BT Openreach

Guto Bebb Excerpts

Tuesday 21st October 2014 Westminster Hall

[Simon Hart]

I am casting an eye in the direction of the Chair, who will very possibly rule me out of order; I am almost surprised that he did not rule the hon. Gentleman’s intervention out of order. However, I agree with every word he said—I say that before I am admonished.

Thirdly and finally, I will discuss the Openreach response to customer concerns. I know that this is a controversial area; that it is very easy for people such as MPs to come up with a long stream of examples that are probably the exception rather than the rule; and that we only ever hear of the things that go wrong, rather than the many occasions on which things go right. However, there is a pattern—it has improved, but there is none the less a pattern—among constituents of mine that suggests Openreach has some way to go to reassure its customers that it has sorted the problem of addressing customer concerns, and that it is their servant, rather than their master.

I will highlight two examples of customer concerns, and I hope that the House will indulge me while I read from my notes. The first example is of three customers on the same line who were waiting for work to be done, including work to replace a repeatedly broken line that needed to be buried underground. After waiting for more than 12 months, the customers were told in the spring that work could not be carried out until the autumn, because the farmer across whose land the line was to be buried would not allow Openreach to do so until the crop on that land had been removed. In fact, the farmer in question was actually one of the three customers affected, and that was simply not the case; the land was a grass field, and he was happy for the work to be carried out as soon as possible.

That example shows a little more than just a lack of communication, or some kind of mistake in the system; it appeared to my constituent, who was a customer of the company, that the company was almost deliberately trying to push him to one side. The fact that the work took so long and in the end required him to seek what I suppose is the ultimate sanction—of going to his MP—is an indication of the distance that we still have to go to restore customers’ confidence in the company.

My second and last example is of a customer waiting for work to be done who was told that it was necessary for the council to approve the use of traffic lights on a road in order for the work to be carried out, and that a request for their use had been submitted. Fortunately, the customer’s brother worked for the relevant department in the council and knew that, first, no such request had been submitted and, secondly, there was no such requirement for traffic lights. Once this was highlighted to BT, the work was carried out and no traffic lights were used.

[Guto Bebb (Aberconwy) (Con)]

I congratulate my hon. Friend on securing this debate. Those examples, from places 200 miles away from my constituency, are identical to issues faced in mine. I have heard about Openreach blaming a local authority for failure to act, yet the local authority says that Openreach has not contacted it. I am concerned, because Openreach has said that it needs to work with local authorities to get broadband use higher, but if it is blaming local authorities with no justification, surely that will not build a positive relationship.

[Simon Hart]

My hon. Friend’s remarks probably reflect those of a number of hon. Members. I hope that the new regime at Openreach, which is highly focused on customer relations, realises that these are not necessarily isolated examples, that there is a bit of a pattern, and that it needs to treat them with the seriousness they deserve.

Of course, for customers there is that torturous process of trying to make a complaint to a machine of such magnitude that it is almost impossible ever to talk to the same person twice, or to get through the endless helplines, despite being reassured that “Your call is important to us”, and all that nonsense. People want action, and they want it quickly, not appeasement; yet the system seems to be geared against that.

To ensure greater openness in its provision of services, BT has added features to the “Expect Openreach” site, including a local network status checker to show information about incidents such as cable breaks, weather-related information and so on. However, the problem with isolated rural areas is that, with a lack of mobile phone coverage and poor broadband, it is almost impossible to check the “Expect Openreach” site to ascertain what caused damage to the process in the first place. There needs to be some reflection of the fact that the normal way that members of the public and customers can identify problems are not exactly open to people in more isolated areas.

I shall give the Minister a lengthy opportunity to answer two questions. I have secured a few Westminster Hall debates, and always optimistically finish by asking one, two or three questions. However, four and a half years in, no answers to those questions have been forthcoming. I hope and pray that the Minister will break that record. I am asking in the most helpful way that that I can.

First, will the Minister explain what the UK-wide strategy is for ensuring greater take-up, so that we can move our take-up figures in Wales from 17% to a much higher proportion? I hope that there will be a similar improvement across the whole UK. Secondly, will he set out the Government’s plans to deal with the 4%? What is the time scale and cost, and what is the expectation for the 4% of people who will fall behind the rest of the UK, unless we deal with their broadband demands in exactly the same way as we deal with everybody else’s?

--- Later in debate ---

[Mr Vaizey]

We have made great progress with BT. Naturally, it is a commercial organisation, so sharing data with Government and more publicly is quite understandably an issue, because those data could be shared with commercial rivals. We have reached an agreement to share data by ward level on broadband, and that will begin to feed through.

Secondly, we have our SuperConnected Cities scheme, which offers business vouchers in 22 cities in the four nations of the United Kingdom. We have an advertising campaign promoting the take-up of those vouchers, and we have seen an uplift. We should therefore seriously consider whether a national campaign is needed to promote the benefits of superfast broadband. I heard my hon. Friend the Member for Carmarthen West and South Pembrokeshire loud and clear when he said that he felt that responsibility ultimately rested with the Government to promote broadband and broadband take-up. While I have talked about the need for BT and others and local councils to work together, I understand that point. We will look seriously at the role the Government can play in increasing broadband take-up.

[Guto Bebb]

In relation to the data being made available on a ward-by-ward basis, is that a decision for the Welsh Government or the Department here in Westminster?

[Mr Vaizey]

The decision on getting those data was taken at the level of BT working with Broadband Delivery UK, and those data will come via BDUK. We will work with the Welsh Government, as we do on the whole broadband roll-out programme.

The second question that my hon. Friend the Member for Carmarthen West and South Pembrokeshire asked was about how we will deal with the last 4%, and I will answer that question, too. It is a bit like a goal drought followed by a goal festival. It is clear that we cannot leave anyone behind in the broadband revolution. As I said, it is an engineering project and cannot be wished into existence overnight. Having seen the success of phase 1, which was to take us to 90%—I think it will actually go to 93% in Wales, if not further—we instituted phase 2, to take us from the 90% headline to the 95% headline. There was £500 million for phase 1, plus local council money and BT money. Phase 2 is an additional £250 million to take us to 95% nationwide. Phase 3, as it will effectively be called, will be to get to the last 5%. My hon. Friend talked about the last 4%, but we say that it is 5%, broadly speaking.

The last 5% are the most difficult homes to reach. They are the proverbial hockey stick on the graph, where the cost gets significantly higher, and we need to ensure that we get value for money. Under the previous Secretary of State, my right hon. Friend the Member for Basingstoke (Maria Miller), we instituted a £10 million fund, where we invited different providers to provide pilots to test new technology for the most hard-to-reach areas. Those pilots are under way, and I think I am right in saying that we are evaluating their impact. The fund opened in March 2014 and we launched the pilots in June. One is in Wales and there are others in Northern Ireland, Scotland, Hampshire, Northumberland, Kent, north Lincolnshire, North Yorkshire, Devon and Somerset. The pilots have put their feasibility studies in to BDUK, and that will give us a good idea of what the best technology is to use—those who are critical of BT will be pleased to know that other companies are part of the pilots—and allow us to come up with a number that we can seek to fund the last 5%. That is an important point.

The third question, which my hon. Friend the Member for Carmarthen West and South Pembrokeshire did not ask, although I think it formed the bulk of his speech—the reason why he did not ask me is because, arguably, I am not directly responsible—was on the performance of Openreach on customer service. Again, I know that he has a good relationship with Openreach. He has met their senior executives on at least one occasion, and possibly today as well, to talk through his concerns and issues. It is right that every colleague can raise concerns on operational performance. On Openreach’s operational performance, I am pleased that it is in the process of hiring some 1,600 additional engineers. As an aside, I am particularly pleased that many of those engineers have come from our armed services. It is good to see people who have served their country having the opportunity for a career in a company such as BT. I meet the chief executive of Openreach regularly. He is conscious of the need to continue to improve Openreach’s customer service and to meet his targets. My hon. Friend’s concerns and those raised by many other colleagues have been heard by Openreach.

I return to the high-level points that I want to make. With this programme, we have one of the most successful Government-sponsored roll-out programmes anywhere in the world. In terms of speed and the cost to the consumer, we have some of the best broadband infrastructure anywhere in the world. It is certainly better broadband than the other big four countries of the European Union. We have a great story to tell. We are a nation that was an early adopter of e-commerce, so we know that our fellow citizens are adopting this technology.

We will not, however, lose sight of those who are frustrated and left behind. Broadband has caught up with us and has become essential and important, whether for leisure, because we all access the BBC iPlayer or the numerous other internet applications, or—as my hon. Friend alluded to—as part of business, whether it is a farmer wanting to interact with the Rural Payments Agency, a citizen wanting to interact with Government services or a small business person wanting to sell their products and services not just locally, but across the globe. We will continue to strain every sinew to ensure that we deliver world-class infrastructure across all four parts of the United Kingdom. I am grateful indeed to my hon. Friend for raising these important issues and I end with an apology for having broken his four-and-a-half year unbroken record of being stonewalled by Ministers by simply answering his questions as directly and comprehensively as I could.

Question put and agreed to.