PARLIAMENTARY DEBATE
Shared Rural Network - 28 October 2019 (Commons/Commons Chamber)
Debate Detail
Connectivity on the go is equally important. Mobile phones are revolutionising our day-to-day lives and are crucial for businesses as they compete and grow. Half of adults—I reckon this will apply to pretty much every right hon. and hon. Member—say that they missed their mobile phone the most of all their devices, with one in three saying that they never use a computer to go online.
However, too many areas of the country are still waiting for high-quality mobile coverage. Today, only 66% of the UK landmass has geographic coverage from all four mobile network operators and 9%, largely in rural areas, has no coverage at all. I am therefore pleased to inform the House that last week the Government announced support for a shared rural network programme, subject to binding legal agreement being concluded. The proposal has been brought to Government by the four UK mobile network operators—EE, Vodafone, 3 and O2—and sets out their ambition to collectively increase 4G mobile coverage throughout the United Kingdom to 95% by 2025.
Under the proposal, areas that have coverage from only some providers—partial notspots—will be almost entirely eliminated, meaning that we will get good 4G signal anywhere, no matter our provider. It also promises to deliver greater coverage in the total notspots—the areas that currently have no mobile phone signal at all. The network will result in 95% of the UK getting coverage, including additional coverage to 16,000 km of roads and 280,000 premises. The biggest improvements will be felt in Scotland, Wales and Northern Ireland.
The four operators will commit up to £530 million to get rid of the partial notspots, but we recognise the difficulty of building infrastructure in remote locations. The Government are therefore sharing the cost and are prepared to provide a further £500 million to eliminate total notspots. The Government’s investment will provide new digital infrastructure in areas that are not commercially viable for operators, to ensure that this new service provision continues for at least 20 years. It will also cover the cost of upgrades to the emergency services infrastructure, making it available to commercial operators.
The announcement is great news for consumers and a big step forward by the mobile network operators. It will be underpinned by legally binding commitments from each operator to reach more than 92% UK coverage by 2026. The mobile network operators will adopt new coverage obligations within their existing spectrum licence conditions to ensure that the outcomes will be delivered. If they cannot demonstrate that all reasonable efforts have been made to comply with the obligations, there are penalties for the operators, with a maximum fine of up to 10% of annual turnover. Although 2025 is the target date, many consumers will feel the benefit of the programme long before its conclusion. Annual coverage improvement targets will be published, and Ofcom will report regularly on the shared rural network’s progress in its “Connected Nations” publication.
The UK has a vibrant telecoms industry, and we are keen that the shared rural network proposal reflects that. The programme will be jointly delivered by all four mobile network operators, but it is expected that organisations from across the industry would have the opportunity to get involved in delivering the programme at various levels of the supply chain, building the required infrastructure in an open, fair and transparent way.
The mobile network operator proposal is conditional on Ofcom removing its proposed coverage commitments, which were included in the design of the original auction. I have written to Sharon White, the chief executive of Ofcom, setting out the Government’s support for the programme, subject to a binding legal agreement being concluded. It is for Ofcom to decide how it wishes to proceed with the auction. This morning, Ofcom opened its consultation on an alternative auction design, without coverage obligations.
I have also made it clear to the mobile network operators and to Ofcom that the Government retain the right to support the original Ofcom auction if a final and legally binding agreement on the shared rural network is not reached. I have considered the shared rural network proposal carefully, along with my right hon. Friend the Chancellor of the Exchequer, and I am satisfied that it improves on the coverage obligations set out in Ofcom’s proposed auction and should deliver good value for money. However, I have made it clear to the mobile network operators that, until a final agreement is reached, the Government’s support does not make a legally binding arrangement or contract and does not create any expectation that Government will act in that way.
In the coming months, the Department for Digital, Culture, Media and Sport, Ofcom and the mobile operators will work to finalise the legal agreement so that we can get on with the important job of improving mobile coverage. The operators share our ambition. I am confident that this proposal is the answer, and I expect to be in a position to update the House early next year.
This is a world-first deal that means that consumers will be able to rely on their own provider’s network to use their mobile phones wherever they are. It will make patchy coverage a thing of the past and mean that more people in rural areas can benefit from the speed and efficiency of coverage on the go. This Government are committed to giving rural areas across our United Kingdom the digital connectivity needed to flourish and to make the UK a world leader in 5G technologies. That is what this landmark investment will do. I commend this statement to the House.
Let me start, for the benefit of hon. Members, with the points on which we agree. It is surely right that we dramatically step up the efforts to pull the country into the 21st century. We were a leader once. Now the networks that we have, like the targets that we have set, are well behind the best in the world; so while today’s progress is, I suppose, welcome, it is really half of a half-measure, when what was needed was a bold 10-year national switchover plan to deliver ubiquitous gigabit per second access to every corner of the country.
At our most generous, we welcome the commitment to 95% 4G coverage, because it is better than the 91% that we have today, but I am afraid that still leaves a 4,681 square mile area of the country where coverage will be non-existent or not good enough. As Members know, that is an area twice the size of Norfolk and much bigger than our largest county, North Yorkshire. Nor, it would appear, will progress be as rapid as was promised. In its manifesto, the Conservative party promised 95% coverage by 2022. Now the Secretary of State says it is 2025, and the industry briefing issued this morning says that will not be achieved until 2026.
Nor is the proposal as well financed as is needed. Ofcom says that the cost of sorting out all the notspots in the country is between £3 billion and £6 billion, yet just £1 billion has been announced, half from industry and half from Government. At best, it is half of a half-measure. Nor, it seems, is the deal with the industry actually done. As the Secretary of State made clear in the rapid canter through the final paragraphs of her statement,
“the Government’s support does not make a legally binding arrangement or contract and does not create any expectation that Government will act in that way.”
That is known as the small print; in this House, we call it, at best, a running commentary on what she is doing in the office this week. It is a running commentary on half of a half-measure that is four years late and leaves an area of the country twice the size of Norfolk without the coverage it needs. Members will therefore forgive us for not applauding this announcement from the rooftops.
However, to take this announcement seriously for a moment, which is more than the Chancellor obviously has, I suppose we should trouble the Secretary of State with some questions on her running commentary on half of a half-measure. Her Majesty’s Government have already backtracked on their commitment to full fibre roll-out by 2025. Can she reassure the House that this measure, such as it is, will not be diluted any further? Will she bless us with some interim targets? Perhaps they could be knocked together. If so, are we likely to see them any time soon? She told us today that the paperwork is not going to be signed until 2020, but she says that Ofcom has announced that it is moving ahead with a consultation on the spectrum auction, without coverage obligations. Why is Ofcom proceeding with that, given that the Secretary of State is commending this different approach to us this afternoon? Under the plans will consumers be able to access a choice of all four network operators in the 95% area that she has sketched out? Finally, I suppose the Secretary of State should be asked to tell us whether she agrees with Ofcom that £3 billion to £6 billion is going to be needed to eliminate all notspots in the country. If she does agree, will she explain why she is not bringing that proposal to us this afternoon?
Today our network ranks not as the first, second or third best in the world, but as the 26th. Some Eighty per cent. of our constituencies do not enjoy 4G coverage from all big four operators. I know the Secretary of State has done her very best today to dress this up, but we should call it what it is: too little, too late, for a country that deserves far better. [Interruption.]
On interim targets, we are obviously going to wait for industry to say how quickly it is able to do the roll-out, but I was clear in my statement to say that many areas will see this coverage much more quickly.
On the letter from Ofcom, it is obviously a decision for Ofcom as to whether to carry on with the auction coverage. However, I suggest that the right hon. Gentleman read Sharon White’s letter, because she is very clear that by following this proposal and sharing infrastructure,
“the four operators can deliver much greater improvements in coverage at less cost than they could do individually”,
and:
“We believe this is an efficient way of improving coverage which should provide a better experience for consumers than other alternatives like rural roaming.”
The right hon. Gentleman asked whether all four were included in the 95%, and that is absolutely the case.
This is a significant moment for improving mobile connectivity, which is absolutely essential to making sure that the UK plays its part in being able to develop, use and innovate the technologies of the future. I would hope that all those who hope for coverage in areas such as the west midlands, which is leading the charge in terms of the 5G test beds, under the brilliant mayoralty of Andy Street, could celebrate rather than offer this grudging response today.
In the words of the author Arthur Herman, “Scotland invented the modern world”, but the reality is that Scotland is now being held back by this Tory Government. The Scottish National party welcomes the Government’s announcement about the shared rural network proposals; if they are delivered with the improvements that the Secretary of State says there will be, they will be improvements for our rural and island communities. But even with that investment, Scotland’s 4G coverage level would still be below the overall UK-wide geographic coverage figure of 95%, leaving further work to be done.
I have to say that I am pleased that the Secretary of State seems to possess a more realistic understanding of what the devolution agreement actually is than her Scottish Tory colleagues. She is aware, it is clear, that telecommunications is a reserved matter. But with Scotland receiving just 3% of UK Government funding for broadband, compared with Northern Ireland’s 91% funding, will she reassure me that the programme will be rolled out and that, when it is, we will get a fairer funding settlement than we have had thus far?
People hearing this announcement today could be forgiven for having a sense of déjà vu. The 2017 Conservative manifesto promised to end rural notspots by 2022—a target that we know will not be met. We are now being told that the target will be 2025. Can the Secretary of State give me a cast-iron guarantee that that target will be met? If not, will it really have the teeth that she is suggesting?
The current coverage of all four operators in Scotland is 41%; under these proposals, that would get to 85% of Scotland. Of course there will be more to do—there always is. MPs have fought for this issue: I have been significantly lobbied by Scottish Conservative colleagues for this improvement. The hon. Lady and constituents across Scotland should be encouraged, given that the proposal has come forward from the operators themselves. That means, I think, that they are confident about being able to deliver it.
The hon. Gentleman makes a very fair point, which is that honesty about the coverage being offered is very important. There is nothing more frustrating for people than being told that they have coverage—or it even looking like they have coverage on their phone—but they still cannot make a call. I am concerned to hear how EE handled that particular attack. I hope that Members right across the House will always know that, if they have problems such as that, they should contact me, the Ministers involved, or the Department so that we can follow it up on their behalf.
With regard to Connecting Devon and Somerset, the digital and broadband Minister, my hon. Friend the Member for Boston and Skegness (Matt Warman), had a meeting with Members from the area. We know that there have been issues, and obviously the organisation is looking for alternative providers. My hon. Friend is talking about broadband connectivity, which is a slightly separate issue, but he is right because at the end of the day, constituents do not distinguish; they just want better connectivity all round.
In relation to the Isle of Wight—a place I know well from my family history—I very much hope that, if he is able, as the local MP, to work with the operators to find out what issues there are relating to masts and any other blockages there might be, we will be able to improve the connectivity. We in the Department will play our part to support him in that.
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