5. Debate on the Economy, Infrastructure and Skills Committee report: 'Digital Infrastructure in Wales'

Part of the debate – in the Senedd at 3:41 pm on 22 November 2017.

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Photo of Julie James Julie James Labour 3:41, 22 November 2017

Yes, absolutely—I accept all of those points. I'll come on to some of the complications of mobile in a minute, but since this scheme started, one of the problems, of course, is that technology has moved very significantly, and actually, although mobile isn't devolved to Wales, as I keep saying, actually there's almost no difference between internet access and mobile. So, broadband, as we call it, is fibre broadband, but actually 5G access is just as good if you can get it there. That's one of the continuing conversations with the UK Government about the edges of the devolution settlement, which makes some of these things difficult as the technology moves, which I will come on to.

In terms of the delivery, the Superfast Cymru project was let after an open market review to comply with state aid rules. That open market review told us where the various telecommunications companies at that time intended to have commercial roll-out. We are not allowed to go in the intervention area anywhere where there's commercial roll-out. So, largely, this project is entirely rural. So, my own constituency in Swansea has no superfast at all because, obviously, there's commercial roll-out intended. But I can assure Members that that hasn't meant that everybody has got superfast and I can't actually do anything about it because it's not in the intervention area. One of the things that Vikki Howells highlighted is the difficulty of new estates built after the open market review. Members will remember that we conducted a further open market review, which brought another 42,000 premises in, as telecommunications companies decided to change where they were going to go with the commercial roll-out.

Also, in order to get to the largest number of premises across Wales, it has no geographical bias whatsoever. It's a conversation that I've had with a large number of you, including the Llywydd, on a number of occasions, because what we try to do is get to the largest number of premises in Wales with the money available. So, we have not told Openreach and BT where to go; they just go where they can get the biggest number of premises connected. We are technology-neutral. It's entirely a matter for them where they go. So, they decide whether it's fibre to the cabinet that will connect the most number of properties, or fibre to the premises. We do have pockets of villages where the whole village is left out, because actually that's what you'd expect. It's been said to me, for example, that some people feel that only a few properties have been connected to tick some sort of box. I can assure you that that's not the case. They are paid for premises passed. If they can connect a whole village, they obviously get the whole village as premises passed. There's no benefit to them in connecting some part of a network.

Where fibre to the cabinet is used, there is frustration, because if you're about a kilometre away, that's about the cut-off for superfast speed—about 30 Mbps—and there's a shadow that goes out to 24 Mbps for some people. BT are only paid for premises passed that reach the thresholds. They are allowed to have some properties in the shadow area, but most of the properties have to come over 30 Mbps and actually almost all the premises come in at around 80 Mbps to 100 Mbps once they're connected.

We have been pushing them very hard over the last two years. I have extremely regular, very fractious meetings with them about where they are and whether they've started the build. I completely accept the comms point that the committee has made and that a large number of Members have made to me. BT were extremely optimistic in announcing where they were going to get to and have been less good at giving people good information about why that's not going to happen, and we've had a lot of conversations with them about not being optimistic, as they see it, and I totally acknowledge that we need to do better in comms in terms of the Superfast Cymru 2 successor project.

They are still telling us that they will make it; they are connecting in a phenomenal number of premises per week at the moment—more than they've ever done previously in the contract due to the number of flames we're holding their feet to. They tell us they'll make it. If they don't, there are financial penalties, which I won't reveal here for all sorts of commercial reasons but which will, obviously, be eventually auditable, and all of the money will go back into Superfast 2. We absolutely concur that we don't want money: we want connection—absolutely. So, what we're trying to do is get them to get the network out as far as it will go with this project so that when we come to Superfast 2 we have the best possible start. We've just done an open-market review on consultation in terms of Superfast 2 and we're just analysing them.

Officials intend to start that procurement exercise shortly, with the view to the new project starting as close to the beginning of next year as we can manage it because we want to keep the roll-out going. However, I will invite any Member who has a whole community, or any problem at all in their area, to invite me to come down and talk to them. We also have a business exploitation team that's extremely happy to come and talk to either individuals or whole groups of people about what the best solution for them is, and we are going to structure the procurement so that we can handle those sorts of things. Also, the procurement, though, will want to get to the largest number of people as possible with the amount of money we have, so we've got to balance those two things off, and I intend to do that.

We will continue our two voucher schemes. I wish that Simon Thomas would tell me who the official is who sent that e-mail because I wish to put on record that I do not concur with its sentiments in any way whatsoever. My own—[Interruption.] Well, I hope you will send it to me. [Interruption.] Certainly.