Maurizio Pilu, Lead Technologist for ICT, Technology Strategy Board presented at NextGen 09 in Leeds on 16 and 17 November 2009

1. The TSB Digital Testbed Programme & best current thinking on Generation II Dr. Maurizio Pilu Lead Technologist – ICT Technology Strategy Board

2. Technology Strategy Board The UK executive innovation agency Investing in business innovation Team drawn from business and public sector Working across business, universities and government Investment of £1bn over the current 3 years CSR

3. Our programme’s Vision Statement “For all participants in Digital Britain to benefit fairly from creation, distribution and consumption of digital content”

4. The challenge unpacked Economics of the network Technologies and models for a sustainable provision of network services Economics of content and services Business models and tools to create value Digital Test Bed Access, protection & empowerment Security, privacy, trust and usability for the consumer

5. Testbed programme A programme part of our wider programme in support to the Digital Britain agenda, where we will invest up to £30m We will invest up to £10m in the Digital Testbed programme Consulted with industry and stakehoders over the summer SO, what do we mean by Testbed?

6. Digital Testbed: What do we mean? An environment to simulate new business models across boundaries Where real members of the public and businesses will try out new services and new equipment, new ways to run business and new businesses on the Internet A place to understand what will work for business over the coming ten years.

7. Services, Content and Applications Registered Materials Enabling Technologies Test Bed The Internet The Public Test Bed Users

8. Digital TeStBed: Why is this needed? To “shake” the digital value chain To lower barriers to innovation To make enablers available to people and businesses To trial new operating practices and business models To build cooperation To showcase UK innovation in ICT, hardware and creative industries. To build confidence for investment in infrastructure, services, technologies and businesses.

9. What a TSB Digital Testbed is NOT Not directly funding infrastructure per se Sorry! That’s not in our programme’s remit! We’d like to leverage and add value to what is in the ground/ether/sky already Not just a connected user base There has to be a business model element or well defined “trial” leveraging enablers and advanced network capabilities Not just new technology It’s mostly about innovating with it and on it.

12. What is a Generation II Digital Testbed An existingadvanced infrastructure … … connected to an existing user base community … presenting or proposing advanced enabling network capabilities … ... enabling co-operation to recognise value chain players, potentially across business / network boundaries … that can be used to run “trials” with the user base …. and that can be (eventually) federated to the central Digital Testbed

13. An hypothetical example of Gen II An existing council-run network A local ISP A community (e.g. a town) ..trialling alternative models for telecare ..where e.g. …users can get a 10 min bandwidth boost for 50p …and revenue is shared between the network and a third party provider

14. An hypothetical example of Gen II An existing community broadband network.. ..trialling an alternative business model … .. where e.g. For profit use of the network (e.g. for e-commerce) or Intensive use of the network (e.g. VoD) is recognized and paid for .. ..while keeping the cost of baseline services low

15. An hypothetical example of Gen II Breaking the fixed monthly cost model Deconstructing cost-to-serve models by … … cooperation with value chain partners Delivering low-cost broadband to communities… Where people buy additional on-demand connectivity and/or services Such as a Iplayer video, movies, video conf, filesharing Push content where services providers pay for connectivity to user base, e.g. ads.

16. Business innovation is key These examples have a few things in common The network as potential enabler of ... ..business model innovation ..often across value chain boundaries Generation II Testbed will provide the framework and the incentives to experiment

17. Generation II: Our aim Stimulate collaboration between key actors leading to… ..a small number of Generation II “sites” (physical or logical) around the country We are access network-agnostic What is important is what a Gen II proposal is planning to address or demonstrate

18. Collaboration: key actors Entities owning or managing advanced infrastructure E.g. Local and regional public sector organizations, coops, private operators Infrastructure/ISPs players looking for new business models E.g. to close the gap between current revenue models and exploding demand Parties interested in business experimentation and innovation

19. Next steps Generation II is at Best Current Thinking stage Now consulting with stakeholders to gauge demand and gather best ideas to refine Gen II challenge and scope ofpotential competition Your input is essential If interested please contact us directly or through test.bed@tsb.gov.uk

20. http://www.innovateuk.org THANK YOU