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Dean Creamer

Broadband Delivery UK

Improving broadband connectivity

• Provide superfast broadband to 90% of premises in the UK by early

2016, and further extend this to 95% of the UK by December 2017

• Provide universal access to standard broadband (speeds of more

than 2 Mbps)

• Test the viability of alternative technologies and commercial

models for delivering superfast broadband in hard to reach areas

• Provide State aid cover to support Local Body broadband rollout

Broadband Delivery UK: Objectives

1. Superfast broadband coverage available to 90% of UK homes and businesses (up

from 45% in 2010); on track to achieve 95% by Dec 2017

2. BDUK programme has connected around 4 million additional premises to

date, bringing the total number of superfast premises to over 25.8 million

3. Launched universal 2Mbps standard broadband access across the UK

4. Seven Market Test Pilots completed to test alternative solutions to deliver superfast

broadband

5. Achieved approval for an umbrella State aid scheme with capacity for £500 million of

new broadband projects

Broadband Delivery UK: Delivering

Phase 1, Phase 2 and beyond

Programme Funding Coverage

Phase 1 £1.23 billion of public investment to date (roughly £530

million central government, £200 million ERDF, £500 million

local government)

75% - 90%

Phase 2 Up to £500 million of public investment to date (roughly

£260 million central government and £240 million local

government)

90% - 95%

Gainshare and

efficienciesBT have announced £258 million of gainshare funding to be

reinvested due to better than expected take-up of superfast

broadband. £129 million is available now for reinvestment by

Local Bodies

BDUK on track to achieve £150 million of efficiency gains

(underspend) for reinvestment by local bodies

95% and

beyond

BDUK and Local Bodies are continuing with plans to reach – and exceed –

the 95% superfast target by undertaking 3 core activities:

1. Closely managing existing contracts to completion or extending

contracts where appropriate

2. Running new procurements to support rollout of superfast broadband

to additional unserved areas

3. Working with suppliers to maximise potential commercial coverage

The Universal Service Obligation (USO) promises a minimum of 10Mbps,

but BDUK want to take superfast as far as possible

How do we take superfast further?

The increasing role of alternative providers

June 2013

Rural Community Broadband Fund (~£1m)

• 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

+ Continuing engagement with INCA, Hyperoptic, City Fibre and other alternative suppliers

• Seven Market Test Pilots deployed across the UK

• Mixture of technologies including wireless, fibre to the premise, satellite

and hybrid

• Over 1,400 customer connections across the pilots. Surveys show that

pilot customers are consistently happy across the technologies with the

services they are receiving

• The pilots may also help overcome some of the infrastructure challenges in

the most sparsely populated areas

• The pilots have demonstrated the viability of smaller suppliers and

alternative technologies in hard to reach areas

The success of the Market Test Pilots

The Market Test PilotsSupplier Activity Host local body

Avanti plc (Satellite) Superfast satellite services for 1,000 end users Scottish Government

DETI Northern Ireland

Satellite Internet

(Satellite)

Superfast satellite and satellite as a backhaul

solution for 420 premises

Devon and Somerset

Cybermoor (Hybrid) Hybrid FTTP and Fixed wireless to delver superfast

to 300 premises.

Northumberland

Call Flow (Hybrid) Hybrid FTTC, FTTP and Fixed wireless to deliver

superfast to 1,700 premises

Hampshire

Airwave (Fixed

wireless)

Four next-generation wireless systems to deliver

superfast to 300 premises in a national park

North Yorkshire

Quickline (Fixed

Wireless)

Testing a range of line of sight, near line of sight

and non-line of site technologies to deliver

superfast to 4,000 premises

North Lincolnshire

AB Internet (Fixed

Wireless)

Fixed wireless network to deliver superfast for

1,600 end users in Monmouthshire

Welsh Government

Fixed wireless: AB Internet, a Case Study

● The network deployed by

AB Internet is equivalent

to the size of the M25

● 219 working days, from

start to finish, to deliver the

network

● AB Internet have since

won a contract to deliver

superfast access in

Scotland

Over £170m of pending procurements

Highlands

and Islands

£21mRest of

Scotland

£21m

North Yorkshire

£20m

Herefordshire

and Gloucestershire

£20m

Devon and Somerset

£45mCornwall

£13m

Dorset

£4m

Wiltshire and

S. Gloucestershire

£4m

Essex

£4m

Bedfordshire and Milton Keynes

£4m

Berkshire

£3m

Northamptonshire

£2m

Shropshire

£12m

BDUK current rough estimates:

Up to ~£170m funding and ~600,000

addressable NGA White premises

Indicative

information –

Subject to

change

• Major commercial investment happening: we expect up to £10 billion worth

of industry investment in the next four years

• This is primarily in Ultrafast technology: BT has pledged £6 billion and

Virgin Media £3 billion, bringing ultrafast to a combined total of 16 million

more premises

• Also seeing significant investment from K Com and alternative providers

like Gigaclear and Hyperoptic who will be providing their FTTP coverage to

hundreds of thousands of UK premises

• Between them the Mobile Network Operators are investing £5 billion to

reach 90% voice geographic coverage by 2017

Encouraging private investment

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Super Connected Cities – Overview

• £150m to improve UK cities’ digital infrastructure via increased availability of fast

broadband across 50 cities and surrounding areas

• Three different interventions:

o vouchers for small businesses to connect to better broadband

o free Wi-Fi in public buildings and public transport, and

o innovative projects to support cities’ digital ambitions

Super Connected Cities – Connection Vouchers

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• Grants to 50,000 small businesses for superfast and ultrafast connections, employing

up to 1 million people, with more than 42,000 connected to date

• Impact:

o 1,100% increase in average speeds for businesses connected

o Broadband increasing SME profits - helping create one new job for every four

connections

o Return on investment of over £5 for every £1

o Smaller/local suppliers have taken around 86% of the total value of the vouchers

- greater competition and innovation in the market

• Scheme was available 52 cities across the UK, including London, Edinburgh, Cardiff

and Belfast and demonstrated the benefits of broadband for small firms

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Super Connected Cities – Free Public Wi-Fi

• 100m Wi-fi enabled visit to 1500 public builings including

museums, galleries, libraries, community centre

• National History Museum - Visitor App – 15k downloads in the

first few months and a new sponsorship deal

• Belfast community centres digital inclusion training

programme - 8k users in first 4mths

• Cambridge Children’s Centres help parents jobs search,

access benefits, housing and family health services.

• Sports teams at Newport Velodrome can now upload real time

performance data

• Wi-Fi in 1400 buses, trams and local trains – around 4mil

users in Edinburgh alone

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Super Connected Cities – Digital Innovation

• Newcastle: £1m Cloud Computing Centre supports SME R&D, knowledge transfer and

skills improvement

• Brighton: £750k Digital Exchange allows internet providers to share data and co-locate

equipment, providing better broadband services to local SME sector

• ‘Open Bristol’: £4m for Europe’s

first Smart City R&D programme

• SMEs and multinationals can test

new hardware and software

• 'Smart City Innovator of the Year'

World Digital Award, beating

competition from Asia, America

and Europe

https://www.gov.uk/government/publications/bduk-

new-procurement-pipeline

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Interested in new BDUK procurements visit: