chris townsend - bduk - inca presentation sept 2015 .1

Department for Culture, Media & Sport

16th September 2015The 2015 - 2017 Agenda

Chris Townsend OBE– CEO Broadband Delivery UK


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

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

Virginonly

BDUK Phases 1 & 2£1.7bn public funds

95%76%8% 45%

100%

Premises

99%

20172015

Extending coverage

Alte

rnat

ive

Pro

vide

rs


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)


• £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


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.


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


Growth in non-BT projects

June 2013Rural Community Broadband Fund (~£1m) Fibre Garden (ITS) Tove Valley Northmoor (Gigaclear)

June 20147 x Market Test Pilots (£8m) AB Internet Airwave Avanti CallFlow Cybermoor Quickline Satellite Internet

2015Phase 2 Procurements (£20m) Airband Callflow Cotswold (ITS) Gigaclear x3 UK Broadband


• 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


Spending Review November 2015

MTP Findings + Market

Developments

DCIS

Manifesto Commitments

What next for the final 5%?


Original expectatio

n

Revised BT expectation

Take-up

30%

Take-up

20%

The Clawback Mechanism:What is it?

Higher take-up resulting in earlier

ROI

£129m Additional Funding


Market Test Pilots: Satellite

Satellite Internet - Superfast Capable

Satellite

Avanti - Superfast Capable Satellite


Market Test Pilots: Wireless

AB Internet - Fixed Wireless

Superfast

Airwave – Next Generation Wireless

Quickline - Superfast Wireless Network.


Market Test Pilots: Hybrid

Cybermoor – FTTP in a Challenging Environment.

Call Flow – Hybrid Approach


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


• 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


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


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

chris townsend - bduk - inca presentation sept 2015 .1

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