INCA's Transform Digital: Bristol conference

1. Department for Culture, Media & Sport
16th September 2015
The 2015 - 2017 Agenda
Chris Townsend OBE– CEO Broadband Delivery UK

2. Department for Culture, Media & Sport
1. Superfast broadband coverage to 95% of UK by 2017
2. Develop options to extend superfast broadband coverage beyond 95%
3. Universal 2Mbps standard broadband access by end of 2015
4. Invest £40 million across 50 cities to provide connection vouchers to SMEs
Programme aims

3. Department for Culture, Media & SportFinal 0.5-1.0% likely to require high-speed satellite
BT superfast coverage only
(incl. commercial & non-BDUK)
Proportion of UK premises able to receive superfast speeds
BT and Virgin
premises
Virgin
only
BDUK Phases 1 & 2
£1.7bn public funds
95%76%8% 45%
100%
Premises
99%
20172015
Extending coverage
AlternativeProviders

4. Department for Culture, Media & Sport
Current position
Superfast broadband is available to over 83% (4 out of 5!) homes and
businesses in the UK (May 2015)
– up from 45% in 2010 (Ofcom Infrastructure Report)
Take-up higher in rural areas – currently averaging 24% on 12 month old
BDUK cabinet
Over 22% of homes and businesses have signed up for superfast broadband.
(based on Ofcom Consumer Market Report 2015)
•
Superfast broadband coverage and take-up per household in the UK is the
highest of the top five European economies
• (Ofcom European Broadband Scorecard, February 2015)

5. Department for Culture, Media & Sport
• £40 million Challenge Fund to extend Vouchers scheme to 50 cities
• £29 million committed since April, benefitting 25,600 SMEs
• 43,000 SMEs benefited since the scheme began
• 1,400 public buildings with free Wi-Fi
• More than 1400 trains, buses and trams with on-board Wi-Fi available to
more than 16 million users annually
• 13 digital projects improving SME connectivity in Aberdeen, Brighton,
Bristol, Cardiff, Edinburgh, Leeds/Bradford, Manchester, Newcastle &
Portsmouth
Super Connected Cities &
Vouchers Progress

6. Department for Culture, Media & Sport
Supporting UK cities:
How has Bristol benefited?
1204 vouchers issued valued
at £1.79m
£4.3m to create an R&D
testbed facility to research and
test new hardware, software and
applications in a real world
environment
£1.2m to develop the
planetarium into a unique 3D
data visualisation facility
£1.6m to install general purpose
ducting to Enterprise Zone.

7. Department for Culture, Media & Sport
Reaching 95%
£1.2 billion public investment to
reach 90.8% of UK premises by 2016
44 projects across the UK
More than 4 million additional
premises
3 million premises passed
5,000 new premises
per day
Satellite scheme for
premises on speeds less
than 2Mbps
£250 million BDUK funding plus
local match funding to reach 95% of
UK by end of 2017
More than 1 million additional
premises
Aiming to achieve minimum 90%
coverage for each Local Body or
Devolved Administration
44 contracts signed
3 in procurement process
Phase 1 Phase 2

8. Department for Culture, Media & Sport
Growth in non-BT projects
June 2013
Rural Community
Broadband Fund
(~£1m)
 Fibre Garden
(ITS)
 Tove Valley
 Northmoor
(Gigaclear)
June 2014
7 x Market Test Pilots
(£8m)
 AB Internet
 Airwave
 Avanti
 CallFlow
 Cybermoor
 Quickline
 Satellite Internet
2015
Phase 2 Procurements
(£20m)
 Airband
 Callflow
 Cotswold (ITS)
 Gigaclear x3
 UK Broadband

9. Department for Culture, Media & Sport
• Pilots launching in September 2015
• Will be live UK wide from December 2015
• Allows eligible premises to access a subsidy to provide a
satellite broadband connection
• Customers will be able to choose from at least 4 service
providers
Universal Service Commitment

10. Department for Culture, Media & Sport
Spending Review
November 2015
MTP Findings +
Market
Developments
DCIS
Manifesto
Commitments
What next for the final 5%?

11. Department for Culture, Media & Sport
Original
expectation
Revised BT
expectation
The Clawback Mechanism:
What is it?
Higher
take-up
resulting
in earlier
ROI
£129m
Additional
Funding

12. Department for Culture, Media & Sport
Market Test Pilots:
Satellite
Satellite Internet -
Superfast Capable
Satellite
Avanti - Superfast
Capable Satellite

13. Department for Culture, Media & Sport
Market Test Pilots:
Wireless
AB Internet -
Fixed Wireless
Superfast
Airwave – Next
Generation Wireless
Quickline - Superfast
Wireless Network.

14. Department for Culture, Media & Sport
Market Test Pilots:
Hybrid
Cybermoor – FTTP in a
Challenging Environment.
Call Flow – Hybrid
Approach

15. Department for Culture, Media & Sport
Market Test Pilots:
A case study
• Near complete coverage of 2 entire rural
exchange areas for ~£800 per premises
• A hybrid delivery model using FTTC, FTTP
and wireless technologies, and a
combination of leasing and ownership of
infrastructure
• 92% will have fibre-based access, with a
high % of FTTP

16. Department for Culture, Media & Sport
• Demonstrated the viability of alternative approaches in the
Final 5%
• Flexibility has created cost savings in deployment.
• Working successfully with local authorities
• Exploring the options for community funding models
• Ways of overcoming difficulties in relation to planning
permission
Market Test Pilots:
Initial Findings

17. Department for Culture, Media & Sport
Market Test Pilots:
What are customers saying?
• 92% of respondents thought there were
benefits to the new broadband.
• The three most popular benefits of new
broadband identified by respondents
were speed, reliability and cost.
• Only 2% of respondents do not intend
to keep their new broadband at the end
of the pilot period, if the price remains
the same.
BDUK Survey – September 2015

18. Department for Culture, Media & Sport
Three key messages
• We are on track to deliver our objectives
• The Market Test Pilots and Phase 2 procurements have
clearly demonstrated that smaller suppliers can deliver
effective solutions in the remaining areas
• A call to action – make sure Local Authorities (and BDUK) are
aware of your capabilities as they consider their options