Improving Broadband
Closed
What the inquiry looked at
“In 2010, the government announced its aim for the UK to have the “best superfast broadband network in Europe”, and set up the Superfast Programme to subsidise broadband roll out to areas where it is not commercially viable for providers to reach. In a report published in mid-October, the NAO finds that despite wide coverage , many people in the UK still experience poor broadband. Suppliers to the Superfast Programme were encouraged to prioritise roll out to the easiest to reach premises, which means there is a risk that those in the most rural and remote locations will be left further behind. Rural coverage of superfast broadband is now at 80%, compared to 97% in urban areas, and is the lowest in rural Northern Ireland, at just 66%. The existing broadband infrastructure has been put to the test by COVID-19, with concern that the pandemic has exacerbated the rural-urban divide. So far, the Department for Digital, Culture, Media & Sport (DCMS) has prioritised increasing broadband coverage over speed. While superfast broadband is fast enough for most household use today, internet use is rising by 40% each year driven largely by video streaming and the focus is now on ensuring that the UK has a broadband network that will meet future demand. In 2018, to meet future demands of consumers and businesses, the government announced a new policy for the UK’s telecoms industry to provide infrastructure capable of faster gigabit speeds to 50% of premises by 2025, and nationwide by 2033. At present only 27% of UK premises are covered by gigabit-capable infrastructure. Only 14% can access full-fibre - one of the lowest rates in Europe. The government later committed to accelerating this target and achieving nationwide coverage by 2025. It is still finalising plans for its £5 billion Future Programme, supporting delivery to the hardest to reach 20% of premises, and has much work still to do and little time to do it by its own deadlines. The NAO says Government should set out whether the Future Programme will prioritise the hardest to reach premises first. Delivering these targets will require the telecommunications industry to reach approximately 31 million premises and lay around half a million kilometres of cable. This would require an estimated four-fold increase in building rates, which will be difficult to achieve in the hardest to reach areas. The final 1% of premises could be too expensive to include in the Future Programme at all – for these premises, alternative solutions to gigabit broadband will have to be found. The Committee will question senior officials at DCMS on how Government intends to reach its targets for the UK’s digital connectivity and ensure the UK has a “future proof” digital infrastructure. If you have evidence on the questions and issues raised in this inquiry please submit it here by 6.00pm Wednesday 4 November.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
More than ever, people rely on fast and reliable broadband for work, entertainment and accessing goods and services. The Department for Digital, Culture, Media & Sport’s (the Department) Superfast Broadband Programme has helped to extend superfast broadband coverage to harder-to-reach areas over the past decade. More than 95% of UK premises can now access broadband speeds of at least 30 Mbps and, according to Ofcom, the country’s infrastructure has held up well to unprecedented internet demand during the covid-19 pandemic. But 1.6 million UK premises, mainly in rural areas, cannot yet access superfast speeds and, as the Department turns its attention to upgrading the UK’s broadband connectivity again, there is a risk that rural areas will be left even further behind.
After we took oral evidence from the Department on 9th November 2020, we felt it was clear that Government’s 2019 election pledge to deliver nationwide gigabit (1000Mbps)
broadband connectivity by 2025 was unachievable. Since then the government has accepted that. On 25 November it published, alongside the November 2020 Spending Review, a revised target of at least 85% by 2025 but will seek to accelerate rollout to get as close to 100% as possible and has committed less than a quarter of the £5 billion funding needed for the Department’s programme to support roll-out to the hardest to reach 20% of premises. This is still a challenging target and increases the risk that the very hardest to reach premises will be struggling with slow broadband for many years to come. We are concerned that the Department has yet to make any meaningful progress in delivering the policy and legislative changes deemed essential by industry if it is to achieve rapid roll-out. It is 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 are increasingly concerned that those in rural areas may have to pay more, and may reach gigabit broadband speeds late. Given the impact of covid-19, the Department must do more to protect those with limited access to the internet. We remain unconvinced that, if and when rural users finally do get gigabit broadband, they will enjoy the same choice of service provider and the same protections as their urban counterparts.
What the government said
The government responded on 26 March 2021.
The government states that it "agrees with the Committee's recommendation" on each of the six recommendations, with target implementation dates mostly of Spring or Summer 2021.
- On timelines, the government says the overall delivery profile will be incorporated into the Programme Business Case, "due to be submitted for approval in Summer 2021", and that it "will publish progress against the programme's milestones regularly".
- On the 2025 target, it "expects that by 2025 at least 85% of premises will have access to gigabit-capable connections" and will work with industry to get "as close to 100% as possible".
- On barriers to rollout, it says it "will publish an update on its Barrier Busting work shortly". The outcome of the technical consultation on Huawei equipment in full fibre networks will be announced "in due course".
- On pricing and competition, proposed contracts include annual wholesale price benchmarking, and where pricing is "deemed too high against market benchmarks" suppliers will be required to revise it. It adds that Ofcom "has the regulatory powers" to address network monopolies in more commercial areas.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 20 October 2020 to 29 November 2021.
- Oral evidence 9 Nov 2020
- Report 8 Jan 2021
- Government response 26 Mar 2021
- Correspondence 29 Nov 2021
What it recommended 5 recommendations · 17 conclusions
2The Department has failed to make meaningful progress to tackle the barriers faced by operators...
3The Department is not clear how, in a centralised procurement model, it will retain the...
4he Department has been unable to show how it has learnt lessons from the superfast...
5he Department is yet again failing to prioritise consumers in rural areas.
6The Department cannot provide certainty to consumers that they will have a choice of internet...
1On the basis of a report by the Comptroller and Auditor General, we took evidence...
7We pointed out to the Department that a year has passed since the general election...
8The National Audit Office’s report called for the Department to present a detailed plan and...
9The Department describes the £5 billion it has budgeted for its gigabit programme as ‘critical’.
10The Department explained that it was focussed on removing barriers to rapid roll out, such...
11We asked about progress towards resolving the barriers which industry has repeatedly said need to...
12The National Audit Office report stated that the requirement to remove equipment supplied by high...
13The National Audit Office report sets out how the Department intends to adopt a centralised...
14In its evidence to us the Local Government Association (LGA) called for additional annual funding...
15The National Audit Office’s report said that it had been difficult to assess the Superfast...
16The Department told us that it wanted to have very clear objectives and to be...
17The National Audit Office report noted that the Department estimates £0.9 billion of funding will...
18The Future Telecoms Infrastructure Review sets out government’s intention to take an ‘outside-in’ approach to...
19The National Audit Office’s report describes how the Superfast Programme was able to leave the...
20Since we took evidence, the government has reduced its coverage target to “a minimum of...
21The National Audit Office was concerned that greater competition in the broadband infrastructure market would...
22We asked the Department how it intended to protect consumers in areas with a single...
Evidence
Oral evidence sessions 1
- 9 Nov 2020Improving broadband3 witnesses, listed belowparliament.uk ↗
Who gave evidence 3 witnesses
- Raj KaliaChief Executive, Building Digital UK, Department for Digital, Culture, Media and Sport
- Sarah HealeyPermanent Secretary, Department for Digital, Culture, Media and Sport
- Susannah StoreyPermanent Secretary, Department for Culture, Media and Sport