Clause 154 - Grant of recognised spectrum access
Communications Bill
3:15 pm
Mr Michael Fabricant (Lichfield, Conservative)
It seems to me that the system is very irregular as far as the European Union is concerned. I want to mention a couple of my fears, in addition to those outlined by my hon. Friend the Member for Maldon and East Chelmsford.
My main concern is that on the margins a number of satellite operators will think that RSA is in effect a compulsory system. That is borne out by the quotes that my hon. Friend the Member for South
Cambridgeshire read from the evidence that the Radiocommunications Agency gave the Trade and Industry Select Committee. The agency said that it would not offer protection from interference to companies that did not take up RSA. As I said earlier, I would have thought that that was in breach of the Wireless Telegraphy Act. If satellite operators think that RSA is compulsory, they may well take the view that they need to take up RSA for the sort of costs that we have discussed, and far from being an optimal system, RSA will become a compulsory system.
Let me remind the Minister, if he is not already aware of the fact, that although satellite broadcasters might enjoy spectrum free of interference at the moment, they might not in future. Additional sources of radio frequency—RF—might arise from additional transmissions. Also, I draw to the Minister's intention the increasing use of the national grid and other main electric lines for data transmission. He may well be aware that that is giving rise to considerable concern, as it already causes interference in the HF—short wave or high frequency—bands. The same could happen with VHF and super high frequency, and that would be getting very close to the sort of frequencies used by satellite broadcasters. Those frequencies may be interference free now, but they may not be in future. What could be the effect of that, if satellite broadcasters consider that RSA will end up compulsorily if they are successful in providing their service, interference free? The result will be that satellite operators will have an increased cost. They will want to maintain their profits and, when the negotiations are renewed for the renewal of contracts with operators of the satellite, the costs will be passed on.
What will follow from that? Provision of services at the financial margin may be discontinued in the United Kingdom. It may not be worth while providing them. I am talking possibly about arts programmes that are currently available on satellite, which may not be very profitable and may fall into unprofitability if the charges increase. I am also drawing attention to the increased use of satellite both geostationary and low earth orbit constellation systems for the provision of broadband internet connections, to which my hon. Friend the Member for Maldon and East Chelmsford alluded. They are the only way in which to achieve internet connection in certain rural areas in of the United Kingdom.
That brings to mind a scheme operated by BT with great success in the Outer Hebrides. The costs already are high. That is not because BT is greedy, but BT with so few subscribers finds the charges high. What will be BT's choice? It will either have to subsidise the service under the provision or it will have to pass on the costs, which will make the service prohibitive. It will also be in total breach of the Government's laudable aim—although it has not been very successful so far—of spinning out broad broadband throughout the United Kingdom. That will not happen in rural areas, which
will be dependent on satellite if the provisions are accepted.
The Minister must answer the question that was so pointedly made by the hon. Member for Sheffield, Hallam (Mr. Allan). What will be the advantage to the operator of subscribing to RSA? Does he agree that the costs to some operators could be as high as £7.5 million? If he does, where does think that that £7.5 million will come from? It will come from us. We may be living in the Outer Hebrides or another rural area and want broadband access via satellite or be interested in watching programmes of a marginal, not popular, nature. I am trying to think of a popular satellite service, but I shall not name one because that will imply that it is not a good service. I was referring to a popular and good service. The Minister must answer such questions clearly.