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
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
RCBF supported projects are strategic NOT tactical
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
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
Model in test in Cumbria
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
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.
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!