Rarely has Westminster Hall seen a debate of such technical expertise and such unanimity on the thrust and direction that Members want to see. They were unanimous that increased connectivity is important and drives productivity; that when we clear the 700 MHz spectrum, we need to ensure that the concerns of those who currently use it are taken into account; that we need to use licence conditions for mobile operators in order to reach more people; that we must work appropriately to deliver the very best connectivity that we can; and that demand for that connectivity is going up. That is a reasonable summary of the points made on the direction of travel.
First, I will cover the current use of the 700 MHz band, why that is changing and what will happen as a result. I will then turn to the broader points raised on connectivity. This band of spectrum is an important public resource, and we will auction the use of it with the aim of getting the best benefit. It is currently used for digital terrestrial television, which is the TV we get through an aerial. Some 75% of UK households use it in some way. When TV was first launched in 1936, it used a large block of radio frequencies for which there was no competing use. Today those frequencies are in demand for mobile phones—in particular for mobile phone data—and other technologies, such as wireless microphones for the programme making and special events sector, to which my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston) referred.
Demand for mobile data is growing exponentially, as Members have said. The figures I have are that in January 2011, 27% of UK adults had a smartphone and 2% had a tablet. By August 2016, that had grown to 71% and 59% respectively. That meant that demand for mobile data doubled every year from 2012 to 2015. That trend is forecast to continue, and Ofcom has decided to reassign some spectrum from DTT to mobile, namely the 700 MHz band. That will mean that there is enough spectrum for DTT services and new spectrum to carry a lot of data longer distances, making it very useful for providing coverage across the UK. The 700 MHz spectrum is important because it can carry heavy data loads over longer distances, which is particularly important to the debate about ensuring that we have rural connectivity.
Working with Ofcom, we have set up a programme to ensure that we can clear the 700 MHz band, and up to £600 million is available to support the necessary changes. The main change is to adapt the infrastructure for TV to ensure that that switchover can happen. Support is also available for that for the PMSE sector, as my hon. Friend for Mid Worcestershire mentioned. To answer his questions specifically, Ofcom is consulting on the assistance to be provided. The details of exactly how that support will flow will follow on from that consultation. I met the industry body last month to hear the concerns directly, and we will continue talking to the industry to ensure that the switchover happens effectively. Although the spectrum is essentially domestic, in that the distances
it covers mean that there is not overlap, there is overlap in the fact that other countries use equipment on similar spectrums, and therefore in the manufacture of equipment. I acknowledge that, but I think that the issue can be dealt with, given the taxpayers’ money set aside for mitigation.
On the questions on rural connectivity raised by the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr), I agree strongly that we have seen a positive direction of travel. It is rare that an SNP Member describes the Government thus, but I am delighted that he did. No doubt he will agree that this week’s announcement by Virgin that it will cover 360,000 more premises in Scotland, the majority with fibre to the premises, was extremely good news.
The hon. Member for Sheffield, Heeley (Louise Haigh)—I almost called her my hon. Friend, we have spent so much time together—made a very interesting speech. Both she and the hon. Gentleman raised the need to ensure that licence conditions include coverage, which is well understood by the Government. It was a mistake by the Labour Government in the early 2000s to set out licence conditions without such geographic coverage requirements. We had to reverse that after the licences had been set, in 2014, to get enforceable targets into the licence conditions, and we are strengthening that enforcement in the Digital Economy Bill that is currently before the House. There are now licence conditions for the four main providers to reach 90% geographically, which is equivalent to about 98% indoor coverage.