Broadband Universal Service Obligation

Lord Vaizey of Didcot Excerpts

Thursday 15th December 2016 Commons Chamber

[Matt Warman (Boston and Skegness) (Con)]

I beg to move,

That this House has considered the Broadband Universal Service Obligation.

Today is not the first time that the House has discussed broadband and I suspect it will not be the last. All Members know from their postbags that their constituents have imperfect connections to the internet that is changing all their lives.

[Mr Edward Vaizey (Wantage) (Con)]

Not true!

[Matt Warman]

I suspect that those Members who think that they do not have constituents with imperfect connections represent constituencies where the connection is so bad that their constituents do not have the opportunity to tell them.

A universal service obligation is a huge step forward for those constituents in areas—largely, but by no means wholly, urban areas—where superfast and ultrafast speeds are possible: shopping is cheaper, the Government are more accessible, culture is on tap and the NHS can be more efficient. But for those in areas where the current USO of 10 megabits per second is a distant dream, the USO could be a lifeline from this Government, who would help those people to play a full part in the modern world, from drone deliveries to driverless cars.

There is a risk, however—this is why I am so grateful to the Backbench Business Committee for granting the debate—that that lifeline is not as perfect as it could be. I hope that the debate will send a message from the House that “universal” in USO should mean that it is genuinely available to all, whether businesses or consumers, even if that has to be through a satellite connection or preferably, in due course, a 5G connection; that “service” should mean that the connection keeps pace with the quickening web requirements of the modern era, for upload and latency as well as for download; and that “obligation” should mean that it is provided by 2020 with a road map for each individual premises and a penalty on the provider if it has failed to deliver on time.

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[Matt Warman]

I absolutely agree. There are calls from across the House for exactly that. I would add that for me, it does not matter whether the USO is delivered through a fibre broadband connection, or 4G, 5G or whatever. The point, at the end of the day, is the connectivity that the constituent receives.

[Mr Vaizey]

I hope I can help my hon. Friends. I understand the House’s important focus on the worries and concerns of minorities, but perhaps I can help with the tone of the debate. Before concentrating on the woes of those minorities, should not my hon. Friend the Member for Boston and Skegness (Matt Warman) acknowledge the incredible success of the rural broadband roll-out programme, which by the end of 2017 will hit its target of bringing superfast broadband access to 95% of the country? It is probably the most successful infrastructure programme any Government have run in many years.

[Matt Warman]

I gather it is not correct to invite interventions, but the name of the Minister who was responsible for that programme temporarily escapes me. My right hon. Friend is completely right that this infrastructure project has been delivered with what is, in some senses, a genuinely world-leading speed and to a world-leading extent. We should not forget that, but it is small comfort to the people who do not yet have the connection. No infrastructure project that the Government are involved in is more important than broadband. The speed of delivery in some places has been world leading, but in others it has fallen far short of the standards that our constituents often tell us they expect.

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[Matt Warman]

My hon. Friend is absolutely right.

[Mr Vaizey]

May I, via my hon. Friend, accept that invitation? I will go to the constituency of my hon. Friend the Member for Wycombe (Mr Baker) to talk about the success of broadband and the perils of Brexit.

[Matt Warman]

I am delighted to pass on that message.

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[Ian C. Lucas]

It is a matter of regret that the hon. Lady never misses an opportunity to be partisan. If she knew anything about this subject, she would know that the infrastructure and the whole basis on which broadband services are delivered are constructed by the UK Government; it has been their responsibility to deliver the policy of spreading broadband across the UK. It demeans the Conservative party to resort to petty, political point scoring, but that is what I have come to expect from her.

This is a serious, important subject, because I believe in the United Kingdom and in supporting areas right across the country—not just the richest areas, which is the policy of the Conservatives; whenever figures come through from Ofcom, we still see that the richest parts of the country have the greatest broadband provision. That acts against the interests of the nations and regions of the UK. It is the role of government, and the UK Government in particular, to correct the deficiencies of the market, but the coalition and Conservative Governments have failed to do that since 2010. That is why we have heard so many complaints from Conservative MPs at every Culture, Media and Sport Question Time since 2010 about the weakness of broadband provision and services.

I accept that there has been progress. Demand has not stood still since 2010. I know that the hon. Member for Wantage—

[Mr Vaizey]

Right honourable.

[Albert Owen]

He was rewarded for failure.

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[Mr Edward Vaizey (Wantage) (Con)]

I am grateful for the opportunity to contribute to this important debate. I shall make two or three recommendations, which will I hope be useful to my right hon. Friend the Minister. I do not particularly want to dwell on the past, but after the previous speech it is probably worth putting in context some of the points that have been made. It is worth pointing out, for example, that, in terms of the Labour party’s promise to deliver 2 megabits by 2012, we do not know whether that would have been fulfilled, as it was based on a highly questionable telephone tax, which would have seen a revolt from consumers. In any event, we now have coverage of 99.22% at 2 megabits.

The hon. Member for Wrexham (Ian C. Lucas) failed to explain what happened in 2010, which was that the new Government looked at the promise of 2 megabits and understood that it would not be nearly enough. In fact, I suspect that many of our constituencies, which were already getting 2 megabits, complained to us about poor broadband. What they want is a superfast connection of around 24 megabits that allows them to use many of the applications that we now regard as very commonplace.

[Antoinette Sandbach]

While we are talking about accuracy, does my right hon. Friend agree that it is inaccurate to say that the less economically wealthy areas have been disadvantaged, when the constituency of the hon. Member for Wrexham (Ian C. Lucas) has 95% superfast coverage while mine has just 78%?

[Mr Vaizey]

My hon. Friend is absolutely correct. The rural superfast broadband programme has been a great success. It has delivered access to superfast broadband to almost 5 million homes. The money invested by Government will be paid back because of the nature of the contracts. The hon. Member for Wrexham mentioned that he had persuaded Virgin to come to his constituency. Virgin is now investing £3 billion in extending its network, and that is partly inspired by the success of the superfast broadband network.

The point I really want to make is that I am sick and tired of people talking down this country and pretending that we are in some kind of digital desert. The latest culprit—I am astonished that the Government allowed this to happen—is Lord Adonis, a Labour peer—[Interruption.] No longer a Labour peer. Alright, he is an ex-Labour peer, but we know where his sentiments lie. He used the platform of the National Infrastructure Commission to publish a report yesterday claiming that we have worse mobile broadband than Peru. He based that on one set of analysis by Open Signal. I am not denigrating that company, but it relies on people downloading an app and then uploading the speed they are getting. Some 4,500 in Peru use the Open Signal app, and most respectable telecoms analysts would not go near a country unless they had data from at least 25,000 users. One of the mobile companies in Peru does not even provide 4G, but that is not even mentioned in the Open Signal app.

It is much better to look at a company such as Akamai, which points out that we have the fastest download speed in 4G of any country in Europe. It is almost double the next best in the EU five. Its report, which was published this week, says:

“the United Kingdom once again had the fastest average mobile connection speed at 23.7 Mbps (up from 23.1 Mbps in the second quarter)”.

We have between 82% and 93% household coverage for 4G. A total of 76% of mobile subscribers in this country have 4G subscriptions. That is double the next best country, which is Germany, at around 35%. We have companies such as Amazon investing in cloud services. We lead the world in e-commerce. If we are this so-called “digital desert”, as Lord Adonis claimed today to promote his report, how come we lead on all these metrics? I urge my right hon. Friend the Minister to give Lord Adonis a dressing down, and to tell him to check his facts and use a better analysis instead of running around promoting his report, pretending that we somehow live in a digital desert.

[Geoffrey Clifton-Brown]

As it happens, I have the Akamai table here on my machine. Whereas the UK has a score of 13 for international connections, Peru has a score of only 4.4. How Lord Adonis can come up with his figures, I do not know.

[Mr Vaizey]

I am extremely grateful to my hon. Friend.

Apart from the dressing down of Lord Adonis at the Bar of the House of Commons, my main policy point is this—[Interruption.] I tried as a Minister to get a comprehensive data analysis of broadband connections, because too many independent reports are knocking about that people can use to make their own partisan points. We need Ofcom to collate these reports and to update its data, because its own data—not through its own fault but because of how long it takes to collect them—are often six months to a year out of date. We need one comprehensive UK digital report published every year by Ofcom, incorporating all the independent research.

I took refuge in the absolutely excellent independent analysis undertaken by thinkbroadband. If any hon. Members want to know how many connections they have in their constituency, they should go to the thinkbroadband website where they will get the most up-to-date and accurate information.

Having attacked Lord Adonis without his having the chance to defend himself, let me say that I thought his report was excellent, despite his pathetic attempt to promote it by putting out misleading analysis of the digital position in this country. The recommendations were spot-on, not least the recommendation that my right hon. Friend the Minister’s empire should be expanded. I tried to expand my empire when I was a Minister and I failed dismally. People will not be surprised to hear that, but my right hon. Friend is 10 times more talented and 10 times more superfast, and it is right that under his stewardship we should bring together all digital projects.

It is a scandal that we do not have broadband in trains. The reason is that that area is run by the Department for Transport and Network Rail, whereas it should be run by my right hon. Friend. It is a scandal that the Home Office is in charge of the emergency services network; it should be run by him. It is a scandal that we do not have coverage on our roads; it should be run by him. All these digital projects should be brought under one Minister, and I cannot think of anyone more talented than my right hon. Friend.

I come now to the third recommendation. We have something called Broadband Delivery UK—BDUK. The clue is in the title: the D is for delivery. Under my right hon. Friend the Minister, who is talented enough to oversee a large organisation such as that, Broadband Delivery UK should be turned into a delivery organisation that works with local councils. It should not be left to the hon. Member for Wrexham to browbeat Virgin Media to deliver broadband to his constituency; BDUK should be working with Virgin, Openreach and all the mobile operators.

Many of the problems that make us gnash our teeth and pull our hair out are down to appalling planning procedures. We all know the story of how Kensington and Chelsea would not allow BT to upgrade its network because it did not like the design of the green boxes. I have had rows with council leaders in south London who just did not like the people at Openreach and so were not prepared to move. I had telecoms companies coming to me saying that they wanted to deliver broadband to council houses but could get a wayleave from the council to do it. So much of this is about bad planning and straightforward bureaucracy.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

Will the right hon. Gentleman give way?

[Mr Vaizey]

Finally, the Government have already shown how forward-looking they are, under the stewardship of this brilliant Minister.

[Calum Kerr]

Will the right hon. Gentleman give way?

[Mr Vaizey]

I will tell you in a minute why that is, Mr Deputy Speaker, after I have taken this noisy intervention.

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[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I call the honourable Edward Vaizey.

[Mr Vaizey]

Right honourable.

[Mr Deputy Speaker]

I call Edward Vaizey PC. Oh yes, your father was a peer.

[Mr Vaizey]

Thank you for keeping me on my toes, Mr Deputy Speaker.

The hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr) has given me a chance to rehearse my entire speech again, but let me give him the edited highlights. My recommendations were: first, one annual robust data analysis of fixed and mobile broadband connections; secondly, more power for my right hon. Friend the Minister for Digital and Culture; and thirdly, more power for Broadband Delivery UK to help telcos to navigate the bureaucracy of councils.

Finally, I was going to say how far-seeing and forward-looking this Government have become, thanks to my right hon. Friend the Minister. Again, I heartily endorse the proposals announced in the autumn statement to invest in planning 5G networks. Let us be satisfied with where we are. We had a rural broadband programme that has delivered exactly what it said on the tin. We are going to see increased speeds come through new technologies such as G.fast, but the Government are now quite rightly pushing for the next phase, fibre to the premises and 5G networks. Let us start planning for a gigabit Britain.

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[Albert Owen (Ynys Môn) (Lab)]

It is a pleasure to follow the right hon. Member for Wantage (Mr Vaizey); he and I have had some knockabout over the years on certain issues. In this debate he has created a festive spirit, so I start by wishing you, Mr Deputy Speaker, and all the staff of Parliament a merry Christmas and a prosperous 2017.

I am going to talk not about darkest Peru but about brightest Anglesey. I am going to talk not about the 95%, who are always talked about, but about the 5% who are left behind—the 5% who are not expected to get superfast broadband in the initial roll-out. This 5% are normally the ones without gas mains. This 5% will struggle to get a 3G mobile signal, let alone a 4G or 5G signal. This 5% will not, as a consequence of having poor mobile signals, get smart meters when they are rolled out, because they require a mobile signal. This is the forgotten 5%, and it does not have to be like that.

Major projects start by promising a 95% threshold. I think we should be talking about 100%. Then, if there is difficulty, let us deal with those areas, rather than allowing a 95% threshold every time there are major projects and major roll-outs. It is time to be more inclusive and more universal, so let us talk about 100%.

The 5% I am talking about actually pay more for their heating and other utilities. They pay—this is an important point—exactly the same as anybody who gets full 4G coverage and full superfast broadband. They pay exactly the same, and they should be treated the same, in my humble opinion.

These people are often in peripheral and rural areas. My constituency is on the periphery of Wales; it is predominantly rural. Yes, people choose to live there; people choose to visit the area and to move into it, and they are very welcome in north-west Wales and Anglesey, as you know, Mr Deputy Speaker, as a regular visitor. However, I am sure that you have difficulty in the coastal area of Anglesey in picking up broadband or a mobile signal. I have argued that, in the 21st century, we should have 21st-century technology across the United Kingdom.

I am going to divert somewhat from the right hon. Gentleman’s consensual approach and remind him, as my hon. Friend the Member for Wrexham (Ian C. Lucas) did, about the previous Labour Government’s promise to deliver a universal service obligation by 2012. I recall arguing for it when the coalition Government came in in 2010 and being told, first, that it was not ambitious enough, and then that it was not possible. Then, all of a sudden, about this time last year, the former Prime Minister, David Cameron, stood up and said—I do not think he even consulted the Minister at the time—that we would have a universal service obligation by 2020. That was a complete U-turn, which I very much welcomed.

[Mr Vaizey]

Labour promised 100% coverage of 2 megabits; it did not propose a universal service obligation that allows someone who does not have broadband to demand it. When the Prime Minister announced it, he had, indeed, consulted Ministers.

[Albert Owen]

The right hon. Gentleman is leading with his chin. If he checks Hansard, he will see that he will have said the opposite on many occasions. He will have said it was not possible. He will have said that the Government were not going to deliver it. However, all of a sudden, it was not just their ambition but their flagship policy. I welcome that, but I want that flagship policy to come in as soon as possible.

I recently had a meeting—one of several meetings—with service providers, BT Openreach, and constituents and local business people who are finding it difficult to operate because of the poor broadband coverage. The chief executive officer of BT Openreach has agreed to visit my constituency to see the problems and the challenges. I have been out with engineers, and I do understand the topography and some of the other issues they have to deal with. However, I do not accept that in the 21st century, when we have put a man on the moon and I can talk to my daughter in Melbourne, Australia, we cannot get a decent signal. Rural, peripheral areas like the Faroe Islands can get 100% broadband coverage. If there is a political will, it is technically possible to do it.

I am at therefore at one with the new Minister in bringing in his Digital Economy Bill, but I do have a few questions for him. He has been talked up as the great successor to the previous Minister, and he has a real challenge on his hands to live up to his reputation, but I want him to go further and tell this House how the roll-out of universal broadband is actually going to work, because all we hear at the moment is words. Who is Ofcom going to ask to roll this out? Are we going to go to the market forces that have failed many areas of the United Kingdom thus far in relation to mobile? I have dozens of mobile operators phoning up and saying, “Do you want a connection?”, and when I tell them where I live they are unable to do it, so the market is not a magic solution. What secondary legislation will follow the Digital Economy Bill to deliver this? I welcome the Bill, which lifts our status as a country in moving forward in the digital age, but how will it work in practice?

I want to make the new Minister an offer that I made to the previous one: for my constituency—on the periphery; rural, semi-rural and urban—to be a pilot scheme for the new universal service obligation. I am sure that, working with private companies and with the Welsh Government, we can deliver full coverage. At the moment, we have just 79.9% superfast broadband, 6.4% ultrafast broadband, and 14.5% below the speeds that we now call superfast broadband. There is a challenge there for the country as a whole, as well as in my constituency.

I support the universal service obligation and the Government’s intention to have it for 2020. I know the Minister is a decent person, and I ask him to give a gift to the people of Ynys Môn—the isle of Anglesey—today by saying, “Yes, we will look at having the isle of Anglesey as a pilot scheme for the future.” Then I will work with him and his Government to get the USO on Anglesey and across the United Kingdom.