Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
Business case lacked specific evidence on benefits of extending mobile coverage to remote areas.
Conclusion
The Department’s business case for the programme as a whole identified a range of benefits, such as supporting tourism and business productivity in rural areas. It estimated that the programme would result in quantifiable benefits of £1,352 million. However, the business case included limited evidence of the specific benefits of extending mobile coverage into the more remote or sparsely populated areas, including locations where building masts may be more difficult or expensive, or where there may be an impact on the environment.22 We therefore asked how much of the £1,352 million benefits specifically related to enhanced connectivity in rural areas. The Department was unable to give a 16 C&AG’s Report, para 13 17 Q 25 18 Qq 26, 37 19 Q 25 20 Qq 6, 25; C&AG’s Report, paras 13, 3.15 21 Q 18; C&AG’s Report, para 2.12 22 Q 11; C&AG’s Report, para 9 12 Supporting mobile connectivity specific figure but said that the overwhelming majority of the benefits were in rural areas, because those tended to be the areas where the market has not been fully incentivised to deliver.23
Government Response Summary
The government committed to refreshing its benefits model and cost-benefit analysis using new data, undertaking a study on consumer willingness to pay, gathering innovative benefits data from sources like exercise apps, and conducting further qualitative research to increase the evidence base on benefits in remote areas.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2024 2.2 The Shared Rural Network will deliver a range of benefits for the public, consumers, and businesses. Using new data on the coverage provided by the TNS and EAS projects, the department will be refreshing its benefits model to further analyse the programme’s expected benefits. Similarly, coverage uplift delivered under the Partial Not Spots (PNS) project can be tracked using data from Ofcom’s connected nations reports and will be analysed through this benefit model refresh, the programme’s evaluation, and bespoke pieces of analysis. 2.3 The department is also refreshing the figures underpinning the programme’s cost benefit analysis. This includes a study on the value that consumers are willing to pay for mobile connectivity – the first of its kind in a decade. These figures capture the current picture on the benefit of mobile connectivity in remote areas, as well as the latest costs from Digital Mobile Spectrum Limited (DMSL), a joint venture of UK mobile network operators EE, Virgin Media (O2), Three and Vodafone. 2.4 The department is also taking an innovative approach to benefits data, including gathering information on leisure activity in coverage areas through exercise apps. 2.5 In addition, there are multiple non-monetised benefits to the programme which cannot be included in the cost benefit analysis. The department is conducting further qualitative research with key stakeholders in TNS areas to increase the evidence base on benefits (and challenges) with delivering mobile connectivity to these areas. 2.6 This analysis will be included in the department’s bid at the Spending Review.