Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Those areas that currently have sub-superfast broadband speeds (30 Mbps or below) are more likely...
Conclusion
Those areas that currently have sub-superfast broadband speeds (30 Mbps or below) are more likely to be in the 20% of premises that the Department thinks will be unviable for commercial providers. Only 21% of premises in rural ‘county areas’ currently have access to gigabit-capable connections.68 We heard that some rural areas or areas of economic deprivation, such as Blaenau Gwent in Wales, were previously supported by the Welsh Government with the previous Superfast broadband roll out. In contrast, we noted that roll-out of gigabit connectivity had been much slower and that at just 3% the area had one of the lowest levels of coverage.69 We therefore asked the Department what it was doing to ensure that these areas and other rural areas, such as the Cotswolds, were not being left behind. The Department told us about a number of activities it was undertaking including: the roll out of superfast broadband to those unable to receive 30 Mbps (about 40,000 premises expected within the next year); the voucher scheme, which is told us was active and very popular in Wales; and the public sector hubs programme which had reached some 600 public buildings in Wales. However, it also told us it only recently completed the initial data-gathering stages for new procurements and therefore no new Gigabit infrastructure contracts have been signed.70
Government Response
Not Addressed
HM Government
Not Addressed
6.2 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. As well as achieving the 85% target, the contracts that BDUK is currently procuring are also the route by which the government’s nationwide coverage objective is achieved. Quarterly updates on BDUK’s pipeline of Gigabit Infrastructure Subsidy contracts, including premises numbers and indicative values, will continue to be published. 6.3 UK gigabit coverage beyond the 85% target would need to increase at an annualised 900,000 premises per year (subsidised and privately built) to achieve nationwide coverage by 2030. To build a credible and evidence-based profile for delivery beyond 2025 in the UK’s dynamic market, the department will need to reach three key milestones: • completion of all remaining market surveys to identify and understand the relevant suppliers’ build plans, including where commercial plans will mean that premises can be descoped from its contracts; • signing a material number of contracts to provide evidence on supplier interest in BDUK’s subsidies and the pace at which they’re committed to deliver their implementation plans; and • achieving sufficient clarity on the number of premises likely to be beyond the scope of the programme. 6.4 BDUK expects these actions to have been completed in order to be ready to form more robust profiles for the period beyond 2025 by Summer 2023. While this work is in progress, BDUK will provide information on the outcome of its procurements when they are signed, sharing the expected delivery plans up to 2025 and beyond for each contracted area. 6.5 In March 2021, a call for evidence was made to explore all possible options for improving broadband connectivity for these Very Hard to Reach premises. The government published its response in February 2022 bringing together its analysis and evidence from stakeholders. 6.6 This evidence will be used to assess policy options to understand how best to address the small minority of premises that will be beyond the scope of the programme and unable to access gigabit-capable connections. The department will publish further details later this year. 6.7 As part of its assessment process, the department will consider all available solutions and technology types. As equipment improves and technology standards are updated, it will continue to engage with stakeholders to understand how these technologies can best address Very Hard to Reach premises. 6.8 The department will address this recommendation in its letter to the Committee.