Draft Electronic Communications and Wireless Telegraphy (Amendment etc.) (EU EXIT) Regulations 2019
Debate between Scott Mann and Margot James(5 years, 10 months ago)
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The Minister for Digital and the Creative Industries (Margot James)
I beg to move,
That the Committee has considered the draft Electronic Communications and Wireless Telegraphy (Amendment etc.) (EU Exit) Regulations 2019.
I wish you a happy new year, Mr Hosie; it is a pleasure to serve under your chairmanship.
The draft regulations were laid before the House on 29 November. If the UK were to leave the EU without an agreement in place, they would provide legal clarity and consistency for the regulator and telecoms operators. They are being introduced, under powers set out in section 8 of the European Union (Withdrawal) Act 2018, to correct deficiencies in the statute book that result from the UK’s exiting the EU. They will make a number of amendments, mostly minor and technical, to telecoms law by removing obligations that would no longer apply if no agreement were reached with the EU.
A technical notice was published on 13 September to reassure telecoms businesses, consumers and the regulator, Ofcom, that irrespective of the outcome of negotiations between the UK and the EU, we would not expect a significant impact on how businesses operate under the telecoms regulatory framework or on how consumers of telecoms services are protected in the UK.
The draft regulations cover only corrections made to the body of telecoms regulatory law; other matters of relevance to the sector, such as legislation on roaming, spectrum or cross-border data flows are covered by separate instruments. By way of background, the domestic telecoms framework establishes key principles for the regulation of the sector: the promotion of competition between operators, the protection of consumers of telecoms services, the efficient use of radio spectrum, and the independence of the regulator, Ofcom, whose functions it outlines. These rules derive from a set of EU directives and regulations that have already been implemented in UK law, predominantly the Communications Act 2003 and the Wireless Telegraphy Act 2006.
The purpose of the draft regulations is, first, to make good deficiencies such as EU procedures designed to ensure the harmonised application of the regulatory framework across the EU, and secondly to ensure that such corrections enable the continuity of the current regime in a no-deal scenario. These EU rules have been implemented in UK law since 2003 and cover a variety of matters in telecoms law.
The deficiencies that have been identified are mostly minor and technical. All the changes that the draft regulations will make have been considered on a case-by-case basis and discussed with the regulator and stakeholders where possible. An example of a minor amendment to the Communications Act is the removal of the duty for Ofcom to ensure that its
“activities contribute to the development of the European internal market.”
In some places, technical amendments are needed to ensure the continued effect of certain obligations whose interpretation currently relies on direct references to EU directives in UK law. For instance, the obligation for Ofcom to have regard to the desirability of ensuring the security and availability of telecoms networks and services when performing its duties currently has effect as a result of a form of cross-reference to the relevant EU directive, but the draft regulations will insert it specifically into the Communications Act to ensure continuity from the current regime.
With respect to the UK’s compliance with the EU regulatory system, the draft regulations will remove the requirement for Ofcom to notify, consult or provide information to the European Commission and other EU bodies. The information requested by EU bodies is generally provided to enable the European Commission to monitor compliance with the EU framework or to ensure harmonisation of measures across the EU. However, sharing information with the Commission, with EU bodies or with other regulators in the EU may well remain beneficial to the UK after exit. It can help to foster co-operation on regulatory matters. That is why the instrument makes amendments to make it clear that Ofcom may notify or share information, where it considers it appropriate, for matters such as security breaches affecting communication networks or services. In such cases, however, Ofcom will continue to be subject to statutory duties relating to confidentiality and data protection.
Certain deficiencies were identified in provisions relating to the making of universal service orders. It is important to make the preliminary point that the corrections do not affect the services that are required to be made universally available across the UK under the existing universal service orders. An amendment is made to remove the requirement to comply with EU obligations when the Secretary of State makes future universal service orders. That incidentally will provide more flexibility to consider what service provision is most appropriate for the UK.
As is currently the case, the Communications Act will continue to require that consultation takes place before a universal service order is made, providing an opportunity for representations to be made about the requirements or form of any new universal service obligation. Ofcom has put in place various rules to ensure the protection of consumers of telecoms services, some of which implement specific requirements of EU law. The instrument makes provision to ensure that Ofcom can continue to maintain consumer protection measures that are currently required under the relevant EU directive. That will ensure that current levels of consumer protection are maintained.
Moving on to corrections relating to the regulation of communication providers with significant market power, SMP regulation is based on competition law principles, and enables Ofcom to impose regulatory remedies on providers with significant market power to address competition issues in a particular market. Under the EU regulatory framework, SMP is equivalent to the concept of dominance in EU competition law. The Communications Act provides that SMP is to be construed in accordance with the requirements of the EU regulatory framework. The instrument amends the Communications Act to ensure that, after exit, references to dominance in a market are to be construed consistently with the concept of market dominance in the Competition Act 1998. That approach aims to ensure that there will be a single concept of market dominance across domestic competition law and regulation of the telecoms sector post-exit.
Scott Mann (North Cornwall) (Con)
On the issue of significant market power, did Ofcom have those powers previously, or is it just because we are leaving the EU that we have to implement them? Did Ofcom have the power to control market dominance before this process, or will the instrument put in place the opportunity for us to do that?
Margot James
I reassure my hon. Friend that Ofcom has those powers, and the purpose of the statutory instrument is to ensure that Ofcom is in a position to continue in the exercise of them.
With regard to Ofcom’s powers to make regulations when spectrum licences are required, and to attach conditions to those licences, the instrument removes requirements that derive from the EU authorisation directive while maintaining an obligation on Ofcom to ensure that licences and conditions are objectively justifiable, non-discriminatory, proportionate and transparent.
The body of telecoms law includes directly applicable EU regulations that require correction. The instrument revokes the regulations that provide for financial assistance for the EU Connecting Europe Facility to support projects in the field of trans-European networks in the area of telecoms infrastructure. That includes funding to install wi-fi equipment in public spaces. In the unlikely event of a no-deal exit, UK organisations will no longer be eligible for such funding. If the EU stops making payments to UK organisations delivering CEF-funded projects after exit, the Government guarantee will support UK organisations to meet their obligations, including continued project delivery until completion. This Government guarantee will also cover successful applications that have been submitted to the EU before exit day, but with an award made after exit.
This instrument makes minor corrections to the eCall legislation, so that it will continue to operate effectively after exit. eCall is an initiative established by the European Commission as part of the intelligent transport system project. It enables a mobile transmission to be sent to emergency services by a vehicle when it is involved in an accident. The eCall legislation refers in parts to technical standards, and regulation 5 of this instrument confers a legislative power on the Secretary of State to make provision to replace the standards listed, which will enable the standards to be updated should that be necessary to ensure continued public safety and effective operation of the eCall technology.
Finally, this instrument revokes the regulation establishing the Body of European Regulators for Electronic Communications, the body of national regulators from EU member states. Ofcom is currently a member. The main purpose of BEREC is to ensure the consistent implementation of the EU regulatory framework; BEREC’s membership is therefore limited to the regulators of EU member states. Ofcom will no longer be a member after exit, but as the UK will no longer be part of the EU regulatory framework, this will have no significant effect on regulation in the UK. However the Government recognise that Ofcom would benefit from the continued exchange of best practice with other regulators, and from the exchange of information about telecoms matters more generally. In this respect, we should note that the new BEREC regulation, in force since 20 December 2018, provides that BEREC should be open to the participation of regulators of third countries, where those countries have entered into agreements with the EU to that effect.
Ofcom intends to seek observer status after the UK has exited the EU, in the way in which other regulators of states in the European economic area, such as Norway and EU candidate countries, currently participate. Although observer status would remove Ofcom’s right to vote, the likely impact would be fairly minimal, as this is more of a co-operative forum.
In conclusion, the Government are committed to ensuring that the regulation of telecoms markets remains functional post-exit, and these regulations will help to achieve that by making minor and technical changes to existing legislation. I commend the regulations to the Committee.
Oral Answers to Questions
Debate between Scott Mann and Margot James(6 years ago)
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Margot James
The hon. Lady will know that we have doubled the number of tier 1 exceptional talent visas to 2,000. We have also announced a start-up visa for entrepreneurs. The other side of the coin, of course, is the huge investment we are making in skills training for people who are already resident in her constituency.
Scott Mann (North Cornwall) (Con)
What discussions has the Department had with the Cabinet Office about supporting tech start-ups with local and national Government procurement?
Margot James
We have a fantastic organisation, Tech Nation, with which we work closely to build the hubs around the country that directly support SMEs; the British Business Bank also does this and it is now starting a regional network of advisers for SMEs in tech.
Scott Mann (North Cornwall) (Con)
Margot James
I heartily agree with my hon. Friend’s concerns. I was delighted that the Budget confirmed that there is now £200 million to kick-start connectivity for superfast broadband around the edge of the country, and the Red Book shows that one of the places that this process will start is in my hon. Friend’s county of Cornwall.
Oral Answers to Questions
Debate between Scott Mann and Margot James(6 years, 2 months ago)
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Margot James
To some degree the hon. Lady’s concerns have been addressed by the new provisions in the Data Protection Act and the incorporation of GDPR, but she does make the good point that data extends beyond what has already been covered by that Act, and the Government are in the process of reviewing the whole issue of data with the idea of publishing a national data strategy in due course.
Scott Mann (North Cornwall) (Con)
There are big opportunities for using big data for good, and I would urge the Minister not to use a sledgehammer to crack a nut. We have many small tech firms starting up in North Cornwall. Can we utilise some of the small and medium-sized companies to pitch for local and national Government contracts? It seems that the big boys can play; I would like some of the small firms to be able to, too.
Oral Answers to Questions
Debate between Scott Mann and Margot James(6 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Margot James
The valleys in south Wales, like the great rural areas of Scotland, present challenges, but challenges that will be overcome. I can assure the hon. Gentleman that they are an absolute priority.
Scott Mann (North Cornwall) (Con)
Will the Minister look at the productivity lag that the broadband and mobile notspots cause in our constituencies? Will the Department assess what could be achieved if we had greater broadband and mobile coverage in those areas?