DG Connect - INCA Round Table 06-11-14 Investment Models Broadband, ftth, wireless, rural, urban, nga

1. Re-wiring the Country
DELIVERING 100% SUPERFAST BROADBAND
6th November 2014

2. Summary
• 100% NGA is possible, and financeable
• How? New thinking required:
• Co-investment/PPP
• ‘100% down’
• Trust the technology!
• It is not rocket science!

3. Observation #1: The Problem is Everywhere!
• The so-called ‘final 10%’, or ‘no-build’ premises are not conveniently confined to rural
areas …
… they are
everywhere –
scattered within
towns as well as in
deeply rural areas
• Therefore,
fixing the ‘final
10%’ means
potentially fixing
far more

4. Observation #2: It’s Richly Complicated!
• First, the wider economic/societal benefits of 100% NGA are much greater than the
consumer’s preparedness to pay
• Second,
value-for-money
is a critical issue
• Conclusion: a
new model for
partnership
between Local
Authorities and
the private
sector is needed

5. Observation #3: Fibre & Wireless Both Part of
the Solution
40
20
0
Exabytes per month
2013 2014 2015 2016 2017 2018
Mobile offload to fibre Mobile on cellular

6. The Solution
1. Co-investment/PPP
• Aligns policy and commercial interests
• More efficient project finance – EIB, municipal bonds, TIF
• Shares the investment and returns,
while managing the risk
• Positive signal to investors
2. Procure for ‘First 10%’
• Guarantees 100%
• New competitive dynamic
3. Trust the technology
• Newbuild vs re-tread
• Transformational effects
The tools are proven: this is
not rocket science!

7. The PPP/Co-investment Model
Since May, we have….
Agreed £1.6m Loan Note terms with West Oxfordshire
Received approval for £1.6m grant from Ed Vaizey, Digital Minister
Finalised the operating model
Put in place important strategic industrial partnerships
Refined Universal Service Commitment
Completed Public Consultation
Secured private investor funding
The pieces are coming together….