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Rural Community Broadband

          INCA Event
      28th February 2012
Background
 • Government objective: “best superfast
   broadband in Europe by 2015”
 • Market expected to deliver to around 70% of
   country but not “final third”
 • Broadband Strategy launched with £530m
   Government funding to deliver:
   – Superfast broadband to around 90% of the
     population
   – A 2 Mbps universal service commitment to
     everyone
What is the RCBF?
 • Rural Community Broadband Fund
   – £20M joint DEFRA and BDUK fund
   – Support communities in the final 10% wanting
     more than “basic broadband”
RCBF & Local Broadband Plans

 • RCBF extends the scope
   of community
   engagement                   Community
 • Proposals should be
   endorsed by
   – A majority of the            RCBF
     premises in the target
     area
   – A local accountable body
     (e.g. Parish Council)
   – The Local Authority
Who Can Apply?
     Community Enterprises

    • E.g. Cooperatives, Companies Limited by Guarantee or
      Community Interest Companies

     Charities


     Local Authorities

    • On behalf of communities
    • Includes Parish Councils

     Other Local Partnerships

    • Beneficiaries, not individual Communications Provider businesses
    • E.g. Groups of local private businesses
RCBF is “superfast” only!

     Taking superfast broadband further & deeper

    • Extending Local Broadband Plans
    • Delivering national infrastructure
    • It is not to support temporary solutions


     Superfast means at least 24 to 30 Mbps

    •   The fund is technology neutral
    •   Projects may choose any combination of “NGA” technologies
    •   Individual satellite services are excluded
    •   Compliance with industry standards is required
Where & How much?

 • Support sustainable     • Funding will need to be
   business plans in the     at least matched by
   hardest areas             private investment
                           • There is a limit of £300
                             per premise connected
Where’s the match funding?

         Those who will
       receive the service    Community share offers and other forms of
      committing to pay a             community investment
       connection charge


      Those committing to     An openly procured
       receive the service     Network Operator
                                                     Private family trusts
         for a minimum        committing funds to
       period at a set cost       the project




                                                           Etc, etc.



                                                    (this isn’t exhaustive!)
The toolkit

 • Will become a living web-based resource
 • Pointers to existing guidance & material
    – INCA Beyond Broadband           bit.ly/ulnx4d
    – FttH Council Business Guide    bit.ly/uHO1iB
    – Erisa Broadband Portal         bit.ly/uENpgc
    – Rural Broadband Partnership     bit.ly/vrIdOu
FROM CAMPAIGN TO SOLUTION
High-level Process
                                                              GO!
                 Full
              Submission
                                                            Detailed Engineering
               to RCBF

     EoI to                                             High-level Engineering



     RCBF
                                                  Decision Point!




                                       Business Planning




                           Demographic Analysis



               Establish
Keys to success

 •   A solid business plan     • Only 1 is technical
 •   A reliable network        • Only 3 or 4 are a forte
 •   A basic set of services     of traditional operators
 •   Customer care             • 4 relate to your
 •   A local set of services     community!
 •   Communication
 •   An “us feeling”



                                              * Kees Rover’s 7-pillars
Who buys when
      This is where           This is where services
        speed sells           and engagement sell




Innovators   Early Adopters    Early Majority   Late Majority   Laggards
   2.5%          13.5%              34%              34%          16%
                                  Diffusion of ideas
Capacity & Capability

                                                           Community                     DIY
                                                           Enterprise
    Community Investment Capacity




                                                                                 Concession


                                                                        Partnership

                                    Using LA
                                    Partners          Build & Benefit

                                          Demand Aggregation

                                                                 Community Capability
  Do Nothing
#1 Demand Aggregation

 • The community decides it
   wishes to have more than          Upside        Downside
   the minimum
 • The community works to          No additional   No control
    – Improve quality of the          cost to       over the
      solution from a minimum       community       solution
      in-fill solution to an NGA
      based solution               May achieve       May not
    – Confirm actionable              NGA          achieve NGA
      verifiable demand in
      support of the case for
      more investment

                                                           With LA
                                                           Partners
#2 Build & Benefit

 • Community is willing to
   help deliver NGA               Upside             Downside
    – E.g. civil
      engineering, way-leaves
      or additional funding     No additional risk
                                                     Limited say in the
                                                          solution
 • Community happy that
   RoI is gained from                                 Significant sweat
                                                       equity or cash
   benefitting from an          Will deliver NGA
                                                           with no
                                                     commercial return
   improved service
 • Open Access & ISPs
   delivered by LA partner
                                                                  With LA
                                                                  Partners
#3 Partnership

 • The community want to
   raise some of the risk      Upside   Downside
   capital & expect an
   investment return
 • Partners are needed to
    – Provide additional
      investment
    – Build & operate the
      network
 • Open Access & ISPs
   delivered by partners
 • Investment and Exit plans
   need to be considered
                                            Community
                                            Organisation
#4 Concession

 • The community are able to
   raise all the risk finance
 • They have no ambition to be a    Upside   Downside
   network operator
 • A concession is offered by the
   community to design, build
   and operate their network
 • The community must steer
   strategic decisions
 • Open Access &ISPs delivered
   by the concession partner
 • Investment and Exit plans
   need to be considered

                                                 Community
                                                 Organisation
#5 DIY

 • The community are able to
   raise all of the finance       Upside   Downside
 • They have a strong desire to
   be the network operator
 • The community
   design, build & operate
   their own network
 • Open Access & Service
   Providers delivered by the
   community
 • Investment and Exit plans
   need to be considered
                                               Community
                                               Organisation
How do I apply?




                         Rounds                    EOI will require you to
                         • Round 1 – closed 31st   demonstrate that:
                           January 2012            • Your are likely to be       If successful, you will
  Submit an Expression   • Round 2 – to be           within the final 10%        be invited to prepare
   of Interest to your     announced, planned to   • There is sufficient local      a Full Application
    local RDPE Lead        open May 2012             need & demand                  within an agreed
                                                   • There is the capacity to           timescale
                                                     deliver reasonable value
                                                     for money
Thank you!




             Adrian Wooster
             adrian@wooster.org.uk
             07788 167776

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INCA Industry Day - Adrian Wooster Presentation

  • 1. Rural Community Broadband INCA Event 28th February 2012
  • 2. Background • Government objective: “best superfast broadband in Europe by 2015” • Market expected to deliver to around 70% of country but not “final third” • Broadband Strategy launched with £530m Government funding to deliver: – Superfast broadband to around 90% of the population – A 2 Mbps universal service commitment to everyone
  • 3. What is the RCBF? • Rural Community Broadband Fund – £20M joint DEFRA and BDUK fund – Support communities in the final 10% wanting more than “basic broadband”
  • 4. RCBF & Local Broadband Plans • RCBF extends the scope of community engagement Community • Proposals should be endorsed by – A majority of the RCBF premises in the target area – A local accountable body (e.g. Parish Council) – The Local Authority
  • 5. Who Can Apply? Community Enterprises • E.g. Cooperatives, Companies Limited by Guarantee or Community Interest Companies Charities Local Authorities • On behalf of communities • Includes Parish Councils Other Local Partnerships • Beneficiaries, not individual Communications Provider businesses • E.g. Groups of local private businesses
  • 6. RCBF is “superfast” only! Taking superfast broadband further & deeper • Extending Local Broadband Plans • Delivering national infrastructure • It is not to support temporary solutions Superfast means at least 24 to 30 Mbps • The fund is technology neutral • Projects may choose any combination of “NGA” technologies • Individual satellite services are excluded • Compliance with industry standards is required
  • 7. Where & How much? • Support sustainable • Funding will need to be business plans in the at least matched by hardest areas private investment • There is a limit of £300 per premise connected
  • 8. Where’s the match funding? Those who will receive the service Community share offers and other forms of committing to pay a community investment connection charge Those committing to An openly procured receive the service Network Operator Private family trusts for a minimum committing funds to period at a set cost the project Etc, etc. (this isn’t exhaustive!)
  • 9. The toolkit • Will become a living web-based resource • Pointers to existing guidance & material – INCA Beyond Broadband bit.ly/ulnx4d – FttH Council Business Guide bit.ly/uHO1iB – Erisa Broadband Portal bit.ly/uENpgc – Rural Broadband Partnership bit.ly/vrIdOu
  • 10. FROM CAMPAIGN TO SOLUTION
  • 11. High-level Process GO! Full Submission Detailed Engineering to RCBF EoI to High-level Engineering RCBF Decision Point! Business Planning Demographic Analysis Establish
  • 12. Keys to success • A solid business plan • Only 1 is technical • A reliable network • Only 3 or 4 are a forte • A basic set of services of traditional operators • Customer care • 4 relate to your • A local set of services community! • Communication • An “us feeling” * Kees Rover’s 7-pillars
  • 13. Who buys when This is where This is where services speed sells and engagement sell Innovators Early Adopters Early Majority Late Majority Laggards 2.5% 13.5% 34% 34% 16% Diffusion of ideas
  • 14. Capacity & Capability Community DIY Enterprise Community Investment Capacity Concession Partnership Using LA Partners Build & Benefit Demand Aggregation Community Capability Do Nothing
  • 15. #1 Demand Aggregation • The community decides it wishes to have more than Upside Downside the minimum • The community works to No additional No control – Improve quality of the cost to over the solution from a minimum community solution in-fill solution to an NGA based solution May achieve May not – Confirm actionable NGA achieve NGA verifiable demand in support of the case for more investment With LA Partners
  • 16. #2 Build & Benefit • Community is willing to help deliver NGA Upside Downside – E.g. civil engineering, way-leaves or additional funding No additional risk Limited say in the solution • Community happy that RoI is gained from Significant sweat equity or cash benefitting from an Will deliver NGA with no commercial return improved service • Open Access & ISPs delivered by LA partner With LA Partners
  • 17. #3 Partnership • The community want to raise some of the risk Upside Downside capital & expect an investment return • Partners are needed to – Provide additional investment – Build & operate the network • Open Access & ISPs delivered by partners • Investment and Exit plans need to be considered Community Organisation
  • 18. #4 Concession • The community are able to raise all the risk finance • They have no ambition to be a Upside Downside network operator • A concession is offered by the community to design, build and operate their network • The community must steer strategic decisions • Open Access &ISPs delivered by the concession partner • Investment and Exit plans need to be considered Community Organisation
  • 19. #5 DIY • The community are able to raise all of the finance Upside Downside • They have a strong desire to be the network operator • The community design, build & operate their own network • Open Access & Service Providers delivered by the community • Investment and Exit plans need to be considered Community Organisation
  • 20. How do I apply? Rounds EOI will require you to • Round 1 – closed 31st demonstrate that: January 2012 • Your are likely to be If successful, you will Submit an Expression • Round 2 – to be within the final 10% be invited to prepare of Interest to your announced, planned to • There is sufficient local a Full Application local RDPE Lead open May 2012 need & demand within an agreed • There is the capacity to timescale deliver reasonable value for money
  • 21. Thank you! Adrian Wooster adrian@wooster.org.uk 07788 167776

Notas do Editor

  1. RCBF supported projects are strategic NOT tactical
  2. Some of this material is contradictory and there are gaps in publicly available informationThe material will be collated into a single source, with clear attribution to the authorsGaps will either be highlighted, requested from partners, commissioned or delivered by BDUK
  3. Community investmentBroad view – could be true sweat equity as well as cashCommunity AmbitionThe desire of a community to be an active stakeholder in the projectAll approaches are considered equal IFThey deliver the outcome requiredPass value for money criteriaHave a community mandate
  4. Model in test in Cumbria
  5. Community strategic involvementIntroducing a social impact – inclusionTraditional social enterprise models may not be appropriate when large proportion of the investment is externalIt will also need to be perceived as a professional investment opportunity, whether its seeking high-network-individuals within the community or external investors. Longer term options are numerous – refinance by the European Investment Bank or a trade sale, for exampleThere is on reason why the partner couldn’t be the LA partner
  6. There is no reason why the concession couldn’t be taken by the LA partner – a community NYnet.Being built and run by specialists, possibly as part of a group of concessions, exit strategies are numerous including trade sale to the concession owner or to a third party network operator.
  7. The community will need to demonstrate they understand what this entails, and that they are in a position to take long-term strategic decisionsSecuring service providers will be very challenging for networks smaller then Digital Region!Proving sufficient quality to provide confidence to the health service for tele-health, for example, will be very hardExit strategies are challenging – trade sale will require substantial due diligence for what may be perceived as a small increase in customer-base.These decisions will affect community members for possible another generation – 20 years!