Digital Economy Bill

Philip Boswell Excerpts

Tuesday 13th September 2016 Commons Chamber

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

I welcome the opportunity to speak about such an important Bill, which contains several measures that SNP Members welcome. We welcome long overdue changes in provisions such as the electronic communications code, moves towards greater consumer protections, and steps that are designed to promote more connectivity. However, I know I am not alone in thinking that the Bill’s title is a bit of a misnomer. At a time when the British economy, with its woeful record on productivity, is crying out for a vision to ride the wave of technological change, we have a Bill that is somewhat cobbled together, and is vague and unambitious. Although it contains several welcome measures, it offers little in the way of direction or strategy. The Conservative manifesto pledged to make the United Kingdom a world leader in digital provision—a place where technology would ceaselessly transform the economy, society and government. I ask all Members to consider whether the Bill really lives up to that vision.

We really should contemplate the remarkable next phase of the information revolution. Phenomenal access speeds through fibre and 5G will allow us to realise the potential that is the internet of things. If we get this right and make the most of these opportunities, technology truly can power our economy. In Scotland, the moves that we are making on that front are strong and unequivocal. The SNP is committed to a manifesto pledge of 100% superfast connectivity. We do not see any reason why connectivity—which is of even greater significance in a country like Scotland, which has a low population density—should be determined on the basis of whether people live in rural or urban areas.

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

Does my hon. Friend agree that, despite the Secretary of State’s claims in her opening speech that we were soon to have 95% coverage, that does not apply in many communities? Not only is the last 5% often the most difficult and expensive to provide, but the oft-quoted figure is in fact much higher in many of those communities.

[Calum Kerr]

It is realistic to assume that more like 25% of my own constituency will not be covered. The concentration of the 5% can be great in rural areas in Scotland, in particular.

A theme to which I shall return is the desire for the Government, with our support, to show more ambition. As the right hon. Member for Wantage (Mr Vaizey)—the former digital Minister—put it, they should embrace McBroadband. Never mind your 10 megabits; let us get superfast everywhere. That is a key ambition on which I hope the present Minister can trump his predecessor. Rural areas already have to deal with poor connectivity. We have poor roads and highways; let us not have equally poor digital superhighways, because digital is becoming ever more important. The Government talk about it as a fifth utility, but with that rhetoric—that status—comes a greater responsibility upon them, providers and regulators to provide equality of access. As we talk increasingly of forms of digital citizenship, it is vital that the large swathes of the country that could be left behind do not become left behind as second-class digital citizens.

We welcome the introduction of a universal service obligation, but, as the Scottish Government pointed out in Ofcom’s digital communications review, it is important that the USO is dynamic and capable of evolving over time. Rather than a one-size-fits-all approach, the USO should be framed in such a way that it offers maximum flexibility and does not offer substandard solutions as we try to hit a minimum standard. Ultimately, we want a USO that helps to incentivise network providers to push fibre further and empower communities, perhaps through a voucher scheme or other mechanisms that support local ambition. We want to ensure a framework that does more to improve rural coverage and protects the interests of rural consumers, rather than cementing a digital divide.

The key to an effective USO will be in its delivery. That is a matter that this Bill refers to Ofcom’s technical analysis, but it is worth noting that a simple headline figure of 10 megabits download is flawed. First, a truly effective USO needs to consider not just basic download speed, but upload, latency, data limits and, of course, cost. Everyone should be entitled to a fair standard of broadband, and that is about a lot more than just download speed.

To return to the other point I mentioned, do we really think 10 megabits will be considered sufficient by 2020? Why do the Government think the bar should be set so low? The SNP challenges the thinking that sees 10 megabits as adequate. I found some of the briefings depressing to read, and they smacked of vested interests who, in their desire to leave markets open for future commercial activity, think rural areas should be sacrificed and given a lesser service, which is totally unacceptable.

Beyond any technical aspects of the USO, Parliament should have an ongoing role to play, especially in the matter of funding. I personally believe there is a strong case for an element of public funding, rather than just relying on the industry or an industry levy, but if the option of an industry levy is to be pursued, we would encourage the Government to cast the net as wide as possible, to cover all who benefit from the digital economy.

We welcome measures to improve the ability of consumers to switch providers with maximum ease, and we want to look closely at measures to incentivise quality of service, to ensure these incentives are universal. The Government have missed an opportunity, which I hope they will reconsider, to introduce measures advocated by my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry)—what a magnificent constituency name that is!