Digital Economy Bill by Lorna Booth And
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BRIEFING PAPER Number CBP 7699, 9 September 2016 Digital Economy Bill By Lorna Booth and [Bill No 45 of 2016-17] Daniel Rathbone Contents: 1. Digital Access and Infrastructure 2. Online pornography 3. Intellectual property 4. Digital government and data sharing 5. The BBC 6. Direct marketing code www.parliament.uk/commons-library | intranet.parliament.uk/commons-library | [email protected] | @commonslibrary 2 Digital Economy bill Contents Summary 4 1. Digital Access and Infrastructure 5 1.1 Broadband: Universal Service Obligation 5 Background 5 The Bill 6 Comment on Broadband Obligations 6 1.2 Switching and Compensation 8 Background: The current marketplace 8 The Bill 9 1.3 Reform of the Electronic Communications Code 10 Background: Improving the mobile network 10 The Bill 12 Response to Proposals 16 1.4 Planning for Infrastructure 17 The Bill 18 1.5 Ofcom Appeals 18 1.6 Spectrum Management 19 What is Spectrum Management? 19 Dynamic spectrum access 20 Government strategic priorities for spectrum management 20 Financial penalties for breach of spectrum licences 20 1.7 Other Ofcom changes 21 2. Online pornography 22 2.1 Consultation on age verification for online pornography 22 2.2 Government response 24 2.3 The Bill 24 2.4 Comment 25 3. Intellectual property 26 3.1 The changes to intellectual property law under consideration 26 Online copyright 26 Webmarking 26 TV retransmission 27 3.2 The Bill 27 3.3 Comment 28 4. Digital government and data sharing 30 4.1 Consultation 30 4.2 Existing protection for personal data 31 4.3 Reviews of data sharing 33 When are people content for their data to be shared? 34 4.4 Public service delivery: data sharing 36 General powers 36 Fuel poverty 37 Protections 37 The Bill 37 Comment 38 4.5 Civil registration: data sharing 39 Why is data on civil registration useful? 39 The Bill 41 Comment on civil registration data 42 3 Commons Library Briefing, 9 September 2016 4.6 Debt owed to the public sector: data sharing 43 Why share data on debt? 43 The Bill 44 Comment on sharing public debt data 46 4.7 Fraud against the public sector: data sharing 47 How can data sharing reduce fraud? 47 The Bill 48 Comment on data sharing and fraud 49 4.8 Research purposes: data sharing 49 Data sharing for research 49 The Bill 51 Comment on data sharing for research 52 4.9 HMRC: data sharing 53 Why share HMRC data? 53 The Bill 54 4.10 Official statistics: data sharing 54 Sharing more data to support official statistics 54 The Bill 58 Comment 59 5. The BBC 60 5.1 Background to proposed changes 60 Ofcom’s role 60 Over-75s 60 5.2 The Bill 61 5.3 Comment 61 6. Direct marketing code 63 Contributing Authors: Antony Seely, Lorraine Conway, Catherine Fairbairn, Sally Lipscombe, Ed Potton, Antony Seely, Philip Ward, John Woodhouse Cover page image copyright: Superfast Cymru Cab5 by btphotosbduk. Licensed under CC BY 2.0 / image cropped 4 Digital Economy bill Summary The Digital Economy Bill 2016-17 [Bill no. 45] was published on 6 July 2016 and its First Reading in the House of Commons took place that day. Its Second Reading is scheduled for Tuesday 13 September 2016. The Bill, and its explanatory notes, are available on the Parliamentary website. Factsheets and impact assessments are available from the .Gov website. The Bill would implement a number of Government policies, broadly related to the digital economy. It: • covers the provision of fast broadband services through a new ‘Universal Broadband Obligation’ entitling consumers to a minimum speed, enhances switching and compensation for communication services, and a new Electronic Communications Code to deal with phone and internet infrastructure, making the roll-out of new infrastructure cheaper and subject to simplified regulation; • provides for greater data sharing between public bodies for certain purposes and in certain circumstances. Datasets may be shared to support public service delivery and in relation to public sector debt and fraud, and to produce research and official statistics. There are also specific provisions for sharing data related to civil registration; • updates intellectual property rules for digital industries; • introduces age verification for online pornography with penalties for non- compliance; • introduces a new statutory code for direct marketing to strengthen enforcement action; • updates the regulation of the BBC by making OFCOM responsible for the regulation of all BBC activities; the Bill also transfers to the BBC from the Secretary of State the ability to make concessions on TV licences relating to age (following the transfer of the cost of free over-75 licences). Following the publication of the Bill the then Minister for the Digital Economy, Ed Vaizey, said: We want the UK to be a place where technology ceaselessly transforms the economy, society and government. The UK has always been at the forefront of technological change, and the measures in the Digital Economy Bill provide the necessary framework to make sure we remain world leaders. A Commons Library Briefing Paper provides a general overview of the digital economy and related statistics (Digital economy: statistics and policy). The Business, Innovation and Skills Committee reported on the digital economy in July 2016 (on the industry generally rather than the provisions of this Bill). The Government have said they expect the Bill to be considered in the Commons and Lords in the last part of 2016. The Bill extends to the whole of the UK with two exceptions: sharing data in relation to civil registration does not apply in Scotland and Northern Ireland, while the provisions for sharing energy supplier data do not apply in Northern Ireland. 5 Commons Library Briefing, 9 September 2016 1. Digital Access and Infrastructure 1.1 Broadband: Universal Service Obligation Background The Government has stated that fast broadband connections are now an essential service for households and businesses across the UK: Fast broadband connectivity is now seen as a key service, essential not only for busy families but also for businesses and entrepreneurs across the UK. The latest data from Ofcom confirms 10 Mbps is the speed needed to meet the demands of today’s typical family and many small business.1 Superfast broadband has been rolled out to much of the country on commercial terms, principally by BT Openreach. The Government’s policy is to provide funding to support the roll-out of superfast broadband to those areas of the UK where commercial roll-out is not economically viable. This is mostly, but not entirely, in rural areas. The Government defines superfast as speeds greater than 24Mbps. This roll- out has provided superfast broadband to 90% of UK premises as at the end of March 2016 and is on course to meet a target of 95% of premises by the end of 2017.2 Improving the speed and availability was a manifesto commitment of the Conservatives in 2015.3 The remaining unserved premises (estimated at 1.5 million), the “final 5%”, are geographically dispersed across the UK. In order to ensure the final 5% have access to fast broadband connections the Government has stated that it will introduce a broadband Universal Service Obligation (USO) to act as a “safety net” allowing those with poor connections the legal right to request a fast connection.4 The connection speed for the USO will be specified in secondary legislation and is currently expected to be 10Mbps. The Government intends for the USO to be in place by 2020 at the latest.5 Ofcom has stated that the USO will ensure that the households living in areas with poor connection speeds are not excluded from the benefits of a digital society: Despite both commercial and publicly funded efforts to improve superfast broadband coverage, some people remain stuck on slow speeds. Many of these are in rural areas but others are located in cities. The broadband USO is intended as a safety net to ensure that these households are not excluded from the benefits of living 1 DCMS, ‘Government plans to make sure no-one is left behind on broadband access’, 7 November 2015 2 ‘UK hits the 90% superfast broadband coverage target’, thinkbroadband, 8 April 2016 [accessed on 7 June 2016] 3 Conservative Party Manifesto 2015, p15 4 DCMS, ‘Government plans to make sure no-one is left behind on broadband access’, 7 November 2015 5 DCMS, Digital Economy Bill Factsheet – Broadband Universal Service Obligation [accessed on 6 July 2016] 6 Digital Economy bill in a digital society. It aims to ensure that a minimum level of broadband is available to everyone at a fixed location, on reasonable request, and at an affordable price, irrespective of where people live. A USO connection is demand-led, meaning it is provided on request rather than pre-emptively (e.g. through a publicly funded roll-out programme).6 The Government has commissioned Ofcom to provide technical analysis and recommendations about the design of the USO including costs, technologies and funding.7 Ofcom intends to produce a report by the end of 2016, after which the Government has stated it plans to publish draft secondary legislation, implementing the USO, for consultation.8 The Government expects the USO to work in a similar way to the telephony USO. BT, the designated provider under the telephony USO, provide a telephone line connection on request at a standard charge if the total cost is below £3,400. If the costs are going to be above this threshold the customer has the option of meeting the additional cost.9 For more information on broadband policy see the Library briefing: Superfast broadband coverage in the UK (CBP-06643, 18 August 2016).