Interview: Jake Berry MP

Michiel Willems spoke to Jake Berry, Member of Parliament for Rossendale and Darwen, and a former City solicitor, on the government’s role in developing and regulating the mobile phone industry, broadband issues and the future of the UK’s online infrastructure.

Jake Berry MP

How do you see the future of the mobile phone in the UK?
Already great strides have been made with the availability of many ‘apps’ giving mobile phones the flexibility of being more than just a communication tool. Indeed, one of the newer apps is to summon a taxi and have it arrive within minutes that takes you to the destination you have programmed and finally charges the cost to a credit/debit card and emails the receipt to the passenger.

What should happen to give mobile payments a breakthrough with the mass audience?
It is down to the banks and retailers to make a breakthrough with the mass audience. Without the participation of the majority of retailers and all banks it would not be viable. Costs and security issues would also have to be taken into account. As banks, retailers, phone manufacturers and many others are involved, there needs to be a common set of protocols and standards.

Do you think the current government is giving the telecoms industry the space to grow and develop?Yes, the British Government is undertaking a wide-scale review of the regulatory framework supporting the communications sector. The aim is to strip away unnecessary red tape and remove barriers to growth. The wider public interest will underpin the way we address these issues.

Do you think the Government should regulate the mobile industry more?
The Government is committed to the principle of independent regulation and will ensure that Ofcom has the right powers and duties to work in a way that gives businesses confidence in the regulatory system. It is crucial that the Government implements a deregulated framework suitable for the digital age and properly oriented towards growth is required in order to take account of the rapid pace of change in new communications technologies in the last few years.

How do you see the future of the internet?
Many of the most dynamic developments in broadband are in wireless devices and the development of very high data rates in mobility. Whether in the home or outside, consumers are enjoying services and content over devices which connect wirelessly.

Could give an example?
Grant Shapps MP, Minster for Housing, is calling on every social landlord to look long and hard at how they can help their tenants get online, from offering networks of public internet cafes to providing the technology to log on at home. The Minster for Housing said internet connectivity is considered by many to be the fourth essential utility, and should be a necessity, not a luxury. The Government is committed to helping demolish the unacceptable digital divide that is blocking social mobility for millions of council tenants.

Will the UK infrastructure be able to cope with increasing data demands?
The current Mobile networks were engineered to support a real-time voice service which supported roaming between cells. Today, devices such as Apple’s iPhone and iPad make very different demands on the network infrastructure, requiring operators to meet customer expectations of mobility, but with rapidly growing demands for data downloads.
Broadband infrastructure investment is vital in supporting the overall growth agenda. Rural and remote areas of the country should benefit from this infrastructure upgrade at the same time as more populated areas, ensuring that an acceptable level of broadband is delivered to those parts of the country that are currently excluded. Infrastructure sharing and new overhead deployment can play an important role in delivering superfast broadband that meets increasing data demands.

Do you embrace the concept of net neutrality?
Yes. The Internet has brought huge economic and social benefits across the world because of its openness and that must continue. Technology neutrality will be an essential criterion, as we believe a mix of technologies will be needed. It will be important that Government maintains its commitment to technology-neutral solutions for broadband.

Thank you for your time.

Jake Berry - Member of Parliament for Rossendale and Darwen
House of Commons
Twitter @jakeberryMP


Michiel Willems © 2012 CP Publishing Ltd. Pictures: Conservativs.com / Blackburnlife.com

Snooping, sharing and shifting

Many offices around the world sent their employees an urgent message on 6 June: ‘Please change your LinkedIn password immediately’, as the news spread that millions of accounts of the professional networking website had been hacked. 

Nearly 6.5 million LinkedIn passwords ended up in the wrong hands and were posted on an online forum by cybercriminals. And it was not only LinkedIn that was a victim of a the latest data security breach; the online dating website eHarmoney also admitted that nearly 1.5 million of its passwords had been stolen and music website Last.fm also suffered a major password leak. 

Although the three companies invalidated the embezzled passwords and they were quick to send out instructions to their affected customers telling them how to reset their accounts, the damage had been done. Analysts say it is not unlikely that criminals have scrutinised and copied millions of accounts and will try the same passwords – in combination with the corresponding usernames, usually email addresses – on other popular websites, such as Gmail, Hotmail, Twitter and Facebook. After all, many people use the same email address and password for a range of websites.

Who is snooping?

Obviously, it was not LinkedIn’s best month since the company launched 10 years ago. And the password leak sent shudders through the industry: if this can happen to such a big and popular website, who says it won’t happen to smaller, less well-protected players?

Experts, meanwhile, are convinced the internet is increasingly becoming a dangerous data jungle. Data is being copied, transmitted and passed on to advertisers, credit card details are being sold, twitter, hotmail and gmail accounts used to send round viruses and spam, while login details are publicly available online. 

Without trying to scare away the average internet user, many fraud experts do admit protecting your login details and other sensitive data has become more difficult than ever before in the history of the internet. The number of cyberattacks, tens of thousands each single day, are quickly increasing and, worryingly, consumers are mostly not even aware an attack has taken place or data has been stolen or shared without their consent. Mass hackings like the users of LinkedIn and eHarmony experienced at the beginning of June are rare and do make headlines, but many industry experts warn about all those smaller attacks you never hear about. Who is snooping, sharing and shifting is increasingly becoming one big blur. Keeping the same password for months on end has become a convenience one cannot longer afford.

 

Michiel Willems © 2012 CP Publishing Ltd. Picture: IBNLive.in.com / Original Artist 

Double interview: Peter Fleming and Steve Arundale

Many businesses, consultants and law firms are facing new challenges in the wake of the UK Legal Services Act, which came into force in October 2011. Michiel Willems spoke to Peter Fleming, Business Director Legal Services at Huthwaite International, and Steve Arundale, Head of Professional Sectors and Financial Institutions at the Royal Bank of Scotland, to have their views on the growth of 'e-lawyering' and the likely changes to the landscape in the provision of high street legal services.

The introduction of the UK Government's Legal Services Act 2007 ('LSA') is spearheading significant changes in the way legal services are delivered. Described as a 'Big Bang' moment for the legal profession, the upheaval caused by the LSA could be nothing short of seismic with industry experts such as Professor Stephen Mayson predicting that as many as 3,000 high street law firms, or 35% of the total, may have to disappear in the subsequent upheaval. What can you say about this? Do you think many small high street firms - who do not have a sophisticated website - will be affected by this new development? 
Steve Arundale: The LSA will clearly have a significant impact. Yet, to blame the projected changes on the legislation would be wrong, as the market for legal services in the high street was always going to change anyway. The reason is clear: in a tough economic environment and a fragmented market with too many providers, the level of client service simply has not kept pace with that of other providers of goods and services.

The fact that many firms lack an effective interactive website provides a powerful example of this shortfall. Nearly three quarters of businesses recognise the importance of technology in communicating more effectively with clients who are now more computer literate and buying more goods and services online every year. Yet, only one in four law firms have positively addressed this issue.

The emerging legal landscape poses serious challenges for traditional providers, but also presents a wealth of opportunities for those firms who are willing to make the most of the changes. The impact of the reforms and the implementation of legal technology will allow forward-thinking firms to carve out an increasing share of the market as others succumb to increased market pressures. What can you say about this? 

Peter Flemming

Peter Fleming and Steve Arundale: Firms must get closer to and become more interactive with their clients. What is certain is that large new entrants will be leveraging their own client base in this way - they have the budgets and the know-how to do this and it forms part of their everyday way of working. Many law firms by contrast do not have a good enough grasp of who their clients are, their buying patterns and where they are in the buying cycle.

Having said this, there is a great opportunity for those who get it right. Even though the buying landscape may change, the overall market for quality legal services will continue to grow, in the face of increasing legislation and a generally more litigious society. Wherever you look, from commercial to employment to family, the ways in which we interact are becoming more complex, with an associated need for sound legal advice to help both consumers and businesses.
 

The LSA has now come into force. This means many well-known names, such as Tesco, Sainsbury's and ASDA, can start offering legal services. Do you think many consumers would buy their legal aid online if that would be the best offer?
Peter Fleming and Steve Arundale: There are two questions here: how much would you trust a new entrant and how much would you trust a new way of purchasing legal services?

The answer to both may be the same. Many purchasers may trust the new provider's brand and make regular online purchases, yet are still likely to be cautious in making high-value and complex personal or family decisions via a highly impersonal route to the market. Such consumers are unlikely to be early adopters, having greater confidence in the more traditional, consultative face-to-face approach. However, 'Generation Y' (those born from the late 1970s to late 1990s) purchasers are less likely to be inhibited in this way and more willing to try new providers and new routes to market.

There are two other issues for high street lawyers who charge out on a universal hourly rate for their services to consider here. First, consumers willing to pay the rate for good quality professional advice will be far less willing to pay the same for form-filling and other administrative work. Once again therefore, a blended approach combining online and face-to-face is likely to be more cost-effective and competitive in giving the consumer what they want.

In addition, the new generation of consumers is now much more sophisticated and better-informed as a result of the internet (though this doesn't necessarily make them better buyers). This puts more pressure on the lawyer, as value depends on providing rather more specialist input and advice than the client could find out on Google.
 

What impact will the LSA have on your clients and your business activities?
Peter Fleming and Steve Arundale: In a more liberalised and competitive market, law firms need to concentrate as much on running the business as providing legal advice. Issues such as getting the right business model, profitability and developing a forward-looking strategy are all about the business and nothing to do with the law.  

Do you think it is possible to make a proper analysis of a legal case if information is only provided over the internet? 

Steve Arundale

Peter Fleming and Steve Arundale: To a large degree this is already happening. In a standard conveyancing transaction, for example, 99% of the process is automated and can be completed in just 12 minutes, with a short period of review by an approved person. 

Some other areas have a large process element which can be automated, yet in most cases there will continue be a small but essential degree of specialist personal involvement where there is some complexity to be managed. This will be due to the inherent nature of the legal issue to be resolved therefore rather than the desire of the client.
 

By allowing non-lawyers to own law firms, the LSA exposes high street firms to competition from all-comers, especially those with well-established brands, superior media exposure, and existing retail muscle. What should existing law firms do to keep up - or to keep ahead of this new competition? What do your clients say about this and what would you say to newcomers?
Peter Fleming and Steve Arundale: Research has shown that, though 90% of firms recognise that the market will change over the next five years, only 30% have yet done anything to address or respond to this. If they are to survive - let alone thrive - in the face of large newcomers with strong branded presence, an existing high street infrastructure and well-researched offerings, law firms can no longer afford to sit on their hands: standing still is not an option.

There will be opportunities for newcomers into what might be described as the 'traditional' high street legal service provision. These are most likely to be in niche areas, where the provider can evidence a strong specialist expertise and quality service for which clients are prepared to pay a premium. To succeed, they will need to be commercially aware and adopt a more aggressive marketing strategy.
 

Many in the industry expect 'e-lawyering' to become the new standard. Many solicitors, for example, offer their services online when buying a home. Surveys have confirmed this view. What can you say about this?
Peter Fleming and Steve Arundale: 'E-lawyering' is already starting to become established as the de facto standard in dealing with many legal issues. This has a clear parallel with the medical profession that is embracing technology to deal with the administrative side of patient relationships, as this is both cheaper and what the public wants. Today, patients can book GP appointments online, confirm them via text message and also get repeat prescriptions via the web. The only thing that requires face-to-face intervention with the doctor is the diagnosis of the patient's ailment - the equivalent of the value-added expertise required in providing legal advice to unravel a complex legal problem.
 

Is there anything else you would like to address, say, add, share?
Peter Fleming and Steve Arundale: Law firms have traditionally been good at recognising and learning from what the best legal practices are doing. Now is the time to look beyond the immediate competition and see what world class looks like in other sectors. This is especially pressing in the area of customer service provision, as newcomers enter the legal services market post-LSA. It is also time to take a step back from the business, review costs and efficiencies and take a fresh look at what they do best in the context of the changing market. In other words, take time away from working in the business to work on the business.

Many thanks.

Michiel Willems © 2012 CP Publishing Ltd. London, UK. Pictures: Whiteoaks PR.