1. Connecting Business – Our Experience
Under the Connection Voucher Scheme
Elliott Mueller - CEO
2. Our Experience on The Connection
Voucher Scheme
• Over 1500 vouchers delivered & installed nationally
• Leased Lines and multi-tenanted solutions
• Manchester, Salford, Newcastle, Birmingham, Liverpool, Leeds,
Bradford – wireless connectivity
• 95% wireless connectivity, 5% fibre delivery
• 80% new customers / 20% existing customers
• The demographic of our customer base has changed - bringing
challenges
• Good referral channel
3. Driving Competition
• Metronet (UK)’s network growth during the CVS – Newcastle, Bradford,
Birmingham, Leeds, almost live in Preston
• Different technologies growing in importance
• Growth of many smaller ISPs
• Many more wireless companies starting up
• The traditional providers are being challenged on speed of delivery,
price and customer service
• Local companies providing localised solutions
• BUT – a cautionary tale
4. Value for Money?
• We have been able to offer lower monthly pricing (normally amortised)
• We have chosen not to sell FTTC under the CVS
• In multi tenanted schemes, we have offered leased lines for home
broadband pricing (economies of scale)
• Over 50 group schemes completed
• Landlords do understand the benefits of superfast services to tenants –
office space is more desirable
• Lasting legacy – whole buildings are now superconnected and
infrastructure will remain in place
5. Making a Difference
• Without question, much smaller SMEs than ever before are now able to
enjoy leased lines.
• Customers report huge savings in telephony costs, increased turnover
• The scheme has driven competition
BUT……
• Is superfast what its all about?
• Do speeds matter more than latency or reliability?
• Diversity matters – customers want 100% uptime
6. As the CVS draws to a close…
• We have had a great experience on the CVS but there is no doubt that it
has had both positive and negative effects on our business
• The lack of education at the smaller end of the SME market is more and
more apparent
• Government needs to focus on the education gap to support SMEs in
using their new superfast connections in order to sustain the benefits
Editor's Notes
Introduce yourself
We got involved in the voucher scheme pilot over 2 years ago
Saw the potential early
Restructured our business
Led the scheme for many months
Our local authority (Manchester) has been very supportive, great local authority teams in Leeds and Newcastle
Voucher scheme great for us – gone to areas that we wouldn’t have gone before
Speculative growth for the first time
We know we have help to drive down pricing in some local areas
This has meant that smaller SMEs are now taking up leased lines
BUT we have seen some small companies start up purely based on capital from the voucher scheme and their financial future post voucher has to be questioned
Lower monthly pricing – competitive and quality advantage
FTTC – is it ethically right to sell FTTC services when the cost of installation is so low anyway and the Govt’s broadband rollout is paying for it anyway?
Economies of scale allows real pricing reductions
Multi tenanted solutions where we have seen up to 200 companies receive superfast speeds in one go
Customer tell us that the CVS has made a massive difference – some have said 50% reduction in telephony, positive changes in their growth, new markets globally - EG Spirit SSR – now trades in Jakarta, singapore, online teaching globally based on their superfast Internet services
Landlords like Bruntwood have superconnected whole estate
SLAs matter!!
Coming to the end of the scheme, one of the only funding regimes to deliver results for SMEs – Government should be praised for that
Customer tell us that the CVS has made a massive difference – some have said 50% reduction in telephony, positive changes in their growth, new markets globally - EG Spirit SSR – now trades in Jakarta, singapore, online teaching globally based on their superfast Internet services
Landlords like Bruntwood have superconnected whole estate
SLAs matter!!
Coming to the end of the scheme, one of the only funding regimes to deliver results for SMEs – Government should be praised for that