Telecommunications Infrastructure (Leasehold Property) Bill

Edward Timpson Excerpts

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

[Matt Warman]

My hon. Friend is right that we should not simply look at residential property. We are exploring with the industry what that issue looks like; the Bill has been carefully designed to make sure that it delivers on what both the Government and industry feel is right. Obviously, commercial property is different. It is less prone to the sorts of issues that we are tackling here, but I will be happy to work with my hon. Friend to see what we can do to help Meon Valley in particular.

For those who own their houses, the issue is simple: they request the service and sign a contract, and an operator does the installation. However, for those in flats, whether rented or owned as a leasehold, the permission of the landowner or building owner is required for the common areas—the basement, corridors, stairwells and so on. Currently, on identifying a property in their network build area, operators will attempt to contact landlords, request permission to install, and offer to negotiate a long-term agreement on access. Those wayleaves set out the responsibilities of both the landlord and operator in respect of the installation.

Evidence from operators, however, suggests that across the UK’s major digital infrastructure providers, about 40% of requests for access issued by operators receive no response. That cannot be acceptable. Through inactivity, a building owner can prevent multiple families and households from accessing the services that, as so many people have said, are essential for modern life. The UK’s digital infrastructure providers are already upgrading this country’s broadband network. Failure to address this issue now will give rise to pockets of connectivity disparity. Neighbours will have different connections, based on whether they own a house or flat, and on whether their landlord is engaged or absent. That cannot be fair, and the Government are acting to address it.

This is about commercial realities. The Prime Minister and I made it clear to the industry only last week that we want nationwide access to gigabit-capable connection as soon as possible. Our ambition is to deliver that by 2025.

[Edward Timpson (Eddisbury) (Con)]

We all welcome the Government’s commitment to full-fibre broadband, particularly in Eddisbury, where it remains pretty woeful, but the quality of mobile phone coverage also leaves a lot to be desired. Will my hon. Friend update the House on what is being done through the shared rural network to improve that through a final agreement, and will that include indoor as well as outdoor coverage?

[Matt Warman]

My hon. Friend is right that mobile coverage, while unrelated to the Bill, is an essential part of the connectivity solution. We have committed to the industry concluding its negotiations in the first 100 days of the Government, which takes us to the middle of March, and we are on track for that. On measurement of a network, we have historically been lumbered with standards that are not terribly useful. We need to do more to ensure that we provide the right kind of information to consumers; Ofcom and the Advertising Standards Agency have a hand in that, alongside Government.

If operators are to achieve our ambitious target, they need to get on and deploy their engineers and civil contractors, and to keep them moving to maintain momentum. They cannot afford to keep their teams idle while they wait for a response from a landlord that never materialises; from a commercial point of view, it makes more sense to bypass the property and its residents and deploy elsewhere to prevent that situation. The Bill will create a new application process in the courts that will allow operators, when faced with an unresponsive landlord and with a resident requesting a service, to apply to the courts to gain the rights to install.

It is important to make it clear that the new court application process is a last resort for operators. The key goal of the legislation is to increase the response rate to operators’ requests for access. The Government have always believed—and continue to believe—that the best, most efficient way for operators to install equipment in a property is through a negotiated agreement being reached between the operator and the landlord.

In December 2017, this House passed the Digital Economy Act, which among other things updated the electronic communications code. The code provides a regulatory framework for the relationship between landlords and telecommunications operators and includes provision for the operator to use the lands chamber of the upper tribunal, or its equivalent in the devolved Administrations, to have rights imposed in situations where a landlord is unresponsive.

To the best of my knowledge, as I speak, operators have not sought to use that power to address an unresponsive landlord, in part because they estimate that it will cost £14,000 per application, including legal fees and administrative costs, and take six or seven months in practice, and the outcome would by no means be certain. However, there are estimated to be 450,000 multi-dwelling units in the UK, housing some 10 million people. If operators’ current 40% failure-to-respond rate is projected across the country, we are talking about 180,000 cases and some £2.5 billion in costs. I am sure that Members will agree that the money and effort would be better used delivering better connections. The new process proposed by the Bill is proportionate and balanced, and places an exceptionally low burden on the landlord and a high evidential requirement on the operator.

An operator will be expected to have a tenant in the property who has requested a service. They will have issued multiple requests over 28 days and, thereafter, a final notice that explicitly says that the court may be used to gain access, and they will be able to show evidence of all the above to the courts. A landlord who wishes to take themselves out of the policy’s scope need respond to only one of the operator’s multiple notices. I am sure that hon. Members will agree that responding when someone writes is simply a courtesy. The expectation is that applications made to the tribunal through the provisions in the Bill will allow judges there to make decisions based on operators meeting an evidential threshold. This will allow decisions to be reached quickly and efficiently. Discussions are still ongoing about how we can make the process even faster.

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[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.

[Edward Timpson]

The hon. Lady talks about Labour’s record, and we heard about its plans during the general election to nationalise the broadband network. Is that still the Labour party’s policy, and is the £100 billion figure that BT estimates would be necessary to do that something that she would be prepared to admit to at the Dispatch Box?

[Chi Onwurah]

I would like to ask the Minister whether he feels that the current regulatory environment is delivering for businesses and people. Does he feel that a regulatory environment where we have a monopoly—Openreach is a monopoly that is regulated, but not as a monopoly; it still has market share—is the right environment in which to deliver the digital economy that we need? The answer is clearly no. As for the solution to that, I can say with absolute certainty that the Government have absolutely no ideas and, more importantly, no plans to address this. We need to ensure that a monopoly network—which is what Openreach currently is—is enabled to deliver the excellent service, speeds and infrastructure that the whole country needs.

We recognise that the Bill is an acknowledgement by the Government of their current failure and an acceptance that the market as it stands is not delivering, but what is it actually trying to achieve? The Prime Minister has held three different positions on broadband infrastructure in six months. Standing to lead his party, he promised to deliver full-fibre connectivity to all households by 2025.