Rural Broadband and Mobile Coverage

Thérèse Coffey Excerpts

Thursday 19th May 2011 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

My hon. Friend is putting the point so eloquently that this is a once-in-a-lifetime opportunity to cover the sorts of constituents that he and I represent, along with many others in the House. Does he agree that there is a risk that Ofcom is being penny wise, pound foolish, and that in future it could become very expensive for this country to have truly mobile broadband?

[Rory Stewart]

My hon. Friend makes exactly the right point, and much better than I could. “Penny wise, pound foolish” is exactly right. To put it bluntly, it is a no-brainer. This is the time to act. If we are going to do it, we should do it now. There is some fantasy out there that if we get it wrong, we can go back to the mobile telephone companies in two or three years’ time and say, “We’re very sorry, we didn’t impose an obligation on you, but would you mind awfully providing 98% coverage?” However, by that time they will already have begun to lay out their infrastructure and will have made their decisions. Acting then will be more expensive, the mobile telephone companies will be under no obligation to do so, and we will have to pay them. At that point their interests will not be aligned with ours.

If we impose an obligation at the right moment and say, “You’ve got the licence; now provide 98% coverage,” their interests will be to provide it as cheaply and efficiently as possible. If, on the other hand, we approach the mobile telephone companies in three years’ time as a contractor, we should remember that there will then be an additional problem. As my hon. Friend suggests, if we do it now, there is no cost to the taxpayer. The money would not come from raising taxes from people or stealing it from another Department. All that we would be doing is taking the risk that we would make slightly less in the auction. That would not be the case in three years’ time. If in three years’ time we suddenly wanted to spend £215 million on building masts, we would have to tax people or move money from other Departments; and we absolutely know that people who say, “Give me that bird in your hand, because I can promise you those two in the bush in three years’ time,” are almost certainly misleading us. This is the time to do it.