Reaching 100% - R100

WISPA Scotland Conference

22nd March 2018

clive.downing@gov.scot

duncan.nisbet@gov.scot

Agenda

• Policy and Approach

• Wireless as part of the solution

• Current Operators

• Supply Chain Opportunities

• Questions

The ‘Reaching 100%’ commitment

• 2016 Manifesto and PfG made commitment to extend access to superfast broadband for every premise in Scotland by end of 2021

• Work on procurements for gap-funded intervention now at advanced stage. Launched in OJEU December last year.

• Builds on Commercial Deployment and the Scottish Government DSSB programmes

• New build under BDUK NBS – NGA compliant (Wholesale access/30Mbps download etc.)

• Existing programme 24Mbps will remain.

• Premises connected using methods outside the 2016 BDUK State Aid scheme will be 30Mbps capable but not necessarily NGA compliant

NGA White Premises Distribution

Large Urban

Other Urban

Accessible Small Towns

Remote Small Towns

Very Remote Small Towns

Accessible Rural

Remote Rural

Very Remote Rural

228k NGA White Premises

Two pronged approach

• Gap-funded intervention to push fibre further, will connect eligible premises and will increase the distribution of fibre infrastructure.

• A set of aligned interventions to reach areas where it is not considered economic to take fibre (highly likely to be a voucher scheme, enabling range of different technology solutions –, wireless, fibre, satellite etc.)

– The numbers and locations of these premises will become known during the summers as bids are returned.

– Will compliment UKG initiatives such as LFFN and expanded voucher schemes (BBS & Gigabit).

Initial Intervention

Very remote/remote ruralIf necessary instigate different financial model for most difficult areas.

Accessible Rural/Very Remote/Remote Small towns/Small TownsPhase 1 procurement activity.

Commercial expansion/incentivesPersuasion, encouragement, relief and guarantees. Possible voucher scheme.

City Deals/ LFFNLiaison with City deals teams.*Immediately where city deal funding is indicated.

Commercial Coverage

DSSB Coverage

CBS Coverage

R100 Initial Procurement

Aligned Interventions

Approach & Strands of Activity

The Initial Intervention

• 3 lots, with a total of £600m public investment.

• We have four bidders for each lot.

– Axione

– BT

– Gigaclear

– SSE-Telecom

• Will conclude this year with contract signature expected Jan/Feb 2019.

Features of New

ProcurementContract Negotiating Points Desired Outcome

Sub Superfast coverage is not counted

Creates an absolute definition on covered premises.

Better access to built infrastructure -e.g. Points of Presence if no access network built

Will allow connection of leased line type services for Backhaul, Mobile and Public sector networks.

Committed public roll out plan Allows sensible planning around alternatives/interim solutions.

Mandated Locations for fibre Creates backhaul availability in new areas

Definition of geographical end of deployment

Will allow definition of and immediate planning for additional schemes

Whole Communities - no gaps To reduce the instances of single premises which will require inclusion in follow up activities

Potential Supply Chain Opportunities

• We will be encouraging bidders to maximise use of local companies at all levels of the delivery.

• What flows out of this will depend on their network design and technology choices.

• Will encourage bidders to take part in cross industry events through the summer.

• We can make your details available in our procurement data room.

Aligned Interventions

Context

• Aligned Interventions will allow premises that will not be connected by the main R100 intervention a path to receiving superfast broadband.

• Despite the high level of funding committed to the initial intervention we are expecting that we will not reach 100% premises with that single activity – hence the aligned interventions workstream.

• We will work with alternative network operators (commercial and community) to understand capability, ambition and the wishes of the community they serve.

• Premises – Grey under review

– White out of scope

– White not addressed

Features

• Likely to be a voucher based scheme

• Scalable

• On demand by premise owner/resident.

• Used to access any one of a set of remedies

• Aggregateable

• Must have an option of 30Mbps available

• In parallel with UKG connection voucher schemes

Candidate Remedies

Vouchers Could be used (in no particular order)……

• To connect a premise that is near the R100 network but has a high connection cost

• By individual premises to install a superfast capable 4G wireless connection

• To connect a premise to a superfast capable community network

• To connect a premise to a superfast capable commercial network

• By individual premises to install a superfast capable satellite connection

• To incentivise/enable infrastructure build to expand or upgrade either of the above types of network

• To focus unserved communities on joint applications to built infrastructure.

Work in progress

• Over the next 3-4 Months we are developing…..

– Voucher/payment mechanism

– Value of vouchers

– Accreditation process for operators using vouchers

• WISPA and its members will be engaged

– Who will accept the vouchers?

– How much should the vouchers be?

– Is there capacity in the market?

– How do we make industry aware of the scheme and

vouchers?

• Audit/assurance process for voucher use.

Alternatively Funded Schemes – City

We have deliberately phased this intervention to get a better view of what

the market will do over the next two years.

Future remedies include

connectivity vouchers,

non financial incentives

and working with

industry

Could include “under

review” areas flagged by

operators in the OMR

Questions