Recommendations & Conclusions
8 items
8
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
In changing its target, it has also made changes to the type of technology it plans to use to achieve gigabit broadband rollout.19 In 2019, the Department revised its target from full fibre to “gigabit-capable” broadband. Some stakeholders considered this to be a watering down of the target because they …
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In changing its target, it has also made changes to the type of technology it plans to use to achieve gigabit broadband rollout.19 In 2019, the Department revised its target from full fibre to “gigabit-capable” broadband. Some stakeholders considered this to be a watering down of the target because they view fibre as a superior technology.20 This is because the telecoms industry generally regards full fibre as the best available technology as it is able to provide consistent gigabit speeds and is largely unaffected by rain and flooding. The industry also regards full fibre as using less energy than other forms of connectivity, costing less to maintain, and with no long-term foreseeable capacity constraints.21 Virgin 12 Project Gigabit Phase One Delivery Plan (publishing.service.gov.uk) 13 National Infrastructure Strategy – Fairer, faster, greener – November 2020, page 31 14 Committee of Public Accounts Committee, Improving Broadband, Thirty-fifth Report of Session 2019–21, HC 688, 8 January 2021 15 Letter from Sarah Healey to PAC Chair Dame Meg Hillier R: Broadband Report, 22 October 2021 16 Committee of Public Accounts Committee, Improving Broadband, Thirty-fifth Report of Session 2019–21, HC 688, 8 January 2021 17 Government response on the Thirty-Fifth report from the Committee of Public Accounts, Improving Broadband, Session 2019–21 CP 409, March 2021, para 1.4 18 Correspondence from Sarah Healey, Permanent Secretary, Department for Digital, Culture, Media and Sport, re broadband report, dated 22 October 2021 19 Q 28 20 C&AG’s Report, para 3.16 21 National Infrastructure Assessment Report, July 2018, page 21 Delivering gigabit-capable broadband 11 Media O2, which is currently upgrading its cable network to gigabit-capable connections, has announced plans to futureproof this by replacing its entire network with full fibre by 2028.22 Gigabit coverage in the UK – Progress to date
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Government response AI summary
The government highlights the UK's progress in gigabit connectivity, the number of companies involved, and the coverage achieved to date, attributing it to clear targets and a competitive regulatory environment.
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HM Treasury
9
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
In its letter to us ahead of our evidence session, the Department told us that there had been a rapid increase in nationwide gigabit coverage to 57% coverage in October 2021, up from 34% in November 2020.23 However, the most recent publicly available data from Ofcom put nationwide coverage at …
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In its letter to us ahead of our evidence session, the Department told us that there had been a rapid increase in nationwide gigabit coverage to 57% coverage in October 2021, up from 34% in November 2020.23 However, the most recent publicly available data from Ofcom put nationwide coverage at 40% in May 2021, up from 27% in September 2020. We asked what the cause of the rapid rises in coverage had been. The Department told us that gigabit-capable devices were being provided to customers either through existing fibre networks or through Virgin Media O2 upgrading its cable network to gigabit-capable speeds. It explained that “a lot of the very quick early rises” were largely due to the Virgin Media O2’s cable network upgrades which do not require a lot of new infrastructure and is more of a software upgrade. However, it was unable to tell us how much of this increase was the result of Virgin Media O2’s upgrade.24 The Department subsequently wrote to confirm that as of 31st October 2021, total gigabit coverage in the UK was 58%, of which full fibre coverage was 28%. It also told us that 30% of UK premises only have a gigabit capable connection through Virgin Media O2, and that total coverage from Virgin Media O2 extends to 40% of UK premises. However, it did not answer the specific point of how much of the 17-percentage point increase seen in recent months was due to Virgin Media O2’s upgrades.25 We also heard from Gigaclear who wrote to us confirming that nationwide gigabit coverage is expected to hit 60% by the end of 2021. It also told us Virgin Media O2 is expected to complete its upgrade early in 2022. Gigaclear said this is likely to contribute to a further rapid rise in gigabit coverage which is then expected to diminish once the upgrade has been completed.26
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Government response AI summary
The government provides updated statistics on gigabit and full fibre coverage as of March 2022, attributing contributions to Virgin Media O2, Openreach, and alternative network providers.
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HM Treasury
10
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
The Department expects commercial operators will supply broadband infrastructure where profitable, and that this will provide up to 80% of the UK’s coverage.27 To achieve the additional coverage needed to meet its 85% target, the Department plans to provide subsidies in the form of a gigabit voucher scheme28 and the …
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The Department expects commercial operators will supply broadband infrastructure where profitable, and that this will provide up to 80% of the UK’s coverage.27 To achieve the additional coverage needed to meet its 85% target, the Department plans to provide subsidies in the form of a gigabit voucher scheme28 and the public sector hub programme29 as well as the extension of existing superfast broadband contracts to provide gigabit connections.30
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Government response AI summary
The Department expects commercial operators will supply broadband infrastructure where profitable and is working with these operators to provide subsidies to build gigabit infrastructure in less commercially viable areas and is providing funding through the gigabit voucher scheme as immediate help for people experiencing slow …
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HM Treasury
11
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
The Department has yet to sign the gigabit infrastructure contracts with commercial suppliers under which it would provide public subsidy for them to build in areas that would otherwise not get coverage as they are less commercially viable.31 The dates by 22 Q 17, Virgin Media O2 bolsters future network …
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The Department has yet to sign the gigabit infrastructure contracts with commercial suppliers under which it would provide public subsidy for them to build in areas that would otherwise not get coverage as they are less commercially viable.31 The dates by 22 Q 17, Virgin Media O2 bolsters future network with fibre upgrade plan - Virgin Media O2 23 Correspondence from Sarah Healey, Permanent Secretary, Department for Digital, Culture, Media and Sport, re broadband report, dated 22 October 2021 24 Qq 16, 28; Connected Nations Update: Summer 2021, 9 September 2021 page 3 25 Letter from Sarah Healey to PAC Chair Dame Meg Hillier Re: Improving Broadband, 23 November 2021 26 DRB0014 DCMS recall (Broadband), Gigaclear, November 4, p.1 27 Project Gigabit: Phase One Delivery Plan – GOV.UK (www.gov.uk) 28 Q 6–7 29 Q 31, known as GigaHubs; provide up to £110m infrastructure funding to public buildings in the ‘hardest to reach’ to improve services and incentivise broadband companies to build off these networks. 30 Q 6, 30, 60, 71, Correspondence from Sarah Healey, Permanent Secretary, Department for Digital, Culture, Media and Sport, re broadband report, dated 22 October 2021 31 DCMS, Project Gigabit Phase One Delivery Plan, March 2021, p. 6 and DCMS, Project Gigabit Delivery Plan Autumn Update, October 2021, p. 12 12 Delivering gigabit-capable broadband which the Department reports that it expects to sign gigabit infrastructure contracts have changed on several occasions. At our last evidence session in November 2020, the Department told us that it expected contracts to be operating in the last quarter of 2021.32 In the Department’s summer update on progress, this was changed to May 2022.33 In its Autumn update, this was changed again to between June and August 2022.34 We asked the Department if it was able to give us a guarantee about when new contracts would be signed for the hardest to reach areas. It was unable to give us any guarantees but told us it had published its lat
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Government response AI summary
BDUK reported launching its first six procurements for up to 187,400 premises and provided its procurement pipeline for up to 2.3 million more premises to be included in contracts awarded by the end of 2024.
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HM Treasury
13
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
We asked the Department about concerns among some of our constituents who are feeling increasingly left behind as a result of private sector roll-out to the more commercially viable parts of constituencies. We asked it why its planning was slipping even further despite the procurement process having been made easier …
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We asked the Department about concerns among some of our constituents who are feeling increasingly left behind as a result of private sector roll-out to the more commercially viable parts of constituencies. We asked it why its planning was slipping even further despite the procurement process having been made easier for it by commercial operators accelerating their build plans very rapidly and Government’s level of ambition with regard to gigabit promoting market activity. The Department told us that people in areas where commercial operators are not going to build would not necessarily be left behind and that they would be eligible to look to use broadband vouchers.39 The voucher scheme is available for homes and businesses which the Department defines as uncommercial, and is designed to allow pockets of community coverage to be provided by commercial operators at pace for people experiencing slow broadband speeds.40 Promotion and administration of the Gigabit Broadband Voucher Scheme is led by commercial operators.41 These commercial operators include large firms like BT Openreach and Virgin Media O2, and smaller providers, known as alternative networks or “alt-nets,” including County Broadband and CityFibre.42 32 Committee of Public Accounts Oral evidence: Improving Broadband, HC 688, 9 November 2020, Q 121 33 DCMS, Project Gigabit Delivery Plan Summer Update, August 2021, p. 10 34 DCMS, Project Gigabit Delivery Plan Autumn Update, October 2021, p. 12 35 Q15–16 36 DRB0013 DCMS recall (Broadband), Talk Talk, November 4, p.3 and DRB00014 – DCMS recall (Broadband), Gigaclear, 9 November, p. 2 37 Q 6, 12 38 Q 10 39 Q 6–7 40 Qq 27, 59, 60 41 For Suppliers – Gigabit Vouchers (culture.gov.uk) 42 Q 12, 16 and 17 Delivering gigabit-capable broadband 13 2 Addressing the barriers to roll-out Delivering legislative change
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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 that suppliers will build viable networks to uncommercial areas and consequently ensure appropriate value for money.
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HM Treasury
15
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
The Department’s answers during our more recent evidence session suggested that it is still not making progress at pace in tackling barriers to gigabit roll out. For example, the Telecommunications Infrastructure (Leasehold Property) Act 2021 (TILPA) received Royal Assent on 15 March 2021. This legislation was designed to amend the …
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The Department’s answers during our more recent evidence session suggested that it is still not making progress at pace in tackling barriers to gigabit roll out. For example, the Telecommunications Infrastructure (Leasehold Property) Act 2021 (TILPA) received Royal Assent on 15 March 2021. This legislation was designed to amend the Electronic Communications Code, providing a process that telecommunications operators could use to gain access rights to multi-dwelling premises for a defined period. However, the substance of the Act will only come into force through secondary legislation. The Department initially expected this to occur in Autumn 2021.45 In our session, however, the Department told us that it was “hoping to do [this] soon” and that it was looking to lay the regulations needed by Spring 2022.46 The Department subsequently wrote to us saying that it would expect to implement regulations for the Telecommunications Infrastructure (Leasehold Property) Act by the second quarter of 2022.47
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Government response AI summary
The department has introduced the Product Security and Telecommunications Infrastructure Bill, worked with 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 taken …
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HM Treasury
23
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
In our January 2021 report, we found that the most difficult to reach areas were not neatly grouped together, and the Department was not yet clear how it would prioritise its interventions to ensure that they are served. As the Department expects that areas 64 Committee of Public Accounts Committee, …
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In our January 2021 report, we found that the most difficult to reach areas were not neatly grouped together, and the Department was not yet clear how it would prioritise its interventions to ensure that they are served. As the Department expects that areas 64 Committee of Public Accounts Committee, Improving Broadband, Thirty-fifth Report of Session 2019–21, HC 688, 8 January 2021, para 1 65 Q 13, 15, 16, 19 66 Delivering a gigabit-capable UK: Gigabit Infrastructure Subsidy, June 2021, para 3.3 67 Qq 11–3 68 County All-Party Parliamentary Group, Levelling Up Digital Connectivity in Counties, October 2021, p. 5 69 Qq 31–32 70 Q 31 Delivering gigabit-capable broadband 17 it classifies as “urban” will largely be covered by commercial building, its procurement prioritises rural areas with the greatest proportions of premises that are unable to receive superfast broadband speeds (30 Mbps).71 This means that it does not intend to sign contracts for areas including Birmingham and the Black Country, Merseyside and Greater Manchester, Greater London and Newcastle and North Tyneside until the later stages of the procurement process.72 Nevertheless, predominantly urban settings can have some rural areas within them. We queried whether this approach took account of the fact that neighbouring areas within the same region may have very different needs.73 For example, we observed that despite being within the same region Birmingham and the Black Country are likely to have different connectivity requirements.74 This is also the case for Edmonton in Greater London, where there are pockets of very poor service in a largely urban area.75
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Government response AI summary
BDUK will publish its profile to reach at least 5% of non-commercial premises by the end of 2025 in its 2022-23 corporate plan and will continue to publish quarterly updates on its pipeline of Gigabit Infrastructure Subsidy contracts. A call for evidence was made to …
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HM Treasury
24
Conclusion
Thirty-Second Report - Delivering gigab…
Acknowledged
The Department asserted that where there are variations found within urban areas, those pockets which are currently unviable are expected to be covered by commercial operators over the course of the next few years. However, should that not be the case, the Department told us that it will have to …
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The Department asserted that where there are variations found within urban areas, those pockets which are currently unviable are expected to be covered by commercial operators over the course of the next few years. However, should that not be the case, the Department told us that it will have to consider the best way of providing gigabit connections to those areas. The Department stated that potential solutions include the use of Gigabit vouchers, and it will continue to monitor eligibility for these to “mop up” these sorts of cases. The Department also stated that the roll out of 5G will benefit some of those urban areas because it is less specifically premises-based and gives good speeds.76 Delivering coverage in the hardest to reach areas
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Government response AI summary
In March 2021, a call for evidence was made to explore all possible options for improving broadband connectivity for Very Hard to Reach premises, and the government published its response in February 2022. This evidence will be used to assess policy options to understand how …
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HM Treasury