Key Facts

• Amendments would require the Secretary of State to provide the Intelligence and Security Committee of Parliament with copies of specific notifications and decisions related to designated vendor directions or notices.
• The amendments cover various scenarios including variations, revocations, urgent enforcement measures, and confirmations thereof.
• Chris Matheson withdraws his amendments without putting them to a vote.
• Clauses 18 to 23 cover monitoring and enforcement, non-disclosure requirements, and gathering information.
• Clause 19 provides Ofcom with power to issue inspection notices.
• New sections 105Z18 to 105Z21 are inserted into the Communications Act 2003 for enforcement purposes.
• The proposed new clause will require a review of Ofcom’s capacity and capability.
• The Secretary of State must lay before Parliament a report within 12 months after the Telecommunications (Security) Act 2021 is passed.
• The review will focus on Ofcom's duties under the Act in relation to the security of public electronic communications networks and services.
• Ofcom has received several new areas of responsibility recently, including online harms regulation.
• There are concerns about Ofcom’s ability to maintain its responsibilities due to technical challenges and potential staff churn.
• New clause 3 aims to ensure Ofcom reports on the adequacy of its budget and staffing levels as well as skills shortages faced.
• Kevan Jones tabled parliamentary questions regarding Ofcom's budgets and headcounts, noting an increase in recent years.
• The Bill amends the Communications Act 2003 which has grown significantly since its inception.
• Ofcom is set to acquire responsibility for critical national infrastructure, the BBC, the Post Office, and online safety as reflected in an upcoming online safety Bill.
• Dr Alexi Drew highlighted that recruiting personnel with high-level security clearance will be challenging.
• Lindsey Fussell confirmed discussions are ongoing regarding funding arrangements with the Treasury.
• Ofcom has significant new responsibilities under the Telecommunications (Security) Bill.
• In 2012, Ofcom had 735 employees; last year it had 937 employees.
• Ofcom is required by the Office of Communications Act 2002 to publish an annual report on its financial position and other relevant matters.
• Ofcom has a resource requirement increase due to its expanded responsibilities.
• DCMS headcount is 1,304 people, compared to slightly fewer in Ofcom's staffing numbers.
• New clause 5 introduces annual reporting requirements for national security risks and network threats.
• New clause 5 is similar in intent to amendment 19.
• The new clause requires an annual report by the Secretary of State for the Intelligence and Security Committee concerning designated vendor directions and designation notices under sections 105Z1 and 105Z8.
• Ofcom would be required to produce a forward-looking report on future threats to network security annually.
• Section 3(4) of the Communications Act 2003 was amended to include Ofcom's consideration of security and availability of networks and services.
• New Clause 6 introduces an annual report requirement on network diversification impact for security purposes.
• The report must assess progress against the most recent telecommunications diversification strategy, ownership changes, market risks, measures taken, and available public funding.
• The Bill does not mention the Government’s diversification strategy.
• The Secretary of State's diversification taskforce lacks diversity in geography and expertise.
• £250 million has been committed over five years, but lacks detail on funding allocation.
• BT’s annual R&D budget is significantly larger than the first year of the diversification fund.
• The diversification strategy aims to support incumbent suppliers, attract new suppliers, and accelerate open-interface solutions.
• INEX in Newcastle upon Tyne Central demonstrates potential for UK semiconductor capability.
• £250 million allocated for the first three years of the diversification programme.
• Ofcom has the power to collect information related to the diversity of suppliers’ networks under section 135 of the Communications Act 2003.
• The Government's strategy includes trials and testbeds for new suppliers and open RAN technology.
• Chi Onwurah expressed gratitude to Steve McCabe and his colleague for chairing proceedings.
• Matt Warman echoed thanks to the clerks and other staff for their invaluable support.
• The Telecommunications (Security) Bill is described as critical for national security.