The Government has an ambition to make the UK a digital nation with gigabit-capable broadband as soon as possible which is something that we applaud. However, this is still going to mean those living in remote rural communities and hard to reach areas of the UK will be left behind, as it will be more challenging to connect those communities. This is something that the Government has recognised and has been recently consulting on how to deliver connectivity to these communities, alongside a consultation on the future of the Universal Service Obligation (USO).
As we move into a digital age the rural economy is becoming more reliant on digital connectivity. People who live and work in the countryside must be able to engage fully in the economic life of the country and that means connecting everyone, even the hard to reach places. The Countryside Alliance responded to both consultations making the case for the importance of digital connectivity in rural communities to help maintain a living and working countryside.
The Government currently estimates that potentially fewer than 100,000 premises are likely to be classed as being “very hard to reach” and are likely to have a delivery cost that is significantly above the limits of commercial investment cases, the gap funding approach to Project Gigabit procurements, and of the broadband Universal Service Obligation’s reasonable cost threshold.
Previous Government policy has not treated very hard to reach premises explicitly differently from others. However, the circumstances of these premises and the specific cost economics of telecommunications technologies have led to substantially different outcomes for these premises - typically poorly performing and less reliable services. In some cases, such premises have proved effectively beyond the reach of other interventions based on funding limits.
Our response to the consultation supported the proposal for policy interventions to deliver connectivity to hard to reach premises and that an alternative approach is required to ensure these premises can receive a gigabit-capable connection. However, we are concerned that the funding required to deliver this project was not made clear. The Government has been able to secure funding for an initial grant programme for some of these premises, but it is unclear how the whole programme will be funded. The Government has committed up to £5 billion of funding for the Project Gigabit programme and it is expected to be complete by 2030.
The Government also consulted on the USO and its future. The Alliance made the case that the USO remains crucial in rural areas for ensuring equitable access to communication and information technologies. It helps bridge the digital divide, fostering economic development, education, and healthcare access in regions that might otherwise be underserved or excluded.
We believe that the USO must be kept separate from commercial delivery and other interventions and we emphasised the importance of ensuring universal access to broadband services as a basic utility. Treating broadband as a public utility, with a separate policy framework, helps address issues of digital equity and ensures that everybody has access to essential communication and information services.
The Alliance will continue to make the case for digital connectivity in rural areas as the Government has made a policy decision to deliver more services online to make savings. As such it is only right and fair that everyone has access to broadband to enable them to engage in the digital world. Remote rural communities must not be penalised by paying an excessive connection charge to access basic services due to the Government policy of digital by default.