Select committee: Digital, Culture, Media and Sport Committee

Fourth Report - Broadband and the road to 5G

HC 153 Published 22 December 2020

At a glance12 recommendations and 4 conclusions · Government response published 5 March 2021

The government's response

Correspondence from the Department for DCMS re Broadband and the road to 5G report, 1 April 2021

Published 20 April 2021.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Secretary of State's letter supplies further information on the Department's response, setting out a target of a "minimum of 85% coverage by 2025" for gigabit-capable broadband and an ambition to get "as close to 100% as possible".

  • The Department states it is "confident that the 85% target will be met", citing coverage already reached and industry's commercial build ambitions, and says the government will monitor this closely, supported by Ofcom.
  • On funding, the £5 billion of capital funding "remains in place", with at least £1.2 billion to be spent in the period up to March 2025.
  • For semi-urban areas, the government anticipates a "substantial majority" will be served commercially by 2025. Where no operator has viable plans, it "will include these premises in the scope of our interventions".
  • On visas, the government points to existing routes, including the Skilled Worker visa, and notes the Migration Advisory Committee concluded there was "little evidence provided that there were insufficient resident workers to fill vacancies".

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Letter from the Chair to Rt Hon Oliver Dowden CBE MP, Secretary of State for DCMS, re Government's response to the Broadband and road to 5G report, 5 March 2021

Published 5 March 2021.

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Correspondence from the Department for DCMS re Broadband and the road to 5G report, 22 February 2021

Published 5 March 2021.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government sets out its strategy and targets for gigabit-capable broadband and 5G, agreeing with some recommendations, holding to a technology neutral approach, and in places noting or considering others.

  • On the 85% target, it says the target "is based on extensive engagement with industry". It expects the UK Gigabit Programme to spend "a minimum of £1.2 billion by March 2025" and reach "at least 5 percentage points of the final 20%".
  • It agrees that technologies should be future proof but says it is "strongly committed to a technology neutral approach" because this enables greater innovation.
  • On a formal review of gigabit and 5G targets by end 2022, it will "consider the timing of any formal review, noting the Committee’s recommendation", and is "content to report back" during the next two years and beyond.
  • On wayleave reform, it is consulting on whether further changes to the Electronic Communications Code are needed and will "carefully evaluate all responses". It will publish a procurement pipeline in Spring 2021.

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Sources

Recommendations and conclusions 16

  1. 1
    Sticking to unachievable targets benefits no-one, and it was inevitable that the Government would have... Conclusion · paragraph 27 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
    Sticking to unachievable targets benefits no-one, and it was inevitable that the Government would have to abandon its unrealistic manifesto pledge to deliver nationwide gigabit connectivity by 2025. Ministers should be ready to respond openly, in answering questions from members of a select committee, accepting that a target will not be met when they already possess sufficient information to know that it is not going to be achieved. We welcome the fact it has finally listened to concerns, rethought the target and taken a more realistic outlook. However, the time it has taken to do so will have delayed industry, local bodies and consumers receiving the information they need to plan or build a robust investment case. Moreover, given that the previous target had been staunchly defended to us makes us question how much of a say DCMS had in the decision to scrap it, and the extent to which both the new target and its likely implications have been fully considered in consultation with industry.
  2. 2
    It would not be acceptable having abandoned one unrealistic target, for the Government to fail... Recommendation · paragraph 32 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    It would not be acceptable having abandoned one unrealistic target, for the Government to fail to meet a second, less ambitious, target through lack of effective planning or inadequate investment. The Government should outline, in its response to this Report if not before, how it settled on the new gigabit-capable broadband target of 85% coverage by 2025, a full assessment of how likely it considers it to be met, and the detail of how it plans to deliver it. The Government should also clearly state its target date by which it expects the remaining 15% of premises to be served with gigabit-capable broadband.
  3. 3
    The Government’s technology-agnostic approach to securing a nationwide gigabit- capable network makes sense in the... Recommendation · paragraph 40 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    The Government’s technology-agnostic approach to securing a nationwide gigabit- capable network makes sense in the context of delivering faster connections to as many premises as possible as quickly as possible. However, the Government must not let it come with a trade-off in performance or longevity: any technologies used to deliver gigabit connectivity must be future-proof. Moreover, fibre will be a significant component of other gigabit-capable technologies, such as 5G, and therefore the challenges of rolling out a truly nationwide full-fibre network must not be underestimated.
  4. 4
    It is difficult to see how £5 billion will be enough to meet the Government’s... Conclusion · paragraph 49 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
    It is difficult to see how £5 billion will be enough to meet the Government’s aim of delivering gigabit broadband to the hardest-to-reach 20% of premises. Investment in digital infrastructure is too important to be compromised. It is therefore disappointing that over the next four years, the Government will make available only 25% of the £5 billion it had committed to support the roll-out of gigabit-capable broadband to the hardest-to-reach premises. This will undermine the ambition for such premises to receive better connectivity at the same time as other parts of the UK.
  5. 5
    The Government should outline in its response to this Report, if not before, how the... Recommendation · paragraph 50 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    The Government should outline in its response to this Report, if not before, how the remaining £3.8 billion has been ringfenced and when it expects to make it available for delivering gigabit-capable broadband to the hardest-to-reach properties.
  6. 6
    There are technical reasons why 5G will not be the silver bullet for delivering gigabit... Recommendation · paragraph 59 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    There are technical reasons why 5G will not be the silver bullet for delivering gigabit connectivity to rural areas but this will be exacerbated if the roll-out of 5G follows the same commercially-driven pattern as previous generations of mobile technology. Even if roll-out in urban areas means the majority of the population is able to access 5G by 2027, which is by no means assured given the restrictions on the use of Huawei equipment, Government must do more to ensure that rural areas do not get left behind.
  7. 7
    The Government should complete a formal review of progress towards its targets for gigabit-capable broadband... Recommendation · paragraph 60 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    The Government should complete a formal review of progress towards its targets for gigabit-capable broadband and 5G by the end of 2022 and report back to us on progress.
  8. 8
    Ensuring there is sufficient demand for gigabit-capable broadband must not be an afterthought and based... Recommendation · paragraph 78 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    Ensuring there is sufficient demand for gigabit-capable broadband must not be an afterthought and based on consumer behaviours and take-up of existing technologies, cannot be assumed to be a given. We are concerned that the Government has not given enough priority to this policy area to date and does not fully recognise the potential role that Government could play now. We await the findings of GigaTAG’s work and urge DCMS to act promptly on their recommendations.
  9. 9
    Getting the design of the gigabit programme right is absolutely essential, especially as its budget... Conclusion · paragraph 88 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
    Getting the design of the gigabit programme right is absolutely essential, especially as its budget for the next four years will be only 25% of what was expected. Some parts of the country will still get left behind when it comes to the roll-out of gigabit-capable broadband, the consequences of which have been magnified during the COVID-19 outbreak. Ensuring people can work remotely, wherever they live, will spread the economic benefits of digital connectivity to the whole country.
  10. 10
    The Government should outline in its response to this Report, if not before, what the... Recommendation · paragraph 89 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    The Government should outline in its response to this Report, if not before, what the Spending Review and 85% target mean for its ‘outside-in’ ambition and its strategy for delivering to those semi-urban areas unlikely to benefit from commercial roll- out. Given the centrality of the principle of levelling-up to the Government and its National Infrastructure Strategy, we recommend it continues to prioritise those with worst connectivity.
  11. 11
    The roll-out of gigabit-capable networks will put considerable strain on local authorities, which are already... Recommendation · paragraph 92 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    The roll-out of gigabit-capable networks will put considerable strain on local authorities, which are already facing considerable pressures on their budgets. The Government must retain the expertise gained through the superfast programme and ensure local authorities are resourced sufficiently to support the roll-out of gigabit- capable connectivity at pace.
  12. 12
    We are not convinced that the technology-agnostic approach to delivering gigabit-capable broadband extends much beyond... Recommendation · paragraph 95 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    We are not convinced that the technology-agnostic approach to delivering gigabit-capable broadband extends much beyond ministerial pronouncements. The Government needs to take a more joined-up approach to fixed and mobile telecoms policy, especially when it comes to interventions for the hardest-to-reach properties. In its response to this Report, if not before, DCMS should clearly outline what technology-neutrality will mean in the gigabit programme and how it will be delivered.
  13. 13
    We are concerned that Ofcom has significant catching up to do for its regulatory regime... Recommendation · paragraph 109 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    We are concerned that Ofcom has significant catching up to do for its regulatory regime to deliver the Government’s goals and protect consumers. The regulatory framework proposed in the Wholesale Fixed Telecoms Market Review has the potential to undermine the Government’s £5 billion subsidy for hard-to-reach areas and does not accurately reflect the competitive landscape for fixed telecoms. Consideration will also have to be given to the potential impact of the Government’s new target and spending plans. We expect Ofcom to address these issues in its final statement on the Wholesale Fixed Telecoms Market Review 2021–26 and to write to us explicitly outlining how it has done so.
  14. 14
    Judging by the legislative measures to date, the scale of the Government’s efforts to tackle... Recommendation · paragraph 118 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    Judging by the legislative measures to date, the scale of the Government’s efforts to tackle the most serious barriers to roll-out does not match the scale of its ambition for gigabit connectivity. Despite the challenges of the 2025 target, the Government intends to “wait and see” about complex problems such as third-party access instead of addressing them as a matter of priority. We recommend that the Government reforms the wayleave regime for telecommunications infrastructure in the next Parliamentary session to address unresponsive and/or uncooperative landlords in urban and rural settings, including third-party land.
  15. 15
    Again, the Government’s ‘wait and see’ approach to ensuring sufficient numbers of engineers does not... Recommendation · paragraph 122 · addressed to Department for Culture, Media and Sport Recommendation (the committee's words)
    Again, the Government’s ‘wait and see’ approach to ensuring sufficient numbers of engineers does not reflect the scale of the infrastructure and industry challenge to meet its targets for rolling out nationwide full fibre. The Minister’s assertion that the UK has enough engineers for its current need contradicts what we have been told by industry and is scant reassurance when build rates need to increase four-fold to reach 85% of the country by 2025. We encourage the Government to introduce time-limited visa solutions that enable engineers from the EU to address the industry’s labour needs until such time that these can be met by the domestic workforce.
  16. 16
    Industry’s calls for regulatory and business rate reform, as well as removing barriers to roll-out,... Conclusion · paragraph 126 · addressed to Department for Culture, Media and Sport Conclusion (the committee's words)
    Industry’s calls for regulatory and business rate reform, as well as removing barriers to roll-out, will not come as any surprise to Ministers; however, these long-standing policy recommendations demonstrate a gap between the Government’s ambition and the action it has taken to date. Even getting to 85% gigabit-capable coverage by 2025 will require a rapid rise in build rates and for industry to roll-out just as fast as under previous targets. Urgent action to address these barriers that stand in the way of them doing so is therefore as important as ever.