Superfast Essex public redacted version. Superfast Essex - Bridging the digital divide across Essex. The Local Broadband Plan for Greater Essex

Transcription

1 Superfast Essex - Bridging the digital divide across Essex The Local Broadband Plan for Greater Essex

2 Document control Version Author Distribution Date 10 P.Wilson/S.Beales NGA project Board (inc. B Sancto 20/02/12 (BDUK)) 11 P.Wilson/S. Beales As above 28/03/12 12 P.Wilson/S. Beales As above 17/04/12 13 P.Wilson/S. Beales As above 01/05/12 14 P.Wilson/S. Beales Julie Jacques (BDUK) 10/05/12

3 APPLICANT INFORMATION Project Name: Superfast Essex Lead Organisation - Lead Contact details Essex County Council County Hall Chelmsford Essex CM1 1LX Robert Overall Deputy Chief Executive and Director for Environment Sustainability and Highways Telephone number address: Postal address: Robert.Overall@essex.gov.uk as above Project Partners: This Plan has been compiled by the: Essex Rural Broadband Partnership Essex County Council Next Generation Access Project Board Essex On-Line Partnership (including Southend on Sea Borough Council and Thurrock Council) Start date of Project: 1 st June 2012 End date of Project: 1 st December 2015 (with ongoing contract management in place until January 2020)

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5 Contents Page Section A Project Overview A1 A2 A3 A4 Vision & Strategic Context.. 1 Background...5 Local Broadband Context Evidence of Need /GapAnalysis Scope of Project. 10 Section B Customer & Community Engagement B1 B2 B3 Demand Stimulation..15 Demand Registration.16 Stakeholders...18 Section C Financial Information C1 C2 Funding requirements 20 Funding Structure...22 Section D Commercial Information D1 D2 D3 Commercial Case...23 Market engagement 23 Procurement Strategy 23 Section E - Deliverability E1 E2 E3 E4 Project Management, Resourcing & Financing.24 Timetable..27 Expected Strategic Benefits.28 Risk Management/Log 31 Section F State Aid F1 State Aid Confirmations..34

6 Appendices Appendix 1 Letter of intent to provide total funding Appendix 2 Basic and Next Generation Access planned coverage maps Appendix 3 - Existing broadband initiatives Appendix 4 Communications Plan Appendix 5 Project Team members (named) Appendix 6 Superfast Essex Board Appendix 7 List of Ofcom designated Market 1 exchanges per district

7 Superfast Essex the Local Broadband Plan for Greater Essex A1 Vision and Strategic Context This Plan sets out to prove to the telecoms industry that rural Essex provides a financially sustainable and indeed profitable marketplace worthy of significant investment. The lack of effective broadband in rural areas is a barrier to economic growth and social development in Essex according to the Essex Rural Commission s report 1. The recommendation to improve rural broadband provision contained within the report resonates through the Essex Rural Strategy 2, the Integrated County Strategy 3 and the joint priorities of the South East Local Enterprise Partnership whereby in order to strengthen the rural economy, a strategic objective of universal superfast broadband has been set. In order to fulfil the transformation of the delivery of public services, better broadband connectivity is essential for: education, training and skills, tele-care and tele-health and the knock-on health benefits of being digitally included the route residents use to interact with their councils and public sector service providers more generally. Significant advances are being made across all these areas of service delivery and yet there is evidence that the lack of connectivity, particularly in rural areas is acting as a bar to delivering effective solutions. Essex s aspirations for much improved superfast broadband are completely compatible with and aligned to Britain s Superfast Broadband Future 4 and the Digital Agenda for Europe 5. By 2015, the Government s objective is to ensure that the UK has the best Superfast Broadband network in Europe. Superfast Essex reflects this objective through its overarching aim: to make superfast and much improved broadband available to all and that more of Essex s citizens and businesses make more effective use of the internet. 6 1 Pretty et al Report of the Essex Rural Commission 2 Essex Rural Partnership 2009 Essex Rural Strategy 3 Essex County Council 2010 Integrated County Strategy 4 Department for Business, Innovation and Skills (2010) Britain s Superfast Broadband Future 5 European Commission, Brussels, 2010 A Digital Agenda for Europe Page 1

8 Strategic overview 72% of Essex s land area is considered rural in character where agriculture, woodland and marine associated land uses predominate. Hamlets and villages are interspersed with larger market towns and a combination of excellent schools and educational establishments, good local facilities, vibrant towns, attractive countryside and a prosperous local economy have meant that the rural economy, in common with much of the South East of England has diversified and mirrors the urban economy. This has led to an increasingly sophisticated, demanding and mobile population who daily commute into local market towns and, of course, London and who increasingly desire the ability to work, study or socialise from anywhere via the internet. A major aspiration of Superfast Essex project is to enable anyone to be on-line anywhere so making the county an attractive place to work, study or visit. Local geography It is apparent that this project will be aimed at the rural north of the county, extending from Saffron Walden in the northwest, across to the Tendring peninsula in the east. The Dengie and Rochford peninsulas on the county s east coast also stand to benefit as well as more inland areas in the hinterlands of Harlow, Brentwood and Chelmsford. To summarise the economic growth and social development priorities, the county can be sub-divided to illustrate what better broadband would mean to various parts of the region: Uttlesford and Braintree represents a fairly affluent market to the telecoms sector with scope for greater economic activity particularly home/farmhouse based. Demand for broadband is well established and underpinned by the region s proximity to Cambridge highly skilled people reliant on technology. Colchester, Tendring a rapidly emerging creative media centre with bandwidth hungry small businesses is developing around Colchester. The Tendring peninsula has pockets of deprivation but investment in port infrastructure and the associated supply chain/logistics sector will mean that demand for broadband will soar The coastal belt of Essex (Tendring, Maldon, Rochford and parts of the City of Chelmsford) are areas with diverse demographics and vibrant and active small business sectors. As the Maldon District Broadband Pilot has proved, there is significant demand for improved broadband in this area. The rural parts of Chelmsford, Brentwood and Epping Forest are also demographically diverse with a large commuting population. The stay at home partner and the commuter increasingly demand broadband for home use and for flexible and mobile working. 6 Essex County Council st Century Digital Essex; a broadband strategy for Essex Page 2

9 Existing broadband initiatives Essex County Council and other local district and parish councils have a proven track record of working with telecoms suppliers to enable upgrades in broadband service delivery. Since the initial deployment of broadband services over a decade ago, local community led innovative solutions have proliferated across the county. A fuller list and details of projects and initiatives are contained in Appendix 2 Outcomes This is an outcomes focussed plan which looks to best utilise the resources available with the key driver being economic growth in all sectors but particularly SMEs, jobs creation and a commensurate uplift in gross value added to the economy. As far as the wider strategic aims of the county are concerned, these are articulated in 21 st Century Digital Essex and are set out below to put the BDUK intervention in context. The outcomes are to: establish Essex on the world stage as a superfast broadband region where access to reliable and resilient broadband is available everywhere as well as to enhance Essex s role as a global centre for the development of new digital technology research, infrastructure and support. create business growth and inward investment opportunities across the whole of Essex and to ensure that no business is disadvantaged by its rural or remote location. provide Essex businesses and citizens with fairly priced, quality, reliable, resilient and cost effective high speed broadband capability thereby encouraging flexible working anywhere, reducing trip generation, congestion and carbon emissions, in particular for those not well served by public transport networks in rural areas. improve access to services and achieve channel shift in the ways citizens interact with public, health, educational and commercial services and encourage more citizens, regardless of age or income, to access services on-line so enhancing community wellbeing and cohesion. establish roaming superfast internet access in all Essex s town centres to attract businesses and customers to our key growth centres whilst at the same time making town centres vibrant and attractive to all visitors. ensure that mobile telephone coverage, including mobile data and roaming internet services is universally better than it is at present across the county, particularly in rural and remote locations. As far as addressing the outcomes of the BDUK intervention is concerned, by 2015: Page 3

10 At least 90% of premises across Essex will have access to Superfast Broadband (24Mbps) and that; All premises in the intervention areas can gain access to 2 Mbps by 2015 and 8Mbps by the end of the contract that mobile phone/data coverage penetration is deepened into intervention areas and that in settlements with populations greater than 10,000 people, mobile phone services are sufficient to support LTE broadband connection ECC can evidence that 20% more of Essex residents are accessing council services on-line Rationale for these outcomes Basildon, Essex, was one of the first towns in the country to benefit from broadband internet back in March 2001 with 0.5 Mbps connectivity being universally available across the county by 2005 four years after the first urban deployment. It is estimated that if existing market conditions prevail, in order to ensure ubiquitous 30Mbps bandwidth (already routinely available in Essex s town centres for a number of years), rural areas would have to wait until 2020 twelve years after their urban counterparts. By this time, urban areas will be enjoying bandwidths many thousands of times that level 7. This digital divide will exponentially widen in the future and it is imperative that we act now to prevent the gap in service provision from widening. Superfast Essex is agnostic on how a solution is developed however it is accepted that a range of solutions will be deployed, both fibre based and using copper, mobile, satellite and wireless connectivity. Convergence of internet access calls for greater mobile phone signal coverage across the rural areas. We recognise that Government, via BDUK, are doing their own procurement to award a national contract to a mobile phone operator to install the necessary mobile network that will allow, in the first instance, 3G mobile coverage to 99% of the population. It is hoped that the level of service will be raised to 4G LTE coverage over time, however we are keen to see this upgrade accelerated in Essex. 7 SQW 2010 Essex Next Generation Access; A proposal to Essex County Council Page 4

11 There will be postcode areas where it is economically unviable to deploy cable based, or even enhanced copper wire solutions, and that whilst the capital costs can be covered by the intervention, the ongoing network maintenance costs cannot. In these situations it is anticipated that satellite and radio technologies will have to be utilised. To that end whilst the minimum standard is Superfast Broadband for at least 90% (the aspiration being more like 95%) of premises, there may be a question of whether that end has been achieved, depending on the European Commission s view as to what constitutes Next Generation Access Broadband (whether wireless or satellite delivery counts or not.) That said, a stretch target of 8Mbps by 2020 is being set for all premises which can be achieved using existing hardwire technologies although in order to align the project with national priorities, 2Mbps universal connectivity is required by May Cost modelling and an assessment of technological advances give assurance that this will be achievable. At a practical level, it has been agreed by the Essex NGA Project Board that in order to achieve these outputs; that Essex County Council has made 6.46 million capital funding ( 1.46 million to be raised through borrowing if required) available to underwrite and release the BDUK 6.46 million commitment that in the region of 900,000 has been allocated to support the project including demand stimulation and demand registration activities over the seven year life of the contract that Essex will call off from the BDUK National Procurement Framework to identify a delivery partner cognisant of the fact that the framework currently consists of two prime suppliers that as part of that call-off process, State Aid requirements proscribed by BDUK will be adhered to and that a public consultation exercise will be carried out to which market suppliers can respond that a transparent and fair process be undertaken to ensure that opportunities exist for local small businesses in order to help enhance the local economy A2 Background The telecoms market in Essex, as elsewhere is volatile and competitive. With a population of 1.6 million people living across a diverse but predominantly affluent county, with a higher than average demographic of next generation users (NGUs), it is clearly a competitive marketplace for providers. The county s proximity adjacent to London exerts a huge Page 5

12 influence on the lifestyles and work patterns of its residents. 90% of the population (1,451,552) live in areas with more than 245 people/sq. km., 95% (1,532,384) in areas with more than 70 people per sq.km and less than 1% (1,416) live in areas where there are less than 27 people per sq. km 8. In this respect it is similar in population coverage as other counties in the Local Enterprise Partnership area. In October 2012, ECC commissioned SQW research to complete a study of broadband technologies and coverage. The full report will form part of the data room. [coverage report redacted] census data Page 6

13 A3 Local Broadband Context Evidence of Need/Gap Analysis Commercial context Essex, with State Aid intervention, should be a commercially attractive proposition to any network infrastructure provider. A vibrant market exists for much improved broadband services as increasing amounts of demand aggregation data is showing. Parish Councils in particular are playing a crucial role in aggregating demand and whilst the evidence can be parochial and anecdotal, there is information collated by the Rural Broadband Partnership, the Country Land and Business Association and the Federation of Small Businesses to illustrate that service take-up in the short to medium term should offset, in a reasonable period, the level of state aid and privates sector investment. The scale that Essex has to offer should make it an attractive proposition for the market. Significant economies of scale exist to any supplier who wins the contract and access to the public sector infrastructure afforded by the NGN contract will mean that the opportunities to make savings in deployment costs should be significant. The success of other internet service providers also acts as a bellwether for investment. In the Maldon district area, the success of the radio wireless pilot there has evidenced that since 2009, over 3% of households have chosen to upgrade their connectivity using a radio wireless solution. Likewise the Rural Broadband Partnership is working with over forty parishes across Essex to implement rural broadband solutions in remote rural locations. Whilst according to the European Commission s 2009 guidance, wireless solutions have their limitations (hence the EC s reticence to classify them as NGA), this does prove that residents are keen to try alternative technology solutions and are eager to increase their connection speeds by any means. The county, however, is not homogenous in nature with varying demographics and socioeconomic groups spread across it. In the north west of the county around Saffron Walden, for instance, a wealthy, elderly and articulate population demands superfast broadband and yet can t access it yet whilst in the north east around Clacton, those suffering from social deprivation have access to NGA broadband and yet don t use it. With its demand stimulation work ongoing, the county council will work with the selected supplier to promote internet use and get home the message that on-line will be the default method of public service delivery in future. It is likely that as roll out occurs, more small businesses will set up in the areas benefitting from the intervention. This will be attractive to ISPs and provide fruitful revenue streams for both ISPs and the delivery partner (and the public sector). Page 7

14 Cost Benefit Analysis model In October 2011, ECC commissioned SQW research to construct a model that provides a cost benefit analysis of state aid intervention for every full postcode area across Essex, Southend-on-Sea and Thurrock. It is based on BDUK data covered by non-disclosure agreements and from information publicly available from various suppliers including BT and Virgin. The Sam Knows website has also been used which is not accurately attributable and should therefore be treated with caution. When the public consultation takes place as part of the state aid compliant call-off process, this data will be refreshed and added to by the market to ensure that we are only directing subsidy to qualifying areas. Public Sector network and hardware assets are currently being mapped prior to going out to tender for the associated Next Generation Network procurement and will be available for suppliers to scrutinise as part of the BDUK tender process. State Aid maps Maps contained in Appendix 2 [redacted] show postcode level service maps based on average speeds achievable under planned roll outs. The maps are based on data provided under non-disclosure agreements by BDUK and telecom suppliers. The data, however is only valid as of September This data and mapping will be updated to as a near accurate level as possible as part of the open market review carried out as part of the Public Consultation process. During this process, the telecoms market will be asked to provide their latest deployment plans which will be mapped and used to determine areas that are eligible for state aid to provide superfast broadband. These definitive maps will be used to gain State Aid exemption from the National Competency Centre at BDUK and form part of the Data Room Data Room The data room will include mapping data as specified by BDUK to assist suppliers including detailed information of public sector assets, highways and public rights of way, major infrastructure and population density etc such as:. Page 8

15 For illustrative purposes, these maps show what is available for viewing in the data room with much greater granularity, the following showing the postcode points, colour-coded to show respective average line lengths from the exchanges that serve them: [redacted] And below a map showing the correlation between line length from the exchange and the sparseness of the premises/postcodes. [redacted] GIS mapping resources will be on hand throughout the tender process to produce the relevant maps that suppliers require. Page 9

16 A4 Scope of Project Objectives Superfast Essex sets out to achieve: At least 90% of premises across the County will have access to asymmetric Superfast Broadband and that: All premises will have access to at least 2Mbps by 2015 and 8Mbps asymmetric broadband by the end of the contract period mobile phone voice/data coverage penetration is deepened into intervention areas and that in settlements with populations greater than 10,000 people, mobile phone services are sufficient to support LTE broadband connection ECC can evidence that 20% more of Essex residents are accessing council services on-line In summary the project sets out to: stimulate demand for broadband connectivity and educate both businesses and residents of the potential benefits of Next Generation and Superfast Broadband support innovative broadband access solutions by improving the existing network using a combination of public and private network and physical infrastructure assets encourage convergence of network services, creating an internet protocol (IP) platform that is fit for a 21 st Century Digital age At the close of the Public Consultation, an accurate picture will emerge of where public investment is needed. Working with our delivery partner, we will develop a deployment plan that will best respond to; demand for improved broadband identified through the demand stimulation and demand registration exercises the commercial viability of the phasing of both public and private sector investment the economic growth potential of the intervention Coverage of intervention In order to comply with State Aid limitations, intervention will occur within the areas served by the defined Market 1exchanges as agreed by the public/market consultation that takes place within two months prior to the award of contract as well as premises in market 1 and 2 areas where market failure can be proved at a cabinet/premises level. This consultation Page 10

17 with the market 9 may result in changes to the intervention area were challenges to be upheld. Partners Since the outset, a wide range of representative organisations have been involved in this project. Established in July 2011, the Essex Next Generation Access Project Board (to be known in future as the Superfast Essex Broadband Board includes representatives from a wide range of partner organisations including: Essex on-line Partnership (made up of IS representatives from across the public sector) Rural Community Council of Essex Essex Association of Local Councils University of Essex, Essex Chambers of Commerce Federation of Small Business. Essex Rural Broadband Partnership The Chelmsford Diocese of the Church of England (covering the whole plan area) There has been an ongoing dialogue with the Economic Development Officers from across the unitary authorities and the district councils. The Essex Chief Executives Association is also taking a close interest in the roll out of Broadband. The South East Local Enterprise Partnership has a shared aspiration for improved NGA and Superfast Broadband and officers from the three county councils share knowledge and experience. Beneficiaries This project aims to benefit a wide range of individuals, families and businesses across the Essex region. As part of the Call-Off, the Invitation to Tender (ITT) will ask the prospective delivery partners how they plan to engage with local contractors, whether they be independent ISPs or other firms that can assist the delivery partner in the roll out. These firms need not be limited to telecoms related activities but can extend out to marketing firms, public relations and even on-site catering and vehicle and plant hire. The ITT will also ask suppliers to demonstrate how they plan to take on apprentices and school leavers to deliver the infrastructure upgrades. The intervention represents a very real opportunity to ensure that local people receive the skills and training in what is a highly technical area. 9 All telecoms suppliers who currently operate or are likely to operate in the proposed intervention area are asked to agree the defined intervention area. Page 11

18 Intervention Shock The economic uplift that will result from the intervention shock is estimated to be calculable no sooner than two years after the intervention as it is accepted that this is how long it takes a firm to adapt to superfast broadband, how they can take advantage of it and how it adds value to their business. The indirect beneficiaries will be those who gain employment opportunities as a result of the growth of these firms as they achieve success. The shock will be felt more immediately by small businesses that occupy the media, technology and creative space already. It is likely that these firms (a major growth area in the county) will already be aware of how best to harness the benefits of being on-line. Ultimately, the project is aimed at improving the life-chances of our residents, both young and old, enabling them to seize the opportunities that Next Generation Access internet (NGA) has to offer enterprise, education, training and self-improvement as well as letting them benefit from the ease of access the internet offers to products, services, leisure activities and increased wellbeing. Timeframe/duration The project will commence when BDUK approve the Local Broadband Plan and the project will run for three years to the end of The spend profile is detailed in section C but in summary we anticipate 10% in the first financial year, 40% in years 2 and 3 respectively and the residual 10% in the first half of the 2015 financial year (April-December) It is understood that BDUK funding ceases in March 2015 and that consequently it will be ECC and private sector money that is used to continue the deployment from April-December It is anticipated that ECC will be ready to start the procurement process as soon as BDUK have signed off this Plan. It is then estimated that the call off process will then take between 7-9 months. Upgrade deployment will commence in financial year 2012/ J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M Plan developmen t BDUK Assessment Procurement Phas e 1 Phase 2 Project appraisal Demand stimulation Page 12

19 ECC will start formal engagement with Framework providers within a matter of weeks from the Broadband Plan being signed off with a bidders warm-up day the Plan effectively forming a Procurement Information Notice (PIN). Preceding this, an industry warm-up day will also be held to develop networking opportunities between suppliers (not just those on the National Framework). As per the framework guidance a delivery partner will be appointed within 7 months of the Broadband Plan being approved by BDUK. Phase 1: Project teams will be established and the supplier will be embedded within the governance structure. Concurrently, premises in hard to reach rural locations will be surveyed with a view to getting interim, alternative solutions installed Phase 2: Main roll out of upgraded infrastructure. The roll out will be deployed in accordance with a number of factors including evidence of demand and targeting areas where economic uplift will be experienced soonest The project will be appraised and benefits evaluated using a model developed by SQW research. Prioritisation Speed and coverage We recognise that funding constraints mean that we need to balance speed with coverage. We also recognise that Government demand universal 2Mbps broadband coverage and Superfast to at least 90% of premises. To that end, we anticipate that based on the funding formula laid down by government, were the scheme to be fully funded, a solution is affordable. By setting 8Mbps as a minimum available for the whole county, we accept that this sets a stretching target to the market. However we anticipate that the market will offer solutions that if not immediately implementable, will deliver 2Mbps in the first instance and with upgrades, will deliver 8Mbps before the contract expires in We also accept that when we are ready to call-off the framework we will endeavour to align our priorities with the market s where possible. We are envisaging having as few priorities as possible economic development being the key driver. Priority phasing We have to be realistic and sensitive to the commercially challenging market conditions. In many respects deployment has to be market driven and Essex County Council, for its part, will lead on the demand stimulation (discussed later) to ensure that the project is well phased and systematic in nature. Page 13

20 This Plan offers the market the path of least resistance to get an upgraded network deployed. As it is likely that deployment will happen relatively quickly 10 we need not be too challenging when it comes to deploying to certain areas before others. However, in common with the market, as economic development will be the key driver investment in infrastructure for small businesses will need to be prioritised. Suppliers will be expected to fully detail the rationale for their phasing proposals as part of the response to the invitation to tender. These proposals will be challenged as part of that process. ECC recognises that as there are clawback provisions in the contract, it is in all parties interests to ensure that deployment occurs in the most commercially viable way and that costly diversions and distractions to deliver non-essential niceties must be kept to a minimum. Community Broadband hubs and potential public sector locations Throughout this Plan the economic growth element of the project is recognised as key and that, in common with the market, commercial sustainability of the network is a key factor in delivering a cost effective outcome. There is little evidence to suggest that community broadband hubs are needed what people want is a network that allows consumers to buy internet services from reliable retailers. The public sector will have a symbiotic relationship with the Project. On the one hand superfast broadband will benefit the public sector, as it will the private sector, as more people are able to work flexibly and in a mobile way. There are limited opportunities for existing network infrastructure to be used to support the newly rolled out carrier grade open access network however the following factors do need to be taken into account: Tenure of public sector network: It is envisaged that the network deployed as part of this project will be deployed by one supplier and then potentially sold on at the close of the contract (7 years from contract award). Where the public sector own network assets freehold, this may not present a problem as any new network owner can renegotiate with the public sector body owning the asset. Much public sector network architecture, however, is leased as part of wider contracts. It is possible, therefore that leased network assets could create issues as the wholesale commercial network changes hands Public sector locations such as libraries and schools are best utilised not for their network assets but for their space as areas to host demand stimulation events and encouraging people on-line. We will however examine how network assets (provided they are owned by the public sector, will add value to the commercial network. 10 Current estimates suggest within 18 months of contract award Page 14

21 Specific challenges By working with the market and our delivery partner, we hope to ensure universal connectivity as laid out in the project scope. Specific challenge that are likely to be thrown up are: ensuring that all lines on the distribution side of cabinets are upgraded and not just a certain commercially viable number that exchange only lines are also upgraded where possible, particularly in the Tendring district area as this has been identified as an ongoing concern Section B Customer & Community Engagement B1 Demand Stimulation Demand stimulation and aggregation of demand will occur in a number of ways: On-going communications strategy (appended): The lack of broadband connectivity has attracted much media coverage in recent months and enquiries to ECC have increased significantly. Upon Plan approval, a national announcement will be made and the ensuing local publicity will highlight its contents and encourage residents and businesses to register with the on-line tools described below. A continuing concerted media campaign will then ensue to highlight the need to register and also to extol and enlighten the public as to why broadband is going to be essential in the future. The Essex Rural Broadband Partnership already evangelises the need for broadband and this will continue. There will be a number of further conferences to encourage parish councils to get involved with community projects and aggregate demand. On-line registration tools: The Rural Broadband Partnership currently has an on-line registration tool identifying where those interested in developing community solutions are located. ECC is developing a further on-line registration tool which will be easily accessed from any of the local authorities home pages. The following questions will be asked to those registering: How much bandwidth do you currently have access to (download and upload)? How much do you require? Why do you require it? (What applications do users need access to?) How much are you currently paying for your connection? Page 15

22 How much would you be willing to pay Postcode Historical data is also available from the now obsolete Erebus website that indicates where households and businesses have registered demand in the past. National Campaigns The communications strategy looks to closely follow and tie in with national campaigns such as Go On and other Martha Lane Fox led initiatives. Other campaigns as instigated by the CLA, FSB, Chambers of Commerce NFU etc. will also be linked in to, to ensure that messages are being put across to as a wide a range of people as possible. A Rural Broadband Enabler will be employed and it is proposed that this post be funded through ECC s core grant to the Rural Community Council of Essex. Based at the Rural Community Council s offices, this individual will have a number of distinct roles: Evangelising the need for NGA and Superfast Broadband in rural areas and persuading households, businesses and wider communities to get on-line. Liaising between communities, parish councils, businesses and even single households and putting potential broadband suppliers in touch with them to develop solutions To facilitate the most effective and cost efficient deployment of localised broadband solutions Assist communities in seeking and applying for additional funding to support schemes. It is envisaged that this post will exist for the duration of the roll out. B2 Demand Registration Proof of demand from: Residential customers and communities; As mentioned in the previous section, data collected by the Rural Broadband Partnership evidences demand amongst this group. Further enquiries to ECC direct as well as anecdotal evidence from councillors further evidences the frustration that people experience. All Parish Councils have been surveyed in the past year as part of an initiative by the Essex Rural Broadband Partnership and an event hosted by a local internet service provider in July 2011 included councillors and other representatives from over 100 councils. Events such as these are excellent ways of extending the broadband debate out to rural areas and Page 16

23 whilst there is a fair amount of expectation management to be done, it does whet the appetite of local communities to investigate community led solutions. Small Business engagement The Federation of Small Business, the Country Land and Business Association, the National Farmers Union and the Essex Chambers of Commerce have all carried out surveys of their members in the last eighteen months all of which have proved emphatically that there is a demand for better broadband and whilst the distinction between NGA and SFB is opaque, the consensus is that current provision is not adequate. 67% of businesses surveyed noted that lack of broadband was hindering their business potential in a Business Survey carried out in 2010 for the Essex Economic Assessment. Essex Future on-line ERDF bid Through the ERDF bid (Essex Future on-line) that is running concurrently with this Plan, a series of quarterly business seminar events is proposed whereby businesses of any size can share knowledge and experiences and receive assistance from a range of business mentors on the subject of broadband. These events will encourage businesses to look to the future applications of the internet including the potential for cloud data storage management and the prospect of more of their day to day business activities being carried out on-line. The project also provides vouchers to SMEs covering half the cost of business mentoring services. Mentors, accredited by the Federation of Small Business the University of Essex and ECC will offer small firms advice on how to make best of the internet including marketing, data and stock control management and flexible and mobile working An element of this bid also includes deployment of infrastructure to upgrade networks to pre-selected rural business locations ( 580,000 capital ERDF, BDUK and ECC funding is being aligned to this element of the deployment). The allocation of this element of the funding will only be possible when the Public Consultation exercise has been concluded and suppliers plans revealed. The final bid is being submitted on 18 June Large Businesses and Enterprises There has been limited feedback from this group probably because few large businesses exist in the rural areas of Essex. The exception to this is the extensive science and research hub north of Saffron Walden in Great Chesterford that falls principally within Cambridge s hinterland. Within the past six months, a substantial firm moved premises out of the area citing poor broadband as a major contributory factor in their decision to move. Page 17

24 It is fair to say, however, that the majority of firms with a turnover in excess of 1 million tend to opt for leased line solutions for their broadband connectivity which makes broadband connectivity less of an issue for this group. Essex has secured funding through the South East Local Enterprise Partnership for one Enterprise Zone adjacent to Harlow town centre. To that end, the Zone falls outside of the areas eligible to receive state aid subsidy however negotiations are currently in train between the Local Planning Authority, (Harlow District Council), the Highways Authority (Essex County Council) and telecoms providers to ensure that the broadband infrastructure is adequately provisioned by the private sector. The Public Sector. The Essex on-line partnership is representative of the whole of the public sector across Essex and their involvement is central to the development and implementation of this plan. B3 Stakeholders The Plan is being driven by: Essex Rural Broadband Partnership Essex County Council Next Generation Access Project Board Essex On-Line Partnership The Essex County Council Next Generation Access Project Board, however, is and will continue to be the key stakeholder forum. Both the Cabinet Members for Finance and Economic Development sit on this board with their respective deputies to ensure political buy in and the Board is chaired by the Deputy to the Cabinet Member for Economic Development. As already mentioned, all the tier 2 and the unitary authorities as well as the Parish Councils, represented by the Essex Association of Local Councils support the plan as do the Essex Fire and Rescue Service and elements of the health sector. The Plan is critical to the aspiration that everyone can work anywhere in the county regardless of whether they work in the public or the private sector and flexible and mobile working is important to both sectors. Regular briefings on progress will be provided for various different stakeholder groups including MPs (several have already been provided with briefings on an individual basis) on an ongoing basis but most importantly, councillors will be brought closer into the communications process. Councillors at all levels will be encouraged to become broadband champions and advocates for their local areas many, particularly Parish Councillors, already are. The most effective way of doing this is through regular briefing and encouragement. It is Page 18

25 councillors that are in the front line against residents angst and as the project progresses, expectation management will be key. Both the Federation of Small Business and the Chambers of Commerce sit on the Project Board and they will continue to use their communications channels to reach their membership. The National Farmers Union and the Country Land and Business Association will also be provided with regular briefings and updates and through their respective branch structures as will the Essex Agricultural Society. Page 19

26 Section C Financial Information C1 Funding Requirements Essex County Council has approved capital funding of 6.46 million. 5million has been allocated to the county council s capital programme with county council s cabinet approval for a further 1.46million to be raised through borrowing if required. The broadband plan relies on receiving an equivalent amount of match funding from BDUK, giving a minimum million public sector funding. Local authorities and other bodies in Essex are investigating a number of opportunities for additional public sector funding. The project is premised on the fact that the total capital funding raised by the public sector will be match funded by the private sector. Where million capital funding is raised by the public sector, a further million will be invested by the private sector, giving a total investment of million. Capital Funding million investment Funding Table (Capital) - Total funding required (GBP) (Financial Years) Dec Millions millions Millions Millions Private sector (Telecom Company) investment BDUK funding Essex County Council Other funding (European/ERDF) TOTAL Number of postcodes covered by the funding Number of premises covered by the funding (residential) (non-residential) 5,535 65, NB. Postcodes covered are according to SQW research data October 2011 and may not accurately reflect what is currently achievable. More accurate costs will only be ascertained as a result of the public consultation market testing exercise as part of the procurement process Page 20

27 State Aid Capital Funding Capital funding will be used solely for the delivery of the broadband infrastructure ie. Equipment and deployment costs. The delivery will take 3 years to complete (January 2013 December 2015) with the 12.92million capital funding allocated over 4 financial years as follows: Financial Year % Capital Funding Best Case % million % million % million % 1.292million We recognise that BDUK funding will conclude at the end of the 2014/2015 Financial Year however it is envisaged that, subject to negotiation with BDUK, a spend profile can be agreed whereby BDUK money can be spent prior to March 2015 and ECC then spent subsequently. Specific solutions and technologies used to deliver the infrastructure will be determined in the competitive dialogue process. Revenue Funding Additional revenue funding of 933,000 is required for demand stimulation and further advice from external consultants over the project period as well as managing the procurement and project management throughout the Plan period. C2 Funding Structure A Gap Funding model will be adopted for a substantial part of the contract, i.e. funding will be used to upgrade infrastructure and effectively subsidise the private sector to address the ongoing market failure. The chosen delivery partner or contractor will own and manage the network on an open access wholesale basis allowing other providers to sell connectivity across the network at commercially competitive rates. Key contractual milestones will form part of contract discussions during the procurement process and will be agreed in advance with the contracted supplier for each stage of delivery. Funding for each stage will only be paid to the contracted supplier on completion Page 21

28 of the key contractual milestones which will include evidence of service quality and availability. Page 22

29 Section D Commercial Information D1 Commercial Case Superfast Essex will be delivered using public funding to leverage further investment by commercial operators through a competitive procurement process carried out under a calloff of the BDUK National Procurement Framework. A Gap Funding model is anticipated whereby capital is sunk into upgraded infrastructure and the supplier will retain ownership of the network until the expiry of the contract when they will be free to consider the network on as a going concern. There are however numerous opportunities to add value to the project by leveraging benefits off ECC s Next Generation Network s contract. This ten year contract is going out to tender during the summer of 2012 and aims to establish a supplier or consortium of suppliers who are able to deliver fixed and mobile telephony, LAN and WAN services, schools broadband and a host of other services to the public sector across Essex. There will be opportunities to share network infrastructure, reduce costs and avoid duplication between the rural broadband contract and the NGN contract but this will not form part of the BDUK call-off procurement. D2 Market Engagement Engagement with the market commenced on 22 nd February when prospective bidders for the Essex Next Generation Networks were invited to a Bidders Day hosted by the Essex On-Line Partnership at the Essex Records Office. Whilst the day focused the public sector s network needs and requirements, many bidders were as equally interested in the BDUK element of the day and the intervention into Market one areas. Potential bidders were presented with an outline of the scope of The Plan and issues affecting it and whilst it was made clear that no decision had been made as to which procurement route to follow, bidders went away informed that Essex s rural broadband work could be closely aligned with the NGN contract. A further bidders day will be held subsequent to Broadband Plan approval and, assuming the National Procurement Framework call-off approach has been adopted by ECC, the framework suppliers will be invited to engage with local, smaller suppliers and stakeholders. In line with BDUK guidance, further consultation with the supplier market will take place prior to award of contract to once again confirm eligible areas. D3 Procurement Strategy ECC will use the national procurement framework. We plan to be ready to start the call off process upon BDUK approval of the LBP. The timeline is described in section E2. Page 23

30 We plan to challenge the market capacity to offer a minimum service provision of 8 Mbps and that Superfast Broadband will be available to at least 90% of premises. We expect interventions to take place to all premises that require speed uplifts to these levels, regardless of exchange market classification and this also applies to exchange only lines. External advisers and consultants will be engaged to assist in assessing value for money and bid evaluation. ECC will act as the accountable body for the procurement process and financial management from then on and for the contract with the successful bidder. The Framework will assume the use of a gap-fund subsidy commercial model, where the private sector invests alongside a public subsidy to provide broadband to areas where there is not otherwise a viable commercial market. The supplier takes the risk of implementing and operating the network and the risk of ensuring its commercial success. Section E - Deliverability E1 Project Management, Resourcing and Funding Project Governance The project will be managed using Essex County Council s project governance and Execview framework for running large projects and programmes of work. The project team will be funded and resourced by Essex County Council. The table below details the project governance groups and responsibilities for the delivery of the project. Individual/Group Composition Responsibilities Project Sponsor Robert Overall, Deputy Chief Executive and Director of Environment, Sustainability and Highways Overall accountability for project delivery Assurance that funding is used to support broadband delivery in-line with BDUK grant agreement Project Board (see appendix 3 for named representatives of the Project Board) Page 24 Project Sponsor Project Manager Chief Information Officer Economic Development Lead BDUK representative Awarded contractor representative (post contract award) Local Authority PSN representative Reporting to project sponsor and stakeholder group Key decision making Risk mitigation & issue resolution Establishing limits of delegated authority and financial tolerance for PM Monitoring & evaluation Quality Assurance

31 Individual/Group Composition Responsibilities Project Team (see appendix 4 for Project Manager Economic Development Lead named Procurement lead representatives of Financial Lead the Project Team) Legal Adviser Technical Adviser Data Analyst Support Communications & Marketing Lead Demand Stimulation & Registration Lead Project Support Officer Stakeholder Group Superfast Essex Board (see appendix 5 for named representatives of the Board) ECC Cabinet Members Cabinet Support Environment and Sustainable Development ICT Economic Development Policy & Strategy External Funding Inward Investment Procurement Finance Legal Services Transformation Project Manager Non-ECC BDUK Essex Association of Local Councils University of Essex Diocese of Chelmsford Rural Community Council of Essex Federation of Small Business Essex Chambers of Commerce District/Borough/Unitary councils Oversee the day to day project delivery as required Interests of the wider forum of broadband stakeholders Outlining community needs/demands Outlining opportunities for investment Planned and announced investments Future funding opportunities Champion the needs of local residents and of the local business community Page 25