18 December 2014
Dear Colleague,
BINDING MOBILE COVERAGE DEAL
I am writing to inform you that yesterday I signed a landmark, legally binding, deal with the UK’s mobile operators, securing £5bn of investment into infrastructure and committing each of them to 90 per cent geographic coverage of the UK by 2017.
Coverage is simply not good enough in the UK, particularly in rural areas, and I was not prepared to let that situation continue. This deal means that the number of both partial- and total not-spots will be vastly reduced, improving consumer and business experience all around the country. Full mobile coverage (where every operator provides signal) will increase from its current level of 69 per cent to 85 per cent of geographic areas by 2017.
Vitally, we have made the deal legally binding by insisting that each of the MNOs accepts amended licence conditions to reflect the agreement. These conditions are enforceable by Ofcom and sanctions can be applied if the conditions are not met.
As you will be aware the Government has been determined to act to tackle the poor coverage and signal issues which have blighted the UK for too long. This deal marks the culmination of those efforts and has been signed by me alongside all four of the UK’s mobile network operators (MNOs) – EE, O2, Vodafone and Three.
Although the deal is legally binding it has been signed voluntarily by each of the operators. It comes as a result of extensive pressure from Government and at the end of a series of detailed negotiations. Last month we launched a consultation, looking at legislative options to try to tackle not-spots, which set a bar for what we wanted to achieve in terms of mobile coverage. But my preference has always been for a voluntary solution, although I was clear I would not hesitate to introduce legislation if required.
This voluntary deal delivers a far better result for consumers than any of the legislative options on the table, including national roaming. It locks in guaranteed investment – whereas some felt national roaming might deter investment – it means significant reductions in total not-spots as well as partial not-spots, it ensures that competitive pressure still exists between the operators and it also delivers huge increases in data coverage, reflecting and supporting the way most people use their mobile phones nowadays.
It is now entirely up to each of the MNOs to work out how best to deliver their new commitments – whether through sharing more infrastructure, using new cells and new technology, upgrading their existing kit or through other means.
To help them reach this target Government is allowing many of the Government’s freehold buildings to be used as sites for their infrastructure at market rates – potentially opening up hundreds of new sites. We have also made clear our intention to reform the outdated and ineffective Electronic Communications Code, making it easier for the whole communications sector to roll out new mobile and broadband services. Despite industry pressure, we will not be changing planning rules in any way.
This deal guarantees a huge amount of infrastructure investment in the UK – a central part of the Government’s long-term economic plan. It will ensure the UK’s mobile coverage levels are among the best of any European nation. It will make it easier for people to communicate and for businesses to compete and grow. Ultimately, it means more people will be able to stay connected in even more places up and down the country.
Yours truly,
Rt Hon Sajid Javid MP
Secretary of State for Culture, Media and Sport
