Although digital connectivity is now critical to our day-to-day lives, too many communities across Wales face high levels of digital exclusion – and Wales has the highest rate of non-internet usage in the UK.
Against its target for the Superfast Cymru Project to reach 96% of properties existing in 2011, the Welsh Government has extended the completion of the build phase to June 2017, following an Open Market review which showed that the number of premises needing to be addressed under the project had increased.
When I questioned the Minister for Skills and Science regarding this in Economy, Infrastructure and Skills Committee, she stated that the Welsh Government was only allowed to intervene in the market where no commercial operators said they would go – hence no Superfast Cymru in central Wrexham, Swansea and Cardiff.
She said that if you look at a map of Superfast Cymru, it excludes all the areas where the commercial company said that they would roll out – but when they conducted another Open Market review after concerns being raised with her by many Members, including myself, this showed that the commercial operators have revised their plans and would not be rolling out into those industrial areas.
She added, that in consequence, 42,000 premises had been added to the original target and the deadline extended by a year.
Fibrespeed North Wales was developed as a public/private partnership after winning a competitive tender from the Welsh Government, to provide high-speed broadband services across North Wales industrial estates, business parks and other locations to increase economic growth.
The Welsh Government made a significant investment in this, understood to be many millions.
Questioning the Deputy Minister for Skills and Technology here in June 2014, I referenced a letter sent to Members by Fibrespeed, expressing concern that the FibreSpeed investment had been overbuilt by Superfast Cymru and that they were seeking guidance from the EU Commission on potential breach of State Aid rules.
In an October 2014 letter to Members, the Deputy Minister for Skills and Technology, who is also the current Minister for Skills and Science, responded to my question, stating that:
Through discussions with Fibrespeed Ltd, and via a prior legal/technical exercise undertaken by Welsh Government, the 2014 Open Market Review has determined that the 793 postcodes serving business only premises will now be included in the scope of the new superfast Cymru Infill project – on the basis that Fibrespeed does not intend to provide broadband connectivity to business premises in the future and its pricing is deemed unaffordable.
So, Minister, the Welsh Government has some serious questions to answer - how many Millions of public pounds were wasted on a Welsh Government project resulting from a Welsh Government tender, what went wrong and why were Fibrespeed placed in this position?
Responding to me in Committee, you also stated that the Welsh Government had just specified a percentage and number in its Superfast Cymru contract and that “it’s entirely up to the deliverer who is BT, to get to the premises number”.
However, we also understand that BT missed many thousands of users by classifying premises such as student halls of residence and holiday parks as single addresses.
In North Wales, I have attended 2 meetings with the British Holiday and Home Parks Association Clwyd branch and BT Wales’ Next Generation Access Manager to address the provision of Broadband in rural Wales, which continues to affect park businesses and their ability to meet the demands of customers – the visitors on whom the North Wales tourist economy depends.
The BT programme Manager has proved an invaluable contact for them, providing information on current and future provision, including the Welsh Government scheme to help businesses such as these to access Fibre on Demand.
However, park business have told me that the problem is finding someone to sell the product. BT Local Business denied all knowledge of it, and when they finally tracked down a company prepared to sell this, it was in England.
As they state, it gripes them to go to an English company to buy a Welsh project that is financially supported by the Welsh Government.
They added that the monthly retail price puts it out of the reach of many businesses in Wales.
Against England’s 95% target, the UK Government published the findings of its Innovation Fund Pilot for the final 5% most remote communities in February - so, finally, when and how will the Welsh Government take action to reach the final 4% of premises here?