Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Accepted
Business case unable to disaggregate cost-benefit analysis for masts in very rural areas.
Conclusion
A number of stakeholders from Scotland, in areas which were particularly remote, have raised concerns about the programme’s impact on the environment and questioned whether the benefits justified the investment of taxpayers’ money.24 We therefore asked if the Department had done enough in its business case to identify the cost-benefit analysis of putting masts in very rural areas. The Department told us that the business case was high level and could not be disaggregated for individual masts. This was because the programme was a deal between government and mobile network operators whereby the operators would fund the Partial Not Spot element and, in return for this, the Department would fund the Extended Area Service and Total Not Spot elements. It therefore needed to be viewed in the round.25
Government Response Summary
The government agrees and commits to refreshing its benefits model and cost-benefit analysis by December 2024, including a new study on consumer willingness to pay and qualitative research, with findings to inform a Spending Review bid.
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.