Rural Community Broadband

INCA Event28th February 2012

Background• Government objective: “best superfast

broadband in Europe by 2015”• Market expected to deliver to around 70% of

country but not “final third”• Broadband Strategy launched with £530m

Government funding to deliver:– Superfast broadband to around 90% of the

population– A 2 Mbps universal service commitment to

everyone

What is the RCBF?• Rural Community Broadband Fund– £20M joint DEFRA and BDUK fund– Support communities in the final 10% wanting

more than “basic broadband”

RCBF & Local Broadband Plans

• RCBF extends the scope of community engagement

• Proposals should be endorsed by– A majority of the

premises in the target area

– A local accountable body (e.g. Parish Council)

– The Local Authority

Community

Industry

Publ

ic Se

ctorRCBF

Who Can Apply?

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

Community Enterprises

Charities

• On behalf of communities• Includes Parish Councils

Local Authorities

• Beneficiaries, not individual Communications Provider businesses• E.g. Groups of local private businesses

Other Local Partnerships

RCBF is “superfast” only!

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

Taking superfast broadband further & deeper

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

Superfast means at least 24 to 30 Mbps

Where & How much?

• Support sustainable business plans in the hardest areas

• Funding will need to be at least matched by private investment

• There is a limit of £300 per premise connected

Where’s the match funding?

Those who will receive the service

committing to pay a connection charge

Those committing to receive the service

for a minimum period at a set cost

Community share offers and other forms of community investment

An openly procured Network Operator

committing funds to the project

Private family trusts

Etc, etc.

(this isn’t exhaustive!)

The toolkit

• Will become a living web-based resource• Pointers to existing guidance & material– INCA Beyond Broadband bit.ly/ulnx4d– FttH Council Business Guide bit.ly/uHO1iB– Erisa Broadband Portal bit.ly/uENpgc– Rural Broadband Partnership bit.ly/vrIdOu

FROM CAMPAIGN TO SOLUTION

Establish

Demographic Analysis

Business Planning

Decision Point!

High-level Engineering

Detailed Engineering

GO!

EoI to RCBF

Full Submission

to RCBF

High-level Process

Keys to success

• A solid business plan• A reliable network• A basic set of services• Customer care• A local set of services• Communication• An “us feeling”

• Only 1 is technical• Only 3 or 4 are a forte

of traditional operators• 4 relate to your

community!

* Kees Rover’s 7-pillars

Who buys when

Innovators2.5%

Early Adopters13.5%

Early Majority34%

Late Majority34%

Laggards16%

This is where speed sells

This is where services and engagement sell

Diffusion of ideas

Capacity & Capability

Community Capability

Com

mun

ity In

vest

men

t Cap

acity

Demand Aggregation

DIY

Build & Benefit

Concession

Partnership

Using LA Partners

CommunityEnterprise

Do Nothing

#1 Demand Aggregation

• The community decides it wishes to have more than the minimum

• The community works to– Improve quality of the

solution from a minimum in-fill solution to an NGA based solution

– Confirm actionable verifiable demand in support of the case for more investment

Upside Downside

May not achieve NGA

No control over the solution

May achieve NGA

No additional cost to

community

With LA Partners

#2 Build & Benefit

• Community is willing to help deliver NGA– E.g. civil engineering,

way-leaves or additional funding

• Community happy that RoI is gained from benefitting from an improved service

• Open Access & ISPs delivered by LA partner

Upside Downside

Significant sweat equity or cash

with no commercial return

Limited say in the solution

Will deliver NGA

No additional risk

With LA Partners

#3 Partnership

• The community want to raise some of the risk capital & expect an investment return

• Partners are needed to– Provide additional

investment– Build & operate the network

• Open Access & ISPs delivered by partners

• Investment and Exit plans need to be considered

Upside Downside

Will deliver NGA

Influence the over strategy

Investment return

Community risk

Community Organisation

#4 Concession

• The community are able to raise all the risk finance

• They have no ambition to be a network operator

• A concession is offered by the community to design, build and operate their network

• The community must steer strategic decisions

• Open Access &ISPs delivered by the concession partner

• Investment and Exit plans need to be considered

Upside Downside

Will deliver NGA

Total strategic control

Partners mitigate risk

Final responsibility

Significant investment required

Community Organisation

#5 DIY

• The community are able to raise all of the finance

• They have a strong desire to be the network operator

• The community design, build & operate their own network

• Open Access & Service Providers delivered by the community

• Investment and Exit plans need to be considered

Upside Downside

All of the risk with no mitigation

Heavy continuing commitment

Challenging to deliver open access

Difficult exit strategy

Will deliver NGA

Community Organisation

How do I apply?

Submit an Expression of Interest to your

local RDPE Lead

Rounds• Round 1 – closed 31st

January 2012• Round 2 – to be

announced, planned to open May 2012

EOI will require you to demonstrate that:• Your are likely to be

within the final 10%• There is sufficient local

need & demand• There is the capacity to

deliver reasonable value for money

If successful, you will be invited to prepare

a Full Application within an agreed

timescale

Thank you!

Adrian Woosteradrian@wooster.org.uk07788 167776