Political Monitor 31/07/2020

31 July 2020

Broadband

DCMS Publish benefits of highspeed internet case study research

DCMS has released their case study on the benefits of high speed internet for users connected via the Gigabit Broadband Voucher Scheme (GBVS). The GBVS which ran from March 2018 to May 2020 was an intervention designed to increase the deployment of gigabit-capable connections as part of the Local Full Fibre Networks Programme (LFFN). Some key findings from the study include:

• Gigabit Voucher Recipients were generally positive about their fibre connection, using words such as ‘lifeline,’ ‘efficiency, and ‘reliability’
• Rural residents reported ‘low level’ use, such as daily communications, entertainment, and online finance services.
• Some residents reported that the connection did not make much difference while others suggested it provides confidence in considering future plans.
• Not knowing ‘what you currently have,’ lack of technical knowledge and terminology hinders interest in switching to fibre.
• Barriers to uptake include cost, contracts and perceived ‘lack of need’.

Ofcom

Ofcom consultation price controls in non-competitive areas

Ofcom has published a further consultation, updating its proposals from January 2020 for price controls in Area 3. Originally, the investment costs of deploying a fibre network would be added to BT’s asset base and recovered over all customers, fibre-based and copper-based, in Area 3. Ofcom are now proposing a Regulatory Asset Based (RAB) model using a forecast rather than post-build approach, taking into account Openreach’s commitment to commercially deliver 3.2m properties in Area 3. Ofcom are also consulting on adopting a forecast RAB approach in Area 3 by indexing copper-based services of bandwidths up to 40/10 and allowing pricing flexibility for higher speed services.  The deadline for responses to the consultation is 16th September. Ofcom will make a final decision in March 2021.

Ofcom estimates £270m customer saving following pricing review

Ofcom have announced that Broadband customers who are out of contract are set to benefit from a package of pricing changes and commitments from their providers. Ofcom estimate that the pricing changes made by providers since their review began last September, could benefit all out-of-contract customers by over £270million per year. This would address more than half of the nearly £500million difference in what out-of-contract customers pay compared to average prices.

Cyber Security

Defence Committee hear evidence on security of 5G

This week the Defence Committee heard from BT and Vodafone as part of their ongoing inquiry into the Security of 5G. Some key points included:

• Vodafone and BT welcomed the 2027 deadline claiming anything earlier would have created network disruption.
• BT and Vodafone said they would be relying on Nokia and Ericson but were looking at OpenRAN to diversify the supply chain.
• Vodafone said trials for OpenRAN will be completed in 18 months with the hope of deploying across all areas by 2025 and BT said they wouldn’t be able to deploy OpenRAN until 2026/2027.
• BT said they were confident they could reduce Huawei presence to 0% in 5G by 2027 but weren’t sure if this would be the same for 4G.
• Vodafone say they have an achievable swap plan with the mobile element of Huawei but highlighted that there would still be Huawei technology in the fixed networks.
• BT believe that stripping Huawei would likely delay roll out by 1-1.5 years.

Written question on Huawei

Lord Jones of Cheltenham (LibDem) asked what assessment the Government have made of the statement by the President of the United States that he influenced them to remove Huawei from the UK’s telecommunications infrastructure. Speaking on behalf of DCMS, Baroness Barron replied that the Government’s decision on the status of Huawei in the UK’s 5G network was made in response to the consequences of the US sanctions against Huawei as well as the advice of the National Cyber Security Centre.

Foreign Secretary welcomes first EU sanctions against malicious cyber actors

On Thursday the EU imposed sanctions against nine individuals and organisations from North Korea, China and Russia, in the first set of sanctions under the EU’s cyber sanctions regime. The UK helped establish the EU Cyber Sanctions regime and the UK Government have said they will continue to implement the regime at the end of the Transition Period. Foreign Secretary Dominic Raab said the sanctions, which are now in force in the UK, send a strong message that malicious cyber activity against our European partners and allies has consequences. Raab continued that the UK had laid the statutory instrument for its own autonomous cyber sanctions’ regime, which will allow the UK to impose travel bans and asset freezes on individuals and organisations.

Online Safety

Written question on online harms code of practice

Andrew Selous MP (Con) asked when the interim codes of practice will be published under the proposals in the Online Harms White Paper Initial Consultation Response. Home Office Minister James Brokenshire replied that the Government will be publishing interim codes of practice on terrorist use of the internet and child sexual exploitation and abuse (CSEA) as part of the full response to the Online Harms White Paper consultation. Brokenshire stated this will ensure companies are provided with the necessary context to understand the expectations around what companies should do to address CSEA and terrorist content and activity online. The Government are currently working to prepare the interim codes of practice and the full Government response to the Online Harms White Paper, which they will publish in the autumn.

ISPA events

ISP Business Model Webinar Series

This September, ISPA will hold its ISP Business Model Summit event which this year will take place over a series of 3 separate webinars exploring areas of growth for ISPs. These include case studies from industry experts on the following topics:

• ‘Enhance your customer value proposition + ISPA AGM’ (24^th September)
• Run more cost effective networks’ (1^st October)
• ‘Increase your network security’ (8^th October)

All webinars will be held at 2pm. If you would like to RSP, please email admin@ispa.org.uk