Rural Community Broadband          INCA Event      28th February 2012
Background • Government objective: “best superfast   broadband in Europe by 2015” • Market expected to deliver to around 7...
What is the RCBF? • Rural Community Broadband Fund   – £20M joint DEFRA and BDUK fund   – Support communities in the final...
RCBF & Local Broadband Plans • RCBF extends the scope   of community   engagement                   Community • Proposals ...
Who Can Apply?     Community Enterprises    • E.g. Cooperatives, Companies Limited by Guarantee or      Community Interest...
RCBF is “superfast” only!     Taking superfast broadband further & deeper    • Extending Local Broadband Plans    • Delive...
Where & How much? • Support sustainable     • Funding will need to be   business plans in the     at least matched by   ha...
Where’s the match funding?         Those who will       receive the service    Community share offers and other forms of  ...
The toolkit • Will become a living web-based resource • Pointers to existing guidance & material    – INCA Beyond Broadban...
FROM CAMPAIGN TO SOLUTION
High-level Process                                                              GO!                 Full              Subm...
Keys to success •   A solid business plan     • Only 1 is technical •   A reliable network        • Only 3 or 4 are a fort...
Who buys when      This is where           This is where services        speed sells           and engagement sellInnovato...
Capacity & Capability                                                           Community                     DIY         ...
#1 Demand Aggregation • The community decides it   wishes to have more than          Upside        Downside   the minimum ...
#2 Build & Benefit • Community is willing to   help deliver NGA               Upside             Downside    – E.g. civil ...
#3 Partnership • The community want to   raise some of the risk      Upside   Downside   capital & expect an   investment ...
#4 Concession • The community are able to   raise all the risk finance • They have no ambition to be a    Upside   Downsid...
#5 DIY • The community are able to   raise all of the finance       Upside   Downside • They have a strong desire to   be ...
How do I apply?                         Rounds                    EOI will require you to                         • Round ...
Thank you!             Adrian Wooster             adrian@wooster.org.uk             07788 167776
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INCA Industry Day - Adrian Wooster Presentation

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  • RCBF supported projects are strategic NOT tactical
  • Some of this material is contradictory and there are gaps in publicly available informationThe material will be collated into a single source, with clear attribution to the authorsGaps will either be highlighted, requested from partners, commissioned or delivered by BDUK
  • Community investmentBroad view – could be true sweat equity as well as cashCommunity AmbitionThe desire of a community to be an active stakeholder in the projectAll approaches are considered equal IFThey deliver the outcome requiredPass value for money criteriaHave a community mandate
  • Model in test in Cumbria
  • Community strategic involvementIntroducing a social impact – inclusionTraditional social enterprise models may not be appropriate when large proportion of the investment is externalIt will also need to be perceived as a professional investment opportunity, whether its seeking high-network-individuals within the community or external investors. Longer term options are numerous – refinance by the European Investment Bank or a trade sale, for exampleThere is on reason why the partner couldn’t be the LA partner
  • There is no reason why the concession couldn’t be taken by the LA partner – a community NYnet.Being built and run by specialists, possibly as part of a group of concessions, exit strategies are numerous including trade sale to the concession owner or to a third party network operator.
  • The community will need to demonstrate they understand what this entails, and that they are in a position to take long-term strategic decisionsSecuring service providers will be very challenging for networks smaller then Digital Region!Proving sufficient quality to provide confidence to the health service for tele-health, for example, will be very hardExit strategies are challenging – trade sale will require substantial due diligence for what may be perceived as a small increase in customer-base.These decisions will affect community members for possible another generation – 20 years!
  • INCA Industry Day - Adrian Wooster Presentation

    1. 1. Rural Community Broadband INCA Event 28th February 2012
    2. 2. 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
    3. 3. 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”
    4. 4. RCBF & Local Broadband Plans • RCBF extends the scope of community engagement Community • Proposals should be endorsed by – A majority of the RCBF premises in the target area – A local accountable body (e.g. Parish Council) – The Local Authority
    5. 5. Who Can Apply? Community Enterprises • E.g. Cooperatives, Companies Limited by Guarantee or Community Interest Companies Charities Local Authorities • On behalf of communities • Includes Parish Councils Other Local Partnerships • Beneficiaries, not individual Communications Provider businesses • E.g. Groups of local private businesses
    6. 6. RCBF is “superfast” only! Taking superfast broadband further & deeper • Extending Local Broadband Plans • Delivering national infrastructure • It is not to support temporary solutions Superfast means at least 24 to 30 Mbps • The fund is technology neutral • Projects may choose any combination of “NGA” technologies • Individual satellite services are excluded • Compliance with industry standards is required
    7. 7. Where & How much? • Support sustainable • Funding will need to be business plans in the at least matched by hardest areas private investment • There is a limit of £300 per premise connected
    8. 8. Where’s the match funding? Those who will receive the service Community share offers and other forms of committing to pay a community investment connection charge Those committing to An openly procured receive the service Network Operator Private family trusts for a minimum committing funds to period at a set cost the project Etc, etc. (this isn’t exhaustive!)
    9. 9. 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
    10. 10. FROM CAMPAIGN TO SOLUTION
    11. 11. High-level Process GO! Full Submission Detailed Engineering to RCBF EoI to High-level Engineering RCBF Decision Point! Business Planning Demographic Analysis Establish
    12. 12. Keys to success • A solid business plan • Only 1 is technical • A reliable network • Only 3 or 4 are a forte • A basic set of services of traditional operators • Customer care • 4 relate to your • A local set of services community! • Communication • An “us feeling” * Kees Rover’s 7-pillars
    13. 13. Who buys when This is where This is where services speed sells and engagement sellInnovators Early Adopters Early Majority Late Majority Laggards 2.5% 13.5% 34% 34% 16% Diffusion of ideas
    14. 14. Capacity & Capability Community DIY Enterprise Community Investment Capacity Concession Partnership Using LA Partners Build & Benefit Demand Aggregation Community Capability Do Nothing
    15. 15. #1 Demand Aggregation • The community decides it wishes to have more than Upside Downside the minimum • The community works to No additional No control – Improve quality of the cost to over the solution from a minimum community solution in-fill solution to an NGA based solution May achieve May not – Confirm actionable NGA achieve NGA verifiable demand in support of the case for more investment With LA Partners
    16. 16. #2 Build & Benefit • Community is willing to help deliver NGA Upside Downside – E.g. civil engineering, way-leaves or additional funding No additional risk Limited say in the solution • Community happy that RoI is gained from Significant sweat equity or cash benefitting from an Will deliver NGA with no commercial return improved service • Open Access & ISPs delivered by LA partner With LA Partners
    17. 17. #3 Partnership • The community want to raise some of the risk Upside Downside 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 Community Organisation
    18. 18. #4 Concession • The community are able to raise all the risk finance • They have no ambition to be a Upside Downside 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 Community Organisation
    19. 19. #5 DIY • The community are able to raise all of the finance Upside Downside • 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 Community Organisation
    20. 20. How do I apply? Rounds EOI will require you to • Round 1 – closed 31st demonstrate that: January 2012 • Your are likely to be If successful, you will Submit an Expression • Round 2 – to be within the final 10% be invited to prepare of Interest to your announced, planned to • There is sufficient local a Full Application local RDPE Lead open May 2012 need & demand within an agreed • There is the capacity to timescale deliver reasonable value for money
    21. 21. Thank you! Adrian Wooster adrian@wooster.org.uk 07788 167776

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