Machine-to-Machine Communication

I thank the right hon. Gentleman. He is right that machine-to-machine communication raises a number of important questions about the way we live our lives, which I shall talk about later. We should be aware across Government of what the issues are, so that we give ourselves an advantage in addressing them. The question today is whether the Government are doing all they can to ensure the UK economy will benefit from this trillion-pound market of the future? Why is spectrum not being made available, as it was recently in the US, so that UK companies can get on with innovating in this hugely important area and ensuring we reap all the rewards? I hope that the Minister will tell us how the Government aim to ensure that the UK benefits from machine-to-machine communication, because we are in danger of being left behind. In some areas, the UK leads in machine-to-machine communication; it is otherwise known as M2M, which sounds rather like a pop group. Ofcom, my previous employer, has worked hard to ensure that spectrum is available for machine-to-machine communication. M2M can be divided into three broad areas: near field, home and personal, and wide area. I shall describe each in turn. Near field means near or short-distance communications. Probably the best example is the Oyster card system. Every morning, at Westminster station, I see commuters holding various purses, wallets, gym cards and, occasionally, parts of their body up to the readers. There is no direct contact with the Oyster card. The reader operates it using radio frequency identification—RFID—over very short distances. Oyster saves us the time and trouble of carrying money, queuing and purchasing tickets for every journey. A few months ago, my local transport authority, Nexus, launched the north-east's very own Oyster-type system called Pop. We will all be ““Popping”” about the north-east without having to wait at ticket machines. We can increasingly expect to see RFID used in many other applications. Oyster has already been extended to support contactless payments for small purchases. In 2008, the St Louis-based Somark Innovations tested an RFID tattoo on cows to monitor stock movements, and RFID devices are being implanted in salmon, so that we can track how they are responding to changes in the environment. Exciting innovations are possible in the area. In 2005, Ofcom deliberately chose to make spectrum in the 865-868 MHz range available for RFID applications on a licence-exempt basis. Licence exempt means that companies do not have to pay to use it, which means that small companies can think of exciting new ideas without having to pay out huge amounts to buy spectrum. That is why innovative businesses can try out new applications, and we can expect to see UK companies playing a big part in the RFID revolution. Therefore, when it comes to near-field communications, the UK is good to go. The next area of machine-to-machine communication is home and personal, which is still over short distances, but more than a few millimetres. It enables personal area networks, which are networks around the human body, as well as home networking. We all now think that it is a basic human right to be able to browse the internet from the garden thanks to wi-fi. There are other protocols that enable communications between devices in the home and in the office. For example, many of us use Bluetooth headsets, which wirelessly enable us to go hands free. There is also a protocol with the lovely name of ZigBee, which has been developed to enable wireless lamps. Increasingly, it might also be used by our fridge to tell our smart meter how much electricity it is using and whether it would be okay to turn the freezer off for a few milliseconds so that we do not have to bring on another gas power station every time ““EastEnders”” finishes. ZigBee, wi-fi and Bluetooth all operate in licence-exempt spectrum. There are challenges in home and personal networking. In some cities, people are finding that the wi-fi is often congested. Interestingly, that is not because there are too many people uploading photos on Facebook. It is caused by people using wi-fi to transmit satellite or cable programming around their home, so that can be a disadvantage of licence-exempt spectrum. Some new application can come along and hoover up all the bandwidth. None the less, in general, we have a home environment with innovative applications competing to improve our lives. Unfortunately that is not the case for wide area communication, which is everything from down the street to across the world. Mobile broadband, smart meters and the global positioning system are forms of wide area communication. Wide area applications are really where the huge innovative potential is. Smart cities need wide area machine-to-machine communication. I want to live in a world where the traffic lights on the Tyne bridge going into Newcastle can respond to traffic conditions on other bridges in the city so that we avoid gridlock. I would like to know exactly when the Number 10 bus will get to the bottom of Kenton lane. It would be progress indeed if people with chronic illnesses could lead more independent lives because their condition was constantly monitored, and help was immediately on hand through telemedicine applications. I want a smart national electricity grid, where sensors in turbines on wind farms in the North sea calculate our energy production moment by moment and change the level of usage in homes across the country as a result. That is the obvious big win. Every form of energy production now has big costs and risks associated with it. We have the technical complexity, cost and unpredictability of wind and solar power; the emissions associated with coal and gas power stations and the potential dangers and long-term costs of nuclear power. We need to ensure that we are using as little energy as possible. Machines use a hell of a lot of energy—whether in industrial processes, all the kettles switching on every time a soap ends, electric cars and transport or the giant server farms around the world that support cloud computing. By using machine-to-machine communications to reduce the amount of energy being used, we reduce the number of power stations we have to build. To a certain extent, the Department of Energy and Climate Change is aware of that. It acknowledges the importance of smart meters and ultimately of smart energy grids. My concern is that in this area, unlike in the others I have spoken of, we have no suitable licence-exempt spectrum and no well developed plans to bring it about. One reason for that is the very success of mobile telecommunications, which are everywhere—though not so strongly in the constituency of the hon. Member for Penrith and The Border (Rory Stewart). Everyone has a mobile phone; many people have two. Given that, why would we possibly want more wide area communication? Have we not got enough? The answer is no, and I hope that the Minister will be good enough to acknowledge the reason. In fact, I hope that he will acknowledge all my points, but on this one, I specifically expect a response. The Minister is not a machine. He does not look like a machine. He does not carry out his duties like a machine and he certainly does not communicate like a machine. Why then should he think that machines communicate in the same way as he does? Machines do not get annoyed when there is a busy tone. They do not become upset by congestion, or infuriated by delay. Putting billions of machines on to mobile networks designed for people is an incredible waste of valuable infrastructure. That is why we need spectrum, which allows machines to communicate with each other. We need some of that spectrum to be licence exempt so that we have innovation. Will the Minister tell me what assessment he has made of the potential economic benefits of machine-to-machine communications? Does he agree that it is important that there should be licence-exempt spectrum to support them? Does he agree that we urgently need clarity from Ofcom about when spectrum will be made available? The Minister may say that it is not for the Government or Ofcom to determine the use spectrum should be put to, but for the market. He has said that before in response to questions that I have tabled, but the market cannot determine the use spectrum should be put to if it is not made available.