3. Will the Minister make a statement on digital connectivity infrastructure for the south Wales valleys? OAQ54618

Yes. The south Wales Valleys have seen significant investment in digital connectivity infrastructure, with the Superfast Cymru scheme investing over £66.9 million to provide fast fibre broadband access to over 244,600 premises. 

Thank you for that answer, Deputy Minister. I know, of course, this is a largely non-devolved area of work, but I do recognise that, over the last few years, because of the failure of the UK Government to provide sufficient investment where the commercial market won't provide this vital service for our communities and business, the Welsh Government has stepped into this space and invested in high-quality broadband infrastructure, improving digital connectivity through the Superfast Cymru programme, as you've already highlighted—something I know that has a very positive impact in my constituency. So, can I ask the Deputy Minister: what work are you doing with Welsh Government colleagues to press the UK Government to follow your lead and to provide funding for high-quality digital infrastructure that can further support areas like Merthyr Tydfil and Rhymney to improve their productivity and their competitiveness as an area for investment?

Thank you for that question. Dawn Bowden is absolutely right that this is a non-devolved area, but, because of market failure and the inactivity of the UK Government, the Welsh Government has been forced to step in here to divert significant resources from devolved services to address this clear failing by the UK Government to act. We have achieved significant results: a 95 per cent coverage of premises in Wales of superfast broadband. Now, we genuinely believe that fast internet access is now an essential modern service. The UK Government has a universal service obligation for postal services, so, if you post a letter to a farm track, isolated, it still—even though it may not be profitable, there's an obligation on the Royal Mail to deliver that letter. We think there should be a similar universal service obligation on telecommunications providers to provide modern, fast broadband.

The UK Government's come up with what it calls a universal service obligation, which is that in name only, I'm afraid. It's a right to request up to 10 Mbps, where the cost of building is no more than £3,400, from March 2020. So, this will still leave large parts of rural Wales without a functioning broadband service. So, that clearly is not worth the paper it is written on. We are looking to see what we can do, and we have a statement and debate coming up shortly on what more the Welsh Government can do to reach the areas that we've yet to reach.

There is some progress in terms of other technologies, notably 4G and 5G, which are able also to deliver internet services. I met with the telecommunications companies recently, who I'm very pleased to say have come up with their own plan to achieve a step change in provision of 4G coverage in Wales by 2025, to increase coverage from 58 per cent to 86 per cent, without intervention by Ofcom. That, I must say, is very welcome, and we are working with them to see what we can do to help maximise that beyond 86 per cent if possible. We are worried that this will only be achieved by 2025, which still leaves a very long gap.

We are also working as part of bidding for 5G trials in rural areas. Simon Gibson is leading a task and finish group for the Welsh Government looking at 5G and, as part of that, has put in a bid to the DCMS 5G trials for test beds, and that is about to be considered by them, which would see a focus particularly on Blaenau Gwent, the Heads of the Valleys and Monmouthshire, which was the result of the £250,000 piece of work that the Government has supported. So, I think that there are things that we are doing, despite the fact that this is non-devolved. But, really, we need the UK Government to step up to the plate here PDQ.  

Minister, last month, the Federation of Small Businesses produced a report on how broadband and mobile connectivity hinders small businesses in south-east Wales. With regard to Wales, they point out that mobile phones are increasingly becoming a key element of connectivity for small business owners. In areas where superfast broadband is not available, there are disproportionately high numbers of small firms that say that they use their mobile phones for internet banking and to interact with customers and suppliers at the same time. Minister, what action will you take to extend broadband coverage to areas that are currently hard to reach, such as parts of the south-east Wales Valleys? Thank you.

Well, with respect to Mohammad Asghar, I have just answered that question. I would say to him that the UK Government—regardless of party, the UK Government has the lead role to play here. And, since his party has been in Government, we are falling woefully behind. We've stepped in where we shouldn't to provide this service. It is now time that the Government acts.