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BDUK Broadband Delivery Project Local Broadband Plan (Application for spring 2011 Award Round Funding)

Executive Summary July 2011

Broadband Delivery UK (BDUK) has been created within the Department of Culture, Media and Sport to support and encourage delivery of the government’s policies on broadband. It aims to facilitate the delivery of universal broadband and stimulate private sector investment to deliver the best super-fast broadband network in Europe by 2015. Wiltshire Council successfully applied for funding from BDUK in April 2011 to improve broadband infrastructure across the county. This document is an updated summary of the bid submitted, including the business case and estimated timescales and costs. Background information and data can be found in full in the Broadband Provision in Wiltshire report (2010) available at: http://www.intelligencenetwork.org.uk/transport-communications/ The latest up to date information on the progress of the project is available on the website at: www.wiltshireonline.org.

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The Wiltshire Digital Inclusion Programme Digital inclusion is one of twelve key programmes that are being taken forward by Wiltshire Council. It is recognised that digital inclusion will contribute to many of these other programmes and close links will be forged through the Transformation Board who has overall responsibility for the programme.

Our vision For Wiltshire to be a digitally inclusive county, supporting

nfrastructure developments, access to online services and theability of citizens and businesses to be confident users and

maximise the benefits which being online can bring 

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What is digital inclusion? The wider digital inclusion programme comprises of three themes which are closely inter-related with each one supporting the others:

Improving access to broadband for citizens

and businesses Ensuring all homes and

businesses have access to broadband by 2015, including at

least 85% to superfast broadband; providing Wi-Fi

access in all public libraries and recycling of council computers for

those on low incomes

Encouraging Wiltshire’s citizens to use more council

services online Improving Wiltshire Council’s

website and improving information to the public on the range of online

services available

Getting everyone in Wiltshire feeling confident in using the internet and

technology Providing opportunities for all adults to learn and supporting

businesses to improve their use of technology

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How is the project managed? The digital inclusion project board has been set up to steer the work on digital inclusion and achieve the three overarching aims. This board comprises senior council members and officers who have specific roles and responsibilities required to help deliver this project. In addition, an operational project team with three sub-groups has been formed to undertake the day to day work on the programme. The board is accountable to the council’s Transformation Board and subsequently the council’s senior management team and Cabinet. CLT

ProgrammeCabinet

Portfolio holders Who are we working with? We know that for the programme to be a success for Wiltshire, we need to actively work with others to ensure funding is planned and managed well, that the business case to the market is a strong one and that networks are joined where possible to reduce costs. Our partners include public organisations such as the MoD, the emergency services and public health, and neighbouring authorities such as Swindon, Bath and North East Somerset, Somerset, Hampshire and Gloucestershire.

Transformation Board

Digital inclusion project board

Informal project group

Online services Connectivity and provision

Delivery partner Systems thinking / service reviews

Digital literacy

Strategic and political leadership

Strategic governance, pmanagecoordination

roject ment and

Operational delivery

Community business links / volunteers

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We will also work closely with communities and businesses to identify where investment is needed, increase awareness of the benefits of superfast broadband, and seek volunteers to help people use the technology. A new volunteering strategy and vision for Wiltshire will direct and focus this work. Over 400 people have already indicated that are willing to be volunteers.

Wiltshire’s business case The objectives of the digital inclusion programme are closely linked to a number of the aims of corporate and partnership plans. These plans include:

The Wiltshire Community Plan (2011-2026) Wiltshire Council Business Plan (2011-2015)

Wiltshire Council Financial Plan (2011-2015) Wiltshire Council Core Strategy (2011-2026)

Economic strategies Wiltshire Local Enterprise Partnership (proposal document)

Climate change strategyWiltshire Transportation Plan

Campus development programme Wiltshire Volunteering Strategy (2011-2014)

Why is improving broadband provision in Wiltshire so important? Wiltshire is a great place in which to live and work. Deprivation is generally low and it is a place of opportunity where high numbers work and educational attainment is good. However, we must be careful as some aspects of our life in Wiltshire could be undermined by economic, social and environmental challenges. The impact that many of these challenges will potentially have can be alleviated with technological advancement and improved online access. Population growth and demographic changes Wiltshire’s population is set to increase by 12% by 2026 – around 54,800 people. This will be most significant in the older age groups placing more demand on resources, in particular in public health. Improved use of communications technology will mean a better quality of service for those who need it. Social and economic deprivation Wiltshire is generally considered to be relatively prosperous but pockets of deprivation do exist, including in rural areas where it tends to be dispersed and therefore less visible. Around 25% of households are likely to be non-users of the internet, particularly amongst older people and those on lower incomes. Improved access to technology and support to utilise online services will allow rural groups to participate more fully and to benefit economically through online savings and broader options for job searches.

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Rurality Wiltshire is a mostly rural county meaning a large number of settlements are remote, dispersed and often have a poor legacy of telecoms infrastructure and therefore access to services and information. The majority of households in areas with poor internet speeds are those in isolated rural communities and so improvement of services will limit the impact of a decrease in rural services. Economy Wiltshire’s businesses are generally smaller than the regional and national averages, with approximately 87% having fewer than 10 employees (micro businesses) and 10% having 11 to 49 employees (small businesses). Keeping and attracting new businesses into Wiltshire is a vital target within the council’s business plan, which prioritises access to good connectivity. Smaller businesses are particularly reliant upon the prevailing broadband infrastructure and available services and are also unlikely to have the resources and expertise to develop their own solutions. Through joint working initiatives, the need for superfast broadband infrastructure across the county has been highlighted as essential to ensuring all businesses can benefit from technological advances. In June 2011, 1.9% of the working age population in Wiltshire were unemployed and claiming Job Seekers Allowance. Employability of Wiltshire residents can be supported through better access to technology at home, in public libraries and job centres. Carbon Reduction Wiltshire is well connected to the surrounding employment hubs of Bristol, Bath and Swindon, which encourages out-commuting of residents. By improving accessibility to superfast broadband to a much higher percentage of premises across Wiltshire, employees and micro businesses will have the opportunity to work from home, reducing the need to commute and thereby saving money on fuel, and making carbon reduction savings.

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The key benefits envisaged as a result of this programme are: Improved access to online services Stimulation of investment by the private sector that will help to create up to 6,000 new jobs, 1,600 of which will be in high skill/high value activities Wiltshire will be a business location of choice as a result of all new developments for business land having superfast broadband availability The regeneration of existing business centres and workspaces to enable them to have superfast broadband availability by 2015 An increase in new businesses and a reduction of closures Maximisation of the environmental benefits by reducing the need to travel A predicted growth in Gross Value Added (GVA) of £886 million by 2015 and an increase in labour productivity of £2,300 per worker.  

What is broadband coverage in Wiltshire like today?

Only small areas served by superfast broadbandAll exchanges are able to provide a broadband service

Not everyone receives the same service! BT is the principle operator

Business services in rural areas are poor 5% of households can only access slow broadband

The council undertook a study of broadband provision in Wiltshire for all premises in Wiltshire during 2009/10 with the following headline findings:

• Around 5% of households and 7% of businesses in the county had potential broadband speeds of below 2mbps

Fig. one – areas with poor or no broadband service

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• All of the 106 BT exchanges providing services in Wiltshire are able to

provide a broadband service - four are enabled with a BT’s faster broadband service (only one exchange serving a significant area (Chippenham) is currently enabled with BT’s super-fast service)

• Nine exchanges serving Wiltshire’s businesses are enabled with suitable services. The exchanges with these higher grade services are typically those serving the larger towns

• Very few exchanges serving areas of Wiltshire are operated by two or

more principal operators and the majority have BT as the single principal operator

• Cable broadband services, offering download speeds of up to 50mbps

are available in a number of towns in the county to around 34% of all households

• Actual broadband speeds experienced by consumers are typically

significantly below the advertised headline speeds.

How will Wiltshire’s connectivity be improved? At least 85% of premises will have access to superfast broadband All premises are able to receive at least standard broadband All public libraries to have Wi-Fi access

Why hasn’t broadband already been improved by the private sector? In some parts of the county, broadband provision has been improved by the private sector. The map at fig. two shows the current plans for the rollout of superfast broadband without intervention from this project. Only two exchanges – one in Bradford-on-Avon and one in Corsham - that do not currently have an improved service either in place or planned for the next two years appear to have a relatively strong business case for market intervention. As a rural county, the vast majority of exchange areas have weak business cases for market intervention based on household density. Areas with broadband of less than 2mbps or no broadband provision are dispersed throughout the county in areas of low household and business density and are therefore unlikely to return the investment for any market led improvements. These areas are a high a priority for the digital inclusion programme.

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Fig. two – Planned market provision of superfast broadband until 2012. (Areas not shaded black and grey are currently not being considered for market

investment and are where we would target our investment) How will implementation areas be prioritised? Prioritisation of areas will be based on economic impact and social needs to determine where and when investment for rollout can be targeted. The criteria are likely to include:

Market failure and/or a weak or no business case for the market to invest

Current broadband provisionBusiness type, size and numbers within the area

Population density

Social and economic needs Public service requirements

More work will be done to agree phasing with the successful provider.

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Costs and timescales How much will this cost? An estimated £20 million, plus match funding from industry. How will it be funded? Funding for the digital inclusion programme will come from three sources:

£16 million of investment from Wiltshire Council

£4.7 million from BDUK as a result of the bid Match funding from the successful bidder

Additional funding to improve digital literacy amongst micro and small businesses is also currently being sought.

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BDUK £4.7 million

Wiltshire Council £16 million

Match funding

Community and other funding sources

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Why has Wiltshire applied for funding from BDUK?

The council’s 2011-15 Business Plan has recognised the importance of digital inclusion and has prioritised an investment of £16 million for this period. The decision to invest in this as well as seeking funding from BDUK is based on the overwhelming feedback the council has received from businesses and citizens that connectivity is poor or non-existent in many areas across Wiltshire. There is strong evidence that access to technology and good connectivity allows business to grow at faster rates and that educational and socially life chances are improved. Funding from BDUK will enable a significant improvement to the number of premises supported by the programme. When will this be achieved?

The project will be spread over four years between 2011 and 2015 and rollout will begin as early as April 2012.

The work will be phased in agreement with the successful contractor and milestones for improved connectivity to premises will be determined according to their priority ranking. Areas of highest priority ranking - clusters of small and micro businesses and communities in isolated rural areas with poor connectivity - will be included phase one. The last two years of the project will be used to rollout availability to the remainder of premises.

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This document was published by Wiltshire Council. You can contact us in the following ways: By telephone 0300 456 0100 By post Wiltshire Council, County Hall, Bythesea Road, Trowbridge, Wiltshire BA14 8JN By email enquiries@wiltshireonline.org By web www.wiltshireonline.org