Oral Answers to Questions
Debate between Rory Stewart and Chi Onwurah(5 years, 10 months ago)
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Rory Stewart
It is largely to do with degradation across the estate, but we have had significant improvements in the performance of Amey recently, and we have of course taken Carillion back in-house so a Government company is now operating there. We therefore expect improvements to go with millions of pounds of extra investment into the estate.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Does the Minister agree with the Taking Control coalition of debt support charities that independent regulation of the bailiff industry is necessary to protect the public from the unscrupulous practices that have driven some of my constituents to the point of suicide and despair?
Oral Answers to Questions
Debate between Rory Stewart and Chi Onwurah(8 years, 10 months ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
11. What recent assessment she has made of the effect of slow broadband services on farmers and other rural businesses.
The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rory Stewart)
Access to fast reliable broadband is of course important for rural areas, as the hon. Lady well knows. There are two indicative measures that we have taken. One was to ensure that by the end of last year anyone who wished to have a 2 megabit service could access such a service. Perhaps more important is the universal service obligation, which will be in place with 10 megabits by 2020.
Chi Onwurah
In 2012, when I criticised the Government for abandoning Labour’s universal broadband commitment, the then Secretary of State said:
“We have a plan and we are going to deliver it.”—[Official Report, 25 October 2012; Vol. 551, c. 1059.]
So was it part of the plan that, in 2016, farmers would still be unable to get the broadband access they need in order to fill out the forms that the Department makes it mandatory to complete online? What is the plan now?
Rory Stewart
As the hon. Lady is aware, farmers are able to make applications on paper. Also, she is even more aware than I am of the fact that this is an extremely difficult issue to deal with in rural areas. We have just carried out seven very interesting pilots with operations such as Cybermoor to look at different technological solutions, but the key indicator is the universal service obligation of 10 megabits by 2020.
Machine-to-Machine Communication
Debate between Rory Stewart and Chi Onwurah(13 years, 6 months ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
It is a pleasure and an honour to serve under your chairmanship, Mr Scott.
I believe I have the privilege of being the first Member to raise the matter of machine-to-machine communication in Parliament. Interestingly, the internet was first mentioned in the House in February 1990 by Emma Nicholson, a Conservative MP. At that time, only 3 million people worldwide had access to the internet, mainly academics and the military, three-quarters of them living in the United States. Twenty-one years later, there are an estimated 2 billion regular internet users, only 13% of whom live in the US and 44% of whom are Asian. Those figures will grow.
The internet has revolutionised our world. Machine-to-machine communication is the next stage in the internet revolution. Having connected people, we shall move on to connecting machines and things.
Rory Stewart (Penrith and The Border) (Con)
The hon. Lady speaks of having connected people. May I remind her that 30% of people in this country do not have good access even to a 2 megabit connection? Currently, for only 90% of the time for 95% of people is there decent access to mobile communications. Without infrastructure investment in good fixed and mobile broadband, it will be very difficult to deliver the things that the hon. Lady so rightly mentions.
Chi Onwurah
I thank the hon. Gentleman for his intervention. He is absolutely right. He does well to remind us that although we shall be connecting machines, we have not yet connected everybody. Given the limits that have been set on mobile spectrum availability, he would not want to share it with trillions of devices, as I shall explain.
Machine-to-machine communications enable the internet of things. Ericsson estimates that by 2020, 50 billion things will be connected to the internet. Other analysts put the number of connected devices in the trillions. What will these devices be doing? Some will be doing what they already do; there will BlackBerrys and iPads, but we will also see, for example, lamp-posts with sensors that detect the level of light and save energy by turning themselves off. We will see smart fridges telling our chosen supermarket that more vegetables are needed. We will see water heaters monitoring the water temperature and deciding that it could be a little less hot for a few minutes because we are stuck in traffic and the national grid is overstretched. We may even see cholesterol monitors embedded in our bodies telling the doctor that it is time for another check-up.
As a self-confessed technophile, I see the internet of things helping to take the dull and the difficult out of our lives so that we can get on with what human beings do best—whatever that may be.
Chi Onwurah
I thank my right hon. Friend. He is right that machine-to-machine communication raises a number of important questions about the way we live our lives, which I shall talk about later. We should be aware across Government of what the issues are, so that we give ourselves an advantage in addressing them.
The question today is whether the Government are doing all they can to ensure the UK economy will benefit from this trillion-pound market of the future? Why is spectrum not being made available, as it was recently in the US, so that UK companies can get on with innovating in this hugely important area and ensuring we reap all the rewards? I hope that the Minister will tell us how the Government aim to ensure that the UK benefits from machine-to-machine communication, because we are in danger of being left behind.
In some areas, the UK leads in machine-to-machine communication; it is otherwise known as M2M, which sounds rather like a pop group. Ofcom, my previous employer, has worked hard to ensure that spectrum is available for machine-to-machine communication. M2M can be divided into three broad areas: near field, home and personal, and wide area. I shall describe each in turn.
Near field means near or short-distance communications. Probably the best example is the Oyster card system. Every morning, at Westminster station, I see commuters holding various purses, wallets, gym cards and, occasionally, parts of their body up to the readers. There is no direct contact with the Oyster card. The reader operates it using radio frequency identification—RFID—over very short distances. Oyster saves us the time and trouble of carrying money, queuing and purchasing tickets for every journey. A few months ago, my local transport authority, Nexus, launched the north-east’s very own Oyster-type system called Pop. We will all be “Popping” about the north-east without having to wait at ticket machines.
We can increasingly expect to see RFID used in many other applications. Oyster has already been extended to support contactless payments for small purchases. In 2008, the St Louis-based Somark Innovations tested an RFID tattoo on cows to monitor stock movements, and RFID devices are being implanted in salmon, so that we can track how they are responding to changes in the environment.
Exciting innovations are possible in the area. In 2005, Ofcom deliberately chose to make spectrum in the 865-868 MHz range available for RFID applications on a licence-exempt basis. Licence exempt means that companies do not have to pay to use it, which means that small companies can think of exciting new ideas without having to pay out huge amounts to buy spectrum. That is why innovative businesses can try out new applications, and we can expect to see UK companies playing a big part in the RFID revolution. Therefore, when it comes to near-field communications, the UK is good to go.
The next area of machine-to-machine communication is home and personal, which is still over short distances, but more than a few millimetres. It enables personal area networks, which are networks around the human body, as well as home networking.
We all now think that it is a basic human right to be able to browse the internet from the garden thanks to wi-fi. There are other protocols that enable communications between devices in the home and in the office. For example, many of us use Bluetooth headsets, which wirelessly enable us to go hands free. There is also a protocol with the lovely name of ZigBee, which has been developed to enable wireless lamps. Increasingly, it might also be used by our fridge to tell our smart meter how much electricity it is using and whether it would be okay to turn the freezer off for a few milliseconds so that we do not have to bring on another gas power station every time “EastEnders” finishes.
ZigBee, wi-fi and Bluetooth all operate in licence-exempt spectrum. There are challenges in home and personal networking. In some cities, people are finding that the wi-fi is often congested. Interestingly, that is not because there are too many people uploading photos on Facebook. It is caused by people using wi-fi to transmit satellite or cable programming around their home, so that can be a disadvantage of licence-exempt spectrum. Some new application can come along and hoover up all the bandwidth. None the less, in general, we have a home environment with innovative applications competing to improve our lives.
Unfortunately that is not the case for wide area communication, which is everything from down the street to across the world. Mobile broadband, smart meters and the global positioning system are forms of wide area communication. Wide area applications are really where the huge innovative potential is. Smart cities need wide area machine-to-machine communication. I want to live in a world where the traffic lights on the Tyne bridge going into Newcastle can respond to traffic conditions on other bridges in the city so that we avoid gridlock. I would like to know exactly when the Number 10 bus will get to the bottom of Kenton lane.
It would be progress indeed if people with chronic illnesses could lead more independent lives because their condition was constantly monitored, and help was immediately on hand through telemedicine applications. I want a smart national electricity grid, where sensors in turbines on wind farms in the North sea calculate our energy production moment by moment and change the level of usage in homes across the country as a result. That is the obvious big win. Every form of energy production now has big costs and risks associated with it. We have the technical complexity, cost and unpredictability of wind and solar power; the emissions associated with coal and gas power stations and the potential dangers and long-term costs of nuclear power.
We need to ensure that we are using as little energy as possible. Machines use a hell of a lot of energy—whether in industrial processes, all the kettles switching on every time a soap ends, electric cars and transport or the giant server farms around the world that support cloud computing.
By using machine-to-machine communications to reduce the amount of energy being used, we reduce the number of power stations we have to build. To a certain extent, the Department of Energy and Climate Change is aware of that. It acknowledges the importance of smart meters and ultimately of smart energy grids.
My concern is that in this area, unlike in the others I have spoken of, we have no suitable licence-exempt spectrum and no well developed plans to bring it about. One reason for that is the very success of mobile telecommunications, which are everywhere—though not so strongly in the constituency of the hon. Member for Penrith and The Border (Rory Stewart). Everyone has a mobile phone; many people have two. Given that, why would we possibly want more wide area communication? Have we not got enough? The answer is no, and I hope that the Minister will be good enough to acknowledge the reason. In fact, I hope that he will acknowledge all my points, but on this one, I specifically expect a response.
The Minister is not a machine. He does not look like a machine. He does not carry out his duties like a machine and he certainly does not communicate like a machine. Why then should he think that machines communicate in the same way as he does? Machines do not get annoyed when there is a busy tone. They do not become upset by congestion, or infuriated by delay.
Putting billions of machines on to mobile networks designed for people is an incredible waste of valuable infrastructure. That is why we need spectrum, which allows machines to communicate with each other. We need some of that spectrum to be licence exempt so that we have innovation.
Will the Minister tell me what assessment he has made of the potential economic benefits of machine-to-machine communications? Does he agree that it is important that there should be licence-exempt spectrum to support them? Does he agree that we urgently need clarity from Ofcom about when spectrum will be made available?
The Minister may say that it is not for the Government or Ofcom to determine the use spectrum should be put to, but for the market. He has said that before in response to questions that I have tabled, but the market cannot determine the use spectrum should be put to if it is not made available.
Rory Stewart
Given the enormous importance of these machine-to-machine communications, surely the hon. Lady agrees that we should not exclude large parts of the country and millions of people from accessing all the incredible benefits that she has listed. Surely, it is about not just making spectrum available to machines but making it available to people in those areas of the country, otherwise we will have real social exclusion.
Chi Onwurah
I thank the hon. Gentleman for that intervention. Once again I agree with him; access to the internet will be an important part of enabling humans to reap the benefits of M2M communications. He is absolutely right that discussion of M2M communications is part of a wider argument about ensuring that the benefits of technology are available to all our citizens.
The Minister may claim that Ofcom should not intervene to support particular technologies but, as I have already suggested, I argue that M2M communication is not one technology but a huge market—in fact, it is a range of markets—and that the purchase of spectrum is a huge barrier to entry by small innovative firms. The Minister may also say that he does not have a stream of people coming to see him to ask for this spectrum, but the small innovative firms that I talk to do not have that kind of access to Departments.
Personal and near-field communications have licence-exempt spectrum in which to innovate, so why is there none for wide range applications? I yield to no one—not even the Minister—in my praise of Ofcom. Under the Communications Act 2002, Ofcom is required to encourage investment and innovation, and specifically to use spectrum for that purpose, so I would like the Minister to tell us and Ofcom about the importance that he places on that requirement to encourage innovation, especially given the cross-party consensus that innovation will help to secure the recovery. Will the requirement to encourage innovation be retained and indeed strengthened in the new communications Bill, which is currently being drafted?
I am sure that the Minister shares my view that M2M communication is a very important area and I look forward to hearing how he will encourage the innovation and the economic benefits that it will bring.
Rural Broadband and Mobile Coverage
Debate between Rory Stewart and Chi Onwurah
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.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Could the hon. Gentleman give me some clarification on the figure of £215 million in lost revenue through a change in the coverage? What is the basis for that estimate, and have the providers supported it?
Rory Stewart
It is a very basic estimate predicated on the assumption that, to increase from 95% to 98% coverage, we would need to build approximately 1,500 masts, and that the average cost of a mast hovers at just under £150,000. So the figure of £215 million represents a worst-case scenario. The assumption is that the mobile phone companies will cover some of the costs of the masts anyway, because they will get increased revenue as a result of installing them. The Government should not have to pay for all those masts. Furthermore, companies such as Three already have the infrastructure in place, and were those companies to win that chunk in the auction, they would not have to pay to install new masts. The £215 million is a worst-case projection for getting up to 1,500 extra masts and pushing through to 98% coverage.
Are we prepared to turn around in 2015 and say to people in this country and people in our constituencies, “No, everybody else in the world can have this thing, but you can’t have it. In every other part of Britain, if you happen to live in central London, you will be able by 2015 to attach a device to your heart, which can monitor your vital signs, transmit in real time to a hospital, regulate your drug intake and help you stay at home. I am sorry, though, but you live in Northumbria and you are not going to be allowed to have it”?
Are we prepared to turn around to students and say, “Everywhere else in this country, if you happen to live in Chelsea or the centre of Manchester, you can do online learning, you can learn the harp, you can study German or Russian. In fact, you can study anything you want from anyone you want at any time you want, but unfortunately you live in Suffolk, so you are not going to be able to do those things.”?
By 2015 it will not be just data-rich businesses or internet-rich businesses, but the basic small and medium-sized enterprises that will be dependent on these devices to cut their transaction costs, increase their reach to market, drop their advertising costs and so on. Are we prepared to turn round to every one of those businesses and say, “Of course it is extremely beneficial for a business to have these services—in fact, it is the only way a business can compete and survive—but because you don’t happen to be located in the very centre of London, you are not going to be able to work in that way.” ?
Are we to say to a farmer, “Through this technology, you might be able to use special identification tags and make some use of the astonishing bureaucracy being imposed on you, but only if you happen to be farming in Chelsea. If you are farming in the uplands of Cumbria, you might as well forget about it.”?
We are looking for a positive narrative. We are looking for a narrative around growth. We are looking for growth, which is not effectively saying, “Oh, we are just going to get 90% of the country going”. We are looking for growth that is saying, “We want 100% of this country going.” Growth is about productivity; productivity is about the internet. If we are looking for a positive narrative, let it be this: at the moment, our best mobile next-generation coverage is worse than that of Uzbekistan. I know something about Uzbekistan. I would not be surprised if someone were to stand up and say to me, “In Uzbekistan, there are more political prisoners in jail than there are in Britain”. However, I am not just surprised, but horrified to learn that in Uzbekistan, the mobile next-generation coverage is better than it is in the United Kingdom.
Let us stand behind this motion. Let us push Ofcom with all our might to take that small risk to reach that 98% of coverage. Let us not allow the clever arguments of narrow economists who are blind to technology and obsessed with making their auction feature in a particular fashion allow Britain to miss the chance to get what it needs for its economy, for its society, for its health, for its education and for its communities by signing up to the best superfast mobile and broadband coverage in Europe.
Chi Onwurah
The previous Government committed to providing universal broadband access at 2 megabits by 2012, whereas it is my understanding that the current Government have made a commitment to the best broadband—there is some doubt as to the exact definition of that term—by 2015. Our project was to be implemented not by the Government, but by the private sector, and with the right incentives. It was not only fully planned, but fully costed, and had the support of the vast majority of the telecommunications industry, who agreed that it was feasible. The current proposal to deliver superfast broadband by 2015 is, however, not fully costed, as I am sure broadband companies would set out in detail.
The coverage obligations do not match private sector business cases, and, unfortunately, are a very crude and ineffective way of correcting what is, effectively, market failure. There will be a cost to the public purse, but unlike in a directed programme, we will not have any say as to how that money is spent; so the Treasury will lose money, but we will have no guarantee or say as to how it is invested.
Rory Stewart
What does the hon. Lady think of the simple proposal to set out the number of additional masts required? If Stephen Temple were to propose that there should simply be, let us say, 1,500 additional long- term evolution masts, rather than setting a 98% coverage target, that would be much simpler to measure, there would be no debates about how exactly the plan would be modelled, and costs would be much more straightforward.
Chi Onwurah
I am delighted that the hon. Gentleman has launched himself so deeply into the detail of network infrastructure roll-out. I hope the vast majority of Members on the Government Benches would agree with me that we do not want to specify to private companies exactly how they must roll-out their infrastructure, the number of masts they will need to put in place, the equipment they should use, or the technology choices they should make. I would not therefore support specifying the number of masts, although that is an interesting proposal.
Specifying the coverage is a useful way of trying to ensure efficient roll-out, but my concern is that if the coverage that is specified does not accord with the good and effective business case, there will be unintended, and potentially perverse, consequences.
Chi Onwurah
My party is known for supporting redistribution in many areas and we would certainly support cross-subsidy, which is effectively the result, if that were the only consequence. When I speak of unintended consequences, I am suggesting we might not, perhaps, get the optimum mobile coverage within three years or one year because the coverage requirement is for 2017, which might concentrate the minds of the mobile operators on that date.
Rory Stewart
Will the hon. Lady clarify what she proposes to do to ensure that an additional 3 million people get coverage?
Chi Onwurah
I thank the hon. Gentleman for asking that; I have very little time left, so I shall race to that point. The most effective way for a Government to intervene in a market is to direct subsidy in the most effective way possible to incentivise network coverage in the areas it is required. I suggest to hon. Members that rather than hiding behind indirect intervention through the regulator and blaming the regulator’s short-sightedness, we should clearly set out that we want universal access to standard broadband for all by 2012 and we should ensure that we have the means to achieve it.
Rural Broadband
Debate between Rory Stewart and Chi Onwurah(13 years, 9 months ago)
Westminster HallRead Full debate Read Hansard Text
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Rory Stewart
I give way to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah).
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
I thank the hon. Gentleman for giving way, and I congratulate him on securing this debate. Will he adequately distinguish between superfast broadband and the kind of broadband that small businesses need in order to make the economic difference that we all want them to make as quickly as possible? The Government do not always distinguish between broadband, which enables small businesses to offer their services to the entire world, and superfast broadband which may have economic benefits in future that have yet to be fully quantified.
Rory Stewart
I now give way to my hon. Friend the Member for Mid Norfolk (George Freeman).