12. What her policy is on competition in the telecommunications market. (151752)

Our telecoms market is one of the most open and competitive in the world. Effective deregulation has set industry free to create new services and set international standards. Of course, the way we configured the 4G auction ensured that we remained a full-player marketplace in mobile.

The mobile operator 3 has a licence because the previous Government wanted competition. The Secretary of State and I were recently at a celebration of 3’s 10th anniversary. That competition has hugely benefited customers, so why has the entire rural superfast broadband fund been handed to one company—to BT? BT is now behaving like any monopolist that has everyone over a barrel, and we have heard about the consequences from all sides this morning. Why has competition been forgotten?

Competition has not been forgotten. May I say that I bow to no one in my respect for the right hon. Gentleman as a former telecoms Minister who did so much to promote competition. As a result of that, BT has just a 30% share of the broadband market, and the market share of the historic incumbent in the copper broadband market is one of the lowest in the world. That is a testament to the right hon. Gentleman’s great work, but we are carrying it on. We made sure that our process for rural broadband was competitive. It just so happens that BT has won the contracts, and I reject the suggestion that it is behaving like a monopolist. We are getting value for money for our contracts, and BT is a great British company doing a great job for Britain.

On the subject of rural broadband, I encourage my hon. Friend to recognise that there is more competition in the market than some people understand. Companies such as Cotswold Satellite in my constituency have high-quality, high-speed and low-cost satellite services that are available now, to anyone who wants them.

My hon. Friend is absolutely right that there are a number of players in the marketplace. It is fiercely competitive, not just in mobile but with Virgin in fixed-line and, as my hon. Friend has pointed out, there are many community players as well.

I am sure the Minister will join me in welcoming the National Audit Office inquiry into why the 4G auction raised £1 billion less than was forecast. In a time of austerity, it is quite wrong for the mobile phone companies to be given spectrum at prices below even what they were prepared to pay. In his letter to me, the Comptroller and Auditor General said:

“This differs from the earlier auction of 3G spectrum…where the generation of proceeds was at least one of the objectives of the auction.”

Why was the Minister so casual with taxpayers’ assets?

I utterly reject that accusation. After the 3G auction, there was a National Audit Office inquiry, and it is entirely standard procedure to have the NAO run the ruler over the 4G auction. I happen to believe that Ofcom did a fantastic job in running it. I went personally last night to congratulate the 92 men and women who worked on that auction and delivered a fantastic result. In the 3G auction, telecom companies paid far too much and it took too long to roll out 3G. Now we are likely to get 4G by the end of 2015— two years ahead of schedule and with 98% coverage.