BT: Video Services (Hansard, 21 October 1993)

§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Strathclyde)
My Lords, British Telecommunications plc is already licensed to provide a wide range of telecommunications services to the public. There has been speculation recently about whether such services could include what has become known as "video on demand". Her Majesty's Government's view is that BT's licence could permit certain types of video on demand service.

Lord Morris
My Lords, I am most grateful for my noble friend's Answer. Is he aware that it is perceived in many quarters that, should the measure he has mentioned come to pass, it would constitute a considerable breach of undertakings given to the many companies which have invested, and which propose to invest, billions of pounds in the telecommunications infrastructure in this country? Not only would that be jeopardised but the measure proposed would also encourage the maintenance of the old twisted copper-pair wiring, which is sitting in the ground at the moment, and which must be replaced as soon as possible.

§ Lord Strathclyde
My Lords, video on demand would constitute a new service and many technical, regulatory and commercial details are still unclear. However, if my noble friend feels he has a case that has not been heard by the Government, I should be interested to hear representations from all interested parties.

§ Lord Merlyn-Rees
My Lords, would such services be subject to the video recordings Act and to the British board of film control, which also statutorily controls video services?

§ Lord Strathclyde
My Lords, all contents of programmes transmitted via video on demand services would come under rules and regulations governing contents.

§ Lord Dormand of Easington
My Lords, whatever further decisions the Government may take in this matter, will they bear in mind—the noble Lord, Lord Morris, mentioned this—that massive investment has been undertaken by cable television companies? Will the Government also bear in mind that these schemes are in their infancy and nothing should be done to stifle that investment? As the Government often remind us, they are dedicated to consumer choice, and cable television, which incidentally almost always includes telephony, would add greatly to that choice. These are factors that the Government should take into consideration when dealing with this matter.

§ Lord Strathclyde
My Lords, the Government have certainly always supported consumer choice and indeed the choice that is supplied by cable television companies. The cable television industry in this country has been enormously successful over the course of the past few years and provides a most valuable service.

§ Lord Peston
My Lords, I am astonished by the Minister's reply. Surely, if we wish to satisfy consumer demand, the only criterion is competition. Why would the Government be a party to limiting any new entrant to this field by using licensing? Surely the Minister's correct answer is that the cable companies and every other company have to take their chances in the marketplace and if British Telecom can offer a competing service, the Government, far from worrying about licensing, should he encouraging it. Does he not agree with that?

§ Lord Strathclyde
My Lords, the noble Lord, Lord Peston, expressed the matter very well. I hope he did not misunderstand my earlier replies. We believe that British Telecom should be allowed to develop a new service, which is why I said in my original Answer that its licence currently allows it to do so.

§ Lord Peston
My Lords, the Minister seemed to take seriously the point made by the noble Lord, Lord Morris. With all respect, the noble Lord, Lord Morris, had a vested interest in that point, although not in a personal sense. The point was made that, because the cable companies have made a large investment in this area, the Government have some obligation to them. Will the Minister confirm that the Government have no obligation to the cable companies? The Government have an obligation to consumers who might wish to watch videos—I have no idea why they should wish to do so—to offer them a competitive service at the lowest price.

§ Lord Strathclyde
My Lords, I said to my noble friend Lord Morris that if the cable companies felt they had not been well heard by Government, the Government would continue to hear their representations. The comments of the noble Lord, Lord Peston, 636 were correct. British Telecom is providing a valuable new service and providing consumer choice. That is right at the heart of government policy.

Lord Morris
My Lords, I am most grateful for my noble friend's replies. This is a wide and difficult issue. Will my noble friend be good enough to use his best offices, through the usual channels, to ensure that this difficult and complicated subject will be debated as soon as possible?

§ Lord Strathclyde
My Lords, if my noble friend wishes to table a Question for debate, I am sure that it will be considered.