Recommendations & Conclusions
10 items
2
Recommendation
Thirty-Second Report - Delivering gigab…
Accepted
The Department has so far been overly reliant on the contributions of commercial suppliers in improving gigabit coverage. The Department is reliant on suppliers to deliver gigabit coverage to 80% of UK premises without subsidy. Between May and October 2021, national gigabit coverage increased from 40% to 57%. The Department …
Read more
The Department has so far been overly reliant on the contributions of commercial suppliers in improving gigabit coverage. The Department is reliant on suppliers to deliver gigabit coverage to 80% of UK premises without subsidy. Between May and October 2021, national gigabit coverage increased from 40% to 57%. The Department acknowledges that Virgin Media O2’s upgrade of its cable network contributed significantly to the increase in gigabit availability during this period, although it is unable to provide a figure for this. The Virgin Media O2 upgrade provides gigabit availability, but this is not achieved through full fibre technology, which is more future proof but requires new infrastructure. While companies such as Virgin Media O2 have set out their intention to further future proof their networks over time, once the current upgrade of existing cables has been completed there will remain a gap in coverage if the Department does not put in place further contracts to build the gigabit infrastructure. The Department told us it has extended some of the contracts it had in place for the delivery of superfast broadband to now enable gigabit-capable connections. In some areas it is also supplying gigabit vouchers to communities to pay for gigabit-capable connections in areas where it is not commercially viable to do so. However, it has not yet signed any new gigabit infrastructure contracts of its own. 6 Delivering gigabit-capable broadband Recommendation: In line with its Treasury Minute response, the Department should set out what progress it has made towards its coverage target of 85% by
Show less
Government response AI summary
BDUK will report further details on the coverage achieved by its different interventions in its performance report in July 2022, and then in the annual report and accounts from 2023.
Read full response →
HM Treasury
3
Recommendation
Thirty-Second Report - Delivering gigab…
Accepted
We are not convinced by the Department’s assertion that it will meet its target delivery of a minimum of 85% by 2025 despite having signed no new infrastructure subsidy contracts for Project Gigabit. The Department’s previous target proved to be unachievable. Despite revising the overall target, the Department’s target dates …
Read more
We are not convinced by the Department’s assertion that it will meet its target delivery of a minimum of 85% by 2025 despite having signed no new infrastructure subsidy contracts for Project Gigabit. The Department’s previous target proved to be unachievable. Despite revising the overall target, the Department’s target dates for signing contracts with gigabit suppliers to begin laying gigabit infrastructure have continually slipped. At our last evidence session, in November 2020, we called for the Department to provide a broad timetable or indicative dates for the essential steps towards achieving its targets, which the Department repeatedly declined owing to it awaiting Ministerial approvals. The Department is still unable to provide detailed information about how long it expects the contracting process to take. The Department previously informed us that contracts would be operating by the fourth quarter of 2021. It has since moved this to May 2022 in the Project Gigabit Summer update. This changed again to June to August 2022 in the Autumn update. The Department contends that the delay is positive, as it is the result of unprecedented levels of interest and activity from commercial providers. As a result, it is re-planning which areas it will need to deliver gigabit coverage through infrastructure subsidy contracts but stated in evidence that that it did not expect in future to have to replan to the degree that we have in the past 12 months.1 Recommendation: In line with its Treasury Minute response, the Department should write to us setting out in detail how it will deliver 85% coverage by 2025, including: • the baselines it is using, and overall progress against these; and • what new infrastructure contracts it has signed and how many more contracts it requires to be in place and by when in order to meet its overall target. The Department should also adopt a flexible procurement approach which allows it to respond to market developments without endlessly delayin
Show less
Government response AI summary
The government agrees with the Committee’s recommendation and BDUK’s 2022-23 corporate plan will include a baseline trajectory for the progress required each year and will report progress against this baseline annually, beginning July 2022. The department will address this recommendation in its letter to the …
Read full response →
HM Treasury
4
Recommendation
Thirty-Second Report - Delivering gigab…
Accepted
We are disappointed that the Department has still not taken significant action to remove barriers to rolling out Project Gigabit. Despite our recommendation earlier this year, the Department has yet to secure the legislative and policy changes that industry deems necessary to address major barriers to delivering gigabit infrastructure at …
Read more
We are disappointed that the Department has still not taken significant action to remove barriers to rolling out Project Gigabit. Despite our recommendation earlier this year, the Department has yet to secure the legislative and policy changes that industry deems necessary to address major barriers to delivering gigabit infrastructure at pace. The Department has initiated the Telecommunications Infrastructure Act, designed to ensure that the UK has sufficiently robust electronic communications networks to deliver the coverage and connectivity consumers 1 Q 10 Delivering gigabit-capable broadband 7 and businesses need. However, it has not yet followed this up with the necessary secondary legislation. We are concerned that without addressing legislative barriers the Department will be unable to meet its target for roll-out. The Department has also run consultations on removing barriers to gigabit rollout but has yet to publish the findings of these. In one case, this is eight months after the consultation closed. While stakeholders welcome these interventions, they call for the Department to take more decisive action, particularly regarding wayleaves (land access agreements). Furthermore, the removal of high-risk vendors’ equipment from the network is estimated to cause a delay in the full fibre roll-out of up to a year, and for 5G by two to three years. Despite its apparent lack of significant progress in tackling barriers, the Department asserts that it is confident that the pace of rollout means that it is still on track to hit its targets. Recommendation: In line with its Treasury Minute response, the Department should write to us setting out what progress it has made: • to remove barriers to deployment, including details of the findings from its consultations and its response in the four priority areas of: a) access to land b) street works c) new build connectivity; and d) supporting mobile deployment. • to remove equipment from high-risk vendors from the relevan
Show less
Government response AI summary
The government agrees with the Committee’s recommendation and will provide a letter setting out progress on removing barriers to deployment and removing equipment from high-risk vendors, outlining specific actions already taken like introducing the Product Security and Telecommunications Infrastructure Bill and consulting on a proposed …
Read full response →
HM Treasury
5
Recommendation
Thirty-Second Report - Delivering gigab…
Accepted
The Department’s approach to rolling out gigabit risks perpetuating digital inequality across the UK. The Department contends that it is taking an “Outside- In” approach to gigabit infrastructure procurement. As part of this approach, the Department identifies areas which it does not expect it to be viable for commercial providers …
Read more
The Department’s approach to rolling out gigabit risks perpetuating digital inequality across the UK. The Department contends that it is taking an “Outside- In” approach to gigabit infrastructure procurement. As part of this approach, the Department identifies areas which it does not expect it to be viable for commercial providers to operate in. It then commissions internet infrastructure connecting these areas in parallel with work being undertaken by commercial providers. This is designed to ensure that no areas are systematically left behind. However, the Department is unable to demonstrate that it is still following its “Outside- In” approach. In addition, the Department’s one-size-fits-all approach to what it considers urban areas, especially in London and the West Midlands, does not take into account the very different needs within those areas. Those areas that currently have sub-superfast broadband speeds are more likely to be in the 20% of premises that the Department thinks will be unviable for commercial providers. Rural areas, such as the Cotswolds in England, and areas of economic deprivation that were previously provided with government support to deliver superfast broadband, such as Blaenau Gwent in Wales, have some of the lowest levels of gigabit coverage. If the 2025 target is going to be met it is essential that rural and remote areas, especially those who currently lack superfast broadband, receive significantly increased investment on the basis that the commercial sector will unlikely be able fill the gap. 8 Delivering gigabit-capable broadband Recommendation: The Department should, from the start of April 2022, publish statistics every 3 months showing its regional and national breakdown of progress against its gigabit coverage target.
Show less
Government response AI summary
BDUK will strengthen its quarterly reports with further information on progress in UK gigabit coverage, including regional and national progress, rural vs. urban areas, and businesses vs. residential premises, sourced from ThinkBroadband.com and Ofcom's Connected Nations reports.
Read full response →
HM Treasury
12
Conclusion
Thirty-Second Report - Delivering gigab…
Accepted
The Department told us that the reason it had yet to sign any new gigabit infrastructure contracts was largely that commercial operators hadaccelerated their plans for expanding gigabit coverage very rapidly. It explained that this has meant that it needed to re-plan on the basis that the private sector has …
Read more
The Department told us that the reason it had yet to sign any new gigabit infrastructure contracts was largely that commercial operators hadaccelerated their plans for expanding gigabit coverage very rapidly. It explained that this has meant that it needed to re-plan on the basis that the private sector has picked up more than was originally expected. The Department informed us that it wanted to ensure that taxpayer money was not wasted, and that public funding was used only when absolutely needed.37 The Department told us that the level of change in commercial operators and the market in the last year had been unprecedented and that it did not expect in future to have to re-plan to the degree that it has in the past 12 months.38
Show less
Government response AI summary
BDUK balances the need to be dynamic and responsive to the market’s plans while maintaining a minimum level of certainty. BDUK has implemented a process for surveying contract areas to understand suppliers’ commercial build plans. BDUK has streamlined its procurement process, while maintaining Public Contracting …
Read full response →
HM Treasury
14
Conclusion
Thirty-Second Report - Delivering gigab…
Accepted
In our January 2021 report we concluded that the Department had failed to make meaningful progress in tackling barriers faced by operators in maximising gigabit connectivity. We noted that it had yet to secure the legislative and policy changes that industry deemed necessary for removing major barriers at pace and …
Read more
In our January 2021 report we concluded that the Department had failed to make meaningful progress in tackling barriers faced by operators in maximising gigabit connectivity. We noted that it had yet to secure the legislative and policy changes that industry deemed necessary for removing major barriers at pace and received no assurance that they were being addressed urgently.43 The Department responded by outlining the progress it had made through its “Barrier Busting Taskforce” including introducing the Telecommunications Infrastructure (Leasehold Property) Bill and consulting on whether the Electronic Communications Code required further reforms.44
Show less
Government response AI summary
The department has introduced the Product Security and Telecommunications Infrastructure Bill, worked with the DfT and industry to implement and trial further reforms to streetworks and permitting, published a statutory technical consultation on ‘new build’ home gigabit-capable connectivity, introduced changes to permitted development rights, and …
Read full response →
HM Treasury
16
Conclusion
Thirty-Second Report - Delivering gigab…
Accepted
The Department also held a technical consultation on the regulations needed to implement the Telecommunications Infrastructure (Leasehold Property) Act from June to August 2021. However, it has not yet published either the findings of the consultation or its response to these.48 Similarly, the Department is still analysing feedback on the …
Read more
The Department also held a technical consultation on the regulations needed to implement the Telecommunications Infrastructure (Leasehold Property) Act from June to August 2021. However, it has not yet published either the findings of the consultation or its response to these.48 Similarly, the Department is still analysing feedback on the consultation it ran from January to March 202149 on whether the Electronic Communications Code can help to ensure that the UK has sufficiently robust electronic communications networks to deliver the coverage and connectivity consumers and businesses need.50 We received written evidence from stakeholders, including commercial suppliers, who suggested that delays to reforms will make delivering the 2025 target more challenging. For instance, Openreach told us that that it can upgrade existing copper infrastructure, but that this would require primary legislation, which was not yet in place.51 Similarly, the Internet Service Providers’ Association and the Internet Networks Cooperative Association told us that barriers are diverting key funding away from the rollout and impacting the 43 Committee of Public Accounts Committee, Improving Broadband, Thirty-fifth Report of Session 2019–21, HC 688, 8 January 2021, para 2 44 Government response on the Thirty-Fifth report from the Committee of Public Accounts, Improving Broadband, Session 2019–21 CP 409, March 2021, para 2.2 and 2.3 45 Telecommunications Infrastructure (Leasehold Property) Act 2021 - House of Commons Library (parliament.uk) 46 Q 50 47 Letter from Sarah Healey to PAC Chair Dame Meg Hillier Re: Improving Broadband, 23 November 2021 48 Q 53–56 49 Q 54 50 Closed consultation overview: Consultation on changes to the Electronic Communications Code – GOV.UK (www.gov.uk) 51 DRB0007 DCMS recall (Broadband), Openreach, November 4, para 24 14 Delivering gigabit-capable broadband commercial viability of the build in certain areas; with operators spending substantial sums negotiating and
Show less
Government response AI summary
The department has introduced the Product Security and Telecommunications Infrastructure Bill, worked with the DfT and industry to implement and trial further reforms to streetworks and permitting, published a statutory technical consultation on ‘new build’ home gigabit-capable connectivity, introduced changes to permitted development rights, and …
Read full response →
HM Treasury
17
Conclusion
Thirty-Second Report - Delivering gigab…
Accepted
Stakeholders also suggested that there were areas where the Department’s approach to removing barriers to rolling out gigabit-capable infrastructure could be strengthened further.53 This was particularly the case regarding “wayleaves,” which are contractual agreements between landowners and telecommunications providers about the right to access property in order to install and …
Read more
Stakeholders also suggested that there were areas where the Department’s approach to removing barriers to rolling out gigabit-capable infrastructure could be strengthened further.53 This was particularly the case regarding “wayleaves,” which are contractual agreements between landowners and telecommunications providers about the right to access property in order to install and maintain electronic communications apparatus.54 We received written evidence from The Independent Networks Co-operative Association, which told us that issues with wayleaves topped the list of challenges cited by independent operators working to deliver the UK’s overall policy objectives. Negotiations over wayleaves can sometimes takes over two years.55 Openreach also told us that issues related to wayleaves are a particular concern for blocks of flats with multiple occupants, which Openreach estimated may affect up to 1.5 million households.56
Show less
Government response AI summary
The department has introduced the Product Security and Telecommunications Infrastructure Bill, worked with the DfT and industry to implement and trial further reforms to streetworks and permitting, published a statutory technical consultation on ‘new build’ home gigabit-capable connectivity, introduced changes to permitted development rights, and …
Read full response →
HM Treasury
20
Conclusion
Thirty-Second Report - Delivering gigab…
Accepted
In our report in January 2021, we found that the Department was still developing its £5 billion programme to subsidise roll-out to the hardest to reach 20% of the UK’s 31 million premises and could not tell us when it intends to deliver major milestones, such as the letting of …
Read more
In our report in January 2021, we found that the Department was still developing its £5 billion programme to subsidise roll-out to the hardest to reach 20% of the UK’s 31 million premises and could not tell us when it intends to deliver major milestones, such as the letting of contracts. We were increasingly concerned that those in rural areas may have to pay more and may reach gigabit broadband speeds late.64 At our evidence session, the Department confirmed that it does not intend to leave behind hard-to-reach areas, as rollout of Project Gigabit is based on the “Outside-In” procurement approach.65 This approach identifies non-commercial areas and builds to these premises in parallel with commercial building, ensuring that no areas are systematically left behind.66
Show less
Government response AI summary
BDUK's programme strategy and design of its interventions balances the need to be dynamic and responsive to the market’s plans while maintaining a minimum level of certainty and has implemented a robust process for surveying contract areas to understand suppliers’ commercial build plans. BDUK reviews …
Read full response →
HM Treasury
21
Conclusion
Thirty-Second Report - Delivering gigab…
Accepted
We asked the Department why it had not just pressed ahead with the areas that it already knows are commercially unviable in the long term. It pointed us to Cumbria which had recently “been procured” and said that Cambridgeshire was also in the same batch. However, these are a small …
Read more
We asked the Department why it had not just pressed ahead with the areas that it already knows are commercially unviable in the long term. It pointed us to Cumbria which had recently “been procured” and said that Cambridgeshire was also in the same batch. However, these are a small proportion of the UK and we asked what it was doing about the rest of the population. The Department told us that it was “absolutely not complacent”, and it was trying to ensure that it had a range of interventions in the programme so that it was clear with the market about where it is going to subsidise.67
Show less
Government response AI summary
BDUK balances the need to be dynamic and responsive to the market’s plans while maintaining a minimum level of certainty. BDUK has implemented a process for surveying contract areas to understand suppliers’ commercial build plans. BDUK has streamlined its procurement process, while maintaining Public Contracting …
Read full response →
HM Treasury