ITS presentation - Liverpool

1. Faster, Cheaper, Greener Full Fibre:
Re-use and sharing assets
INCA Full Fibre & 5G Event, 24th July 2018
David Cullen, Director ITSTechnology Group

2. Re-use vs Re-Dig
Several Recent CostAnalyses have identified the importance of re-use
• National Infrastructure Commission Cost Analysis Study demonstrated marginal
additional cost for delivering full-fibre; assuming re-use (e.g. as copper/ coax
options would).
• Future Telecoms Infrastructure Review (FTIR) released yesterday strongly
supports this assumption and states it as a necessity.
ITS is UK market leader in re-using existing assets for
communications infrastructure
Civil construction is the greatest capital element by far
• Civil construction is 50-70% of total build capex
• Other assets exist that can avoid new construction; e.g. other comms ducts
(CCTV, traffic control, transport mgt, etc), utilities, street furniture, high rise
rooftops, etc
• Challenge is identifying and leveraging all available assets within local
authorities, transport executives, utility companies etc

3.  Minimal civil capex requirement due to using
existing ducts, compared to a traditional model,
replaced by rental or concession fees
 Capex reduced to fibre pull and splicing only
 Build distance for traditional build can be limited
in dense urban areas to c.20m per day
 However, using existing ducts ITS can increase
build distance to >250m per day
Faster, Cheaper and Greener
Data sources: “Costs for Digital Communications Infrastructures”, Prism/ Tactis for NIC December 2017; “Future Telecom Infrastructure Review”, DCMS 2018; ITS implementation data 2017-18
ITS’ “Agile and Innovative” approach enables intelligent integration of assets and infrastructure
to optimise cost and time of deployment
Significantly less cost
“Re-use” models are focused on lower capex and faster deployment than traditional models
Significantly less environmental impact
Significantly shorter timescales

4. A proven model outside of the UK
0
20
40
60
80
100
Spain Portugal Lithuania Sweden Norway Switzerland Netherlands France Italy Germany UK
Fibre coverage to premise, % of properties passed 2018
Source: European Commission; FTTH Council Europe; FTIR
The UK superfast broadband performance against European and global peers is good (95%- FTIR); however, the UK is woeful re FTTP (4%-
stated in FTIR)
1
Altnets pass 2x as many properties with FTTP as BT.Altnets forecast to pass 5m premises with FTTP by 2020 (18% of UK), 1.5m more than BT
andVirgin combined; using different technology, techniques and commercial models
2
The most successful EU countries are those adopting approaches that re-use or share infrastructure; both publicly owned (e.g. Sweden) and
under JVs ( e.g. France)
3
Significant need to look
at new approaches in
the UK market
UK lags behind Europe and other global players in availability of FTTP- mainly through failure to innovate commercially
ITS has been adapting these models since 2014 and is the market leader in adopting re-use of existing infrastructure

5. Some concession case studies
A ‘low risk’ option for public sector bodies; long term exclusivity on usable assets in return for a lease charge and revenue share
Bristol City CouncilLB Hammersmith and Fulham Nottingham City Council
 Strong service-led economy - sizeable
organisations and new developments
 High-profile clients connected, e.g. Imperial
College, QPR and Lyric Theatre
 Local partner on-board
 Opportunity for council’s own network
 Early clients: Broadway Cinema, Nottingham
Trent University connected
 Significant Nottingham HQ’d blue-chip targets
e.g. Boots, Experian, and emerging Creative
Quarter with strong potential
 Local partner recruitment underway
 Robust, symmetrical, high capacity network
 Owned by Bristol City Council
 Total duct infrastructure of 180km
 Delivered through a wholesale channel
 Strategic partnerships with tier 2 resellers
and ISPs
 High profile Bristol digital, arts and online
organisations already connected
Skylon Enterprise Park, Hereford
 100 acre enterprise zone Rotherwas,
Herefordshire
 Robust, symmetrical, high capacity network
 Owned by Herefordshire Council
 ITS offers wholesale and retail services
 Building strategic partnerships with tier 2
resellers and ISPs
 Major organisations already connected
ITS is the network provider, delivering wholesale services to service providers & extending the network with new
duct and fibre
Nottingham Trent University
Imperial College iHub

6. Asset share case study: Tameside
Members and contributors:
 Contribute to co-op’s assets for a return on ‘investment’
(maintaining title)
 Use co-op’s assets for a modest flat service charge
 ITS is a founding member of the co-op
Rationale:
 Reduced capex through infrastructure re-use
 Market size supports sustainable business case
 Once ‘proven’, likely to be adopted across city region
 Wave 1 LFFN pilot project – a template/ case study
Scale delivers sizable market opportunity:
 35km of existing duct and fibre; increasing through £2.2m LFFN
funding and co-op membership
 FWA option (est. 85k premises)
 Initial orders already logged and first connections underway
Tameside Co-Operative: a ‘thin layer’ model enabling collaboration over duct and fibre re-use
ITS operates as a network provider, delivering wholesale active services to service providers over the co-op’s passive assets

7. Faster, Cheaper, Greener Full Fibre:
Re-use and sharing assets
Thank you for listening
david.cullen@itstechnologygroup.com 07798 518658