Shared Rural Network — House of Lords, 2019-10-28
Topic: Technology
Diana Barran (Conservative, Centre-right): My Lords, with the leave of the House, I will repeat a Statement made by my right honourable friend the Secretary of State in the other place. The Statement is as follows: "Mr Speaker, with your permission, I would like to make a Statement to the House about connectivity and our recent announcement about the shared rural network. Last month the Government announced £5 billion to accelerate the rollout of the highest-speed internet across the country, including our rural heartlands. The money is being targeted toward the hardest-to-reach areas of the UK, so they will not have to wait for their homes and businesses to be connected to fast, reliable broadband. They will be given connections capable of download speeds of 1 gigabit per second, to take advantage of everything the next generation of new technology has to offer 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 say that they would miss their mobile phone the most of all their devices, and one in three now says that they never use a computer to go online Yet there are too many areas of the country still waiting for high-quality mobile coverage. Today, only 66% of the UK land-mass has geographic coverage from all four mobile network operators, and 9%, largely in rural areas, has no coverage at all. So I am 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. This proposal has been brought to the Government by the four UK mobile network operators: EE, Vodafone, Three and O2. It sets out their ambition to collectively increase 4G mobile coverage throughout the UK to 95% by 2025 Under this proposal, areas which have coverage from only some providers—known as ‘partial not-spots’—will be almost entirely eliminated. This means that you will get good 4G signal anywhere, no matter which provider you are with. It also promises to deliver greater coverage in total not-spots—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 kilometres 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 not-spots, but we recognise the difficulty of building infrastructure in remote locations, so the Government are sharing the cost and are prepared to provide a further £500 million to eliminate total not-spots, too. 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. This announcement is great news for consumers and a big step forward from 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 these obligations, there are penalties for the operators, with a maximum fine of up to 10% of their 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. This programme would be delivered jointly by all four mobile network operators, but it is expected that organisations across the industry would have the opportunity to get involved in the delivery of 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, chief executive of Ofcom, setting out the Government’s support for this programme, subject to a binding legal agreement being concluded. It is for Ofcom to decide on 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 honourable friend the Chancellor of the Exchequer, and I am satisfied that the proposal improves on the coverage obligations set out in Ofcom’s proposed auction and should deliver good value for money. However, until a final agreement is reached, I have made it clear to the mobile network operators that the Government’s support does not make a legally binding arrangement or contract, and does not create any expectation that the Government will act in this way. In the coming months the DCMS, Ofcom and the mobile operators will work to finalise the legal agreements so that we can get on with the important job of improving mobile coverage. The operators share our ambition and I am confident that this proposal is the answer. I expect to be in a position to update this House early next year This is a world-first deal that means 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 the digital connectivity needed to flourish and to making the UK a world leader in new 5G technologies. That is what this landmark investment will do" My Lords, that concludes the Statement.