Source · Select Committees · Public Accounts Committee

Recommendation 18

18 Accepted

Satellite technology shows promise for future cost-effective 4G coverage in remote areas.

Conclusion
We asked the Department about the scope for using alternative technologies, such as low earth orbit satellites in place of masts, to provide mobile coverage in those areas which would still have no 4G coverage after the completion of the Shared Rural Network programme. The Department told us that it was already undertaking trials of the use of such technology in areas where there were serious issues in providing access to broadband services. The trials were going very well and local feedback had been very positive. The Department noted that satellite-enabled mobile telephones were currently expensive both in terms of their upfront costs and the ongoing subscription costs.31 However, it expected that over time that satellite technology would probably become the most cost-effective solution for the relatively few premises in the 5% of the UK without 4G coverage.32 30 Q 40; C&AG’s Report, para 13 31 Qq 14–16 32 Qq 59–60 14 Supporting mobile connectivity 2 Data on mobile coverage Reported coverage versus people’s experience
Government Response Summary
The government agrees with the conclusion but primarily reiterates that the Shared Rural Network is technology-neutral, allowing partners to choose the best technologies, including satellite if it meets minimum speed requirements, without committing to specific new actions regarding satellite trials or deployment.
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.