Question to the Department for Science, Innovation & Technology:

To ask the Secretary of State for Science, Innovation and Technology, what steps her Department is taking to help ensure effective competition in the fixed telecommunications infrastructure sector.

Increasing competition in the fixed telecoms market is integral to the Government’s strategy to deliver nationwide coverage of gigabit-capable broadband. Competition keeps prices low and standards high for consumers, whilst encouraging companies to build quickly. Through the 2018 Future Telecoms Infrastructure Review (FTIR) and the 2019 Statement of Strategic Priorities (SSP), we brought forward substantive proposals to make it easier for new firms to enter the market and compete with the incumbent provider, such as granting competitors access to Openreach’s national network of ducts and poles. The SSP gives Ofcom a strategic priority to incentivise market competition.

Ofcom must have regard to this SSP when taking regulatory decisions and has introduced a number of pro-competition measures both in its 2021 Wholesale Fixed Telecoms Market Review (WFTMR) and beyond. These measures include introducing the ‘fair bet’ principle to ensure firms have the opportunity to make higher returns when a risky investment is successful, and the introduction of ‘One Touch Switching’ to make it easier for consumers to switch broadband providers.

As a result of our pro-competition policies, there is now a thriving market of over 80 providers investing nearly £35bn rolling out gigabit broadband all over the UK. 74% of premises can access gigabit-capable networks, up from just one in ten in November 2019.