§ 15. Mr. Bill O'Brien (Normanton)What proposals he has for greater competition in the telephone industry; and if he will make a statement. [77047]
§ The Minister for Small Firms, Trade and Industry (Mr. Michael Wills)We will give a major boost to competition in the market for mobile and broadband services through the auction in the latter part of this 522 financial year of radio spectrum for the provision of third generation mobile services. We will implement our manifesto commitment to open the market for entertainment services to BT and other public telecommunications operators from 1 January 2001. We will continue to work closely with Oftel and in the European Union to ensure that the regulatory system operates at home and in Europe to promote competition to benefit the consumer.
§ Mr. O'BrienI thank my hon. Friend for that reply. I am concerned about the network for which British Telecom is responsible. It would appear that it has a monopoly over the network and the provision of telephone and fax lines outside large conurbations, where sparsity makes it more difficult for cable to provide a service.
I draw my hon. Friend's attention to an application that was made to BT in Leeds more than seven weeks ago. Promises were made but no response has been received. Representations have been made to London, but no services have been provided. I understand that this is not an isolated case. It is difficult to understand how BT can speak for UK plc when our constituents are receiving that kind of service. Will my hon. Friend investigate the situation and see whether more competition can be introduced into the network system over which BT has a monopoly?
§ Mr. WillsMy hon. Friend makes some cogent points. If he sends me details of the individual case, I shall be happy to follow it up.
More generally, we realise that there are some gaps in competition in the network, especially in rural and semi-rural areas. My hon. Friend might take comfort in the fact that there are three developments that may increase competition and produce extra benefits for consumers. First, number portability is being introduced, which should greatly increase the ease with which consumers can switch between operators. Secondly, the penetration of the cable companies may increase now that they have begun to get their networks in place—it may increase further when restrictions on the delivery of entertainment services are lifted in January 2001.
Finally, Oftel is consulting on access to band width and considering local loop unbundling, which will increase competition. The Government and Oftel will carefully consider the responses to that consultation. I understand that Oftel proposes publishing its initial conclusions in June.
§ Mr. Nigel Evans (Ribble Valley)Has the Minister held consultations on the changes to telephone numbers? Telephone numbers were changed only a few years ago and recently it was announced that they are to change yet again. That adds to the costs of people who have to change their letterheads and other items that include their telephone numbers. Can he reassure us that the change announced recently will be the last one for a long time?
§ Mr. WillsWe are well aware of the concerns that have been expressed about the changes to telephone numbers, and I acknowledge the hon. Gentleman's concern. The matter is one for Oftel, with which we are keeping in close touch. Obviously, we shall keep a close eye on the situation.