broadband wales - the impact of failing to deliver broadband universality

Broadband Wales | The impact of failing to deliver broadband universality


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Broadband Wales

The amount of debate, hand wringing, lobbying and critique surrounding the provision of broadband (particularly fast or superfast broadband) in Wales has been well documented and extremely high.

Everybody has an opinion, and everybody claims to have the solution. BT offer their fibre optic installation; Virgin have a similar offering that the claim to be better; satellite companies claim a ubiquitous delivery; SME providers all vie for attention.

The Welsh Government have thrown their hat in the ring with various plans, and grand schemes (most recently the BBSS or Broadband Support Scheme and the Fibrespeed network in the north of Wales).

Westminster offer the BDUK (broadband delivery UK).

wispa Limited was formed by Richard Brown on the back of his experience delivering rural broadband via wireless communications over the last third at exwavia Limited, (which he started with Annette Burgess), and via wispa Limited Richard has offered advice to SME providers; the Wales Office and the Welsh Government ICT team.

Actively offering public critique for various claims in the press by the organisations mentioned, wispa Limited has gained a reputation for being able to quickly get to the heart of the failures and to offer opportunities to prevent these becoming endemic.

This white paper has been researched and compiled by Richard Brown, together with a number of consultants; independent SMEs

and the available knowledge amongst the communications industry.

We hope that this white paper will inspire the Welsh Government, and the Welsh Communications Industry to assure the future of Wales both economically and socially, via a communications infrastructure that actually delivers, rather than continue the broken promises and dreams of the past.

Richard BrownChief Operating Officerwispa Limited

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A word from wispa Limited

ContentsA word from wispa Limited......................................................................................................................................................... 3

Executive summary. 1.................................................................................................................................................................... 7

It's all about the money, honey............................................................................................................................................ 7


Wales as a Digital Leader........................................................................................................................................................ 8


Digital Inclusion – at a national level................................................................................................................................. 9

The economy............................................................................................................................................................................... 9

Executive summary. 4................................................................................................................................................................. 10

Recommendations in this white paper............................................................................................................................ 10

Introduction. 1............................................................................................................................................................................... 11

Easy to criticise – but what about after the whingeing?...........................................................................................11

Introduction - 2............................................................................................................................................................................ 12

Passionate about Wales – passionate about success.................................................................................................12

Should Government 'do' or 'lead'? .................................................................................................................................. 14

Chapter1 – Government............................................................................................................................................................ 14

Chapter1 – Government - RIBS............................................................................................................................................... 15

RIBS – would you Adam & Eve it?..................................................................................................................................... 15

Don't buy infrastructure, regardless of the outcome?...............................................................................................15

Chapter1 – Government – BBSS............................................................................................................................................. 16

BBSS is about to fail – let's change what we do!......................................................................................................... 16

Chapter1 – Government – Fibrespeed................................................................................................................................. 17

Fibrespeed – must be a good thing surely?.................................................................................................................. 17

So, what is the answer?......................................................................................................................................................... 17

Chapter1 – Government – an answer?................................................................................................................................. 18

Chapter2 – Ofcom....................................................................................................................................................................... 20

Ofcom – regulate this............................................................................................................................................................ 20

Ofcom reduce BT's wholesale price for rural broadband – what this means....................................................21

Does it matter? Really?.......................................................................................................................................................... 22


Chapter2 – Ofcom - implications........................................................................................................................................... 22

Chapter2 – Ofcom – Implications cont................................................................................................................................ 23

Chapter3 – DigitalWales............................................................................................................................................................ 25

More than Broadband and less than we need?............................................................................................................ 25

Chapter4 – What is the future?............................................................................................................................................... 26

The future is now..................................................................................................................................................................... 27

Chapter4 – What is the future? cont..................................................................................................................................... 27



Chapter5 – Fast Broadband; is it worth it?.......................................................................................................................... 30

Chapter5 – Fast Broadband; is it worth it?.......................................................................................................................... 31

What ARE the implications of failing Wales with regards to the ubiquity of broadband?.........................31

Chapter5 – Fast Broadband; is it worth it?cont................................................................................................................. 32



Granny is on Facebook.......................................................................................................................................................... 34

Chapter6 – BT................................................................................................................................................................................ 36

Chapter6 – BT cont...................................................................................................................................................................... 36

Is it BT's fault?........................................................................................................................................................................... 36

Chapter6 – BT cont...................................................................................................................................................................... 37

Is BT the answer, then?.......................................................................................................................................................... 37

Chapter7 – Recommendations............................................................................................................................................... 39

What can Wales do that will make it a Digital Leader?.............................................................................................39

Digital Champion.................................................................................................................................................................... 39

Don't pay for infrastructure................................................................................................................................................. 39

Broadband passes................................................................................................................................................................... 39

Chapter7 – Recommendations............................................................................................................................................... 39

Chapter7 – Recommendations cont..................................................................................................................................... 40

Look outside the market place........................................................................................................................................... 40

National Helpline.................................................................................................................................................................... 40

Welsh Government ICT should not buy infrastructure..............................................................................................40


Chapter7 – Recommendations cont..................................................................................................................................... 41

Remove the reliance on BT.................................................................................................................................................. 41

Who else could be part of the solution?........................................................................................................................ 41

Stop doing the same things and expecting different results..................................................................................41

Golden Hour.............................................................................................................................................................................. 42

Last Word........................................................................................................................................................................................ 42

References...................................................................................................................................................................................... 43

Index................................................................................................................................................................................................. 44


Broadband Wales

“Welsh broadband boosted by

£57m cash injection”Silicon.com (13th July 2011) – [Ref – 1]

“Govt must clarify Welsh

broadband investment plan”Uswitch.com (13th Oct 2011) – [Ref – 2]

“Labour MP Slams Lack Of

Welsh Broadband Funds”eWeek Europe (22nd Dec 2010) – [Ref – 3]

“£10m boost for Welsh

broadband“Department for culture, media & sport

(Feb 2011) – [Ref – 4]

“Rural UK set for cheaper

broadband as Ofcom forces BT

to cut charges”The Guardian (20th July 2011) – [Ref -5]

It's all about the money, honey

1. A casual reader of the Press; Government releases; Ofcom statements etc, would be rightly forgiven for thinking that the delivery of good quality, fast broadband is all about the money. Speed and performance, are much lower considerations than availability – coupled with an arms race to see who can be perceived to have the deepest pockets.

2. Wales has many of the same challenges as the rest of the UK with regard to the universality of broadband, but this is possibly made more acute by the amount of rural communities in Wales.

3. Money is critical to success, but Wales has a history of spending money without accruing the results that had been anticipated.

RIBS (Regional Innovative Broadband Scheme) was much lauded as a success, but the experienced effect of RIBS falls considerably short of the promised 'fast broadband for all' that was expected from the enabling of all telephone exchanges in Wales.

4. It seems that 'everybody' understands that fast, quality broadband access is not only desirable, but necessary for the economic and social continuation of Wales. What is equally obvious is that there appears to be significant confusion and consternation around how this universality of fast quality broadband access can be achieved.

The net result of this is that there are

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Executive summary. 1

Broadband Wales

multiple agencies and organisations that are 'fiddling' with measures to attempt to make their contribution to the desired outcome. This is not working, and is unlikely to result in significant benefits being derived in the nation.

5. The Welsh Government is keen to be seen to be 'doing the right thing', but appears to be somewhat at a loss as to what the route to the end goal actually is. Mixed messages, a combative approach to industry 'partners' and ineffective policy is seeing a continuation of previous failed enterprises.

6. Ofcom are either without the power, or without the knowledge to positively affect competition in the market and are subsequently creating disappointment and confusion amongst the public; SME providers; business customers and the Press. Confidence in the ability of the organisation to positively effect the market in Wales is at an all time low, and questions must be answered as to the efficacy of the organisation in this particular market.

It is possible that with more knowledgeable or effect senior management, that Ofcom could have a more beneficial impact. As things stand at the moment, it would not be prudent to expect positive change to be forthcoming from Ofcom activity.

7. BT are the major delivery organisation in Wales (along with the rest of the UK), and are looked upon by many as the 'answer' to the communications future in Wales.

Whilst it is absolutely true to state that BT have an intrinsic and critical role to play in the future, it is also absolutely true to state that they are not 'the answer'.

The answer is much more complex, (and potentially much more valuable), and relying on a single, shareholder led, organisation to have the altruistic aspirations that many in Wales may have, is both unrealistic and unfair.

Wales as a Digital Leader

8. There is an opportunity for Wales to become a European (and possibly global) leader in digital and online activity. Whilst there appear to be no definitive figures for entrepreneurship in Wales as opposed to the rest of the UK, it is anecdotally true at least, that there is a high number of Welsh residents who either have started, or are employed by SME organisations of 12 people or less.

Such organisations can compete on a worldwide stage via fast and effective communications. Online trading can form a very large part of SME activity; offering relatively low customer acquisition cost in comparison to more traditional face to face transactions.

By enabling SME organisations to trade online; take advantage of cheaper VoIP communications; move expensive applications and services into the cloud; we enable Wales to generate significant employment that would otherwise be absent. Whilst many parts of Wales are seeing a downturn in employment (this is not a new phenomenon and is in part due to farming becoming much less labour intensive), it is precisely those areas that are in most need of the economic momentum that can be generated by fast, quality

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Broadband Wales

broadband.

9. With the right leadership; impetus; Government policy; public seed funding; and private business investment, Wales could enable all citizens to have access to fast quality broadband, and the economic and social benefits that can be derived.

Digital Inclusion – at a national level

10. The Welsh government is not dissimilar to the the UK government in its aim to have as many services as possible being 'digital by default'. VAT; company returns; animal movements; drivers licences; passports; prescriptions; council tax payments etc are all online already (with some being online in a mandatory way).

11. Whilst the fiduciary benefits are self evident, the ability for those in Wales (particularly rural Wales) to comply with these requirements is predicated upon the ability of individuals and businesses to be able to gain access to those websites and services required to meet the requirements.

12. With more and more people having access to some sort of broadband (in the region of 70% of UK population at time of writing) web and service developers are increasingly assuming that the users will have fast, quality broadband and are writing websites and services that are increasingly feature rich.

Feature rich websites with Flash; movies; SWF files etc need fast, quality broadband connections to make them usable.

13. If individuals do not have that type of access they are discouraged from accessing those services and may even be financially disadvantaged as a result.

14. Couple this with such outcomes as social exclusion from Facebook; ePetition participation; long distance communications utilising such services as SKYPE and it is entirely straightforward to see how an entire section of a nation (or indeed the nation itself) can become isolated and very much in the slow lane.

15. Social dis-inclusion is believed to be at the root of much anti-social behaviour including casual violence; gang related activity; drug and drink abuse and so on. Whilst there is no direct evidence (nor should any be inferred) that the lack of access to fast broadband is the cause of such anti-social behaviour, it should be seen as an important contributory factor.

16. Such an outcome in Wales must be avoided.

The economy

17. The Welsh economy is a delicate economy. There is a reliance on external funding beyond that which is passed from Westminster.

18. In the past a 'grant' or 'subsidy' culture, has more recently been reinforced by the incoming EC monies to support such schemes as the BBSS.

Whilst such funding should be welcomed with open arms, the current Welsh

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Broadband Wales

Government has a tendency to overlook the opportunity to use these monies as seed money to encourage and engender a culture of self help and self development and prefer to fund the purchase of services from the private sector.

Such purchases lack longevity, and particularly in the communications market (which is a fast moving and ever changing landscape), is prone to the necessity to repeat spending to try and stay current.

Recommendations in this white paper

Establish a Welsh version of the BDUK digital champion

Urgent cessation of funding the purchase of services (and/or products) with public funding, with the preference being to encourage seed funding to generate long term self sustainability

Consider the removal of Ofcom as the competition generator in this market space

Seek implementation of retired 'Broadband Pass' or concessionary rates of subscription for retired citizens

Have a national helpline for those seeking to get online and unable (or lacking the knowledge) to purchase the service required

Prevent Welsh Government ICT from being the sole arbiter of what should and should not result from public funding of service acquisition

Remove the reliance upon BT to fix the problem

Look outside the immediate communications industry to pull in the major organisations who are waiting for fast, reliable broadband to enable their own business development, and encourage their financial involvement in that future.

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Broadband Wales

“I couldn’t shop on line I couldn’t use Sage properly and I could not keep in touch with my family in Hungary”

Bo Coates – Anglesey [Ref – 6]

“I was so frustrated. In this day and age, having an adequate internet connection is vital for business. Without the new system in place, we would be going backwards. We have been able to increase bookings and improve operational efficiency.”

Roger Warner – Hafod Elwy Hall [Ref – 7]

“A digitally re-shaped IP framework and strong broadband everywhere are exactly what Wales’ creative economy needs in the next decade.”

Prof. Hargreaves – Cardiff University[Ref – 8]

Easy to criticise – but what about after the whingeing?

19. There are ample opportunities to criticise virtually all the players in this space. From the Welsh Government, to BT, to the SME providers, to Westminster and so on.The simple reality is that criticism (no matter how accurate) changes nothing and simply serves to highlight the failure.

20. Whilst it is not particularly difficult to find examples of how fast, quality broadband has changed lives, it is equally quite straightforward to extrapolate the impact to Wales as a whole if such access were to be ubiquitous.

Unfortunately, all the various potential influencers are trying to maintain their own position in the discussion, and complaining about what the others or doing (or conversely what they are not, but should be doing.

21. There is a relatively narrow window of opportunity for Wales. Borrowing a term from the medical industry, I refer to this moment as the 'golden hour'.

That short period of time after something terrible has happened (in this case such things as RIBS/failure to deliver tangible improvement etc) where the properly orchestrated actions can make an immense difference.

22. Whilst Wales' 'golden hour' may be more than 60mins, it would be complacent to think of it as years. We do not have that much time to make the foundation decisions that will shape the future for our

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Introduction. 1

Broadband Wales

nation. Over the next few months we have to make the right decisions – and implement them correctly.

23. Fail to take advantage of the moment, and it will be virtually impossible for Wales to ever catch up. Make the right decisions and Wales will be renowned as a leader in this field.

24. When I accepted the challenge of writing a white paper that would 'change the way Wales thought' I was not convinced that I was up to that particular task. Whilst I have the industry experience, and the knowledge to shape the solution, I lack the confidence that those currently responsible for making those decisions in this 'golden hour' can be sufficiently humble and forward looking to change their committed path and make a difference.

25. Welsh people are fiercely proud and (in the main) honest and brave. Those in the Welsh Government, major corporations and SME providers need to be equally honest and brave – and only then allow pride to be considered.

26. This document will be put into the public domain in November 2011 – it will be interesting to see if there are any brave individuals with sufficient foresight to at least consider that there are some areas worthy of discussion within it's pages.

27. Besides. If not me then who? There are far too many players in this market space who have vested interests or are concerned about the impact of open criticism of people/organisations that could change their financial future. Thankfully I do not

have such constraints.

Passionate about Wales – passionate about success

28. I was not born in Wales, but it has been my home for close to a decade. Our beautiful landscape; culture; heritage and language are sufficiently well regarded to attract millions of visitors from around the globe every year. Even during these difficult global economic times the visitors keep coming.

29. Alongside this I watch the dubious decisions made by businesses that do not know better, and the questionable decisions made by our Government when it comes to trying to secure a future that is bright and sustainable.

30. The will is there. The words are there. The knowledge is lacking – the honesty to ask for help is absent.

31. I have been shaped and changed by the Welsh people, and the country. This is my opportunity to help steer our nation towards a luminescent future.

Mae Cymru yn odidog. Bydd Cymru yn odidog. Dylai Cymru fod yn odidog.

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Introduction - 2

Logo taken from Blaenau-Gwent website [Ref - 9]


Broadband Wales

Should Government 'do' or 'lead'?

32. Fast, quality broadband is required for a sound and prosperous future for Wales, but who holds the responsibility for shaping this future? Should we as citizens sit back and wait for our Government to 'fix' it, or should we be active participants in the future?

33. It's easy to jump at the latter option and assume that is the expected answer, but the issue is considerably more complex than that. Whilst individuals (whether they be professionals or 'lay' people with drive and ambition) absolutely do have a part to play in the future of Wales' broadband and communications success.

They are also significantly less well funded than a government.

34. There is clearly the opportunity for those with the ambition, desire and knowledge, to aid those with the remit, funding and long term aims. Such working partnerships are sometimes difficult to manage (or even create), but the conclusion in Wales is that the appropriate department lacks the desire to see such a partnership.

35. The most clear evidence of this can be found as a declaration from the Welsh Government:

“We will establish a stakeholder group by the Spring of 2011 in order to bring on board partners across the private, public and voluntary sectors and to provide strategic

leadership.”Digital Wales: Delivery Plan (March 2011)

[Ref - 10]

36. This is precisely what we can expect from a Government (or department) that truly understands what it is to lead. Bring expertise and drive together; soak it in some national aspiration and marinade with seed funding and you can achieve something truly remarkable.

37. In Autumn of 2011 this stakeholder group does not yet exist – has not yet been started – and the Government refuse to indicate when (if ever) it may happen.

In the meanwhile, almost £60m of funding (BDUK pledge to Welsh Government) is about to be agreed to purchase broadband infrastructure in the NextGen bid process.

38. Government should not be doing – government should be leading. It seems from the pre-bid document that it is the Welsh Government's intention to purchase broadband network infrastructure capability from the successful tendering company/consortium. There are specific expectations of what this company/consortium needs to be capable of delivering with that infrastructure.

39. Infrastructure ages swiftly in this industry.

40. Mr & Mrs Jones do not want infrastructure – they want access to fast, quality broadband.

41. The Welsh Government is about to repeat the failure of RIBS.

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Chapter1 – Government

Broadband Wales

RIBS – would you Adam & Eve it?

42. RIBS (Regional Innovative Broadband Scheme), was a joint initiative between BT and the Welsh Government. The significant public funding was to allow the following statement to be made:

“BT is working in partnership with the Welsh Assembly Government to address the difficulties experienced by some customers in gaining access to broadband services throughout Wales. “

BTPLC [Ref - 11]

Essentially, the informal expectation given by the Welsh Government at the time (although not BT – notably) was that if you lived in a 'notspot' then there was money to fix the problem and you would be notspot no more.

43. The Welsh Government claimed that RIBS enabled 8, 500 premises to gain access to broadband that previously were unable to (there are an estimated 1.25m premises in Wales). BT reported in Parliamentary evidence that the figure was 4,687 end users.

Written evidence submitted by British Telecom [Ref – 12]

44. It is not clear how much public funding was passed to BT for the RIBS project, but it is obvious that any payments made to enable exchanges to deliver better quality or faster broadband, were payments that went into the £2.5bn overall pool that BT had

expected to commit to spend in any event.

Governments should not be using their limited funding to contribute to the upgrade of infrastructure regardless of the outcome.

Don't buy infrastructure, regardless of the outcome?

45. It is worth highlighting this statement. Governments are ill advised to buy infrastructure.

The primary issue with paying for the extension/development or installation of infrastructure is that (particularly in the communications industry), infrastructure is transient.

46. It is true that in some areas investment in infrastructure seems to make excellent sense. Roads and railways come to mind. The issue is that the infrastructure itself is not what users are seeking.

With road and rail it is the end point of the journey. Reaching the desired destination as efficiently as possible (efficiently in all contexts including value).

With broadband it is fast, quality service that is the desirable outcome – not a provider having better infrastructure that 'could' deliver faster, better quality broadband.

47. The argument is that an investment in capability (infrastructure) is an investment in realised benefits.

48. This is patently incorrect, and this type of thinking will not result in the desired outcome for Wales. The desired outcome for Wales is a ubiquitous availability of fast, quality broadband, conversely the only way

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Chapter1 – Government - RIBS

Broadband Wales

to purchase infrastructure to do precisely that is to create a new monopoly where all regions have access to the provider's infrastructure by default.

49. This approach is of course impossible (not least the rules on state funding of private enterprises rightly prohibits such action).

Moreover it is not desirable. If we accept the premise that infrastructure is transient and the £2.5bn investment previously mentioned above by BT would indicate that constant improvement and change is necessary to keep pace, then why would any government fund investment in infrastructure designed to deliver broadband?

50. Government (and therefore public) monies should be seed payments, that encourage delivery and reward the demonstrable delivery of the desired outcome. It should be used to encourage innovation, collaboration and successful delivery of the desired outcomes. It is simply impossible to do this by helping provider's to invest in infrastructure.

51. Of course the immediate counter argument to such a statement is that any investment in infrastructure allows the delivery of the desired outcome.

Which is true.

But therein lay the rub. It only allows the desired outcome – it neither encourages, or guarantees such an outcome. In this 'golden hour' we do not have the luxury of another RIBS where hope exceeded the actual results. We need the actual results.

BBSS is about to fail – let's change what we do!

52. BBSS (Broadband Support Scheme) is a relatively straightforward sounding scheme.

If a citizen of Wales is unable to get broadband at speeds in excess of 2Mbps they can ask the Welsh Government to fund the installation of an alternative provider's broadband solution (maximum installation support of £1000).

53. This allows the citizen to escape from the 'trap' of their property being too far from the local exchange, or otherwise poorly served, allowing them to select an alternative provider to gain the fast, quality broadband that they require.

54. Or does it?

55. The scheme has been a qualified disaster for applicants, SME providers and Wales:

Whilst the scheme requires a threshold of 2Mbps to qualify for the grant, the payout is made on the basis of achieving 512Kbps. It is entirely possible that the grant could fund a reduction in speed and quality.

SME providers report that if they criticise the ICT team (for example regarding the complexity of the application form) they are hauled in to face accusations of fraudulent activity – much of this 'fraudulent activity' appears to be efforts to try and help citizens to be able to cope with some of the unnecessarily complex requirements.

Citizens making applications for grant support are required to conduct their

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Chapter1 – Government – BBSS

Broadband Wales

own purchase evaluation and establish written (addressed to the applicant) quotations from 2 suppliers and explain their selection of one of them.

A box is provided for those who cannot gain two quotations (many applicants report that SME providers are refusing to issue the '2nd quote' due to the cost involved for no return). If this box is completed the ICT team will reject the claim and (without any irony it seems) tell the citizen to 'look on the internet' for alternative providers.

Payments are made on behalf of the applicant directly to the SME provider when the installation is complete. The Welsh Government have no agreed contract or terms with these providers and so if payments are slow (there are only two administrative members of staff in the ICT team) then the only recourse of the SME provider is to take the applicant to court – no recourse is available to the ICT team.

The Marketing Director for ICT declared that it was 'inappropriate' for Government officials to answer questions asked of them by the public.

The ICT department lacks appropriately informed and skilled leadership.

Fibrespeed – must be a good thing surely?

56. Fibrespeed is a joint endeavour between Geo Networks and the Welsh Government and the contract was awarded to Geo Networks in 2008 by Chris Johnson.

The aim of the joint relationship was to fund

the installation of a 300km fibre optic network in the North of Wales to deliver fast network connectivity to those living and working in the region.

[Ref - 14]

57. The expected Gross Value increase to the region was £29m per annum.

58. At the moment Fibrespeed has approximately 30-50 subscribers on the network (they have to sell via resellers and cannot sell directly to end users) and 10's of Kms of the infrastructure remain 'unlit' (unavailable for use) due to the Welsh Government either failing to file the appropriate paper work with or simply withholding permission to use.

59. The total value of Fibrespeed is £30m of public monies.

60. The initial contract that resellers have to sign with Fibrespeed is in excess of 300 pages long (a huge legal advice burden for SME providers)

61. Long term commitment is mandatory for SME providers who wish to be resellers.

62. Fibrespeed has been strangled by a government that bought infrastructure.

So, what is the answer?

63. The Welsh Government only need make one philosophical change in order to fundamentally influence the future.

Stop trying to do and lead.

The Welsh Government claims to be

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Chapter1 – Government – Fibrespeed

Broadband Wales

technology independent and yet in 2011/2012 will commit public funding in the region of £60m to a particular provider and subsequently make a technology decision for years to come

In 2007 the Wales Rural Observatory Study saw that over 90% of residents in 'deep' rural areas of Wales saw broadband as desirable or necessary (58.1% said essential). In 2011 despite RIBS, BBSS etc we still have the same challenges in place

[Ref - 13]

BBSS has been a failure. The scheme is due to end April 2012 and will almost certainly have some of the initial £2m funding as a surplus.

Fibrespeed has been strangled by the very same Government that part funded it.

64. The Welsh Government have demonstrated that not only is the premise that Governments should lead and not do is accurate, but even when the Welsh Government has chosen to 'do' it has failed to deliver the desired outcomes.

It's probably fair and true to say that this is not the Welsh Government's fault – but equally, it is essential that it is recognised.

65. The Welsh Government have it within their remit to appoint a Digital Champion in much the same way that Westminster have. This would be seen as a universally positive move – not least of all, because it is likely that (managed well) that appointment would be able to inform the ICT department with regard to the approach that they should take to achieving the desired

outcomes (fast, quality, ubiquitous broadband).

Additionally, it is imperative that the Welsh Government (regardless of the politics of the day) lead rather than do. Nobody in the Communications Market Space requires a government that is trying to shape the future of that market space – but correctly placed seed money will certainly be welcomed to encourage innovation and investment.

66. Regardless, of what any one person may think of any particular government, it is simply good practice to let those that are the heart of a market space (in this case the communications market space) be responsible for the future of that space.

By encouraging (and paying for) the resultant outcomes rather than helping investment in infrastructure, the limited funding available can deliver the broadest, and most successful delivery possible.

67. Everyone benefits when a Government leads.

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Chapter1 – Government – an answer?

Broadband Wales

Ofcom – regulate this.

68. According to the Ofcom website one of the organisations main legal duties is to ensure:

“the UK has a wide range of electronic communications services, including high-speed services such as broadband”

[Ref - 14]

69. Whilst their responsibilities extend considerably beyond broadband, (encompassing TV and Radio), it is in the area of broadband that Ofcom seem to have lost their way.

In no other field does it seem that they issue so many press releases that have such exciting statements as titles.

70. In July 2011 Ofcom sent out a press release that millions of rural users would be getting cheaper broadband. The premise was that they had forced BT to reduce it's wholesale pricing in rural areas by 12% in addition to inflation (12%+inflation). This annual price reduction was reported by Ofcom as driving the pricing down for millions of users, and would additionally result in faster broadband for the same users.

71. The following pages looks at a working example of the actual outcome (in £s and desirable outcomes):

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Chapter2 – Ofcom

Ofcom reduce BT's wholesale price for rural broadband – what this means

The intention here is to make it very easy to understand the impact of the recent price reduction that has been imposed on BT for wholesale bandwidth in rural areas.

In this example we shall use the fictitious SME provider 'Example Limited' and look at the impact the Ofcom

pricing reduction has on their installation of a new service in a rural community.

In this example we can see that the approximate cost of the first year of delivering from the exchange has been estimated in the region of £17.5k, with a further £2750 of wholesale bandwidth charges.

Costs between BT exchanges do vary immensely, but a smaller rural exchange that the SME provider may expect to deliver around 40 subscribers from would be in this order of installation and wholesale cost.

Understanding this, and understanding that Ofcoms' announcement concerned only the wholesale bandwidth charges we can relatively easily work out the net effect to the SME provider.

Assuming a 15% reduction in wholesale bandwidth charges (inflation at 3%+12% Ofcom annual

reduction) the saving to the SME provider is in the order of £382.50 – some 2% of the first year cost.

Put another way it is £1.04 per day in the first year.

Put yet another way it is 80p per month per subscriber (assuming the 40 subscribers indicated above)


Based on BT price list 2011

Broadband Wales

Does it matter? Really?

72. There is a school of thought that suggests that even though the net reduction in pricing to the SME is negligible at best (irrelevant at worst) that is not the important thing about the headlines. What is important is that it feels better than it did before the headline.

Positivity breeds more positivity and subsequently the outcome is more enthusiasm to invest.

73. Obviously this is pretty much nonsense. Most business people will happily admit that if it has feathers, quacks and waddles it is probably a duck. In this case the duck has been dressed up as a swan – but nobody wants to buy it.

The principal reason for such scepticism is that Ofcom have such a history of delivering the headline, but when simple analysis takes place, the facts are considerably less exciting.

74. There could be two reasons why Ofcom are focussing on the headlines:

1. They know that what they are saying is buncum, but need to be seen to be doing something

or

2. They believe what they are saying and are wrong

75. Neither of these is satisfactory. Regardless of the reason, it is self-evident to even the most casual observer, that Ofcom

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Chapter2 – Ofcom - implications

Broadband Wales

are not adding anything to the competitive landscape, and are potentially causing issues for those existing players within that market space.

76. Ofcom do not exist to make this market space more difficult to operate in. If they are to interfere with the competitive landscape, it should only be to redress the balance of the virtual monopoly that BT has – it should not be to try and whip the press up into a false frenzy – leaving the SME providers to try and explain to subscribers why they are not going to get the golden egg promised this morning in the Times by Ofcom.

77. Additionally, it is imperative that the entire market space feels that they are both supported and trusted. This is critical for investment decisions.

Whether the investment is incoming or within the region, it makes sustained investment decisions considerably more difficult if providers (whether corporation or SME) feel that they are competing with the regulator for column inches – and that the regulator does not need to be entirely truthful to be able to gain those column inches (the irony is not lost on SME providers).

If we wish to truly engender belief in the market space, it is critical that there is trust. Even if there is bad news, as long is it is felt that the news is accurate – business people will make their own assessment of risk.

If business people believe that the information that they are receiving as 'fact' is less than accurate then those investment

risks become infinitely more difficult to take.

78. If Wales is to be a digital leader, it has to be on the basis that the stakeholders can trust the gatekeepers. As soon as the trust is gone, then so will much of the potential investment.

79. Ofcom lack relevance in this market space. It should be a serious consideration as to whether they are actually aiding anything in the market space, or whether it is more likely that the vast majority of players would heave a collective sigh of relief if Ofcom were removed.

80. Serious consideration should be made to the removal of this organisation, it's management team that is quoted in the Press, or simply curbing its responsibilities so that competition enhancement is removed as a requirement.

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Broadband Wales

More than Broadband and less than we need?

81. The Digital Wales project (as laid out in Digital Wales: Delivery Plan)

[Ref - 16]

describes a relatively ambitious series of activities that the Welsh Government suggests that it will be carrying out in order to establish a better future for Wales

82. We have already seen that one element of this is incomplete (stakeholder group for Wales broadband), so shall not dwell on this area.

83. There are some seemingly comprehensive facts, figures and research in this document, which are used to justify or inform the suggested Delivery Plan itself.

84. Indeed, the document itself states:

“Digital Wales: Delivery Plan sets out in detail how we intend to achieve our vision. “

This document is being repeatedly referred to by the communications market space to demonstrate that the Welsh Government are unlikely to deliver 'the plan'

85. It is perhaps a little unfair to try and judge the success or otherwise, of a plan that was conceived and published only 6mths prior to this whitepaper (and the plan is due to be 'complete' in 2015).

86. Unfortunately, the actions that do have dates, that were set by the Welsh Government, have not been met and are subsequently already late.

87. The danger for Wales, is that if grand schemes such as the Digital Wales: Delivery Plan are seen to be failures (albeit perhaps prematurely), it becomes increasingly difficult for private enterprise in this market space to gain credibility.

88. The symbiosis between the perceived competency of the ICT team at Welsh Government, and the SME providers is stronger than many would like – but already it has been witnessed that investors are looking to this team to inform some investment decisions.

89. Some short sighted investors are even suggesting that there is no market space (or market opportunity) for broadband in Wales otherwise the Government would take it more seriously.

90. DigitalWales should not be a working title/committee or group (or worse still a 'plan'). DigitalWales need to be:

a brand

a standard

an expectation

a rally cry

the hope for tomorrow for a nation

all the while it is a document (a plan) that can be ignored due to those responsible for the implementation being 'busy with other activities and limited on resource', it will be impossible for the market space to be able to either leverage the future with investors, customers and suppliers. It will also be impossible to take the Government ICT team seriously.

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Broadband Wales

91. None of this is aided by the fact that the Welsh Government (via members of the ICT) are currently in a procurement process which according to them:

“Our role

We’re providing funding to accelerate the deployment of next generation broadband infrastructure in areas across Wales where there is a genuine requirement and sufficient evidence for government intervention.”

[Ref - 17]

92. This declaration is interesting. Assuming that the declaration speaks for the Welsh Government as a whole (there is no evidence to suggest that this is a departmental statement), then it would appear that the government believe that their role is to speed up the deployment of broadband infrastructure.

93. There are a few issues with this:

the statement implies that the Government either know what infrastructure is required, or believe they are capable of deciding (in order to fund)

'genuine requirement' implies two things – the first being

◦ that the Government know how to judge a genuine requirement

and

◦ the Government intend to choose who is and is not genuine

finally, the statement suggests that this is the approach that shall be taken with regard to the current bid process that is in progress to allocate the £59m Westminster granted money

94. Any right thinking, relatively knowledgeable person knows the folly of most of these implications.

95. The Welsh Government (whether as a whole or as a department) cannot be expected (nor should be allowed) to decide the direction of a particular market space.

They lack both the knowledge and experience to do this, and it is not the function of a government to interfere in any market in this manner.

96. Past performance suggests that the Welsh Government (and ICT department) are ill equipped to make these decisions

97. DigitalWales – the next-gen bid process – BBSS; all of these should be seeding market innovation, and rewarding the delivery of success – not building more 'capable' infrastructure.

98. When £57m+ is on offer, any broadband provider worth their salt will be seeking ways of putting forward a competent bid – particularly when the absolute declaration is that the Government wants to assist with the rapid deployment of infrastructure.

99. The public purse should not be permitted to buy infrastructure. It should not be permitted to buy a capability. It should not be the arbiter of what the future should look like.

100. It should lead.

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Broadband Wales

The future is now

101. Many of the aspirations of both Westminster and the Welsh Government include elements that have already become part of some people's daily lives:

Working from home

e-Gov type proposals (online VAT returns etc)

Reduction in cost to procurement

Global reach by SMEs

Online public consultation

[Ref - 18]

The list goes on.

102. Social networking, email, video sharing, new entertainment forms and so on, are already a part of some people's lives and are generating both jobs and new revenues for UK (and Welsh) companies.

103. The problem is one of ubiquity.

104. Not everyone is able to access all of these services, primarily due to the failure of the communications infrastructure.

105. From everything that has been discovered in the researching of this white paper, this would appear to be the fundamental reason why both Westminster and the Welsh Government are seeking to invest in the infrastructure that delivers broadband to individuals and businesses.

106. The power that fast, quality broadband hands to individuals is immense, both socially and economically:

[Ref – 19]

107. mumsnet.com is the darling of some (most notably the media); the bette noir of others (politicians) and is held in high regard and disdain in equal proportion.

The users and organisers of the site have been variously accused (applauded?) of trivialising politics by asking Gordon Brown what is favourite biscuit is; bullying Cameron by challenging him over not knowing how many nappies his son was wearing a day; giving a national voice to women (and women parents); and being one of the most powerful groups of women to emerge since the WI.

108. Whilst all or none of those views may be true. That really isn't the point.

109. Prior to the availability of fast, quality broadband mumsnet.com would not have existed in any form at all. It was created out of the desire to share the experiences of a parent to share parenting experiences.

Too young for the WI, and with access to what was then, a decent broadband

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Broadband Wales

connection, the website was created to be an online equivalent of having a chat on the 'phone with a bunch of friends (and strangers) who all had some commonality in their experience.

In this case that commonality was their parenting.

110. 11 years later and mumsnet.com receives around 4m visitors per month, and is loved and feared in equal measure. All because of the availability of a fast, quality broadband connection.

111. Obviously, it is all relative. 11 years ago when mumsnet.com was conceived 'broadband' was measured in Kbps, not Mbps.

112. Today. As this whitepaper is being written, much of Wales has broadband that is still measured in Kbps.

113. Tourism is one of the largest proportional earners and employers in Wales with an estimated 5% of the total revenue generated in Wales coming directly from Tourist spend (does not include subsequent on-spend by Tourist venues/accommodation etc).

114. With both Global and Domestic tourism becoming an intrinsic part of the GDP of Wales, fast and quality broadband connections become increasingly important.

115. In 2009 Beaufort were commissioned to produce a visitor questionnaire based study on visitors to Wales.

[Ref - 20]

116. Not once was the question of website

booking/online information etc asked.

117. This should not be seen as a criticism, but further evidence of how the future is now – but only for some. If you do not routinely use the internet to look for your accommodation or research your holiday, it can be difficult to conceive just how much other people do exactly that.

118. Additionally, if businesses in Wales are unable to fully exploit a fast, quality broadband connection (due to it's unavailability) then their businesses will inevitably miss the importance of accommodating digital communications, both for their customers and for the business itself.

119. SKYPE is free from user to user – regardless of the global location of each user. Businesses in Wales are almost

universally missing the opportunity to add a SKYPE ME button on their websites.

120. Allowing customers to SKYPE (whether by voice or text chat) opens up an immediacy that (particularly our European peers) customers enjoy. Simply by clicking on the button whilst on the website, the customer can gain immediate access to the staff – establish the answer to any queries, and the business gets the opportunity to gain another booking/order.

121. Aside from the straightforward communication advantages (SKYPE, VoIP, Email, Websites etc), there are other, slightly more subtle communication advantages that fast, quality broadband offers to businesses and individuals.

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Broadband Wales

122. All manner of online communities have come and gone online, with some holding long term appeal and subsequently being maintained.

[Refs – 21, 22, 23]

Twitter, Facebook and linkedin have all gained sufficient traction to be maintained and heavily used, long after their original conception.

Increasingly, we see references to twitter and facebook in on-screen, and on the page advertising, with major retailers guiding their (potential) customers to their piece of those web services.

123. For anyone who is unable to access fast, quality broadband, facebook and twitter are almost of no interest whatsoever. This further separates those who have from those who do not have.

124. Linkedin is more specifically targeted at business people, but the social interactivity is similar to facebook and twitter. What is of specific interest to businesses in Wales is the networking opportunities that are presented that would otherwise be impractical due to the distance and time constraints.

125. It's a truism to state that an online presence, or the participation in online social communities is not a pre-requisite for a successful business, or a successful life.

126. It is equally true to state that as this

whitepaper is being written, not being online is both a social and business disadvantage.

127. The future for Wales has nothing and everything to do with the examples of the web services above.

It is not the web services indicated that are important (there are many, many more), it is the fact that these types of web services are such a prevalent part of society and business today.

128. If Wales is to continue to be a part of the future, it has to be part of what is happening now.

129. Participation is key. If Welsh citizens are part of the online communities that will evolve and grow into the future of both our business and social communities, those same citizens gain the opportunity to shape the direction of those services, and possibly totally change them.

130. In the same way that the Welsh Government ICT department is not part of the communications industry, or that Ofcom seems to lack the knowledge to influence that same market, if our citizens are not active participants, they lack the knowledge that allows them to exploit those web services in their personal and business lives.

131. It is incumbent upon those of us who do understand, to share that knowledge with those who do not.

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What ARE the implications of failing Wales with regards to the ubiquity of broadband?

132. Fast, quality broadband is simply the means of access to the web services that are part of both our present and future.

133. The absence of access precludes the possibility of participation.

134. In 2002 Atkins Management Consultants were funded by the Welsh Government to produce a report/study entitled:

Benefits of Broadband and the Broadband Wales Programme to the Welsh Economy

[Ref - 24]

135. Much of the information in this document has been superseded with more up to date information, however it is known that this document still informs some of the decision making within the Welsh Government and subsequently the information has some value.

136. Of particular note is the net benefit to Wales as calculated by Atkins.

137. In their report (and based on some extremely wide metrics) they estimate that the net benefit of fast, quality broadband to Wales over the period 2000 – 2015 is between £1.4bn and £28bn.

138. So, in very simple cash terms (Atkins define net benefit as being the remainder after private and public sector benefits are reduced by the cost of implementation),

Wales will forgo the benefits of billions of pounds.

139. The instant rebuttal to that would of course be that there are barely four years of that period remaining, so surely Wales has derived some benefit?

The reality of today is that there is no evidence to suggest that any benefit has been derived, as there is no substantive evidence to suggest that the sort of universal broadband that Atkins were suggesting would be available has happened.

140. Based on an out of date report, with out of date figures, Wales still misses out on billions in benefit.

141. In 2009 LECG produced a study for Nokia

[Ref – 25]

where their estimate was, in countries where PCs were commonplace, that broadband was worth from 10% to 20% GDP growth per annum.

142. Even when we understand that Wales is at position 10 of 12 UK regions with regard to economy size (only larger than NI and North East of England), the GDP was in the region of £45bn in 2010.

143. Based on the LECG study, this would suggest that the cash shortfall for the lack of ubiquitous broadband is somewhere approaching £4.5bn - £9bn.

144. Regardless of the measurement mechanism preferred, it is straightforward to see how, by not having ubiquitous, fast, quality access to broadband, Wales is losing

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Chapter5 – Fast Broadband; is it worth it?

Broadband Wales

billions of pounds of potential future growth.

145. What is possibly less obvious, is that none of the studies (whether created for the Welsh Government or big business) suggests the method by which fast, quality broadband should be created. Whilst some self interest groups will of course want to sell their 'way of doing it', the figures of calculation are never based on a particular way of deploying the infrastructure.

146. It is because it simply does not make any difference. Fast, quality, ubiquitous broadband is what makes the difference – not the infrastructure type that is deployed.

147. There is more evidence to suggest that the methodology of access is less important than the availability of the access itself, in the 2011 Communications Market Report by Ofcom which stated that the only area of significant growth for broadband access was mobile (specifically via smartphone).

[Ref - 25]

148. It would be entirely disingenuous to suggest that this means that mobile broadband is in some way equivalent to other forms of fast, quality broadband. There have been many reports (including one from Ofcom)

[Ref – 26]

suggesting that the speeds experienced via mobile telephony are far lower than required to be usefully called 'fast' or 'quality' broadband, but this is really not the point.

149. The principal point to understand is that in the communications market space, when fixed broadband communications fail, whether due to speed or quality, other methods will be sought to fill the gap.

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Chapter5 – Fast Broadband; is it worth it?cont...

Broadband Wales

150. Today, there exists:

Wireless

LTE

Satellite

WiMAX

Micro-wave

WiFi

to name but a few alternatives to fixed broadband communications.

This is particularly the reason why picking a technology to support (as the Welsh Government must do if it wishes to meet it's DigitalWales declaration), is neither prudent, nor an appropriate way for a Government to commit public monies.

151. It also demonstrates the desire of individuals and businesses to gain access to the web services that are enabled by broadband itself. Most of the alternatives are more costly to deploy (and in some cases, subscribe to) than fixed line broadband communications, and yet there are hundreds of SME providers (and Plc companies) that are making a worthwhile annual profit, providing those services.

This is because there is a demand for broadband services, that is not being met by the most prolific method of delivery.

152. Should fixed broadband services suddenly (or gradually) achieve ubiquity, and be fast and of a good quality, it is not unreasonable to suspect that this situation may change and alternative methods of supplying broadband be superseded.

153. Aside from the benefits of creating other businesses that operate in Wales, ignoring (or failing to take an interest) in the delivery type, allows us all to focus on Welsh citizens who simply want to consume broadband as a means to access the web services.

154. Cash benefits are difficult to be precise about (as seen above), but are undoubtedly extremely significant and of economy changing proportion.

What is equally difficult to quantify, but must nonetheless be considered is the social damage that would be predicated should fast, quality broadband not be available across Wales as a whole.

155. Firstly we would have to consider the detrimental effects to future generations. In circumstances where households lack the ability to be able to either access traditionally supplied fast, quality broadband, or the funding to access alternative provision, it is likely that children in that household will be at a social and educational disadvantage.

In a report generated by The Broadband Commission for Digital Development, there is research to suggest that children connected at home perform better at school.

[Ref - 27]

The same report suggests no particular method of access to be preferable. This report was issued to all Commonwealth Heads of state with the intention that the elements contained within the report be used to drive targets for broadband

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Broadband Wales

communication with a delivery date of 2015.

156. The same report challenges Commonwealth Heads of State to make broadband ubiquitous, affordable (less than 5% of monthly income) and to ensure that all household members can gain access.

Granny is on Facebook

157. The benefits of getting children online are relatively easy to extrapolate, but it seems that some have difficulties understanding why the older generation should receive much of our attention.

158. The economic and social benefits of ensuring that the older generation can get online are likely to be substantial.

159. The so called 'grey pound' or 'woofs' (well off older folks) is believed to worth in the region of £100bn in the UK. That is some 44% of the total amount spent by families in the economy.

[Ref – 28]

Quite aside from the fiduciary benefit to the Welsh economy of making sure that this group are able to get online and purchase retail products, or book tourist trips, there is a social benefit that allows the older generation to feel less remote from their family.

160. In a time when families no longer live in and around the same area for generations, grand children, and children may live too far away to make visiting a practical (or frequent) endeavour. As such, fast, quality broadband (and the ability for this older generation to afford to access and

have the skills to utilise) would allow a continuation of contact, that the physical distance would sometimes prohibit.

161. Facebook, twitter, SKYPE, SAGAZONE

[Ref - 29]

etc are all effective communication methods that bridge the physical gap with social contact.

162. All require fast, quality broadband.

163. Clearly the financial and social benefits of assuring fast, quality and ubiquitous broadband, make it's omission as part of the development plan for Wales without any merit. It is also clear that it is the outcome that is important, not the method by which that outcome is delivered.

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Is it BT's fault?

164. BT attract plenty of criticism for the lack of ubiquity in broadband, particularly from rural residents of Wales.

165. Some of this criticism is well founded (there are some very 'unusual' routing choices from exchanges to some properties for example), but it has to be said that much of the criticism that is laid at the door of the BT corporate offices is without merit.

166. BT are a Plc. Their primary objective is to deliver value to their shareholders. Whilst strong arguments can be made for moral responsibilities and various history lessons can be given on how they were 'gifted' their virtual monopoly, the state of play today means that BT have no obligation whatsoever to 'fix' broadband in Wales.

167. Neither are BT 'the answer'. With their obligation to shareholders, if there was a good profit motive for creating fast, quality and ubiquitous broadband then BT would have already begun that process.

168. They do not help their image with people such as Ann Beynon (BT Director for Wales) claiming in oral evidence to the House of Commons that BT is the only answer for Wales and should have a monopoly delivery, and subsequently be paid to extend their fibre network.

[Ref – 30]

169. When the perceived lead in a region for a company as large as BT is allowed to be extremely dogmatic about the approach that a government 'should' take, the image

of that organisation is tarnished. The perception is that 'big business' is trying to bully it's way to a monopoly position that is funded by public monies.

170. Regardless of Ms Beynon's actions, and her repeated claims in the Press about how much BT do for Welsh communications, there is a large amount of disquiet about the performance gap between the claims and the anecdotal evidence from those consuming the service.

171. What is heard of less are the people who are perfectly happy with their 8Mbps service, and have been for some time.

172. BT creates a huge amount of tension in the market place. Most SME providers rely on the BT infrastructure in some manner, but almost all1 SME providers find dealing with BT challenging (at best) and the organisation to be obstructive (at worst).

173. It is likely that this is a resultant feature of the enforced 'break up' of the BT organisation into smaller operating companies (which appears to have achieved little to enforce or generate a competitive market space).

174. This break up was enforced by Ofcom.

175. The primary question of this section regards whether it is possible to blame BT. The simple answer is no. It is not BT's fault that they were gifted a copper infrastructure when British Telecom was privatised. It is equally not their fault that their shareholders (rightly) seek to strengthen the

1 This is opinion and is based on oral anecdotal evidence given to the author – it subsequently has no written 'factual' evidence to be considered.

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Broadband Wales

virtual monopoly situation wherever possible; that just makes good business sense.

Some responsibility does lay at BTs' door for the unfortunate statements and approach taken by some of BTs' senior staff members – but most companies have experience of employees who may lack finesse or real impact, but are well connected in their particular geographic or virtual region.

176. The reality is that BT is doing what should be expected of any Plc. It is trying to maximise the value to its shareholders.

Is BT the answer, then?

177. We do not know precisely how much fibre BT have in the ground in Wales.

178. We do not know how much copper BT has in Wales.

179. We do not know how many 'not spots', 'slow spots' and hot spots BT have in Wales.

180. In short – there is no public way to get a map of the extent of the coverage that BT has in Wales today.

181. BT have variously claimed everything from 100% coverage (for voice) down to 80% coverage (for broadband). These figures are impossible to verify independently.

182. BT lack ubiquity. In some areas they lack the fast, quality broadband that is required.

183. BT are part of the answer (their infrastructure will be critical to success), but they are not the answer.

184. BT have actually stated that winning the current bid process will only allow 47% of Wales to gain access to fast broadband by the target date of 2015.

[Ref - 31]

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Broadband Wales

What can Wales do that will make it a Digital Leader?

185. Identifying what is wrong is often considerably more straightforward than identifying the direction that should subsequently be taken.

186. In this instance there are some clear, definable (and most importantly) achievable actions that can be taken in, and by, Wales to move the nation from being a digital 'also ran' to a digital leader.

Digital Champion

187. There needs to be a focal point for the nation. Someone who may not be well known (as the Westminster Champion is), but is well positioned to understand the ramifications and challenges of deploying a national strategy to achieve fast, quality, ubiquitous broadband.

188. The remit of the individual(s) should be to focus on the delivery of that single aim. To identify and remove the blockages to achieving that aim, and to act as a swift conduit between the private and public sectors.

189. Private enterprise knows how to make money in their market space – it is how they continue to exist. In the communications space, it is private enterprise who will deliver the aims and aspirations of the nation. The Digital Champion should be there to ensure that private enterprise is encouraged and rewarded for delivering the economic and social benefits that the Nation requires.

Don't pay for infrastructure

190. There is a requirement to urgently cease any allocation of public monies to the purchase/deployment or expansion of infrastructure that broadband may be delivered via.

191. Hopefully, this white paper has already demonstrated that the method of delivering fast, quality broadband is irrelevant and that it is the ubiquity of that broadband that allows for the socio-economic benefits that Wales could enjoy.

192. Any and all current proposed spending of public monies on infrastructure are doomed to simply hope that the correct choice was made.

193. Private enterprise needs to be encouraged to make it's own investment based on a tangible reward for delivering the nation's aspirations.

194. Do this and the public monies become seed funding – fail to do this and it is almost entirely likely that the money will drip between the cracks taking the tangible benefits with them.

Broadband passes

195. Getting the older generation online:

stimulates the economy

gains social interaction

may lead to reduced cost for care

would be relatively inexpensive

Whilst there is enormous pressure on the Government to avoid new or unnecessary

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Broadband Wales

spend, a relatively modest investment in free (or subsidised) broadband access for retired citizens would have a socio-economic boost that is unlikely to be achieved without such concessionary methods.

Look outside the market place

196. There are a tangible group of extremely wealthy companies in the private sector, who are all waiting quietly for broadband to reach a useful level of speed, quality and ubiquity in order to derive their own significant benefits.

197. These companies need fast, quality and ubiquitous broadband in order to be able to exploit their own planned next generation products and services, and they can all be encouraged to participate in building such an infrastructure.

198. We need to ask them – we need to reward their involvement.

National Helpline

199. Our experience with the BBSS has demonstrated that we cannot expect Welsh citizens to become broadband provider experts.

200. There would be no need to compromise the neutrality (technology and company preferences) of the Welsh Government, if a national helpline were established. It need only serve to act as a source of information that citizens can access in order to get unbiased advice about the direction they may take with regard to subscribing to fast, quality broadband.

201. By having available clear and unambiguous information with regard to the options for each citizen requesting assistance, the Welsh Government would be aiding the swift take up of relevant services.

202. This could be outsourced if required.

Welsh Government ICT should not buy infrastructure

203. The management of Fibrespeed by the Welsh Government ICT department, coupled with the failure of RIBS to deliver anything of national value, are indicators that ICT department do not effectively purchase infrastructure.

204. The department should not be buying infrastructure in any event (as evidenced elsewhere in this document) and public monies should be devoted to seeding the innovation and private company investment in the delivery of the desired outcomes.

205. All infrastructure related purchase processes should be ceased immediately, or modified to only allow for payments to be made on demonstrable delivery, rather than simply the purchase of a delivery capability.

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Broadband Wales

Remove the reliance on BT

206. BT have a lot to offer. Their infrastructure is extensive and their capability is second to none.They do not, however, claim or demonstrate the ubiquity that is necessary, and they are on public record stating that if they win the current NextGen bid with the Welsh Government and are allocated the £57m granted to Wales, then it will amount to less than half of Welsh citizens having access to the desired outcome of fast, quality broadband.

207. BT are only part of the answer. We need to stop expecting a Plc to act like a government department. BT exist to satisfy their shareholders; not Wales.

Who else could be part of the solution?

208. As previously indicated in this white paper. There are a slew of large and powerful organisations that require fast, quality and ubiquitous broadband to move their own businesses into the next phase of growth and development.

209. These organisations should be sought; consulted; encouraged to get involved and compensated where appropriate.

Stop doing the same things and expecting different results

210. Whilst this is perhaps not a direct recommendation, it is salient nonetheless.

If we keep repeating the same type of actions, expecting (hoping) to achieve something different then we we constantly fail those that we seek to serve.

211. It is not a case of exchanging prudence for radicalism. It is a case of evaluation leading to understanding, and subsequently changing behaviour for better results.

212. Wales needs to believe that it can demand outcomes – not fund infrastructure.

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Broadband Wales

Golden Hour

213. Wales has a moment to make the future luminescent for all citizens. It is not often that we are presented with:

the opportunity

the funding

the clear direction for success

that means that we are able to fundamentally change so many lives.

214. It is equally infrequent that the evidence of the past is so lucid in informing the direction that we should take.

215. Whilst no one could claim that 'all is rotten in the state...' there are issues that need to be addressed, and there is the requirement of acceptance that the current path will not deliver what is required.

216. The facts are clear:

Fibre is part of the answer

BT is part of the answer

BT admit that only 47% of Wales will get fast broadband by 2015 if they win the NextGen £57m

BT admit that wireless is part of the answer

Wales Government ICT has failed to deliver on expectations

BBSS is a failing scheme

RIBS failed to deliver what was hoped for (although BT delivered on the 'contract')

217. What is also very clear to see is that:

Wales needs fast broadband to compete on a global stage

Fast, quality and ubiquity must be the watchwords for the future

Creating a focal point for the direction will be imperative

Self interest groups or parties are not the route to unambiguous, non-partisan advice.

Wales can be a digital leader

218. The Golden Hour may be a phrase liberated from the Health industry, but the similarity to today is clear.

We must have a sense of urgency; we must act in a clear and ordered fashion; we must act swiftly.

219. If we do, the future can not only be bright for current and the next generations, but luminescent.

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Last Word

Broadband Wales

1. http://www.silicon.com/techno logy/networks/2011/07/13/ wel sh - broadband -boosted-by- 57m-cash-injection-39747695/

2. http://www.uswitch.com/ broad band /news/2011/10/avanti_go vt_must_clarify_ welsh _ broadba nd _investment_plan/

3. http://www.eweekeurope.co.uk /news/labour-mp-slams-lack-of- welsh - broadband -funds- 16543

4. http://www.culture.gov.uk/new s/news_stories/7835.aspx

5. http://www.guardian.co.uk/mo ney/2011/jul/20/rural-uk-cheaper- broadband - ofcom - bt

6. http://www. exwavia .co.uk/case -studies-and-testimonials/#bo

7. http://www.dailypost.co.uk/ bus iness -news/ business - news/2011/10/26/ broadband - not-spot-tag-made-snowdonia-hotel-a-no-go-for-customers-55578-29660449/

8. http://www.walesonline.co.uk/ business -in-wales/ business - news/2011/10/05/tips-for-wales-to-deal-with-ip-in-the-digital-age-91466-29537709/

9. http://www.blaenau- gwent.gov.uk/images/Images_Business / Welsh _Assembly_Log o.jpg

10. http://wales.gov.uk/docs/det /publications/110427deliveryplan.pdf

11. http://www. bt plc.com/Thegr oup/ BT UK andWorldwide/ BT Re gions/ Wales / Broadband /Broad bandinWales.htm

12. http://www.publications.parli ament.uk/pa/cm201012/cmselect/cmwelaf/writev/ broadband /bb10.htm

13. http://www.walesruralobserv atory.org.uk/reports/english/2009/DeepRuralReport_Oct09.pdf

14. http://www.itproportal.com/2 008/11/28/north-wales-get-access-super-fast- broadband /

15. http://www. ofcom .org.uk/ab out/what-is- ofcom /

16. http://wales.gov.uk/docs/det /publications/110427deliveryplan.pdf

17. http://wales.gov.uk/topics/bu sinessandeconomy/broadbandandict/ broadband /ngbw/;jsessi onid=WBQzTnPh7jqFWTHX5rP4NnMRlSnQKBVXDQJVKw1pkvGcG6JrGwKQ!-1883660344?lang=en

18. http://www.delib.co.uk/

19. http://www. mumsnet.com /

20. http://wales.gov.uk/docs/dra h/publications/Tourism/100125stayingvisitor09eng.pdf

21. http:// twitter .com

22. http:// facebook .co.uk

23. http:// linkedin .co.uk

24. http://www.gwynedd.gov.uk/ upload/public/attachments/925/ Broadband _benefits_report.p df

25. http://stakeholders. ofcom .or g.uk/market-data-research/market-data/communications-market-reports/cmr11/

26. http://media. ofcom .org.uk/2 011/05/26/mobile- broadband - speeds-revealed/

27. http://www.broadbandcommi ssion.org/Documents/ Broadba nd _Targets.pdf

28. http://www.easier.com/65065 -grey-pound-to-hit-100bn-mark.html

29. http://www. sagazone .co.uk/

30. http://www.publications.parli ament.uk/pa/cm201012/cmselect/cmwelaf/c1367-i/c136701.htm


References

http://www.silicon.com/technology/networks/2011/07/13/welsh-broadband-boosted-by-57m-cash-injection-39747695/


http://www.publications.parliament.uk/pa/cm201012/cmselect/cmwelaf/c1367-i/c136701.htm



http://www.sagazone.co.uk/

http://www.easier.com/65065-grey-pound-to-hit-100bn-mark.html



http://www.broadbandcommission.org/Documents/Broadband_Targets.pdf



http://media.ofcom.org.uk/2011/05/26/mobile-broadband-speeds-revealed/



http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr11/



http://www.gwynedd.gov.uk/upload/public/attachments/925/Broadband_benefits_report.pdf



http://linkedin.co.uk/

http://facebook.co.uk/

http://twitter.com/

http://wales.gov.uk/docs/drah/publications/Tourism/100125stayingvisitor09eng.pdf



http://www.mumsnet.com/

http://www.delib.co.uk/

http://wales.gov.uk/topics/businessandeconomy/broadbandandict/broadband/ngbw/;jsessionid=WBQzTnPh7jqFWTHX5rP4NnMRlSnQKBVXDQJVKw1pkvGcG6JrGwKQ!-1883660344?lang=en



http://wales.gov.uk/docs/det/publications/110427deliveryplan.pdf



http://www.ofcom.org.uk/about/what-is-ofcom/

http://www.ofcom.org.uk/about/what-is-ofcom/

http://www.itproportal.com/2008/11/28/north-wales-get-access-super-fast-broadband/





http://www.walesruralobservatory.org.uk/reports/english/2009/DeepRuralReport_Oct09.pdf



http://www.publications.parliament.uk/pa/cm201012/cmselect/cmwelaf/writev/broadband/bb10.htm






http://www.btplc.com/Thegroup/BTUKandWorldwide/BTRegions/Wales/Broadband/BroadbandinWales.htm


















http://www.blaenau-gwent.gov.uk/images/Images_Business/Welsh_Assembly_Logo.jpg








http://www.walesonline.co.uk/business-in-wales/business-news/2011/10/05/tips-for-wales-to-deal-with-ip-in-the-digital-age-91466-29537709/








http://www.dailypost.co.uk/business-news/business-news/2011/10/26/broadband-not-spot-tag-made-snowdonia-hotel-a-no-go-for-customers-55578-29660449/











http://www.exwavia.co.uk/case-studies-and-testimonials/#bo




http://www.guardian.co.uk/money/2011/jul/20/rural-uk-cheaper-broadband-ofcom-bt








http://www.culture.gov.uk/news/news_stories/7835.aspx

http://www.culture.gov.uk/news/news_stories/7835.aspx

http://www.eweekeurope.co.uk/news/labour-mp-slams-lack-of-welsh-broadband-funds-16543








http://www.uswitch.com/broadband/news/2011/10/avanti_govt_must_clarify_welsh_broadband_investment_plan/
















IndexA

Annette Burgess..................................................................................................................................................... 3

BBBSS...................................................................................................................................3, 9, 16, 18, 26, 40, 42

Broadband Support Scheme................................................................................................................3, 16

BDUK...........................................................................................................................................................3, 10, 14

broadband.....3, 7, 9, 10, 11, 14, 15, 16, 18, 20, 21, 25, 26, 27, 28, 29, 31, 32, 33, 34, 36, 37, 39, 40, 41, 42, 43

Broadband...................................................................................................................................................................

Broadband Pass..............................................................................................................................................10

fast broadband...............................................................................................................................7, 9, 37, 42

fast, quality broadband. .7, 8, 9, 11, 14, 15, 16, 27, 28, 29, 31, 32, 33, 34, 37, 39, 40, 41

quality broadband.....................7, 8, 9, 11, 14, 15, 16, 27, 28, 29, 31, 32, 33, 34, 37, 39, 40, 41

BT........................................................................................3, 7, 8, 10, 11, 15, 16, 20, 21, 23, 36, 37, 41, 42

DDigital Champion..................................................................................................................................10, 18, 39

Digital Inclusion......................................................................................................................................................9

DigitalWales............................................................................................................................................25, 26, 33

EePetition.................................................................................................................................................................... 9

exwavia Limited......................................................................................................................................................3

Ffacebook..............................................................................................................................................9, 29, 34, 43

Fibrespeed..........................................................................................................................................3, 17, 18, 40

GGolden Hour....................................................................................................................................11, 12, 16, 42

Governments.................................................................................................................................................15, 18

grant.................................................................................................................................................................... 9, 16

Llinkedin............................................................................................................................................................. 29, 43


LTE............................................................................................................................................................................. 33

Mmarket space..........................................................................................10, 12, 18, 23, 25, 26, 32, 36, 39

Market Space..............................................................................................................................................................

communications industry........................................................................................................3, 10, 15, 29

communications infrastructure............................................................................................................3, 27

Micro-wave............................................................................................................................................................ 33

mumsnet.com........................................................................................................................................27, 28, 43

NNextGen....................................................................................................................................................14, 41, 42

Oofcom..............................................................................................7, 8, 10, 20, 21, 22, 23, 29, 32, 36, 43

RRIBS...........................................................................................................................7, 11, 14, 15, 16, 18, 40, 42

Regional Innovative Broadband Scheme................................................................................................7

Richard Brown.........................................................................................................................................................3

Ssagazone......................................................................................................................................................... 34, 43

Satellite............................................................................................................................................................... 3, 33

SKYPE...........................................................................................................................................................9, 28, 34

SME providers............................................................................3, 8, 11, 12, 16, 17, 21, 22, 23, 25, 33, 36

SME Providers............................................................................................................................................................

SME...........................................................................................3, 8, 11, 12, 16, 17, 21, 22, 23, 25, 33, 36

SMEs............................................................................................................................................................... 3, 27

Ttwitter........................................................................................................................................................ 29, 34, 43

VVirgin.......................................................................................................................................................................... 3

VoIP...................................................................................................................................................................... 8, 28

W206.Wales. .3, 7, 8, 9, 11, 12, 14, 15, 16, 17, 18, 23, 25, 26, 28, 29, 31, 33, 34, 36, 37, 39, 41, 42, 43


Welsh......3, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 25, 26, 27, 29, 31, 32, 33, 34, 36, 40, 41, 43

206.Welsh Government...3, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 25, 26, 27, 29, 31, 32, 33, 40, 41

Government......3, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 25, 26, 27, 29, 31, 32, 33, 36, 39, 40, 41, 42

ICT.........................................................................................................3, 10, 16, 17, 18, 25, 26, 29, 40, 42

Westminster....................................................................................................................3, 9, 11, 18, 26, 27, 39

WiFi........................................................................................................................................................................... 33

WiMAX..................................................................................................................................................................... 33

wireless........................................................................................................................................................ 3, 33, 42

wispa Limited..........................................................................................................................................................3



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