Chris Townsend  - BDUK inca conference presentation 07052014 - final
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  • 1. Broadband Delivery UK Transform Digital Conference Chris Townsend – CEO Broadband Delivery UK
  • 2. Department for Culture, Media & Sport The importance of the digital economy • Internet economy in the UK is worth 8.3% of GDP – more than any other G20 country and twice the G20 average – and is projected to grow to 12.4% by 2016 (Boston Consulting Group, March 2012) • The digital economy comprises 270,000 active companies in the UK, for which revenues are growing 25% faster than non-digital counterparts (NIESR, July 2013) • Online retail sales are projected to be 23% of total retail sales by 2016 (BCG, March 2012) • Faster broadband is estimated to add £17 billion to the UK’s economy by 2024 (SQW for DCMS, Nov 2013)
  • 3. Department for Culture, Media & Sport The position today BT superfast coverage only (incl. commercial & non-BDUK) BT and Virgin premises Virgin only 76%9% 21.912.9 45% 2.7 Number of UK premises (millions) UK % premises coverage of superfast broadband 100% 28.8 73% as at June 2013 Gap • Commercial deployment has taken the UK ahead of its European competitors. • UK now leads the top five EU Member States for broadband and mobile coverage, take up, usage, choice and price (Ofcom European Broadband Scorecard 2014). • Superfast broadband is now available to 73% of UK premises – up from 45% in 2010 – and superfast broadband take-up is 25%, up from 5% in 2011 (Ofcom). • But almost 7 million homes and businesses across the UK will not be covered by the commercial roll out. Tackling these remaining premises will deliver economic benefits and reduce the digital divide
  • 4. Department for Culture, Media & Sport 3-phased approach BDUK is delivering the Government subsidised Superfast Broadband Roll- out programme: Phase 1: (£530m to reach 90 % of UK premises by 2016; and standard broadband (2Mbps) for all by the end of 2016). Progress: 44 projects across the UK; Already reached more than 500,000 new premises. Roll out is accelerating: now at 20,000 per week and rising to 40,000 per week. Will pass 1 million premises by the summer. Phase 2: (£250m to reach 95% of the UK by end of 2017). Progress: 35 new projects. 4 already under way. BDUK aiming for local bodies to complete majority of new procurements by December 2014 and remainder as early as possible in 2015.
  • 5. Department for Culture, Media & Sport Phase 3: The hardest to reach areas Phase 3: (Exploring options for going beyond 95% incl £10m market test pilots testing new solutions). Progress: 26 suppliers responded to the ITT, with bids that offered solutions using: i. Proven technologies deployed in hard to reach areas; . ii. novel operating models; iii. innovative public / private funding models. Winning bidders to be announced in June 2014. Aim to have initial findings from projects on new solutions for the hardest to reach areas by September 2014.
  • 6. Department for Culture, Media & Sport Support for local community projects Rural Community Broadband Fund (BDUK and Defra): • 3 projects going ahead (Rothbury, Fell End, Northmoor) and 3 have conditional offers • 17 local communities have funding for extra coverage through their LA contracts • 4 further projects have submitted initial proposals for funding Other local projects: • Community projects e.g. B4RN in Lancashire • Commercial supplier projects without public funding (Gigaclear, CityFibre etc) • Projects with local public funding (CallFlow in Kent, AB Internet in Lincs, Air Band Community Internet in Worcs) - BDUK has given state aid clearance Important that communities are able to take forward projects in NGA white areas: • Communities can ask LAs for coverage plans • BDUK also encouraging all LAs to publish coverage maps to 7 digit postcode level Phase 3: BDUK expecting a number of community-focused bids as part of the £10m phase 3 pilots and will carefully review the models put forward
  • 7. Department for Culture, Media & Sport Super Connected Cities Programme • £150m to support 22 major UK cities develop digital infrastructure capability assisting them remain internationally competitive and attractive places to invest, visit and do business. • In December launched the Connection Voucher Scheme to help SMEs access faster and better broadband. The scheme provides grants of £250 to £3,000 to cover capital connection costs and is administered by the cities through over 350 registered suppliers. • Also providing free Wi-Fi to around 1000 public buildings (libraries, museums and community centres) by 2015; and supporting wireless coverage in major city centres.
  • 8. Department for Culture, Media & Sport We are also addressing gaps in mobile coverage 95% 100%0% 27.30.0 Number of UK premises (millions) UK % premises coverage of mobile phone services 28.8 • Mobile Infrastructure Project (£150m) is addressing the 0.3-0.4% of premises without any Network Operator coverage (complete not spots). The project aims to provide coverage to:  7 out of the 10 A Roads in not spots; and  30k+ of the 70k premises with no coverage at all. • DCMS is also looking at how to address areas with partial coverage All operators (voice 2G) [A] <1% complete notspots MNOs 4G roll out to 98% (indoors) by end 2015 [B] 4% partial notspots
  • 9. Department for Culture, Media & Sport Benefits of the investment! Uplift to GVA of £6.3bn by 2024 (phase 1) Broadband Impact Study, SQW for DCMS, Nov 2013
  • 10. Department for Culture, Media & Sport BDUK Priorities April – June • Managing relationships with key suppliers to accelerate delivery. • Award contracts for Market Testing Pilots and develop BDUK’s understanding of the role of communities and local bodies in making these projects successful. • Securing public support and recognition for the programme and BDUK.