon. Gentleman paints a disturbing picture of rural communities that have yet to have the connectivity that they require, but it is also very true of the country as a whole. Telecommunications are not a devolved matter but the responsibility of the UK Government, and we need to look to them to ensure that we have the environment and the investment that are necessary to deliver fibre for everyone.

Sadly, our wasted 10 years in telecoms are not limited to fixed infrastructure. As we have heard, mobile and the softer infrastructure of regulation have also been left to languish, and that will have an impact on the effectiveness of the Bill. Conservative Governments have entrenched the digital divide in the UK: 11 million adults lack one or more basic digital skills, and 10% of households do not have internet access. At this rate, there will still be 7 million people without these skills in 2028, which is tantamount to leaving one in 10 of our population permanently disenfranchised. It is a real issue of social justice: for instance, the West End food bank in Newcastle receives many visits from parents who have been sanctioned because they cannot sign on online.

[Seema Malhotra]

My hon. Friend is continuing to make an excellent speech. Does she agree that it is important to address the issue of notspots as well as the issue of speed of broadband access, and not just in rural areas? Thousands of households even in big cities like London, and more than 1,000 in my constituency, have little or no access to broadband.

[Chi Onwurah]

My hon. Friend has made another important point. Notspots do happen, even in city centres. There are householders who can see Canary Wharf from their windows, but cannot connect with its broadband network. We need to take responsibility for ensuring that we have a network infrastructure of fibre that reaches every home.

This wasted decade in telecoms has made many of us digiphobes. Two decades into the online age, we still do not have any date for the online harms Bill, even though the harms it addresses—children accessing pornography and online grooming—were well identified 10 years ago. Newer harms from algorithms, artificial intelligence, the internet of things—which the Minister did mention—and data dominance are ignored, repeating the mistakes of the past. We need a robust legal framework that deals with privacy, data, age verification and identity, complemented by measures that put in place protections for vulnerable people online, not ones that kick in after they have already been exposed, compromised, abused or scammed.

This wasted decade has allowed algorithms and disinformation to take hold of the news online. It is said that a lie gets around the world before truth has had a chance to get its shoes on. Unfortunately, this Government have taken 10 years just to tie their laces. They have failed to understand the opportunities and challenges of the digital revolution in the way in which the Labour party did. A decade of inaction has seen regulatory and infrastructural failures at the expense of the British people and British businesses.