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Digital Economy Bill [HL]

My Lords, Clause 1(2) builds on Ofcom’s existing duties in the Communications Act 2003 regarding the desirability of promoting the fulfilment of public service purposes and encouraging investment in relevant markets. It requires Ofcom to consider in all cases the need to promote investment in communications networks and in public service media content. Subsection (2) places these considerations as the most important qualifier of Ofcom’s main duties. I am aware of the misconceptions and concerns about the status of the qualifier and would like to reassure the noble Lords, Lord Howard, Lord De Mauley, Lord Lucas, and other noble Lords who expressed concern during this debate that this qualifier will not override Ofcom’s principal duty to further the interests of citizens and consumers. Ofcom will be able to use its discretion to ensure that investment is promoted only where it would be appropriate and where it helps to deliver on the principal duty. The communications market and infrastructure in the UK has changed substantially since the Communications Act was passed in 2003—the digital world has changed the landscape dramatically. There have been a number of examples during this debate. Therefore, it is very important that in performing its existing duties, Ofcom should give greater weight to the need to promote investment in electronic communications networks and in public service media content—as far as is appropriate to the benefit of consumers and citizens. Surely the overall objective is to ensure that in this country we do not have what has come to be known as the digital divide. The noble Lord, Lord Steel, and others expressed concern about access to services. There is a much more fundamental need to ensure that we get the infrastructure investment that the whole country needs and do not create a digital divide. The UK increasingly relies on having a world-class communications network for every part of our lives. Our businesses rely on electronic communications to improve processes, to innovate, to control costs and to reach customers. Citizens rely on electronic communications to work, to shop, to train, to stay in touch with friends and family and to enjoy our world-class digital entertainment. Children rely on electronic communications to study and learn. Indeed, it is not only children. Increasingly every part of government relies on electronic communications to reach citizens. The health of infrastructure, over which all these electronic communications pass, is critical to the well-being of the UK. Many of our communications networks are being substantively upgraded—digital television, digital radio, high-speed broadband and next-generation mobile. It is important that Ofcom should be able to take into account, as far as is appropriate, the benefit to consumers and citizens that will result from these and other major investments. It is important that this is properly recognised in the regulatory framework that impacts so much on what happens to communications infrastructure. There is a risk that if we do not invest more in our communications infrastructure, we will find that the networks and services that currently exist will deteriorate and that we will fossilise and fall behind our competitors as they invest for the future. Before I continue, I want to deal with some of the questions raised during the debate. The noble Lord, Lord Lucas, said that the new duties imply an open disregard for consumers by Ofcom. We reject that and believe that we have the balance right between promoting infrastructure investment and the need to deal with the concerns of consumers. The noble Earl, Lord Erroll, was worried about the question of the commitment to megabit speed. We have not abandoned it by any means, but we do not need to enshrine the objective in legislation to achieve it. I can reassure him that the objective is still in place. I have already addressed the concerns of the noble Lord, Lord Steel, about infrastructure; indeed further on in the Bill we talk about the importance of mobile coverage. To me, removing this subsection would actually act against the concerns he has expressed.