5G Network

Chi Onwurah Excerpts

Tuesday 24th November 2020 Westminster Hall

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a great pleasure to be here to serve under your chairship for the first time, Ms Eagle. I thank the right hon. Member for Vale of Glamorgan (Alun Cairns) for securing this really important debate, and it is a pleasure to have the opportunity to talk about such an important subject. I am very grateful to him for that, and for his opening comments: rarely have I heard a speech from the opposing ranks with which I agreed so fully, and almost entirely. I appreciate his comments about the importance of 5G and its opportunities; I also appreciated his reference to Dr Andy Sellars, who is making important advances in this area, and his comments on photonics in the north-east of England. There has always been closeness between the north-east and Wales, and leading in the diversification of the telecoms supply chain would simply be another example of that.

I should also declare an interest: as some Members may know, I worked as a telecoms engineer for 23 years before coming into Parliament, and my very first job was with a telecoms equipment supplier called Nortel—Northern Telecom—who, when I joined it, had just bought one of the last two British telecoms suppliers, that being STC; Marconi stayed around a little bit longer. It is a real shame that having worked for Nortel, and having spent my entire career in telecoms, I never went on to work for a British telecoms supplier. That was a consequence of the industrial strategies pursued under the then Government, Thatcher’s Conservative Government, and under the current Conservative Government, with not enough having been done in the intervening Labour years.

I agree with both the right hon. Member for Vale of Glamorgan and the hon. Member for Wakefield (Imran Ahmad Khan) in their characterisation of the opportunities presented by 5G, which we hope can transform and bring broadband to every corner of our country—which is so much lacking now—and allow us to have real on-the-go mobile broadband, together with the opportunities presented by the internet of things and the vast increase in connected devices that we will see. That is why it is such a shame that the Government find themselves in such a 5G mess. I understand that they are happy to pass the cost of their mistakes, indecision and poor planning on to the operators, stating, for example, that the costs of removing Huawei are

“commercial decisions that are for the mobile operators to make”—

costs that the sector worries could top £7 billion and cause delays of up to three years to 5G roll-out, harming growth and innovation. We should not accept such a delay, which harms UK productivity and sends a message to innovators that they should look elsewhere. Can the Minister confirm that there will be no delay to the target of rolling out 5G to the majority of the country by 2027?

The right hon. Member for Vale of Glamorgan and the hon. Member for Wakefield were right to emphasise the opportunities of an effective diversification strategy. I have put many questions to the Minister on this point, and he has confirmed that the Government plan to prioritise open source and Open RAN technologies, which the right hon. Member mentioned, as part of their plan to build market resilience. However, we still lack any clear strategy for the diversification of our telecoms infrastructure. Yes, we have the names of those on the telecoms taskforce, but no telecoms systems developers are among them. The Minister said that was because the focus was on cyber-security; I should say that while we are taking steps to hopefully secure our network, we need a network that is innovative, effective and resilient as well as secure. The absence of any telecoms systems developers on the telecoms taskforce is a real loss, as is the lack of any representation for any organisation or person from north of Bristol. Can the Minister set out how he intends to ensure that we have a truly representative task force, able to make use of the talents and innovation throughout the relevant sectors and throughout the country?

The Telecommunications (Security) Bill was published this afternoon. I have not had time to assess all its clauses in full, but it does not seem to refer to the diversification strategy that we are promised. The official Opposition welcome the measures taken to secure our network, but without the diversification strategy, our network will not be secure because we will be so dependent on perhaps two vendors. We have to have a diversification strategy, not only to ensure the opportunities in different sectors and different parts of our country in terms of economic development, but to make that network secure. Where is the diversification strategy? How can we have a Bill that does one thing, which is to secure the network, that is so dependent on a strategy that does not appear to be mentioned?

I turn to the opportunities in Open RAN defence and international collaboration. I thank the right hon. Member for Vale of Glamorgan for the explanation of Open RAN. The market is estimated to be worth £47 billion by 2026 and the UK can gain a significant amount of that if we build on our existing strengths, such as compound semiconductors, radios and software for disaggregated networks.

The decision to remove Huawei from the network was based on national security, exhibiting one of the many synergies between telecoms and defence, with many UK companies supplying both the telecoms and defence markets. For example, semiconductor fabricators II-VI, a north-east company based in County Durham, or INEX Microtechnology, in Sedgefield, provide critical infrastructure to both the telecoms and defence markets.

We will see immediate action from operators to replace high-risk vendors and a long-term replacement strategy in UK 5G infrastructure, opening doors for businesses. Japanese firms such as NEC, which the hon. Member for Wakefield mentioned, have already agreed to set up a UK telecommunications centre to help provide immediate alternatives to high-risk vendors, providing NEC with a springboard into the European market. This is a good opportunity for many smaller UK firms, but it cannot be a one-off. What is the Government’s strategy to ensure that UK firms can forge strong partnerships with international firms?

It takes investment as well as strategic vision to diversify our supply chain after so many years. I am afraid that both of those seem to be sadly lacking. Will the Minister take the chance to tell us today how much additional funding the Government will provide for telecoms research, development and innovation? At the same time, can he say how much will be going to the north?

We have excellent science-based and technological opportunities to be found. Indeed, in March, as a constructive Opposition, I offered the Minister a five-point plan to help diversify our supply chain. I called for a communications Catapult centre, and for next-generation research and development projects. BT used to have a major lab, developing and looking far ahead at new telecommunications technology. Is the Minister considering something like that? Can he give us more details? I also called for support for standards development, to support interoperability. We have heard nothing about that. He needs to look at non-5G wireless technologies. What is the Minister doing to support those in all the regions of the UK?

The UK has an opportunity to build a highly resilient, secure and diversified 5G network, unlocking opportunities for business and innovation across the country. Further- more, when we think about the next generations—6G and 7G—the UK has the opportunity to lay the foundations to make us a leading telecommunications country once again. Let us remember that we invented both fibre and the web in the UK. I urge the Minister to obtain the political will and set out the plan that ensures our diverse telecoms sector has the confidence and the investment that it needs to grow and to lead the world.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Matt Warman)]

It is a pleasure to serve with you in the Chair, Ms Eagle. I pay tribute to my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) for securing a debate on a genuinely important topic, which would have perhaps attracted a significantly bigger crowd on other days—I take that as a sign that the Government are going in the right direction in lots of ways. It is none the less a critical topic for the Government, and it has been my focus for the last few months, to say the least.

I begin by paying tribute to the work of the Catapult and Dr Andy Sellars, already mentioned by my right hon. Friend and others. It is a £43.5 million Government project supported by UKRI, and it is important to say that £12 million from the Welsh Government is an important contribution. Some 1,500 people are already employed as part of the project and, as my right hon. Friend said, we expect thousands more to come as part of that investment. It is as though he read some of my speech, because he mentioned that we are already seeing clusters forming from the clusters. The close collaboration with the private sector in the north-east, Cambridge, Bristol and elsewhere shows that Britain is beginning to take the opportunity by the horns and make the best of it that we can. We do that in collaboration with our other international partners, but ultimately the opportunity is due to a wealth of expertise in this country, as the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) highlighted. That private sector collaboration will only continue to grow.

As my right hon. Friend highlighted, we have plenty more work to do. One of the things that we will seek to do through our diversification strategy is to shape the market and set the direction in a way that works genuinely with our private sector partners, because he is right to say that although there is much that we should leave to the market, we have to work collaboratively in the interests of national security, and we have to do it in way that ensures that we do not repeat the mistakes of the past. Ultimately, we are in the position that we are in with Huawei because of decades of wrong decisions, albeit with the best intentions.

My right hon. Friend also observed that not every Government project is as joined up as it could be. I can tell him that the diversification strategy will be one of the most joined-up Government projects he has yet seen—I do not know where that sets the bar in his expectations.

I am glad that we are having the debate, but I rather wish we were having it at this time tomorrow, because I will be able to say significantly more after the Chancellor has made his statement. To some extent, that will also tie in with the diversification strategy. As the Secretary of State has said, we will publish the diversification strategy alongside the Bill that so many colleagues have referred to. As the hon. Member for Newcastle upon Tyne Central knows, we have published the Bill today, so she will not have to wait long for her salvation. She mentioned the international angle, the need to put money behind it, the need to focus on standards and the need to focus on a specific institution, if not specifically a lab. In some form or another, those things will all be of great interest to her when she reads the diversification strategy, which she will be able to do in due course.

[Chi Onwurah]

I appreciate the Minister’s comments and look forward, as always, to the publication of the Bill. Will the diversification strategy have the same legislative structure, content and meaning as the Telecommunications (Security) Bill? Will it have legislative power that is binding on the Government?

[Matt Warman]

It is a crucial complement to the Bill introduced by us today. We will be putting in place all the right incentives to ensure that the requirements being imposed by us through primary and secondary legislation can be met, or even beaten, within the timescale that we will be laying out. We cannot impose requirements on individual companies to make specific procurement decisions through legislation, but we can make sure that they are as secure as they need to be, and that the programme fits in a way that works for the market and for our national security. I know that the hon. Lady will take a close interest in both the primary and the secondary legislation, which will fill in some of that picture.

My right hon. Friend the Member for Vale of Glamorgan was right to imply that while we are now more dependent as we move away from Huawei, we have an opportunity to work both with the existing incumbents—primarily Nokia and Ericsson—and new incumbents. We are already working towards increasing the presence in our markets of those incumbents and, crucially, towards that Open RAN future of interoperability and far greater opportunities for our companies to thrive.

[Matt Warman]

My right hon. Friend is absolutely right. That is why the Government have been working as fast as they can on the 5G supply chain diversification strategy, which not only meets our short-term needs but prioritises the bold and ambitious approach that, as we both agree, makes it possible for our companies to make the most of their place in a global market, not just the UK. To reiterate what has already been said, that approach is built around supporting incumbents and attracting new suppliers, and also around accelerating the development and adoption of the Open RAN interoperable standards. They are all major opportunities, both nationally and internationally.

As discussed, the decision taken on high-risk vendors means that the UK is more resilient in respect of Nokia and Ericsson, and although 5G is now available in over 90 towns and cities with the support of those two companies, we need to seize the emerging opportunities to grow that number as rapidly as we can. That is why the Government are looking through a series of R&D interventions of the sort that the catapult has been so pivotal in accelerating.

Of course, we also want to bring new suppliers into the UK market. It is worth saying, as the hon. Member for Newcastle upon Tyne Central did, that the presence of the NEC global centre of excellence in the UK is not just an important sign of what is already there, but an important signal of the esteem in which the global supply chain holds the UK’s enthusiasm for adopting 5G.

I will take the opportunity to say that we have no intention whatsoever to delay the 2027 target for the majority of the UK population to be covered by 5G. It is already in 100 towns and cities, and the figure is increasing all the time. I also take the opportunity to point out that the chair of the taskforce mentioned by the hon. Lady, which is expert in both commercial and academic senses, is Lord Livingston of Parkhead. I am sure she knows that Parkhead is a part of Glasgow and is some way north of Bristol, but we are keen to focus on the diversity and expertise of that taskforce. Ultimately, we have prioritised expertise in the taskforce rather than the geographic location. She makes a fair point but, as I say, Glasgow is consistently north of Bristol.

[Chi Onwurah]

Will the Minister give way?

[Matt Warman]

I think we have covered the geography of Glasgow.

We are working to remove the barriers for new market entrants, and the taskforce is a crucial part of that, but our ambition will not stop there. We will be keen to make sure that our global ambitions are a part of the work of both the taskforce and the diversification strategy, and that will persist well beyond the process that we go through with the Telecommunications (Security) Bill and with the diversification strategy.

My right hon. Friend the Member for Vale of Glamorgan noted our existing expertise and mentioned Open RAN, which will be hugely important in future. He will know that Vodafone has already launched a trial in Wales. That is the first, we think, of a significant improvement in the percentage of Open RAN, and we will seek to ensure that that persists. He also mentioned the potential of the low earth orbit satellite and OneWeb. It is important that we are open-minded when it comes to what technologies can be developed both through the Catapult and elsewhere. As the hon. Member for Newcastle upon Tyne Central said, we should not simply look at 5G when it comes to making sure we connect as much of the country as we possibly can.

I will address the comments made on behalf of the Scottish National party. The hon. Member for Aberdeen South (Stephen Flynn) is completely right that when we talk about 5G, it is important not to forget that significant parts of the country need a step change in their connectivity. The shared rural network, a £1 billion partnership between the UK Government and the mobile networks, will see 4G connectivity, particularly in Scotland, accelerate rapidly between now and 2025. That is hugely welcome, as he and others in this Chamber are keenly aware. Scotland is challenging geography to wire up, but it is crucial that we do so as rapidly as we can.

My hon. Friend the Member for Wakefield (Imran Ahmad Khan) was absolutely right to mention the opportunities for us in this project. We should see the next few years as a crucial opportunity to grow a really important UK market. The hon. Member for Newcastle upon Tyne Central said that she had never had the opportunity to work for a major British telecoms company. I say to her that the night is young.

If we get this right, opportunities will come in Britain and elsewhere. All of this will require investment, and the Government will put forward an initial funding package, to be set out in the spending review tomorrow, along with a boost to the Ofcom budget to reflect its enhanced security role under the Bill that we have laid today. The funding package will drive early progress and ensure that our diversification strategy not only bolsters the resilience and security of our digital infrastructure, but creates opportunities for competition, innovation and prosperity in all four nations. It is a huge opportunity that I hope we will be able to seize rapidly over the next few years, not just in 5G but through the UK’s gigabit programme as well.

This country already benefits hugely from the digital economy. This programme and this debate are part of doing that better. They are part of building back better, and I am confident that we will look back and say that we took a decision about Huawei that improved our national security and drove our ability to seize economic opportunities. I thank my right hon. Friend the Member for Vale of Glamorgan for securing the debate.