MPs urge Ofcom to move goalposts on spectrum auction

Motion to encourage Ofcom to mandate 98 per cent population coverage was signed by 100 MPs from all political parties

Political pressure is mounting on Ofcom to increase its population coverage requirement in the approaching 800MHz and 2.6GHz spectrum auction from 95 to 98 per cent.

A Commons motion signed by 100 MPs from all political parties was passed unanimously after a series of backbenchers insisted that this is the only way to ensure remote rural communities benefit from faster broadband services.

But the motion expresses a view and has no practical effect, leaving the regulator free to set its own terms for the auction following its current consultation.

Media minister Edward Vaizey insisted the auction "is not a money-raising exercise" but warned: "Ofcom has to take into account a whole range of different factors, including the investment capacity of operators. It must also undertake a cost-benefit analysis of whether the coverage obligations are inappropriately expensive."

However he promised MPs it "will give serious consideration to any proposals, along with appropriate evidence, on whether to increase the coverage obligation."

The debate was opened by Penrith and the Border Tory MP Rory Stewart (pictured above), who said that the current target for 95 per cent of the population to be online for 90 per cent of the time equates to broadband for just 87 per cent of the population and accused Ofcom of refusing to see benefits from extending the coverage further because to do so would limit its return to £3bn.

He said the £215m claimed cost of increasing coverage "is less than we spend in three weeks in Afghanistan" and added: "Let us not allow the clever arguments of narrow economists who are blind to technology... allow Britain to miss the chance to get what it needs for its economy, for its society, for its health, for its education and for its communities by signing up to the best superfast mobile and broadband coverage in Europe."

Suffolk Coastal Tory Therese Coffey said not to do so would be "penny wise and pound foolish".

But Newcastle Central Labour MP Chi Onwurah warned that increasing coverage would increase the cost to operators substantially and therefore delay rollout of the more peripheral mobile coverage.

A series of MPs added demands that the rollout of terrestrial superfast broadband must be speeded up and its coverage expanded.

Vaizey said the next wave of superfast community pilots supported by the state will be announced next week and promised that after that projects would be approved on a first come, first served basis.

He said there would be no third or fourth wave. It would be "a rolling process".