Product Security and Telecommunications Infrastructure Bill (First sitting)

Rebecca Long Bailey Excerpts

Committee stage
Tuesday 15th March 2022 Public Bill Committees

[The Chair]

Before I bring in Rebecca Long Bailey, Eleanor Griggs, did you wish to say something?

Eleanor Griggs: I have just a couple of points. If statutory powers are given, there needs to be some sort of accountability on the part of operators, with, essentially, sanctions if those powers are abused or not used responsibly. That sort of thing needs to be considered, because at the moment there does not seem to be any comeuppance for the poor behaviour that my members have had to endure. Are we looking at consensual agreements that are reached by negotiation, or are we looking at consensual agreements that are reached because somebody cannot afford to defend their position or get slightly more favourable terms at tribunal? It is quite cost-prohibitive, certainly for the smaller individual landowners. I do not know about the monopoly landlords that the Bill’s impact assessment talks about quite a lot, but it is quite prohibitive for our smaller members.

I would also like to make the point that the NFU has an annual digital technology survey. The most recent figures—we have not quite had the 2021 figures in yet—are the 2020 figures. Going back to 2015, 29% of our members reported that their outdoor mobile signal was reliable. By 2017, that had risen to 42%. Obviously, that is a really big increase from 29% in 2015 to 42% in 2017. By 2020, it was still at 42%, so no advances have been made from the introduction of the code, essentially; that is quite important. Various other figures mirror that—smartphones with access to 4G and things like that. It just shows a stagnation from 2017 onwards. We just need to be careful that that does not continue or, in the worst case scenario, get any worse.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

Q One observation that I have certainly made as a constituency MP is that community groups and small businesses that are faced with applications from telecoms companies often tell me when I assist them that they feel powerless, either in objecting to the proposals themselves, or in negotiating decent terms and conditions for the licence or lease agreement. They simply cannot afford the costly legal advice that would be required to get a decent deal or to object. How will the Bill exacerbate that inequity, and what amendments should be put in place to ensure that we level the playing field?

Anna Turley: That imbalance of power is absolutely something that we see throughout our case studies. If I may, Ms Long Bailey, there is someone in your constituency who has had a mast and a hub on their property for 25 years, and EE is now trying to force a rent reduction of around 86%. They said:

“On this basis we will not renew any lease”

and that they will do everything in their power

“to have the site removed, all land owners near us are aware of the situation and will not entertain the idea of situating on their property.”

That goes exactly to the heart of it; people just feel powerless. Many often cannot have the site removed even when they want to, because of the legislation. It is having the knock-on effect that people do not feel incentivised, or do not want to have the site on their land, not only because of the lack of income, but because of the disparity in power and the threatening legal pressure from those companies. It is a David and Goliath issue. People are having to take on huge companies with huge legal arms, and they just do not feel that they can compete with them. That is a real issue.

We have suggested a few ways in which the Bill could at least make the negotiations fairer by making the ADR mandatory so that operators are obliged to undertake that. There ought to be fines for poor behaviour. There ought to be more scrutiny and a code of practice to put an onus on better behaviour from the operators in the way they deal with site owners. We think that would go a long way to addressing that balance, as well as putting some reporting requirements on them.

Eleanor Griggs: Yes, I would say pretty much what Anna has said. For us, it is about looking at the Landlord and Tenant Act and how it will affect a lot of our members who are currently on landlord and tenant leases that are due to expire or perhaps already have. According to the figures from Mobile UK that were used in the impact assessment, there are just over 7,000 expired leases, with another 2,000 due to expire within one year. Bringing the Landlord and Tenant Act valuation for renewals in line with the code removes the transitional provisions that were intended to ease landlords into the new 2017 code. It means that the holders of the leases that are going to expire will have no time to prepare financially for the sudden income loss that they will face. We would look at removing that proposed amendment to the Landlord and Tenant Act.

We would also look at the interim rents side of things. As Anna has alluded to, there are potential issues that could mean that a small landowner would end up having to pay back rent to a large operator. We have a member in Mr Double’s constituency who had a lease that was due to expire that was achieving a rent of £3,500 a year. The renewal figure that he received was £17.50 a year. If the operator were to apply for an interim order and that order took a long time to come through, or the court took a long time to make that order, our member would still receive the £3,500 in the meantime. Then, if that took a year, he would have to pay back almost £3,500. Operators could use the proposed interim arrangements for indefinite periods of time, rather than looking to eventually get to either a court or tribunal-imposed agreement, or a consensual agreement. There are implications for landlords.

[Rebecca Long Bailey]

Thank you. Dr Trotman?

Dr Trotman: There are two things here. First, we understand that there is a lack of awareness as to what the code is, what it is meant to do, how it actually operates and the various tactics that are used, whether they be operators or site providers. Secondly, leading on from the lack of awareness, there is a lack of education. We are not just talking about on a wider scale—the general public, or site providers who may be in your constituency or anywhere across the UK; there is a lack of understanding and a lack of awareness within the industry itself. That is an important point.

One of the key fundamentals in resolving that issue is to have a code of practice that actually works, which we have from the 2017 revision of the code. At the moment, the code is doing absolutely nothing. Eleanor and I were part of a working group that drafted the initial form of the code of practice. What we have now—how it actually works in practice—is not worth the paper it is written on.

If we are going to have a code of practice and that is going to be a requirement of the revised code, let us make sure that that code of practice has some legal teeth. The only way it can have legal teeth, at the moment, is if it is appended as an annex to a code agreement. Very few site providers would understand that, and from what we have seen it is likely that very few agents and solicitors who deal with the code agreements understand that either.

Again, it is a case of getting the information out there, getting people educated as to what the code is and how it works and increasing the level of awareness. By doing that—again, going back to the point I made right at the beginning—you are creating a balance in the marketplace; you are having a more equitable system as we move forward. That then leads to faster deployment, and our ultimate objective of universal coverage. With what we are doing, if we have a deadline of 2025 or 2030, it is highly unlikely that those will be met, because there are too many problems and complexities within the system as it operates at the moment.

[The Chair]

If you are finished, are there any other questions?

Product Security and Telecommunications Infrastructure Bill (Second sitting)

Rebecca Long Bailey Excerpts

Committee stage & Committee Debates: 2nd sitting
Tuesday 15th March 2022 Public Bill Committees

[Sally-Ann Hart]

Q Thank you. I have one question for Mr Bartlett. We heard this morning from a colleague who is not here this afternoon that one possible reason for the increase in costs that perhaps Cellnex, for example, has met is that between the landowner and the operator, middlemen became involved. What are your thoughts on that?

Mark Bartlett: First of all, towercos have been around in the industry since the start. The BBC became National Grid became Crown wireless became Arqiva became Cellnex, and so on. This is not a 2017 phenomenon. Secondly, Cellnex itself has invested billions of pounds in the UK over the last couple of years and invests hundreds of millions of pounds a year, whether that is in connecting the Brighton main line or providing DAS, small cells, tower upgrades or new towers. To describe a huge enabler of connectivity across the UK as a middleman is, I think, a step too far. Fundamentally, we are an industry that is bringing connectivity to the whole of the UK; we are part of it, and we believe that these changes are needed to deliver it.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

Q The Bill will give the right to share and upgrade pre-2017 infrastructure. In relation to mobile coverage, to what extent will this dramatically improve the roll-out? The range of 5G, as I understand it, is very limited—is it 500 metres? Perhaps you could confirm that. Beyond that, it would be very helpful for us to understand to what extent telecoms providers are currently collaborating with one another to locate the best sites to situate new masts and to upgrade existing masts, to minimise the impact that communities will face. As we heard from various people this morning, many communities feel very powerless in this whole process, and it would be helpful to reassure them that they are being considered and there is a wider agenda that is being addressed by such companies.

Mark Bartlett: That is a good question. First of all, do we collaborate as an industry to use shared infrastructure? We are required to do so under planning laws. In fact, towercos’ reason for being is to create efficiencies and share infrastructure, to the benefit of the community. We are, through the planning process, not allowed to stick one tower next to another. Those sorts of things protect the community, but also make sure that we exploit the infrastructure that we have today to maximum effect.

Secondly, in terms of sharing upgrade rights, obviously we have existing towers. At the point at which we need to upgrade for 5G, often we need to put more equipment on those towers, so it is important that we are able to do that without having to negotiate higher costs under the old regime, and that we are able to do that very quickly. To Catherine’s point, where we do not get agreement to upgrade a tower, it simply means—the local community around that tower is much further than 500 metres; depending on which technology you use, it might be 500 metres, but I will not go into that, and one big tower serves many hundreds of people—that that tower does not get upgraded and the money is spent on a different tower in a different community.

The power of the individual to affect the outcomes of the community is very high in the process that we have today, especially where the legislation does not work. To be frank, that is why the changes are required. It is not necessarily to overcome some battle with a land agent. We are simply attempting to create this connectivity solution across the UK as fast as we possibly can, and having the simplicity—while remaining fair to the landlord—of legislation that works and an operational process that works is going to enable that.

Is there anything else you want to add, Juliette? If I may, I will refer to Juliette on the technical—

Juliette Wallace: I do not think there is anything particular to add, other than to say that the shared rural network absolutely relies on the ability both to roll out new sites to new areas that are total notspots at the moment and to roll out sharing and upgrade capability on existing sites. If we do not get the changes in this Bill, we are going to be seriously reduced in our ability to effectively roll out, share and upgrade those existing sites. There are some sites where currently we have no mechanic to be able to renew those agreements. As Mark said, the power of the individual to frustrate the roll-out of new technology or increase technology to a geographical area is huge currently.

[Rebecca Long Bailey]

Q To what extent are mobile providers sharing their proposed network coverage maps with local authorities, so that local authorities could try to match them with other providers, for example, where such collaboration has not been taking place?

Mark Bartlett: With respect, I am unable to answer that question as part of Speed Up Britain, because that is often commercially sensitive, but we can write to you. Mobile UK is part of Speed Up Britain, and they are the best people to ask. I will ask them to write to you directly to give you that clarity.

[Rebecca Long Bailey]

Q I have one final question on the poles issue. I am genuinely inquisitive about this. Is it the case that an area could potentially have a full-fibre broadband network under the road, as it were, but also have a pole network adding competition? If that is the case, are we at risk of creating rural deserts where there are fewer consumers and so less commercial incentive to do that, and overpopulated areas that have many options but a lot of infrastructure in their street scene? That is a question for Simon and Catherine.

Simon Holden: We architect what we call polygons, which basically go around our cities, and our objective is basically to cover every premise in the city polygon that we build. That is a commercial decision that we have made. We think that super-high-density fibre networks are the best way to cover a population and offer the best marketing opportunity to end customers. By the way, they allow you to do the densest 5G networks overlay on those.

In our architecture—which does not follow the Openreach architecture; it is our own—we use a series of ducts and poles in rings going around, and then run off coming from that. We plan, in our builds on our city polygons, not to have notspots. Sometimes we cannot go down a private road, because we need a wayleave and there is a process to go through to get that, but our policy is to try to cover as much as we possibly can. Typically, we cover 85% to 90% in what we call the first pass of the build, and then we start going back to do infill around that. At least where we are building today, we do not have that as a problem.

In rural areas, I think that will be affected by the BDUK process and the roll-out—we would like to participate in that—but our expectation is that we would be building and connecting from our cities all the way out to the deep rural areas, picking up the small towns and villages on the way. In those commuter towns, we would look to cover all those premises; if we are there building, we would rather just build it once and cover everyone. That is the best commercial opportunity that we see.

I do not think that we see what you are describing as a problem that we would be planning in to avoid; it would only be because we could not get particular wayleaves or particular access, a little bit as Catherine described, that we would end up trying to go around that. That is why this legislation will help us.

Catherine Colloms: If you think about the existing architecture—obviously, we have the existing architecture; we are still building new, but we are trying to reuse wherever we can, because that is cheaper and avoids digging up all your constituencies as we go—it is true to say that there is a greater proportion of underground ducting in urban areas, which this legislation, as drafted, would allow us to upgrade more easily than over the pole network or in multi-dwelling units. We have a much denser proportion of poles in suburban and rural areas, so at the moment, as the Bill is drafted, it is harder to upgrade rural areas than it might be to use the existing underground infrastructure, which is predominantly in urban areas, as you say.

[The Chair]

If there are no further questions from Members, on behalf of the Committee I thank the witnesses for their evidence. I hope I have not hurried you along too much.

Examination of Witness

Till Sommer gave evidence.