Transform Digital Conference 08-05-2014 broadband, technology, fibre, digital

1. Broadband Delivery UK
Transform Digital Conference
Matt Agar – Commercial Lead, Broadband Delivery UK

2. Department for Culture, Media & Sport
Govt financing models
• £1.2bn committed through gap-fund arrangement that
transfers risk to private sector
• But… Government can follow alternative funding models
• PF2 contracting (PFI replacement)
• UK Guarantees scheme
• BIS Shareholder Executive
• £10m Market Testing Pilot procurement explicitly sought out
alternative funding models to test

3. Department for Culture, Media & Sport
Private investors
• If there are long-term investors looking for opportunities,
what is their risk appetite?
• Are there investors willing to take the short-term risk while
revenues are still unproven?
• How different is fibre from other infrastructure asset
classes?

4. Department for Culture, Media & Sport
Rural broadband value chain
• Leveraged models in rural broadband: not just about being
profitable, but also being able to provide a return to
investors too
• Rightmove: “Slow Broadband speeds could drop house
price by 20%”
• Uswitch: “Fibre optic broadband – from just £4 –
compare deals”
• Is there currently enough value at the infrastructure layer?
• How can infrastructure operators increase their share?