Digital Economy Bill

Lord Arbuthnot of Edrom Excerpts

1st reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords
Tuesday 31st January 2017 Lords Chamber

[Lord Mitchell (Non-Afl)]

My Lords, I support all three amendments on the USO. In my view, anything is better than what we have at present and what the Government are aiming for. In particular, I support Amendment 1 in the names of the noble Lords, Lord Mendelsohn and Lord Stevenson of Balmacara. Theirs is the most ambitious amendment, and ambition is what we desperately need. I do not think that it is pie in the sky; it really is what we have to go for.

In my Second Reading speech, I said that gigabits are the future of connectivity—they are the king—and that megabits are simply history. I stick by that. We cannot have pathetically low connection speeds. As we know, sadly, from its past performance, you can set a target for connectivity as low as you like, and the one thing you can be absolutely certain of is that BT will fail to meet it.

It is very clear that worldwide the goal is gigabit connectivity. South Korea, China, the Baltics and Scandinavia are all racing to the top to ensure that their societies are right at the forefront, and so must we. If the Prime Minister wants an industrial strategy that results in a global Britain leading the world, then she and her Government have to set high targets for 21st-century Britain, and nowhere more so than in connectivity. What the Government propose is like having a man with a flag walking in front of a car to ensure that it does not exceed 4 miles per hour. That is why I support Amendment 1—it flies the flag for digital Britain.

I plead with the Minister: do not settle for a third-rate target lobbied for by BT. It has its own agenda, which is to milk its obsolete copper infrastructure. Its interest is not in the national interest. Will this Government be bold and will they set their sights on promoting a gigabit economy?

[Lord Arbuthnot of Edrom (Con)]

My Lords, one issue that has not been raised in this debate so far is the effect on small businesses in rural areas of the poverty of mobile telephone networks. That, combined with slow or poor, and sometimes non-existent, broadband speeds, puts rural businesses at a disadvantage. So I have a great deal of sympathy with the amendments that have been spoken to, and I hope that the Minister will show similar sympathy.

[Lord Inglewood (Con)]

My Lords, I join those who have spoken in support of these amendments. Like some other noble Lords, some weeks I come up from the country to your Lordships’ House. The shortcomings of the infrastructure in rural Cumbria, where I live, is far too frequently a topic of conversation.

As a number of noble Lords have said, connectivity is the crucial aspect here, because it is now part of the essential infrastructure of contemporary life. It is important that we look at this issue from the perspective of what people need, but the reality is that what we need today may not be what we need tomorrow. We have to try to bridge the gap between the digital haves and the digital have-nots, and we achieve that by looking at the issue in the way that I have just described. Therefore, I am not approaching this matter from a kind of nerdy, technical perspective. What matters is the result as much as the means by which you get there.

Over the years, there has been a lot of debate about whether a universal service obligation should be in our law and be statutorily enforceable. I had the good fortune to chair the Communications Committee, and a number of years ago, when we conducted an inquiry into broadband, we debated this issue at length. On that occasion we reached the conclusion that what mattered was the rollout and that it was quite conceivable that a USO would get in the way. With the benefit of hindsight, that was probably a mistake, and therefore it is interesting to see the provisions for such a legal obligation coming into our legislation.

However, at the end of the day I come back to where I started with all this, and it is why I will be interested to hear what the Minister has to say. It is not the detail but the result that matters here. We have got to move into a world where the digital divide is bridged. This is particularly important for areas in the country, and I speak from that perspective, but it is also true for a number of urban areas. We seriously deny people access to a whole range of commercial, and other, aspects of contemporary life if there is not adequate connectivity. As a number of your Lordships have said, we live in a country that is adopting a different approach to industry. It is crucial to appreciate that the key to increasing wealth creation in areas outside the south-east of England—which I think everyone agrees is desirable—is improving connectivity. That is the way, as noble Lords have said, to improve the potential of SMEs outside the south-east.

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[Lord Maxton (Lab)]

My Lords, I would like to add one category of cost to that: someone who lives in a remote area some distance away from the main telephone service. The cost of BT or another company installing a line up to that property can be outrageous, to be honest. It can be very considerable and much more than most people can afford to pay. So to the list of those who are disadvantaged and cannot get full access, including, quite rightly, the disabled, must be added those who live in a single property at some distance away from the main service. The costs can be prohibitive.

[Lord Arbuthnot of Edrom]

My Lords, I will address the House on Amendment 5, in the name of the noble Lord, Lord Mendelsohn. We all want to prevent digital exclusion and this is clearly an admirable way of attempting to do so. But the noble Lord suggests that,

“any excess costs … shall not be paid by users of communication service providers”.

So those excess costs need to be paid, presumably by someone other than any of the users of communications service providers. I wonder whether this amendment might be strengthened if it were to set out by whom those excess costs should be paid.

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[Lord Aberdare (CB)]

My Lords, I support Amendments 12 and 13. I have no mobile coverage at all at my home in Wales and would have no broadband worthy of the name if it were not for a small local supplier offering a line of sight wireless service and willing to do so in competition with BT, although “competition” is hardly the word I would use to describe it.

I believe that a more competitive marketplace is essential to increase the speed and quality of broadband rollout, including, or especially for the final few per cent which I hope means household rather than geographic coverage, and who of course tend to be in rural areas. Similarly, my experience in Wales leads me to believe that to achieve a genuinely competitive and open market, it may well be necessary to bring about some sort of separation of Openreach from BT. I hope that the Minister will be able to tell us how the Government plan to promote a more competitive marketplace as a driver of better services across the nation.

[Lord Arbuthnot of Edrom]

My Lords, these are very important amendments. There is a concern that BT has tended to invest just enough in a particular area to make it uneconomic for competitors to come in and provide services there. This may just be a natural complaint by people who have been beaten fair and square in the marketplace, because BT is a very large and effective company which is, in many respects, a national champion. However, if it is a canard, it is a persistent one. I hope the Minister will be able to say something to reassure the Committee, either that it is untrue or that something is going to be done about it.

[Lord Maxton]

My Lords, I too support these amendments, which are on the right lines. My only reservation is that if BT is already the owner of the line into a property—it could be a commercial one—who is responsible if a repair needs to be done: Openreach or BT?