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BDUK Broadband Delivery Project

Local Broadband Plan for Cambridgeshire and Peterborough

(Application for Broadband funding revised 23 December 2011)

Version 2.3 – 27 March 2012 REDACTED Guidance on the Application Process is available at: www.culture.gov.uk Bids should aim to be no more than 40 pages long. In addition you may append mapping information and project plans.

DCMS aims to improve the quality of life through cultural and sporting activities, to support the pursuit of excellence and to champion the tourism, creative and leisure industries

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APPLICANT INFORMATION Project Name: Superfast Broadband for Cambridgeshire and Peterborough Lead organisation - Cambridgeshire County Council (Local Authority)

Shire Hall Castle Hill Cambridge CB3 0AP

Lead Contact Details: Superfast Broadband Project Manager Contact telephone number: 01223 699034 Email address: connecting.cambridgeshire@cambridgeshire.gov.uk Postal address: Cambridgeshire County Council Castle Court, 3rd Floor, CC1307

Castle Hill, Cambridge CB3 0AP If the bid is a joint proposal, please enter the names of all participating bodies and specify the co-ordinating authority

Cambridgeshire County Council (Co-ordinating Authority) Peterborough City Council

Start Date of Project: 1st November 2011 End Date of Project: 30th March 2015

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SECTION A – PROJECT OVERVIEW

A1 Vision and Strategic Context

A1 - 1.0 Introduction

The complementary functional economic areas of Cambridgeshire and Peterborough, including market towns and communities, are a significant and distinctive economic geography that makes important contributions of approximately £16.5 billion per annum to the UK economy.

The delivery of our local broadband plan will allow us to drive forward economic growth and build thriving, connected communities in our area, with local business and the private and public sectors working together to achieve sustainable long-term benefits for Cambridgeshire and Peterborough. It will allow our businesses to maintain their position at the forefront of the global scientific and technological advance, help to increase their international competiveness and enable the economic success enjoyed by the cities of Cambridge and Peterborough to permeate into the surrounding area through increased inward investment opportunities and improved channels for better communication.

The Cambridgeshire and Peterborough plan is built on a strong partnership with the leadership and financial backing of Cambridgeshire County Council, Peterborough City Council alongside the support and engagement of Cambridgeshire ACRE and the districts of East Cambridgeshire, Fenland, Huntingdonshire and South Cambridgeshire.

Endorsed by the Greater Cambridge-Greater Peterborough Local Enterprise Partnership (GC-GP LEP), the plan links the national, LEP and local agendas to help deliver the step change in digital infrastructure necessary to drive economic growth and transform the lives of rural communities while helping to meet the ambitious targets set out by the GC-GP LEP area.

The plan will help the GC-GP LEP area to meet the challenge of creating an economy with 100,000 major businesses while creating 160,000 new jobs by 2025, in an internationally significant low carbon, knowledge-based economy. It will also support the sustainability of the 100,000 new homes scheduled to be built over the next twenty years by providing them with a digital infrastructure fit for the 21st century. As a result the growing residential and business population will have a realistic alternative to carbon intensive travel.

We intend to apply our experience and strong track record of delivery across administrative boundaries. Our strong commitment is shown by the highly significant local contribution from Cambridgeshire and Peterborough which greatly exceeds BDUK’s required match funding.

A1 - 1.1 Vision

Our Vision is to make the Cambridgeshire and Peterborough area a great place to do business.

A1 - 1.2 Objectives

The objectives of the SFBB Project are to:

• influence and, where permitted, intervene in the market to provide by 2015

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o access to superfast broadband for at least 90% of all premises, including residential and businesses, in Cambridgeshire and Peterborough

o better broadband connectivity of at least 2Mbps to the remaining premises

A1 - 1.3 Outcomes

The outcomes of the project are to provide:

• Support for economic growth in Cambridgeshire and Peterborough by:

o Helping to make Cambridgeshire an attractive location for new businesses by

consolidating, enhancing and spreading the reputation of Cambridge and the

surrounding area for technology and environmental innovation and enterprise

by ensuring a connected Cambridgeshire with 21st Century digital

infrastructure services

o Ensuring that Cambridgeshire and Peterborough businesses have access to

superfast broadband services to help them compete and succeed in a globally

competitive economy

o Facilitating remote and home working through improved broadband coverage

across Cambridgeshire and Peterborough with consequent reduction in traffic

congestion and other inhibitors to growth

o Targeted support to businesses to help them exploit the potential of superfast

broadband

• Support the health and well being of Cambridgeshire and Peterborough residents

by:

o Enabling streamlined and innovative public service delivery, including support

for an ageing population, via telehealth and other initiatives

o Helping to improve the life chances of all residents by maximising digital

inclusion and ensuring that all Cambridgeshire and Peterborough

communities, including the most deprived, have access to digital services

o Improving access to on-line and home based training, education and life-long

learning opportunities

A1 - 1.4 Our targets

Our targets are:

• to facilitate an improved GVA

• to increase business connectivity

• to increase digital inclusion

• eliminating “not spot” areas in Cambridgeshire and Peterborough

Key performance indicators are being developed in order to benchmark and assess progress towards targets during the lifetime of the project.

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A1 - 1.5 Project Approach

Our approach has been based on intelligence and evidence from subject matter experts in the Broadband Delivery Group. A dual track strategy of influence and intervention has been identified as the most effective and efficient project approach. The component parts of these parallel tracks are shown in Appendix A.

• Influencing the market will be achieved as part of demand stimulation.

• Intervention in the market, where permitted, will be achieved through an EU compliant competitive process.

A1 - 1.6 Our contribution to National goals

The project will contribute significantly to National economic recovery by enabling at least 90% of all premises, including new developments, to have access to superfast broadband so that businesses and the public sector can:

• increase the area’s GVA by 2020 by an estimated additional £500 million

• deliver a key strand of the GC GP LEP agenda

• enable innovative and streamlined local public sector service delivery

• build examples of highly efficient business practice for others to follow

A1 - 2.0 Strategic Context and Need

Multiple data sources have been researched to predict the ‘black’, ‘grey’ and ‘white’ areas. The results show that market intervention is needed for circa 30% of all premises in Cambridgeshire and Peterborough. This equates to around 230,000 residents and over 6,000 businesses.

The planned improvements to the digital infrastructure will greatly assist Cambridgeshire County Council to meet it’s Strategic Plan commitments to:

• drive economic growth

• facilitate the transformation of public services and

• support social inclusion

This will also assist Peterborough to deliver it’s Community Strategy commitments to:

• create opportunities and tackle inequalities

• deliver substantial and truly sustainable growth

• create the UK’s Environment Capital

A1 - 2.1 Supporting Economic Growth

Together, Cambridgeshire and Peterborough constitute a significant and distinctive economic geography that makes a net positive contribution to the UK economy. It boasts some of the country’s most globally competitive clusters which, if provided with the right supportive environment, can help to lead the UK’s economic recovery over the coming years.

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Our 34,000 businesses make a significant contribution to the UK economy with a combined GVA for Cambridgeshire and Peterborough of £16.5 billion per annum, much of this in sectors with high growth potential. We recognise that meeting the needs and ambitions of these businesses requires a step change in communications infrastructure, allowing them to remain internationally competitive, unlocking their ability to create jobs and wealth for residents, and to offset the impact of public sector job losses.

Our plan to deliver superfast broadband will help to overcome a key barrier to the continued success and development of our economic area in the following ways:

A1 – 2.1.1 Supporting small businesses growth

The Cambridgeshire and Peterborough economy is characterized by a large number of micro and small enterprises:

• 84% of businesses have less than ten employees

• 96% have less than 50 employees.1

Many of these companies offer significant potential for growth. Access to superfast broadband will assist them to achieve their potential by helping them to

• access new markets

• recognise efficiency savings

• make use of and develop innovative new products and services.

Our plan recognises this potential. We will support businesses by raising awareness of opportunities for improvement through activities within the demand stimulation work stream. The project will also provide business support, both as one-to-one consultancy and also as access to grant funding. ERDF funding is currently being sought.

A1 – 2.1.2 Supporting the rural economy

Our rural businesses face significant barriers to growth including:

• poor proximity to market

• restricted access to finance

• difficulties accessing quality business support.

Ensuring that as many businesses as possible have access to superfast broadband will help to overcome these barriers. This will enable them to remain in rural areas and still meet their growth ambitions, providing much needed rural employment opportunities. Access to superfast broadband will also mean that more of these rural locations will become viable options for growing businesses wishing to expand and relocate away from the traditional centres of Cambridge and Peterborough.

1 This is based on data retrieved from ONS on 6th July 2011 which quotes 2008 figures.

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A1 – 2.1.3 Inward Investment

Improving our digital infrastructure will attract additional investment into the area. Potential investors will not only be attracted to locate in major clusters surrounding Cambridge and Peterborough, but also in rural areas as the improvements in digital infrastructure circumvent previous barriers due to:

• congested roads

• inadequate public transport

• affordable housing

• skills shortages

A1 – 2.1.4 Improving business productivity

Access to superfast broadband will allow businesses to increase productivity through the adoption of innovative business practices and smart technologies, the up-skilling of their workforces through access to training and education, improved supply chains and increased use of e-commerce.

A1 – 2.1.5 Supporting low carbon growth

Our greatly improved digital infrastructure can reduce the need to travel as:

• a greater number of services become available online

• smart technologies can be used to increase the energy efficiency of buildings

• far greater use of video conferencing can be made

• traditional supply and customer chains can be optimised more effectively.

A1 – 2.1.6 Supporting key growth sectors

Improved digital infrastructure will contribute to ensuring a far broader spread of high value economic activity across the area by selectively addressing sectors such as:

• ICT

• Healthcare and Life Sciences

• Creative industries

• Low carbon and environmental goods and services

• High value engineering and manufacturing

Many of these businesses rely on the movement of large amounts of data and access to the best digital infrastructure available is essential to remaining globally competitive.

The knowledge economy accounts for 32% of employment in Cambridge but only 6% of employment in the district of Fenland. Providing superfast broadband access to rural areas such as Fenland will be an essential tool in order to strengthen the economy.

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A1 - 2.2 Transforming public sector delivery

A1 – 2.2.1 Education and skills support

The availability of online learning resources has a key role in modern education provision. Tackling the learning divide between urban and rural communities by providing access to bandwidth hungry collaborative online learning resources is key to supporting education and skills development in:

• primary schools,

• secondary schools

• sixth form colleges

• Further and Higher Education colleges

• The distance learning adult skills arena.

Superfast broadband and improved basic broadband will help to bridge the gap between what residents can access inside a school, college or library and what they can access within their own home.

A 2009 Price Waterhouse Coopers report indicates that digitally excluded children realise a 4.5% increase in educational attainment with access to such resources.

A1 – 2.2.2 Business support

Our plan will help support the transition to the new business support delivery channels by providing the infrastructure required to access the national business support website.

It will also enable access to online resources such as ERWIN (Everything Regulation Whenever It’s Needed) and Source Cambridgeshire, the new public sector online procurement system.

A1 – 2.2.3 Delivering telehealth in rural communities

A specialist Assistive Technologies and Telehealth unit, based in Cambridge, serves over 3,000 people in their homes by providing and monitoring a range of sensors and terminals. Cambridgeshire Community Services is planning to expand this unit in order to provide a greatly expanded telehealth service, especially to people in Care Homes. Currently these services are bandwidth constrained and operate over landlines, but as telehealth monitoring expands and becomes popular, the use of SKYPE video calling and other bandwidth intensive applications will make it necessary to use broadband as the carrier. Similar developments will be implemented within Peterborough to provide assistive technologies and telecare to the community.

Services being developed by companies based in and around Cambridge, including Philips’s MOTIVA “channel”, will reach patients in their homes with Internet television channels and applications which will help them live with and manage their long term health conditions. As these services take off, it will be essential that broadband is available in all relevant homes to ensure that these services are provided equally to all patients, irrespective of location. Care Homes and sheltered housing schemes will need broadband systems shared by many residents, running multiple TV-like channels.

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As Council and NHS agencies look for economies and efficiencies, the use of technologies such as digital pens and mobile broadband connections to file patient reports and call up records are becoming more widespread. A pilot project in Huntingdonshire is proving successful and staff are beginning to find that the lack of mobile broadband in some Fenland areas is a constraint. Use of advanced contactless smart-card technologies to control staff access to patients in need, to provide secure identification and to securely access Cloud utilities for service user records are all facilitated by availability of broadband at the point of care.

A1 - 2.3 Overcoming barriers to sustainable communities

A1 – 2.3.1 Reducing digital exclusion

Ensuring that our rural communities have the same access to services and opportunities as our urban areas is an essential part of our project. 41% of residents across our area live in areas at high risk of digital exclusion. Without the intervention of this project the risk of digital exclusion will increase as more public services, educational and healthcare resources and forums for democratic participation move to online platforms.

A1 – 2.3.2 Building new communities and sustainable developments

Our partnership brings together businesses, local authorities, universities and social enterprises with a shared ambition for sustainable growth with the benefits made available to all. Developments must be driven by:

• a low carbon economy

• increased delivery of new and affordable housing

• high quality digital infrastructure.

Delivery of superfast broadband will be a key strand in helping to meet economic and social aims. This will allow us to ensure that new communities and developments build on existing successes such as:

• Cambridgeshire‘s Quality Charter for Growth,

• Carbon Challenge

• Peterborough Cultural Trust.

A2. Background

A2 – 1.0 Evidence gained from surveys with businesses and residents indicates that a lack of access to adequate, or any, broadband is creating a digital divide and impeding success.

Digital divides - exist even within communities, such as:

• Cambourne in South Cambridgeshire

• Hampton in Peterborough.

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Common feedback is the frustration that communities in relative close proximity to Cambridge suffer from lack of access to broadband yet they are on the doorstep of an internationally recognised hub of high-tech innovation.

Coverage - BT and Virgin Media are the dominant providers in the region. Current and predicted levels of coverage show that there are significant “white” areas in the region.

• XXXX

• XXXX

• XXXX

• XXXX

• XXXX

Without intervention it is predicted that the market will only deliver superfast broadband to circa 69% of premises. This means that

• at least 6,000 businesses will remain in the ‘white’ area

• at least 230,000 people will remain in the “white” area Skills - The National Skills Audit of 2010 recognises that skills shortages predominantly affect small organizations.

• 20% of our workforce work in micro-businesses

• 86% of businesses registered in Cambridgeshire are micro-businesses

• 64% of employers in Science, Engineering, Mathematics, Technology, and Arts

• 69% of retail companies report skills gaps.

Employment - With regard to employment across the area,

• 20% is made up from the knowledge economy,

• 63.8% is classed as high value,

• 31.4% is in the public sector and

• 75.5% are involved in services.

• 12.5% of employed residents in the area are self-employed

• significant numbers work directly from residential premises. Transport - Although connections to the rest of UK are well served by major road and rail networks, the local transport infrastructure is poor, resulting from

• A14 congestion,

• rural road issues and

• cuts in bus subsidies. Consequently, greatly improved coverage of superfast broadband is essential for the area.

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A3 Local Broadband Context Evidence of Need/Gap Analysis

A3 - 1.0 Summary

Approximately XXXX premises exist in “white” areas. Without intervention there will not be a commercially viable market solution.

Black Grey White Total

Number of residential delivery points

XXXX XXXX XXXX XXXX

Number of non residential delivery points

XXXX XXXX XXXX XXXX

Total XXXX XXXX XXXX XXXX

Multiple sources of information have been used to collate the data show above and it is recognised that discrepancies of a minor nature may occur. Any discrepancies between the current estimates of White areas will be resolved during the formal Market Consultation phase of the project.

Maps which illustrate the distribution of businesses, according to the number of employees, and the areas of deprivation are contained in Appendix B.

A3 - 2.0 Our topography

The region covers an area of 3,397km2 much of which rural farmland, with large areas being heavily drained and pumped to prevent flooding. The topography is largely flat - the highest areas (reaching just 157metres) being the chalk hills to the south and south east, but to the north and north east some areas fall below sea level, with an extensive network of drainage channels, some of which are elevated by up to 10 to15 metres.

Whilst dominated by the two major settlements of Cambridgeshire and Peterborough, there are many small settlements/hamlets with even the District surrounding Cambridge, South Cambridgeshire, having no settlement with a population over 8,000. Given our topography, unsurprisingly we are one of the more sparsely populated areas in the country with an overall population density of 2.31 people per hectare, well below the national average of 3.97.

Parts of our area are almost half that density, East Cambridgeshire has a density of 1.24 people per hectare. There are no homes or business premises on 23.4% of the kilometre squares covering the area and 40% of the area contains 10 or less homes or businesses per square kilometre. DEFRA’s classification of urban and rural areas shows that just over a quarter of the area is made up of ‘hamlets and isolated dwellings’ – the sparsest category, and over 75% of the area is made up of “hamlets and isolated dwellings” and “villages”.

This low density and the lack of existing communications infrastructure in many of our rural areas means that the market does not currently view large parts of our geography as a financially viable investment. By working with these communities and businesses we will

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demonstrate that there is a market incentive for investment and where financial incentive is required this project will provide appropriate levels of gap funding.

A3 - 3.0 Existing Infrastructure

There are a limited number of existing community networks which may well be integrated with any new solution or suffice to continue to meet the requirements of the local community. We will engage with each of these existing solutions to ensure a positive and co-ordinated outcome.

There are public sector networks extending across the area. Opportunities to make further use of the existing public sector networks have been reviewed and largely discounted.

In terms of other infrastructure components, the A14, which is a vital route of international, national, regional and local importance between Cambridge and Huntingdon, is one of the county’s great cross roads and a major bottleneck. It is envisaged that the provision of superfast broadband access will cost effectively help to circumvent the problems resulting from this bottleneck by reducing the need to travel to work.

Maps which illustrate the commercial bus, rail and major road and motorway networks and their relation to Black, Grey and White areas are located in Appendix B

A4 Scope of Project

A4 – 1.1 Vision

Our Vision is to make the Cambridgeshire and Peterborough area a great place to do business.

A4 – 1.2 Objectives

The objectives of the SFBB Project are to:

• influence and, where permitted, intervene in the market to provide by 2015

o access to superfast broadband for at least 90% of all premises, including residential and businesses, in Cambridgeshire and Peterborough

o better broadband connectivity of at least 2Mbps to the remaining premises A4 – 1.3 Number of Partners

The Partner Organisations engaged in the Project are as follows:

Tier 1 Authority Cambridgeshire County Council

Peterborough City Council

Tier 2 Authorities Fenland District Council

East Cambridgeshire District Council

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South Cambridgeshire District Council

Huntingdonshire District Council

LEP Greater Cambridgeshire-Greater Peterborough Local Enterprise Partnership

Private sector Urban & Civic

Community Cambridgeshire Acre

Academic Partners University of Cambridge

Anglia Ruskin University

Cambridge University Health Partnership

Partners Opportunity Peterborough

A4 – 1.4 Prioritisation

Within the white areas we will prioritise where resources are allocated in the event that costs outweigh budgets. In order to do this we will consider the following factors:

• Forecast areas of growth and investment priorities

• Business locations and density, with a bias to SME/SOHO

• Areas of multiple deprivation

• Areas lacking public transport

• Areas with high levels of demand for uptake of services indicating a greater likelihood of sustainability

A4 – 1.5 Balancing Speed and Coverage

Our priority is to provide coverage of greatly improved digital infrastructure. Beyond this we will balance opportunities for improved speed and prioritisation according to the need to demonstrate optimum value for money.

SECTION B – CUSTOMER AND COMMUNITY ENGAGEMENT B1 Demand Stimulation

B1 – 1.0 The Cambridgeshire and Peterborough partnership has been actively seeking to stimulate demand and raise awareness of superfast broadband through the following activities:

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• Working with the East of England Development Agency to promote EREBUS (Eastern Region Broadband Uplift Scheme) an online tool to register demand for superfast broadband in the East.

• Holding public meetings “Digital Debate Events” with local residents, businesses and community groups to raise awareness, understand issues and stimulate demand.

• Direct delivery - Community Outlets/Access Points (CAPs) – since 2002 Cambridgeshire has been linking up rural communities through shared technology access points.

• The business membership organisation Cambridge Wireless is planning to pilot wireless broadband solutions in rural communities to highlight best practice and the benefits of improved digital infrastructure.

B1 – 2.0 Our plan recognises the need to build on the work already undertaken to stimulate demand across key groups within Cambridgeshire and Peterborough by giving residents, communities and businesses the right information and motivation to maximise the benefits of superfast broadband.

A complementary communications strategy, community engagement/support programme and a business support programme will accompany our investment in Superfast Broadband. This will include, but not necessarily be limited to, sector and community specific engagement to address:

• Small to Medium Enterprises operating from business registered premises

• Small to Medium Enterprises operating from non business registered premises

• High Technology and specialist businesses

• Direct community engagement via District Councils

• Direct rural engagement with Parishes via Cambridgeshire ACRE

• Direct contact with MPs, County, District and City Councillors

B1 – 3.0 Furthermore, demand stimulation will encourage demand through the use of demonstrator projects, successful exemplars as case studies and innovative approaches to show businesses how activities can be performed differently, rather than just faster. All demand stimulation activity will cover the entire Cambridgeshire and Peterborough partnership area, encompassing both the public and private sector investment in superfast broadband, with a particular focus on utilising the benefits of superfast broadband to drive economic development.

To ensure that the micro businesses that make up 86% of our economy are able to fully benefit from superfast broadband and deliver economic growth across Cambridgeshire and Peterborough, additional funding is being be sought from the European Regional Development Fund. This work-stream will deliver transformational ICT business support and grants based on the successful EEDA TakeITon model and the BDUK Go Online initiative.

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B2 Demand Registration

B2 – 1.0 Building on the work done by the East of England Development Agency ‘EREBUS’ demand registration surveys, our partnership has rolled out further engagement, awareness raising events and support for community broadband groups that has given us the background to shape a Local Broadband Plan that will deliver the best value for money solution across a challenging rural physical and economic geography.

B2 – 2.0 The demand registration undertaken within Cambridgeshire and Peterborough has shown a clear appetite for, and awareness of, the benefits of superfast broadband. Examples of activities so far include:

• East of England Development Agency demand registration (EREBUS) – Promoted locally EREBUS has 1,737 domestic registrations and 1,393 business registrations for Cambridgeshire requesting improved broadband speeds.

• Promoting the BBC Look East survey into high-speed broadband availability in the East. (http://www.bbc.co.uk/news/uk-england-12430744)

• BT Race to Infinity - Madingley & Caxton within Cambridgeshire were successfully ranked in the top 5 exchanges in the race to be upgraded showing high levels of awareness and demand for superfast broadband within the area.

Demand stimulation work will intensify and continue as a major work stream within the project to generate sustainable commercially viable markets for suppliers.

Registrations for improved/any broadband covered within Cambridgeshire and Peterborough to date are shown on the following page:

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REDACTED

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B3 Stakeholders

B3 – 1.0 The engagement, awareness raising and demand stimulation undertaken so far has given our plan a broad partnership from which to draw evidence and support for the project. Support has been provided by:

• Huntingdonshire District digital event,

• GC-GP LEP

• Forum for Small Businesses

• Chamber of Commerce,

• Cambridgeshire ACRE

• Opportunity Peterborough

• Cambridgeshire high technology businesses sector

Key groups that support the Cambridgeshire & Peterborough Broadband Plan include:

• MPs and MEPs - The areas MPs have been at the forefront of supporting our plan for superfast broadband. They have been engaging with constituents, highlighting the agenda and have shown backing for the bid.

• Elected Members - The Leaders of Cambridgeshire County Council and Peterborough City Council have given their full financial and political support to the project as Chair and Vice Chair of our Broadband Delivery Group that has led the development of this plan.

• Leaders of East Cambridgeshire, South Cambridgeshire, Huntingdonshire and Fenland District Councils have demonstrated their support

• Greater Cambridgeshire-Greater Peterborough Local Enterprise Partnership (GC-GP LEP), recognises the benefit that the superfast broadband project will provide in helping the LEP to meet one of its 5 priority areas of focus, and they fully endorse and support the plan. To ensure a joined up approach with the LEP’s emerging business plan the LEP Chairman is an active member of the Broadband Delivery Group.

• Local Authorities- The district councils within the area have helped to shape and develop the plan alongside the upper tier authorities through an officers project group involving colleagues from across funding, economic development and ICT.

• Businesses and Business Organisations - The evidence provided by businesses has helped to shape this application playing a key role in the development of the plan and

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its focus on the economic development potential of next generation access. We are also actively seeking support from the Institute of Directors.

• Residents - Events and publicity have helped raise awareness of the project. Local and regional media have featured the superfast broadband agenda on both TV and in print. Consultation through parish plans, formal planning documents and master plans have helped feedback residents’ views on broadband provision across Cambridgeshire.

• Partner Organisations - In order to maximise the benefits and reach of any superfast broadband investment, the Cambridgeshire & Peterborough Broadband Delivery Group representatives from the wider public, education and third sectors has been formed to allow a wide engagement of views and opportunities for linked projects. For example, through the Cambridge University Health Partnership representative on the project Delivery Group, links have been made to a new telehealth pilot project bringing efficiency savings and opening up health access in rural communities

B3 – 2.0 Future consultation plans include:

• Communication strategy messages tailored to individual key groups including residents, businesses, community bodies and public sector partners.

• Multi-channel approach to ensure communication in the most appropriate format.

• Clear and transparent aims, objectives and communications.

• Business awareness raising events to highlight the benefits of superfast broadband and potential Cambridgeshire & Peterborough ERDF project.

• Increased intensity of demand stimulation and registration activities

B3 – 3.0 The Cambridgeshire & Peterborough broadband partnership structure is working closely together through the Delivery Group and Working Group. This will ensure a joined up approach to:

• minimise disruption from street works through the planning process,

• delivering a comprehensive communications strategy

• inform and educate local residents and businesses on any works.

C1 Funding Requirements

C1 – 1.0 Extensive financial modelling has been undertaken to determine the most cost effective way of meeting the projects objectives. The results of the modelling reveal that capital funding of around £XX million is required, made up from private funds and private investment.

Cambridgeshire County Council and Peterborough City Council have full approval of their substantial budget commitment to the project.

All monies have been shown as indicating the earliest Financial Year that an investment is required. The exact phasing will be confirmed through the procurement process.

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Funding Table

Total funding required

(GBP)

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

£ millions millions millions millions millions millions

Private sector (Telecom Company) investment

(for CCC)

(for PCC)

XX

XX

XX

XX

XX

XX

Sub Total XX XX XX

BDUK funding

Other funding (Local Authority/PCT), composed of:

Cambridgeshire County Council

Peterborough City Council

Sub Total

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

Other funding (European/ERDF)

XX

XX

XX

TOTAL XX XX XX XX

Postcodes (whole area)

Premises (whole area)

Of which residential

Of which non-residential

Estimated premises in intervention area *

Estimated Post Codes in

Intervention area *

(* subject to confirmation from the Open Market Consultation)

20,968

348,201

333,694

14,507

XXXX

XXXX

Note that the financial profile shown above is a) subject to flex resulting from the dialogue with potential suppliers b) commercial in confidence and will be redacted before publication

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C2 Funding Structure

C2 – 1.0 The details of the technical solution will be agreed through the procurement process and may encompass a range of offerings such that the project outcomes are delivered in all cases.

The profile shown in C1 is based on extensive coverage analysis and cost modelling. From this analysis the total funding will be sufficient to provide coverage of NGA to at least 90% of premises using a mix of XXXX (XX%), XXXX (XX%), an assumed take-up of XX% and includes basic (satellite) broadband for premises currently getting less than 2Mbps that will not get Superfast Broadband under current and predicted market provisions. The funding structure is based on agreed contributions of up to £XX million from Cambridgeshire County Council and up to £XX million from Peterborough City Council together with an allocation from BDUK of £XX million. It has been assumed that private sector investment will be in the order of £XX million, in accordance with BDUK guidance for equivalent match funding of public contributions.

The majority of funding is planned for investment in physical networking and equipment and directly associated professional services costs. There will also be demand stimulation activities most expressly covered by the other funding streams shown above.

Ensuring sustainability through demand stimulation is to be included as a contractual obligation and may also be partially funded by ERDF.

If ERDF funding is not made available in full, for whatever reason, the Business Support activities will be reduced accordingly.

Payment terms are to be structured to encourage delivery targets (in terms of coverage, speed and penetration) and residually to ensure there has been progress in market stimulation.

SECTION D – COMMERICAL INFORMATION

D1 Commercial Case

D1 – 1.0 An assessment of the options has been undertaken and a gap funding model is proposed, in which the supplier of the network would take title and risk to the infrastructure.

Requirements will be expressed in outcome terms rather than technology specifications and cost effective innovative solutions will be sought to ensure that there is a good prospect of sustainable long term solutions.

Cambridgeshire and Peterborough have a strong pedigree in broadband service take-up and will ensure that this contract is presented as a compelling investment opportunity for potential bidders.

D2. Market engagement

D2 – 1.0 Cambridgeshire County Council contracted for a data set from Point Topic to derive an initial model of forecast coverage in line with OFCOM/State aid stipulations for a

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three year planning window. This has further been complemented by using the datasets provided by BDUK and BT. The timetable for State Aid compliant Market Engagement activity is:

• Pre-Notification April 2012

• Pre-Notification Clarifications May 2012

• Formal Notification August 2012

• Formal Clarifications December 2012

D2 – 1.1 Following the publication of the OJEU Prior Information Notice (PIN) in January 2012, a well attended Supplier Day was held on 23rd February. Since then individual telephone conference calls have been conducted at the request of eleven of the potential suppliers. These calls were specifically aimed at ensuring that the potential supplier understood the nature of the project and were able to discuss opportunities and obstacles to bidding. From information gathered during the telephone calls we currently estimate that 5 or 6 potential suppliers have shown sufficient interest in the project to respond to the PQQ stage. The Agenda for the day and a list of those who attended is at Appendix C.

D3 Procurement Strategy

D3 – 1.0 Three potential procurement routes have been considered:

• BDUK Framework

• OJEU Competitive Dialogue

• Local Framework

Following an analysis of the options, the OJEU Competitive Dialogue has been considered

to be the most appropriate. The aspects considered during the analysis were:

• interest expressed by local suppliers

• timescale equivalence

• procurement costs

• contractual structure, including targeted support to businesses to do things

differently rather than just faster

• operational model and asset ownership

• financial options

• flexibility regarding requirements and solution design

• negotiation capability

• supplier competition and level of market interest.

A summary of the options considered is shown at Appendix D.

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SECTION E – DELIVERABILITY

E1 Project Management, Resourcing and Funding

E1 – 1.0 Project Management, Resourcing and Governance

E1 – 1.1 The SFBB Project Governance structure shown in the diagram above and detailed below has been formally approved by Cambridgeshire County Council and Peterborough City Council Cabinets. Delegations are compliant with Local Authority needs for transparency and democratic decision making. Project decisions will be made jointly between Cambridgeshire County Council and Peterborough City Council.

E1 – 1.2 The Project Steering Group will meet quarterly or more often if needed. The purpose of the Steering Group is to provide strategic direction to the superfast broadband project and is responsible for the financial spend and commitment by both Cambridgeshire County Council and Peterborough City Council.

The Project Steering Group is composed of:

Leader, Cambridgeshire County Council

Leader, Peterborough City Council

Cabinet Member for Growth and Planning, Cambridgeshire County Council

Cabinet Member for Resources, Peterborough City Council

Cabinet Member for Resources and Performance, Cambridgeshire County Council

Cambridgeshire and Peterborough SFBB Delivery Group

Project Steering Group

Project Board

Project Team

Superfast Broadband Working Group

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Supported by:

Executive Director Economy, Transport and Environment

E1 – 1.3 The Project Board will meet monthly or more often as needed and is responsible for oversight of the project. This includes monitoring progress against the agreed plan, ensuring appropriate project management practises are followed and relevant financial regulations are adhered to.

The Project Board is composed of:

• Senior Responsible Officer, Executive Director Economy, Transport and Environment, Cambridgeshire County Council

• Local Government Shared Services (LGSS) Director of Finance, Cambridgeshire County Council

• Head of Business Transformation, Peterborough City Council

• Head of Corporate Finance, Peterborough City Council

• Superfast Broadband Project Director, Cambridgeshire County Council

• BDUK Area Representative. Supported by: Superfast Broadband (SFBB) Project Manager.

The Project Board has authority over the project with specific responsibility for:

• Confirming the start up of the project via acceptance of the project brief

• Validating the business justification of the project, and its achievability and affordability.

• Committing resources required by the project.

• Providing guidance and direction, ensuring the project stays on course within the specified constraints.

• Supporting the Project Sponsor to gain buy-in and acceptance from stakeholders.

• Identifying interdependent activities and providing guidance on how they should be managed.

• Monitoring progress, confirming achievements at each major project milestone or end of stage and approving commencement of the next stage.

• Providing direction and support to help resolving long outstanding issues.

• Owning some of the project risks or assigning them to suitable owners for mitigation.

• Approving changes to the project within its delegated authority.

• Ensuring compliance with corporate policies and standards.

• Ensuring the project is satisfactorily delivered before recommending for close down.

• Reviewing the end project and lessons learned reports.

E1 – 1.3.1 Within the Project Board, the Senior Responsible Officer is ultimately accountable to the Project Steering Group for the project, supported by the Project Board

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and the Project Director. The Senior Responsible Officer has the responsibility to ensure that the project is achieving its objectives through successful delivery of project deliverables or outputs. The Senior Responsible Officer will provide advice and make decisions on issues that arise, communicating with stakeholders as appropriate. Specifically:

• Owning the project business case (which together with the project initiation document, set out why and how the project is to be delivered).

• Overseeing the development of the project brief and the business case.

• Securing project funding, agreeing resources and authorising expenditure.

• Appointing the Project Director and other key project roles.

• Monitoring and controlling the progress of the project including risk management.

• Providing advice and make decisions to help resolve significant issues.

• Actively promoting the project within and outside of the organisation.

• Ensuring stakeholders are appropriately engaged, and that the customer expectations are being managed.

• Chairing Project Board meetings, also advising on upward referrals of decisions .

• Providing direction and support to the Project Director, including taking decisions for those issues that are beyond the control of the Project Director.

• Ensuring there is an effective mechanism for reviewing and accepting (or rejecting) project deliverables.

• Confirming the achievements of project as it progresses and completes.

• Commissioning a post-project review.

• Contributing to the programme benefits realisation review as appropriate.

E1 – 1.4 The Project Team is responsible to the Project Board for implementing the project on a day to day basis in accordance with PRINCE2 and is composed of:

• XXXX Project Director

• XXXX Project Manager & Procurement Workstream Lead

• XXXX Communications and Marketing Workstream Lead

• XXXX Project Support Officer

• XXXX Demand Registration and Stimulation Workstream Lead

• Communications Officer:

• Internal Audit

• Legal Team

• Finance Team

• GIS Officers

• External Advisors

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Analysys Mason has been engaged as the External Advisors on commercial and technical matters.

The legal advice provided by the CCC Legal Department will be supplemented when necessary by external independent legal advisors. With the exception of one full time Project Manager, all other posts are part time in order to provide the most cost effective resource profile. E1 – 1.4 .1 Project Director - Within the Project Team the Project Director is authorised by and reports to the Senior Responsible Officer and the Project Board to direct the project within the limits and constraints set by the Board. The Project Director ensures that the project produces the required deliverables (or outputs) to the expected quality and within the specified constraints of time and budget. The responsibilities of the Project Director are set out below and may be partially delegated to the Project Manager at the discretion of the Project Director and with the agreement of the Senior Responsible Officer:

• Ensuring there is a mandate to start the project.

• Seeking approval for project initiation, as directed by the Project Sponsor, by producing the necessary documentation (project brief/ business case/ project initiation document).

• Designing the project structure and ensuring completion of the key planning documentation.

• Appointing the project team.

• Approving individual packages of work needing to be delivered by the project team.

• Directing the project team to ensure the deliverables are produced to the quality expectation.

• Seeking acceptance by the Project Board of project deliverables as they complete.

• Putting in place adequate project controls and reporting mechanism.

• Managing risks and issues, taking corrective action where necessary and escalating where appropriate.

• Managing the project budget on behalf of the project sponsor.

• Being responsible for change control.

• Liaising with and reporting to the Senior Responsible Officer and Project Board.

• Ensuring adequate communication with suppliers, users and other stakeholders.

• Ensuring effective project administration, including configuration management.

• Contributing to end of stage reviews via the use of end stage reports, and seeking decision before proceeding to the next stage.

• Seeking formal approval of project go-live, highlighting any open business critical issues.

• Ensuring effective transition from post implementation support to business as usual operation.

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• Seeking formal closure of project when the project is complete by preparing the end project report, including lessons learned.

• Standing down the project team and coordinating necessary end project administration.

E1 – 1.5 Two advisory groups have been formed to research best practice, bring wider public sector, industry and academic experience to bear and to provide detailed local knowledge and information to the project:

The Superfast Broadband Working Group comprises Economic Development Officers from the County Council, Cambridgeshire District Councils and Peterborough City Council.

The Cambridgeshire and Peterborough Broadband Delivery Group comprises representatives from the Local Enterprise Partnership (LEP), University of Cambridge, Cambridge University Health Partnership, Anglia Ruskin University and Urban and Civic, as well as members and senior officers from Cambridgeshire County Council, Cambridgeshire District Councils and Peterborough City Council.

E1 – 2.0 Project Management Methodology and Additional Assistance E1 – 2.1 The Project is being managed in accordance with PRINCE2 methodology. Ongoing assurance is provided using an embedded internal audit approach, supplemented by external assurance from BDUK at agreed milestones.

E1 – 2.2 The SFBB Project will require assistance from BDUK. This will include guidance on State Aid exemption, the ongoing provision of data relating to private sector roll-out, and access to the demand stimulation and registration tool set.

E1 – 3.0 Funding and sufficient resources are in place to execute each of the work-streams, as shown on the table below.

Revenue funding has been committed by Cambridgeshire County Council for the Advisors, Demand Stimulation activities and Project Team shown in the table above. Contributions in kind are made by Cambridgeshire County Council for the Project Director and Inward Investment Officer; by Peterborough City Council for the Head of Service Improvement (Peterborough) and by Districts for the Economic Development Officers.

Project Team and Programme Resource funds (Revenue)

2011 - 2012 2012 - 2013 2013 - 2014 2014 - 2015

£K

Budget

Advisors

Demand Stimulation

Project Team

TOTAL

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

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E2 Timetable

The timetable for the OJEU Competitive Dialogue is shown below:

Key milestone* Expected date

Project definition approved by local bodies January 2012

Issue of PIN January 2012

Suppliers Day February 2012

Issue of OJEU Notice April 2102

Prequalification complete May2012

Invitation To Participate in Dialogue Complete May 2012

Dialogues Complete September 2012

Final tenders submitted October 2012

Preferred bidder selected November 2012

State Aid approval confirmed December 2012

Contract award December 2012

Commencement of implementation January 2013

Implementation complete March 2015

E3 Expected Strategic Benefits

E3 - 1.0 Summary

The Cambridgeshire & Peterborough Superfast Broadband Project (SFBB) will play a major role in implementing the Coalition Government’s Next Generation broadband roll-out. In the national arena, the SFBB Project will address aims set out in the Coalition Government’s National Broadband Strategy: Building Britain’s Superfast Broadband Future. At a local level, SFBB will facilitate the delivery of a more competitive and robust economy whilst increasing the opportunities for engagement of more digitally excluded communities and realising the ‘Big Society’. The SFBB Project will build the foundation from which the area’s economy will grow, develop and prosper, where businesses can communicate and exchange information more easily with suppliers and customers, create improved and more efficient public service delivery and fundamentally delivery the capability for greater community interaction.

E3 – 1.1 Competitive and robust economy

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• Improving connectivity and competitiveness. Apart from the large conurbations of Cambridge and Peterborough, the Cambridgeshire area is predominately rural. This means that a large number of settlements within the hinterlands of these cities are dispersed and often have a poor legacy of road, rail and first generation broadband infrastructure. As a result many therefore have limited access to services and information. This is particularly prevalent in the northern districts of the county. The majority of businesses and households in areas with poor internet speeds are those in small market towns and rural communities. Improved digital infrastructure will limit the impact of a decrease in rural competitiveness.

• Developing a robust economy The area is world renowned for education, science and environmental sectors which can provide considerable opportunities for business productivity through the use of ‘smart’ technologies that require faster, higher bandwidth broadband access not only direct to the business or home but also to mobile devices. The introduction of superfast broadband to more rural areas will allow many more businesses to take advantage of locally developed technologies providing them with increased opportunities for growth, both financially and in employment, and to reduce their carbon impact. The introduction of superfast broadband into these areas will also open new channels allowing these businesses access to innovation and knowledge transfer opportunities with educational and research parties located around the centres of Cambridge and Peterborough as well as internationally. Many of these micro and small businesses are unlikely to have the resources to develop or take advantage of the benefits of superfast broadband by themselves. The project recognises this opportunity and is developing a bid for European Regional Development Funds (ERDF) to deliver transformational ICT business support and grants to enable these businesses to maximize the benefits of superfast broadband.

• Delivering a sustainable future by supporting low carbon innovation and productivity. Assisting diversification of market towns and rural settlements to develop clusters in sustainable technologies will add value to the competitiveness of both the main innovation hubs of Cambridge and Peterborough. This will also enable greater interaction with local schools and knowledge transfer from local colleges and regional universities. Implementing the SFBB Project will support the delivery of accelerated major growth within these sectors creating significant employment opportunities and reducing out-commuting and travel plans. The SFBB Project also recognises the need for greater flexibility in employees’ work styles, patterns and location. Greater accessibility and flexibility to learning and job search opportunities through e-learning (e-books, e-audio, and language courses) can also be achieved.

• Raising aspirations through skills growth. Cambridgeshire is home to two universities, both located in Cambridge City: the University of Cambridge and Anglia Ruskin University (ARU). The University Centre Peterborough (in partnership with ARU) also provides services direct to the business community, aiding innovation, product and service development and the general 'up-skilling' of the local workforce. In addition to academic programmes and partnership working with local businesses, the University Centre seeks to support the civic development of Peterborough through support for local community groups, public events, professional bodies and businesses.

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• The 2008 Research Assessment Exercise shows the University of Cambridge to have 49 out of 50 subjects rated as world-leading quality (grade 4*) or internationally excellent quality (grade 3*) and ARU to have 2 out of 9 subjects achieving world leading or internationally excellent quality. Both universities also provide good business education. However, few highly skilled graduates of the University of Cambridge or Anglia Ruskin University appear to seek employment within the county; potentially a missed opportunity in terms of growing a hi-tech economy experiencing skills shortages. The northern areas of the county acts as a net exporter of skilled young people looking for a high wage economy. The SFBB Project will address areas of social exclusion, unemployment, low aspiration and skills levels by delivering superfast broadband services which will offer significant opportunities for people living in rural communities to access skills training to enable greater transferable skills and encourage greater start-up of small businesses.

E3 - 1.2 Transforming public sector delivery. Delivering this project will aid the implementation of efficiency improvements to transform areas of service delivery for local authorities and other bodies accountable for delivering services to both business and residential communities. Better service access through enhanced digital connectivity and coverage of superfast broadband available to businesses and residents are key components to deliver greater quality of life. Wider benefits include e-health and the development of Telehealth and Telecare technology to enable vulnerable residents to remain independent. Developing Telehealth technologies provides significant opportunities to improve the care of patients in their own homes, and substantially reduce the cost of home care provision. E3 - 1.3 Developing sustainable communities through the ‘Big Society’ Delivering the SFBB Project will also give increased opportunities for the third and voluntary sectors to develop greater provision and capacity to implement the delivery of local services across Cambridgeshire and Peterborough. The SFBB Project will also support greater well-being amongst communities enabling greater access to employment opportunities e-learning, internet shopping and greatly enhanced access to home entertainment. E3 - 1.4 Benefiting from the ‘Green’ agenda Delivering superfast broadband access creates opportunities for greater flexible and home working opportunities reducing carbon emissions from transport movements. It has been documented by the Climate Group on behalf of the Global eSustainability Initiative that utilising ICT ‘smart’ technologies could reduce greenhouse gas emissions by as much as 15% by 2020.

E3 - 2.0 Impact assessment Monitoring the impact of delivering superfast broadband in the Cambridgeshire and Peterborough areas will require quantitative and qualitative data capture. This will be done by developing impact assessments which will measure strategic outcomes on economic growth including business productivity in large, small and rural conurbations, through increased Gross Value Added (GVA) and community development.

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E4 Risk Management/Log

Risk Risk Assessment (Low,

Medium, High) Threat to Project and Mitigation

No. Description Likelihood Severity REDACTED 1 Insufficient number of

bidders in Competitive Dialogue

M H XXXX

2 Insufficient capacity and capability from winning bidder

M H XXXX

3 Impatience in the community leading to uncoordinated, non-future proofed DIY solutions

M M XXXX

4 Delay in reaching contract award from Competitive Dialogue

M H XXXX

5 Non-availability of funding from BDUK

L H XXXX

6 Insufficient resource within project team due to other priorities for matrix managed team members

L H XXXX

7 Insufficient sustainable demand resulting from demand stimulation and registration process

M H XXXX

8 Failure to secure State Aid approval in time for Contract Award

M H XXXX

9 Failure to secure ERDF Funding

M M XXXX

10 Supplier match funding insufficient to meet project targets

L M XXXX

11 Legal Challenge during the procurement process

M M XXXX

12 Time and/or Cost overruns after contract award

M M XXXX

13 Chosen suppler unable to complete deployment or to continue to provide service due to financial difficulties

L H XXXX

14 Continuity of key project resources over the life time of the project

L M XXXX

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15 Planning permission for broadband infrastructure (e.g. poles & ducts) not granted as required

M L XXXX

16 Overlap or under-lap with neighboring counties in terms of coverage complicates demonstration of compliance with State Aid requirements

M M XXXX

F1 State Aid Confirmations

F1 – 1.0 Our intervention in the communications market will be compliant with State Aid and will cover the entire geographies of Cambridgeshire and Peterborough (encompassing 7 upper tier authorities), and a significant proportion of our LEP. Compliance with State Aid will be conducted in parallel with demand stimulation and procurement and it is recognised that contract award is dependant on successfully achieving State Aid Compliance. The process we will use for state Aid Compliance is listed below:

• Pre-notification April 2012

• Pre-notifications clarifications May 2012

• Formal Notification Sep 2012

• Formal clarifications Dec 2012

• State Aid Decision Jan 2013

During this process we will ensure that the procurement is technology neutral, the requirements being stated in outcome terms rather than technology specific terms. The procurement approach will be compliant with the OJEU Competitive Dialogue procedure, designed to deliver the solution in the most economically advantageous terms and with a minimum of a 7 year effective wholesale access obligation.

Our contract with the suppliers of the subsidised network will include a requirement for benchmarking of the prices against industry standards.

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APPENDIX A – Dual Track Project Approach

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APPENDIX B Maps to support Section A3

39

40

41

42

43

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APPENDIX C – Supplier Day

Connecting Cambridgeshire Supplier Information Day - 23 February 2012

Agenda and Presenters

• Our vision for Cambridgeshire & Peterborough • XXXX Chair - Leader, Cambridgeshire County Council • XXXX Co Chair - Cabinet Member (Resources), Peterborough City Council

• The economic landscape • XXXX Chair of the Greater Cambridge Greater Peterborough Local Enterprise

Partnership

• Technology and innovation • XXXX Founding Director, Centre for Science and Policy

• A business perspective • XXXX Chief Operating Officer, ARM

• Connecting Cambridgeshire • XXXX Executive Director, Economy, Transport & Environment, Cambridgeshire

County Council

• State aid and procurement process • XXXX Analysys Mason

• Q&A • XXXX Chair - Leader, Cambridgeshire County Council

Companies Attended

REDACTED

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APPENDIX D – Procurement Options Analysis

REDACTED

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CEO sign off/Section 151 Officer/Executive Member (portfolio holder) for Cambridgeshire County Council

a) Submission:

In submitting the Local Broadband Plan, I verify that the proposal fits with corporate policy

Signed:

Name: Cllr Ian Bates

Job Title: Portfolio Holder, Cabinet Member for Growth and Planning, Cambridgeshire County Council

Date:

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CEO sign off/Section 151 Officer/Executive Member (portfolio holder) for Peterborough City Council

b) Submission:

In submitting the Local Broadband Plan, I verify that the proposal fits with corporate policy

Signed:

Name: Cllr David Seaton

Job Title: Cabinet Member for Resources, Peterborough City Council

Date:

The Local Broadband Plan should be sent to BDUK when ready and should consist of a completed Plan covering all the topics as set out in this template. Proposals should not exceed 40 pages in length. Please do not include supplementary material other than mapping information and a project plan. Three hard copies of bids and supporting material should be submitted to: Barbara Booth Broadband Delivery UK Department for Culture, Media and Sport (DCMS) 2 - 4 Cockspur Street London SW1Y 5DH Envelopes should be marked ‘Submission for BDUK Broadband Funding’. An electronic copy should also be submitted to bob.sancto@local.gov.uk