Digital Economy Bill

Debate between Grant Shapps and Matt Hancock

3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Programme motion No. 3: House of Commons & Report stage: House of Commons
Monday 28th November 2016 Commons Chamber

[Matt Hancock]

I agree with every word of the right hon. Lady’s intervention—both the first part and the second. Yes, working with the DFE is incredibly important in building resilience and actively ensuring that people’s health through relationships is taught effectively. The Secretary of State for Culture, Media and Sport and I have both been in discussions with the DFE on that point. That said, the right hon. Member for Slough (Fiona Mactaggart) makes an important point about the broader circumstances that should be taken into consideration, as well as the clarity in the amendment, which I hope she welcomes.

Turning to mobile phone contracts—a bit of a shift—new clause 7 seeks to place a mandatory obligation on mobile phone service providers to agree with the customer at the time of their entering into a contract a financial cap on their monthly bill. Since the new clause was first tabled in Committee, we have had further contact with mobile network operators, and providers already offer consumers ways to manage their usage: apps that allow customers to turn financial caps on and off, warning text messages when customers are approaching their allowance limits, dedicated phone numbers that tell the customer their usage, and online tools that explain how much data is needed to carry out different online activities. I expect providers to continue to take steps to minimise bill shock and ensure that their customers are sufficiently equipped to manage their usage, but I am sure that the hon. Member for Sheffield, Heeley (Louise Haigh) will agree that legislation is not currently necessary, although the movement in this direction is.

On new clause 14, I understand the frustrations of people whose mobile experience does not live up to their expectations, but while roaming appears to offer a quick fix, it risks doing more harm than good, because it could undermine the incentive for operators to invest in new infrastructure. This is particularly damaging in areas with no coverage from any provider at all. There is no incentive to invest capital in a new mast if operators can by law simply piggyback off others’ investment. The Government considered roaming in 2014, but for the above reasons it was rejected in favour of licence conditions to drive increased coverage by all mobile operators.

That agreement locked in £5 billion of investment to deliver improved coverage across the UK, and we now have 4G coverage to 97.8% of UK premises. I can confirm that this is happening: a mast was turned on just last weekend in my own constituency, and coverage on the road to Newmarket from my house is now better than it ever has been—so I have seen it for myself. The House will also have seen the recent announcements from mobile providers that they are expanding coverage to meet their 90% landmass requirements, which they must now meet under the contracts in their licence agreements. The Bill strengthens the fines they face if they miss those agreements. Of course, however, we want further improvements. Last week, new planning laws came into force to allow taller masts, and we are reforming the electronic communications code in the Bill to help operators to extend their networks, making mast-sharing easier and infrastructure deployment cheaper. These reforms have been widely welcomed by industry, and Ofcom will hold providers to account for the delivery of wider geographic coverage.

New clauses 20 and 25 seek to place mandatory obligations on mobile phone service providers to allow an end user to terminate their contract upon their being unable to obtain a mobile signal at their main residence or main place of employment. Existing consumer protections are already in place, while the automatic compensation measures in clause 3 strengthen Ofcom’s powers to require automatic compensation when there is a complete failure to provide a contracted service. I think that the ability to break a contract when one’s signal is not good enough at home is already dealt with, as contracts purchased at distance can be cancelled under the statutory 14-day cooling-off period, while for “in shop” purchases there is often a “check your coverage” cooling-off period for the first two weeks after sign up. Some providers also offer extended periods to ensure that the service meets needs, with the option of cancellation without penalty.

[Grant Shapps (Welwyn Hatfield) (Con)]

Does my right hon. Friend accept that this must be the only product that someone can buy and end up not being able to use? People do not just move house during the first 14 days of a contract; it can happen at any time during the two years of a contract. Will he look again at this?

--- Later in debate ---

[Matt Hancock]

I would say that 5G is the future. As for the hon. Gentleman’s substantive point, I do not want the debate to turn into a seminar on mobile connectivity, but those in the industry have a wonderful phrase for the phenomenon that occurs as more people use data over a particular mast: they say that the coverage “breathes”. In other words, it comes in and goes out as other people use the data. Of course, at any one point in time the coverage may be different. The very best people to conduct the analysis are those at Ofcom, and they are conducting it, so I think it best for us to engage in this particular debate once they have published the “premises by premises” data.

[Grant Shapps]

I am grateful to my right hon. Friend for his offer to incorporate some of the issues raised by the new clauses in the Green Paper. He says that those at Ofcom are the best people to make the decisions. No one in the House, indeed no one in the country, will believe Ofcom’s claim that nearly 98% of UK premises are covered. It does not stack up with reality, and it does not stack up with what the British Infrastructure Group of Members of Parliament found either. I appeal to the Minister to ensure that he does not himself start to believe this nonsense.

[Matt Hancock]

I am looking forward to seeing the data for exactly that reason. In my rural constituency, I can drive for 10 minutes without getting a signal at all—that includes driving past houses—and the same probably applies to many other people. The lived experience is critical to judging whether the figures are broadly correct. I am entirely with my right hon. Friend on that. My job, and our job in the House, is to hold the mobile network operators to account and ensure that they deliver high-quality geographic coverage, whether it is in Rhondda, Welwyn, in Suffolk or, indeed, in Buckinghamshire, Mr Speaker.