Rural Broadband and Mobile Coverage
Debate between Matt Hancock and Rory Stewart
Rory Stewart
That is a fantastic point. I will come to growth in a second, but perhaps, rather than taking any more interventions, I could now make some progress and accelerate through my speech so that everyone can get in.
There is only one question—the fundamental question—that we need to ask Ofcom: does mobile broadband technology matter? Will this thing that I have in my pocket—this mobile device—and that everyone else has in their pocket matter in five years’ time? Will people be using iPads and iPhones then? If we have reason to believe that the technology is important, why are we proposing to leave between 6 million and 9 million in this country on the current figures excluded from using these machines? For the sake of what? Why exactly are we being told that those people should not be able to use the technology?
I hardly need explain to the people in the Chamber why this technology matters or what its uses are. Others will develop that far more, but to run through them quickly, the fantastic comment made by my hon. Friend the Member for Mid Norfolk (George Freeman) was absolutely right. Our economy is driven by these devices. Growth comes from productivity, and the biggest, simplest contribution that we can make to productivity in this country is through broadband and mobile coverage, which is particularly true for rural areas, as the many people in the Chamber from such areas know. Why? Because the biggest contribution to economic growth through mobile and broadband technology is made by small and medium-sized enterprises. What do we have predominantly in rural areas? Small and medium-sized enterprises. My constituency is an example. The national average is that SMEs occupy 50% of the private sector, but in Penrith and The Border, SMEs with fewer than 10 employees employ 92% of our work force. Furthermore, because we are almost starting from scratch in rural areas, we are not talking about a slight increase in speed from 2 megabits to 3 megabits; we are talking about a step change in economic productivity for rural areas.
We are also talking about making a real difference in public services. As we all know, more and more public services are being driven online. In Cumbria, for example, the justification for the Cumbria police closing police stations is that they want policemen to be on the streets more, using their tablets to transmit data straight back to the police station. Nurses and doctors visiting people in their homes rely on being able to transmit data in real time back to a hospital from the home. Education is being transformed by online learning. In the United States, 40% of post-secondary school students are taking a course online. Recent research by Carnegie Mellon university suggests that mixed online and classroom learning can increase the speed at which children learn by 100%. And I do not need to talk about Twitter, Facebook and all the other things that everyone in London, and every child in those parts of the country with mobile coverage, take for granted, except to ask why everyone else should be excluded.
Matthew Hancock (West Suffolk) (Con)
My hon. Friend is making an extremely powerful and eloquent speech. In rural areas, we spend more time travelling from place to place, because the distances are greater. The coverage figures that he has given are those for static people when they are at home, but in fact, we spend far more time travelling from A to B, and our communication is often broken further when we do so.
Rory Stewart
My hon. Friend makes a very good point.
My argument is about mobile broadband coverage. What is the argument against extending it in the way that I have suggested? It is cost. Ofcom’s only argument is that it is worried that it might make a little less in the auction. Let us say that, based on the Swedish and German models, the auction is going to generate about £3.215 billion. Ofcom is worried that it might make only £3 billion. For a number of reasons, that is probably an underestimate. That £215 million represents an absolute worst-case scenario. Let us look this directly in the eye: £215 million is less than we spend in three weeks on our operations in Afghanistan. In fact, mobile coverage is one of the smartest, cheapest forms of infrastructure investment that we can make. It is far cheaper than fixed telephone lines, and far cheaper than ports or roads. As far as infrastructure investment that would create real productive growth in the British economy is concerned, £215 million is a small sum of money.