Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Accepted
Department explores options to absorb rising costs, potentially reducing number of masts.
Conclusion
To absorb these additional costs, the Department is considering its options. These include delivering the required increase in 4G coverage but with fewer masts.17 For example, BDUK estimates that only about 170 of the original 292 Extended Area Service masts could be needed to deliver the increase in coverage required of this element, and also understands that the number of masts needed under the Total Not Spots may come down significantly from the current estimate of 260.18 However, the Department acknowledged that, in respect of extra costs being incurred by the Home Office, Ministers could choose to provide more funding, although currently the Department was looking instead to remain within the current cost envelope by optimising the number and placement of masts to deliver the required coverage.19
Government Response Summary
The government confirms the 95% coverage target is expected to be met within budget, citing the SRN's capped grant fund for Total Not Spots that limits government contribution and requires MNOs to cover additional costs, while BDUK works to maximize benefit within Extended Area Service funding.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2024 1.2 Deployment progress from the Office of Communication (Ofcom) show UK geographic coverage from at least one mobile network operator (MNO) is making excellent progress since Building Digital UK (BDUK) reported to the committee in April, with indications that the overarching 95% coverage target will be met ahead of schedule and within budget. 1.3 The Shared Rural Network’s (SRN’s) Grant Agreement structure moves the majority of the financial risk for delivery outside government. Using a capped grant fund for the Total Not Spot (TNS) element of the programme ensures the government’s financial contribution cannot exceed £300.7 million over the programme. MNOs must remain within this grant envelope or use their own funds to deliver their 1% coverage target. 1.4 For the Extended Area Service (EAS) project, delivered with the Home Office, BDUK is working closely with its partners to ensure that maximal benefit can be achieved within the allotted programme funding. 1.5 SRN is technology neutral. If technology can meet the Department for Science and Innovation and Technology’s (the department’s or DSIT’s) minimum speed requirements within the terms of the grant agreement, it will be eligible for subsidy. The programme delivers to Ofcom’s standard of ‘good network service’ with speeds of at least two megabits per second (Mbps), though speeds of at least six Mbps are expected in most of the network’s footprint. In all cases, the government’s delivery partners have the freedom to choose the best technologies to deliver their targets with while maintaining value for money.