DIGITAL DERBYSHIRE. Local Broadband Plan (Redacted)

Transcription

1 BDUK Broadband Delivery Project DIGITAL DERBYSHIRE Local Broadband Plan (Redacted) Digital Derbyshire Local Broadband Plan 1

2 Department for Culture, Media and Sport BDUK Broadband Delivery Project APPLICANT INFORMATION Project Name: Digital Derbyshire Lead organisation: Derbyshire County Council Lead Contact Details and position held: Natalie Ward Broadband Project Manager Contact telephone number: address: Postal address: Derbyshire County Council County Hall Matlock Derbyshire DE4 3AG If the bid is a joint proposal, please enter the names of all participating bodies and specify the co-ordinating authority Start Date of Project: 01/04/2012 End Date of Project: 31/03/ Digital Derbyshire Local Broadband Plan

3 SECTION A PROJECT OVERVIEW A1 Vision and Strategic Context Our Vision To transform and enhance the quality of life for every community in Derbyshire through excellent access to broadband The provision of broadband infrastructure and services to all our communities is a key enabler in transforming the economic and social lives of local people tackling inequality, providing opportunity and improving quality of life. We see broadband as essential for modern life as important as traditional infrastructure such as roads, rail, gas and electricity and the extent to which people and businesses can exploit the latest technology will be a key determinant in Derbyshire s development. Broadband access is a vital component in creating transformation for Derbyshire. Within this context, the key inter-linked drivers for the Digital Derbyshire project are: Stimulating Economic Growth Broadband infrastructure will be a critically important enabler in driving growth in employment, productivity and skills and promoting Derbyshire as a prime location for investment. Access to superfast broadband (speeds up to 30mbs) improves competitiveness through allowing firms and entrepreneurs to create new business models, re-engineer existing systems and processes, access new markets, stimulate innovation and interact more efficiently and effectively with customers, partners and suppliers. Tackling Inequality Bridging Derbyshire s digital divide is vital to ensuring access to economic opportunity and social welfare for all citizens regardless of location or wealth. Derbyshire faces a digital divide between the more urban areas in the east and the south (including Derby) and the traditionally rural west and north with commercially provided broadband access and speeds lagging therefore exacerbating the divide. However, the provision of infrastructure is only half the story with access to affordable internet services being vital to Derbyshire s future health, wealth and quality of life. Building Stronger Communities Access to broadband is fundamental to delivering localism through providing a real stimulus for greater community cohesion, citizen engagement and better access to services. Effective connectivity will breathe new life into existing communities in Derbyshire providing numerous benefits to residents including: - increasing the potential for people to work and do business from home - enabling better delivery of education and training through virtual learning environments - enabling better and cheaper delivery of personalised public services - allowing greater independence for Derbyshire s ageing population through the on-line appliance of health advice and assistive technologies - creating economies of scale for delivering community and retail services especially in rural locations - environmental benefits, with less reliance on travel for services - connecting our citizens with our twinning nations communities Digital Derbyshire Local Broadband Plan 3

4 Department for Culture, Media and Sport BDUK Broadband Delivery Project Digital Derbyshire The Project BDUK funding is required to assist Derbyshire to meet the government s vision of providing a minimum of 2MB broadband to all and superfast for 90% of the UK by Within Derbyshire there are 188,043 premises within the target white areas which will be the prime focus of the investment. The objective of the project is not simply to gap fund market failure within our white areas, the project must add value by stimulating the market and providing the environment for on-going development through the private sector investment. There are four project outcomes for Digital Derbyshire: 1) near-universal take-up of affordable broadband by Derbyshire households 2) exploitation of broadband and wider ICT by Derbyshire businesses and public sector organisations 3) urban areas benefit from leading edge levels of connectivity 4) successive generations of broadband connectivity rapidly being made available to every community in Derbyshire Based on current estimates, we envisage that, over the next 10 years the project will deliver: An additional 3042 jobs across Derbyshire Net increase of 207m in GVA per annum A cost benefit ratio on public investment of 73:1 Digital Derbyshire Transformational Principles To deliver the transformation set out in our vision, Digital Derbyshire will act as a catalyst delivering against the following principles: tackling and emphasising the demand-side (exploitation and stimulation) as well as the supply-side (access and viability) to help build a sustainable case for on-going commercial development of the broadband infrastructure across Derbyshire in the future. addressing every community in Derbyshire, including more deprived communities in urban areas that already have good broadband coverage but have significant barriers to accessing affordable internet services, not just those areas benefiting from subsidised network roll-outs. Delivering solutions to withstand the test of time, recognising that bandwidths and expectations are constantly increasing rather than choosing a specific level of bandwidth that may currently seem advanced, but could be regarded as insufficient five or ten years hence (including in Derbyshire s urban areas). Strategic Context The Council is committed to facilitating broadband coverage as a foundation for future growth and prosperity: To provide the best possible digital infrastructure for superfast broadband to 100% of Derbyshire s businesses and residents by 2017 The council has adopted a strategic approach towards the delivery of ICT and related technology and services, the focus is to deliver solutions that can release efficiency savings and assist in transforming the delivery of services to the public. A range of new corporate and front line service solutions are being implemented to support these objectives. The roll out of broadband in Derbyshire will ensure access to services for all as we transform the way they are currently delivered. It is a Council priority to realise the benefits, from the projects below, during the next 3 years; Integrated systems for Children and Younger Adults, Adult Care and Environmental Services allowing front line services and support to access relevant information in a consistent way from a single source. Integrated systems that will allow citizens to have direct access to meaningful and relevant information on-line e.g. service users will gain appropriate access to their 4 Digital Derbyshire Local Broadband Plan

5 personal information. This will assist facilitation of the implementation of the Councils personalisation of care agenda. Focus on increasing service efficiencies, including rationalisation of property portfolio requires better connectivity to implement to allow employees to access systems at home, drop in centres and whilst out in the community they serve. Within our libraries service a new e-books loan service was launched in July 2011 which attracted over 2000 users, 25% being new to the library service. Libraries have seen a reduction in visits with remote library usage, including on-line renewals, requests and access to digital content. A review is currently taking place to assess the future provision of a range of specialist information members can access on line in order to meet the changing needs of users. Although without better broadband provision this service will not be available to all. Within the Derbyshire County Council s Council Plan it states that the Council will; work with partners to improve connectivity across the county. This approach is borne out by the importance access to broadband has in the strategic plans of partner organisations and service providers across Derbyshire, for example: The Derbyshire Strategic and Operational Plan, the integrated plan for NHS Derby City and NHS Derbyshire County PCTs, identifies the importance of digital technologies in driving up quality and productivity in health provision providers are encouraged to explore the potential of digital technology in the delivery of clinical services and commissioners to work with providers to achieve this. Social care plans, such as the Derbyshire County Council Adult Care Service Plan, and Joint Commissioning Strategy for Older People identify improving access to and the use of telecare/telehealth services to improve people s ability to maintain their independence, prevent hospital admission and remain living at home as key service priorities. The Peak District National Park is currently developing its National Park Management Plan for The consultation document for the Plan identifies broadband as a key driver of change in the National Park; the consultation document identifies the existing inconsistent provision as hampering small business growth, home working and community access to information across the National Park. Economic development and spatial planning play a crucial role in driving forward improved broadband provision through providing an effective and efficient infrastructure to drive growth and prosperity. The D2N2 Local Enterprise Partnerships vision is to make the Derbyshire/Nottinghamshire economic area one of the strongest and most resilient economic regions in the UK and recognises the role infrastructure plays as a strategic priority both physical and electronic via broadband. This is echoed by both the Derbyshire Economic Partnership (DEP) and Derby Regeneration Board the partnership bodies focusing on taking forward the growth agenda across the county and city respectively. The business community have also emphasised the importance of broadband as fundamental to the competitiveness of the Derbyshire economy. The Derbyshire & Nottinghamshire Chamber of Commerce (DNCC) highlight superfast broadband within their Campaign Manifesto 2012 whilst Business Peak District (BPD) have access to competitive broadband speeds and availability the top priority within their Concordat to support the Peak District economy. Finally, it is imperative that superfast broadband roll-out is enabled through spatial planning and supported through development uplift. The Derbyshire Infrastructure Plan prioritised broadband and ICT as imperative to unlocking future sustainable development, providing a key link to local planning policy via Local Development Frameworks, supporting Infrastructure Delivery Plans, and emerging funding mechanisms such as Community Infrastructure Levy and Tax Increment Financing. Digital Derbyshire Local Broadband Plan 5

6 Department for Culture, Media and Sport BDUK Broadband Delivery Project A2 Background Broadband provision across Derbyshire is somewhat disparate, most urban areas have the availability of services said to deliver up to 50mbit/s whilst some rural areas still rely on a dial up connection. The need to have improved connectivity in terms of speed, reliability and availability is now a priority for businesses and residents across Derbyshire. The demand stimulation work which has been ongoing for several months clearly highlights the need for investment in improved broadband connectivity and a faster service. Almost 6000 responses have been received and of these 32% of businesses and 21% of residents are dissatisfied with their current service, saying that it is of poor quality. There are 468,971 premises in Derbyshire and Derby City, and of these premises 188,043 (BDUK figures(just over 40%)) are anticipated to be left behind as the known planned commercial roll out of next generation broadband deploys in the coming three years. Currently there are 25,992 premises experiencing speeds less than 2mb/s, a basic broadband provision. Current Broadband in Derbyshire Virgin Media cable services are available to 35% of homes in Derbyshire and 17% of businesses (based on BDUK data; coverage by postcode) predominantly the most urban areas (see map 8 in Annex A). VM Coverage County City Derbyshire Home 19% 86% 35% Business 10% 42% 17% Virgin Media does not have any current plans for significant expansion of their own cable network in Derbyshire. However, there may be some tactical infill addressing small gaps within their existing footprint, and/or cabling for major new housing developments. Virgin Media is in the process of completing a roll-out of 100Mbps services across its footprint (50Mbps services are already available). Due to the nature of the cable network, typical downstream speeds are close to the advertised headline bandwidth. For example according to Ofcom testing, the average downstream speed achieved for at least 50% of users was 49Mbps for the 50M service. Broadband pricing starts at per month (when taken with a Virgin Media phone line rental), rising to 35 for the high end service. There are 74 BT exchanges in Derbyshire all are enabled for ADSL Max (up to 8mbps); Ofcom Market Classification Total Exchanges With Local Loop Unbundling (LLU) (actual or planned) With Wholesale Broadband Connect (WBC) (actual or planned) Total exchanges have LLU (local loop unbundling), which are typically ADSL2+ (up to 24mbps), with operators such as Talk Talk, Sky and O2. 37 of the exchanges are enabled (or scheduled to be) with BTs ADSL2+ service, all 37 are also served by WBC. 6 Digital Derbyshire Local Broadband Plan

7 In Derbyshire the actual ADSL and ADSL2+ speeds achieved by users vary substantially from the headline speeds, especially with distance from the serving exchange. Ofcom s recent testing showed that the average downstream speed achieved by at least 50% of users was just 3Mbps for the up to 8Mbps ADSL services, and 5Mbps for the up to 20/24M services (see map in Annex A showing distance from the serving exchange for each postcode in Derbyshire). To date (to February 2012), BT has announced the enabling of 18 exchanges in Derbyshire for superfast services, by the end of 2012 (see map 10 in Annex A). These exchanges serve 58% of Derbyshire s premises. However, BT s FTTC coverage will not be complete within each enabled exchange area, as some premises are served by Exchange Only lines (which do not go through a cabinet), and some cabinets will not be commercially viable to be upgraded to FTTC, if the costs are too high for the number of premises served. BT Openreach has recently (February 2012) announced that intends to launch a Fibre to the Premises on demand service available across its FTTC coverage footprint in mid Pricing is yet to be announced, but there is speculation that it may be positioned at a level that is only attractive to SMEs rather than to households. Nonetheless, this will make services of 300Mbps available. Ofcom classifies exchange areas by Market Type, based on the following definitions; Market 3 - where there are 4 or more operators present, with speeds up to 24mb/s of which Derbyshire has 24 exchanges. Market 2 - where there are 2 operators present, also with faster broadband speeds of which Derbyshire has 20 exchanges. Market 1 - where BT has the total financial risk of delivering services from the exchange, with no faster broadband available of which Derbyshire has 30 exchanges. Derbyshire is fortunate in having a successful local supplier of fixed wireless broadband services, W3Z based in Ripley. W3Z has been delivering wireless broadband service in the county since 2003 with approximately 2,000 customers. The operator has access to a number of hilltop radio sites across the East Midlands, owned by parent company Zycomm Ltd, from which it is possible to reach many remote communities in need of high speed broadband internet connections. The service has recently been upgraded to offer 10Mbps downstream (1Mbps upstream), starting at 21 per month. Further speed upgrades are possible, subject to a technical and commercial assessment. Detailed coverage information is not available, but our analysis of customer postcodes provided to us by W3Z suggests that at least 7% of those Derbyshire premises with less than 2Mbps fixed line connectivity can obtain 10Mbps from W3Z ((being in postcodes where W3Z already has customers) see map 9 in Annex A)). Mobile broadband in Derbyshire is largely provided by 3G, Statistics from Ofcom suggest that only 0.7% of Derbyshire CC premises and 0% of Derby City premises are without any reliable outdoor 3G signal. However, having an outdoor signal does not necessarily translate into have a reliable signal indoors. Digital Derbyshire Local Broadband Plan 7

8 A3 Local Broadband Context Evidence of Need/Gap Analysis Department for Culture, Media and Sport BDUK Broadband Delivery Project Need and Gap Analysis We have used the data provided by BDUK to map the white, grey and black areas of Derbyshire for basic broadband and Next Generation Access (NGA) broadband according to the European Commission s definitions (see map 15 and 16 in Annex A). Our focus for investment will be on the NGA white areas (i.e. those that have no current plans for any superfast broadband in the next three years) and basic white areas (i.e. those that have no current plans for any basic broadband of at least 2Mbps in the next three years) of Derbyshire. It is clear that the need for public sector intervention is greatest in white areas of Derbyshire served by Market 1 exchanges (see Map 11 in Annex A). By definition, Market 1 exchanges are those which have the least infrastructure-level competition, and it s very unlikely that the commercial roll-out of superfast services will extend, if at all, into these areas. Nationally, only 0.5% of the UK s Market 1 exchanges (to February 2012) have been included in BT s superfast roll-out compared with 18% of Market 2 exchanges and 70% of Market 3 exchanges. It is also clear that infill in white parts of in Market 2 and Market 3 exchange areas will be required, but there are significant uncertainties within the market, commercial activity will be closely monitored to inform the project and roll out. Even in those exchange areas which are enabled for superfast services, coverage will be incomplete. This is due to there being a number of Exchange Only lines, and due to some cabinets being uneconomic to upgrade as the costs are too high for the number of premises served (typically, these are the cabinets furthest from the exchange i.e. in areas which currently receive the poorest ADSL services). It will be a high priority to ensure that superfast services are available throughout the Markham Vale Enterprise Zone in Derbyshire. As with many similar strategic sites, the area is relatively distant from the serving BT exchanges. The centre of the Enterprise Zone is about 2.8km from the serving exchange (Bolsover) and is estimated to receive less than 2Mbps connectivity currently from ADSL services. Currently, only one postcode which covers the northern-most part of the Enterprise Zone is estimated to receive connectivity of over 2Mbps (this area being closer to its serving exchange, which is Staveley). The site is served by a Market 3 exchange which is not included in any current plans for roll out by BT. Derbyshire benefits from a spectacular natural landscape, and the northern part of the county is in the Peak District National Park. Map 1 of the National Park boundaries and of other sensitive sites in Derbyshire is provided in Annex A. Much of the Peak District suffers from poor broadband provision; this is likely due to the topography challenge, the low population densities and the development control constraints. Derbyshire Derbyshire lies in the centre of England and forms the north-west part of the East Midlands region. Derbyshire is a large county which covers an area of 255,075 hectares i (2, km²) and constitutes 16.1% of the land area of the East Midlands and 1.9% of England. Derbyshire is easily accessible from surrounding areas, with more than 9 million people living within 30 kilometres of its boundary (see map 1 in Annex A). The major cities of Manchester, Sheffield, Nottingham, Leicester and Derby lie in close proximity to Derbyshire s border. With Derbyshire having so many neighbouring authorities discussion has started with nine authorities (with broadband projects) to agree a way forward to ensure that properties in close proximity to local authority boundaries are included in the broadband roll out and not left behind and that efforts are not duplicated. 8 Digital Derbyshire Local Broadband Plan

9 Derby is a city and unitary authority in the East Midlands region of England. It lies upon the banks of the River Derwent and is located in the south of the ceremonial county of Derbyshire. In the 2001 census, the population of the city was 233,700, whilst that of the Derby Urban Area was 229,407. According to the 2001 census, Derby was at that time the 18th largest settlement in England, measured by urban area. The city has extensive transport links with other areas of the country. The M1 motorway passes about ten miles (16 km) to the east of the city, linking Derby southwards to the London area and northwards to Sheffield and Leeds. Rurality The Department for Environment Food and Rural Affairs (DEFRA) 2009 Rural/Urban Classification of Local Authorities which shows the majority of Local Authorities within the county are classified as Rural 80, Rural 50 or Significant Rural (see map 2 in Annex A). Only the districts of Erewash and Chesterfield are classified as urban areas. The county has a number of market towns which play a significant role in the local economy both as employment hubs and as providers of valuable services to residents and outer-lying rural areas. The county also encircles the unitary authority of Derby City, and includes the majority of the Peak District National Park as well as various conservation and heritage sites (see map 3 in Annex A). Population The population of Derbyshire at mid 2009 was estimated to be 760,200, representing 17.1% of the East Midland s population and 1.5% of England s. 18.0% of Derbyshire s population were children aged 0-15 years, 60.3% were of working age (16-59F/64M years), and 21.7% of retirement age (60+F/65+M years). The age profile of the county is older than both the East Midlands and England. Across the county, the districts of Derbyshire Dales and North East Derbyshire have notably older age profiles than the Derbyshire average, and South Derbyshire has a notably younger age profile. By 2033 Derbyshire is predicted to have an older population profile than in 2008, with the number of older people forecast to increase significantly by 66.8%, higher than the national figure of 57.1%. A growing, and increasingly ageing population, will have implications on the level and cost of local services and responding to these changes will be a key challenge for Derbyshire in the future with broadband playing a significant role (see map 4 in Annex A). Economy Derbyshire and the surrounding area is home to some of the world s best known manufacturing companies such as Toyota, Rolls Royce, JCB and Bombardier. Derby City has significant strengths in the aerospace, automotive and rail sectors. This has a positive impact upon the Derbyshire economy as many of the supply chains for these sectors are located across Derbyshire. In 2008, Derbyshire s businesses contributed a total of 11.18bn to the national economy. Gross Value Added (GVA) per head of population is the standard measure of economic performance. In 2008 Derbyshire s GVA per resident head was 14,753, 70.1% of the national total. GVA per head based on resident population is significantly affected by commuting patterns. GVA per employee provides an alternative means of comparing the relative productivity of different areas. In 2008 Derbyshire s GVA per employee was 40,015, 85.2% of the national total. In 2010 Derbyshire was home to approximately 25,575 VAT and / or PAYE based enterprises, however this figure does mask a number of small and micro enterprises that operate across the County. The sectors with the highest number of businesses are construction, professional, scientific and technical, production and retail. Derbyshire wants to broaden its economic base and improve the economic performance of urban areas, market towns and rural settlements, recognising that for businesses to grow high speed broadband is an essential element. Small employers dominate the Derbyshire economy with 88.3% of businesses employing less than 10 people. This is similar to the proportions seen regionally and nationally. Whilst businesses employing more than 250 employees account for just 0.3% of all businesses in the county they are of significant importance to the local economy due to the numbers of people Digital Derbyshire Local Broadband Plan 9

10 Department for Culture, Media and Sport BDUK Broadband Delivery Project employed. These large employers are predominantly within the public sector. Derbyshire County Council is the largest employer in Derbyshire, employing approximately 36,000 people with Derby City Council as a large employer for the City. Interestingly in 2010 the UK Competitiveness Index shows Derbyshire Dales and High Peak to be the highest performing districts in the county, these are currently areas receiving some of the worst broadband provision across Derbyshire. With better broadband provision in these areas it is anticipated new opportunities for online transactions will broaden the customer base and will increase their potential competitiveness. In today s economy a fast and reliable broadband service is vital to the success and growth of new and established businesses, and for attracting new inward investment to the county. The majority of businesses in Derbyshire have access to the internet, some do not and the speed and reliability of the service varies considerably. Markham Vale Enterprise Zone Markham Vale is a flagship 85 hectare regeneration project to the east of Chesterfield, at a new junction 29A of the M1, transforming the area into a business and industrial park offering over 3 million square feet of commercial floor space and thousands of new jobs. Derbyshire County Council has invested 62 million in the scheme, which has been granted Enterprise Zone status. As with many similar strategic sites, the area is relatively distant from the serving BT exchanges. The centre of the Enterprise Zone is about 2.8km from the serving exchange (Bolsover) and is estimated to receive less than 2Mbps connectivity currently from ADSL services. Currently, only one postcode which covers the northern-most part of the Enterprise Zone is estimated to receive connectivity of over 2Mbps (this area being closer to its serving exchange, which is Staveley). Currently potential businesses looking to locate at Markham Vale are put off due to the broadband connectivity being insufficient for their basic business needs. Businesses are therefore locating elsewhere giving a clear case for investment through Digital Derbyshire. Business, Employment, Education & Skills In 2009 there were approximately 36,600 individuals who were self employed within Derbyshire. The employment rate in Derbyshire at the end of 2010 stood at 72.4%, to note rural areas tend to have lower unemployment rates. In February 2011 the county s claimant unemployment rate of 3.2% remained below the East Midlands (3.6%) and England (3.7%) rates (see map 5 in Annex A). A total of 17,681 people in Derbyshire were claiming unemployment related benefits in February There are 28 wards in the county where the proportion of long-term unemployed residents is now greater than 20.0%, these are mainly in the more urban areas. The percentage of small businesses showing employment growth within Derbyshire has been rising steadily, and in 2007/08 stood at 14.7%. The district with the highest percentage of small businesses showing employment growth within Derbyshire for 2007/08 was Chesterfield (17.3%), closely followed by Erewash (15.8%). High Peak and South Derbyshire had the lowest percentage of small businesses showing growth, with both achieving 13.7%, these are both areas currently with poor broadband provision (see map 6 in Annex A). The percentage of employers reporting skills gaps in their workforce in Derbyshire was 18.0%. In 2009, a quarter of Derbyshire workforce was estimated to be qualified to at least NVQ level 4, with just over half qualified to at least NVQ level 3, two thirds were qualified to at least NVQ level 2, and the proportion of the workforce with no qualifications just under one tenth. A study commissioned by Derbyshire Employers Coalition, Derby City Partnership and Working Ventures UK has examined the future skill requirements for Derby and Derbyshire from Digital Derbyshire Local Broadband Plan

11 2023. The report identified that the priority sectors (as determined by the percentage of residents employed, or value to the economy) for Derbyshire over that period will continue to be: Manufacturing; Health and Social Care; Creative Industries; Logistics; Retail; Hospitality and Tourism; and Airport related. The main recommendations from the report indicated that future skills needs are linked to demographic changes and the drivers of the key sectors, with technology, ICT and the environment being the most likely to have the greatest impact on skills. Prosperity/ Deprivation The 2007 IMD score shows there are 16 out of 486 Lower Layer Super Output Areas (LSOAs) in Derbyshire within the 10.0% most deprived areas in England (see map 7 in Annex A). In Derbyshire there are an estimated 23,580 children living in income deprived households, representing 16.6% of all children in the county. Derbyshire has a concentration of areas in the north east of the county where there are higher levels of deprivation and people on out of work benefits. Across Derbyshire residence based earnings (earnings of those living in the area) are significantly higher than workplace earnings (earnings of those who work in the area). This suggests that residents with higher level skills tend to travel outside of the county for work, due to the lower paid jobs on offer locally. This is further supported by the analysis of commuter patterns within the Economic Geography. For workplace earnings, the average weekly pay in Derbyshire in 2010 was 451 which was 3.2% lower than in the East Midlands ( 465). Residence earnings within Derbyshire are significantly higher with a weekly average of 479 per week (in line with the East Midlands). Our network There is a wide variety of public sector networks in Derbyshire, with networks being operated by the County Council, the City Council, all of the district and borough councils, the emergency services, the police and the NHS. However, there is no over-arching coordination of these networks to allow seamless delivery of services. These networks are unlikely to make a significant contribution to the delivery of superfast broadband in Derbyshire for a number of reasons: the high capacity parts of the networks are between population centres which are already well served with broadband where the networks extend into more rural areas, the connection speeds are generally low these networks are not being operated with an excess of spare capacity the overhead of coordinating a superfast broadband solution with these diversely owned and operated networks would be prohibitive. However, the local authorities do have significant physical assets in the county in terms of buildings, masts, and rights of way. These assets may be of use to operators in designing solutions to deliver superfast broadband. Schools PSN The schools WAN network was provided via the East Midlands Broadband Consortium (EMBC). Up to 2010 this was covered primarily by direct grants from DFE to the County Council as Local Education Authority in agreement with the schools. However from this year schools have full budgetary control and will be charged a fee for the broadband services. The current contract expires at the end of 2012 and EMBC are engaged in the procurement of future services that will be capable of serving a wider PSN network. Digital Derbyshire Local Broadband Plan 11

12 Department for Culture, Media and Sport BDUK Broadband Delivery Project While it is the population density of Derbyshire, particularly in the rural areas, that determines the costs of high speed broadband availability it is the demographic profile that determines the take up of broadband services. A major consideration in the deployment of high speed broadband in Derbyshire is to avoid the creation of a two dimensional Digital Divide (geographic and demographic) between those that have high speed broadband and those that have not. A4 Scope of Project (describe your project) Our Vision Our overall vision and strategy for Derbyshire is set out in section A1 and is fully reliant on the deployment of faster and more reliable broadband services. In order to maximise the infrastructure investment in Derbyshire we have established this Digital Derbyshire project which will deliver the full social and economic benefits, drive take up of superfast broadband to allow Derbyshire to become more connected. We want to transform speeds and reliability that can be accessed across Derbyshire. We envisage that this will involve a range of technologies, but it is crucial that we have an infrastructure which is robust and future proofed i.e. relevant for the next 30 years and not 3 years. Whilst fibre to the premise is the preferred option, the optimum technology mix will be determined through the procurement process, rather than prescribed at the outset. Choice and price are important. We will be looking for a solution which enables and ensures service provider competition and offers affordability. Our minimum targets for this project are: To ensure 90% of Derbyshire has access to actual superfast broadband, up to 30mbps, and all premises has access to a universal 2Mbps by March To ensure fibre to the premise is available for all newly built premises by March To ensure all premises have access to superfast broadband speeds of 50 Mbps by March Through this project we are seeking a private sector telecommunications provider to act as a partner to co-invest in superfast broadband provision using the BDUK national framework for gap funding. The timeframe for the project will be from the financial year 2012/13 to 2014/2015. The roll out of the Derbyshire project will cover the whole of the county, focusing on the areas determined white or in the final third 188,043 premises (BDUK data), although our mapping suggests that 185,325 premises will not be included in any superfast broadband roll out plans. These figures will be further tested following the market testing for state aid compliance in advance of procurement. These eligible white areas fall within Market 1, 2 and 3 areas (OFCOM classification). The current modelling, undertaken by our consultants, predicts 88% of premises covered (due to postcode data differences) with superfast broadband, although our commitment remains for 90% superfast by We intend to negotiate with the commercial provider for 90% coverage and to undertake intensive demand stimulation to achieve a minimum of 90% superfast broadband coverage for Derbyshire. Map 18 (in Annex A) showing our proposed target areas for the roll out of 90% superfast and 10% 2mbs broadband. 12 Digital Derbyshire Local Broadband Plan

13 The coverage profile for business and residential premises is shown in the table below; Coverage at 40% Coverage at 100% Residential 69, ,841 Commercial 4,194 10,484 Total Premises 74, ,325 It is important for Derbyshire that we work hard to explore ways of bringing about further investment into Market 2 and 3 exchanges to bring forward commercial upgrades, including those areas where under certain circumstances viability for commercial upgrade is poor and there are risks that communities will not have access to superfast broadband services. Investment into these areas could be driven by heavy demand stimulation and/or loans to pump-prime investment. This form of investment will be investigated and will be based on the local circumstances and the business plan for broadband investment in the area. Prioritisation of areas will be based upon economic impact and social needs, considerations we will use to determine where and when broadband deployment should be targeted are; Where there is market failure, no planned investment from the market Current broadband provision speed, reliability and coverage Business premises (including employment sites and employment zone) and current broadband provision (minimum threshold) Population density and rurality The needs of public service delivery social needs, ageing population, schools Where there is evidence of demand and a desire for take up All of Derbyshire s 74 exchanges serve some postcodes classified as Next Generation Access (NGA) white as well as 26 exchanges outside of Derbyshire. There are 1411 cabinets in the county and 899 of these serve postcodes in white areas and in total there are 26,589 exchange only lines. These headline facts highlight further the need for investment in Derbyshire. We are aware that in some cases it may not be viable to upgrade all cabinets and direct exchange lines only maybe more cost effective, this will be dealt with on a case by case basis. No further funding will be made available from the council and other avenues will be explored if necessary e.g. European funding or other sources. Joint working with all Derbyshire s neighbouring authorities has commenced to ensure that infrastructure developments are targeted and managed to ensure complementary and coordinated solutions for premises near the borders and avoid anyone falling between the administrative boundaries. Approximately 13,000 Derbyshire premises (2.7% of the total) are served by exchanges located outside the county. The breakdown of these premises, by the local authority in which the exchange is located is shown in the tables below. Local authority Total Derbyshire premises served by exchanges located in this local authority area Sheffield 4,586 Nottinghamshire 4,094 Staffordshire 3,749 Leicestershire 247 Rotherham 59 Cheshire East 47 City of Nottingham 34 Tameside 21 Stockport 4 Total 12,841 Digital Derbyshire Local Broadband Plan 13

14 Department for Culture, Media and Sport BDUK Broadband Delivery Project Furthermore, our analysis of the BDUK data indicates that a total of 26,339 premises in neighbouring local authorities are served by exchanges located in Derbyshire, as shown below: Local authority Premises served by exchanges located in Derbyshire Nottinghamshire 21,509 Leicestershire 2,462 Staffordshire 1,318 Cheshire East 532 Tameside 273 Sheffield 153 Stockport 60 City of Nottingham 24 Rotherham 5 Barnsley 3 Total 26,339 Derbyshire is working with all key partners, all district and borough authorities, Peak District National Park Authority, Fire Service, Police, MPs and MEPs; all fully support the project (letters of support received) and await the changes it will bring about for them and their service delivery. SECTION B CUSTOMER AND COMMUNITY ENGAGEMENT B1 Demand Stimulation Demand stimulation We are active in our demand stimulation and communications activity ensuring every community in Derbyshire is aware of the benefits advanced broadband connectivity brings. The communications strategy we have in place supports our corporate aim of improving life for local people and makes Derbyshire a more attractive market place for private investment for general business and internet providers. Our consistent messages running throughout all communications are: Superfast broadband can improve your life through homeworking, shopping, banking, education, leisure etc Superfast broadband can make your business more profitable Record response to robust demand stimulation campaign We have adopted an energetic and interactive approach to demand stimulation in Derbyshire particularly in socio-economic and geographic areas which will be boosted by our intervention strategy. A key focus of this is our broadband survey - for residents and businesses. This is been heavily promoted in all strands of our on-going publicity campaign. It has already generated almost 6,000 survey responses a record number for any Derbyshire County Council-hosted consultation clearly showing the business and residents of Derbyshire are interested in broadband and responses show demand for improved broadband provision in Derbyshire. 14 Digital Derbyshire Local Broadband Plan

15 Audience targeting Our promotional work to create demand stimulation is wide ranging. Below are examples of the communication we have undertaken to date with various audiences, all of this work will continue through the project; Citizens and communities Our on-going campaign has received excellent local media coverage including newspaper features, radio interviews, TV coverage. We ve developed a new micro-site for broadband - to keep people informed. The site includes a speed checker, advice for increasing speeds, a film explaining broadband roll out, information on BDUK and Digital Derbyshire. We launched our Broadband Champions scheme in January 2012 in response to communities wishes to become involved in bringing about better broadband. We targeted white areas for volunteer recruitment and already have over 20 champions operating in these areas, with new champions being added frequently. This initiative is designed to help raise the profile of broadband in local communities, to help communicate the Digital Derbyshire activities, to act as a channel for feeding back views from local communities, and to promote the benefits of superfast broadband and the difference it will make to households and businesses. Specifically, our Broadband Champions: bring communities together for a common aim distribute information and educate organise local events, and talk to local groups, clubs and business promote completion of Digital Derbyshire surveys amongst businesses and residents collect data to support and evidence the connectivity issues faced in their community. Every household in the county receives regular updates via the county council s newspaper Derbyshire First (distribution of 330,000). Other channels used regularly have included: Derbyshire Gold (35,000) aimed at pensioners, B_line (42,000) copies distributed to teenagers, Derbyshire Governor (5,000) for school governors. We also regularly use social networking Twitter and Facebook as an interactive channel. Businesses A key message of our demand stimulation campaign is the economic benefit broadband can bring for businesses. The Derbyshire and Nottinghamshire Chamber of Commerce is a key partner in this project and it is working closely with us to promote key messages and to develop a package of business events aimed at business development using superfast broadband. We also work with the Derbyshire Federation of Small Businesses. Derbyshire s Trusted Trader scheme, the largest scheme of its kind in the country with 1,200 members, is used as a channel to speak directly to businesses to educate about broadband business benefits. And Derbyshire Business First, a glossy magazine direct mailed to 20,000 businesses, also carries stories about Digital Derbyshire and case studies of businesses who are benefiting from superfast broadband. Public sector organisations and public service users Derbyshire has one unitary authority, Derby City Council, and eight district and borough councils and the Peak District National Park Authority. They are all key players in the Digital Derbyshire programme and have been heavily involved in our demand stimulation strategy. On-going support also comes from Derbyshire Constabulary, Derbyshire Fire and Rescue and Derbyshire Primary Care Trust. All of the public sector organisations are supported to engage their staff members through all user s, intranet etc and their service users, via websites and council newspapers. Digital Derbyshire Local Broadband Plan 15

16 Department for Culture, Media and Sport BDUK Broadband Delivery Project Derbyshire County Council is one of the county s largest employers, with 36,000 staff members. Regular communication is included all user , features on the staff intranet site, and monthly updates in the staff magazine. Derbyshire County Council s public facing buildings including schools, children s centre, libraries, and care homes display campaign materials including posters, which are also supplied to partner organisations. Our communications strategy has been further developed to realise our vision and includes (with the above) a number of specific work areas targeting, educating and encouraging take up with business and residents. A monthly Digital Derbyshire e-newsletter for people to sign up to will provide regular updates that will include project development, local Champions activity, upcoming events, broadband benefits and relevant market information (ISPs, rollout). Work Area Strand Businesses Residents EDUCATION General Education Catalogue of business case studies showing benefits of Catalogue of consumer case studies to show a superfast broadband will be comprehensively ways used when communicating broadband can benefit and promoting to businesses. everyday life. Digital Skills Digital Derbyshire will work in partnership with Adult Education to ensure a full range and accessibility of courses to improve digital skills. Business Support Derbyshire Business First N/A Publication twice a year will focus on business benefits, provide support and guidance. In partnership with the N/A Chamber, FSB and local authorities business events will be delivered across Derbyshire EDUCATION & Business Support ERDF project to provide on N/A BUSINESS site business training and TRANSFORMATION development using broadband (subject to DIGITAL INCLUSION DEMAND STIMULATION Volunteer Programme Intergenerational Project Broadband Champions funding). Through the Derbyshire Volunteer Passport Scheme, volunteers will be trained and recruited (including business) to support others to become more digitally aware. This project will capture the digital skills of our younger population (via schools) to work locally with the older population in supporting them explore the internet and its uses. Business Broadband Champions will work locally to promote broadband benefits, availability and stimulate business demand. Broadband Champions will continue to work locally to stimulate demand, educate benefits and raise general awareness. All activities, events and material will be branded, all partners and stakeholders will be encouraged to use the brand and support the messages. As roll out commences we will undertake an intensive campaign to generate take up, this will include; Local community events and demonstrations Door to door targeting of businesses and residents Local press and promotion Interactive business events Work with schools and community organisations 16 Digital Derbyshire Local Broadband Plan

17 Digital Derbyshire Local Broadband Plan 17

18 Department for Culture, Media and Sport BDUK Broadband Delivery Project B2. Demand Registration As outlined in B1 the Derbyshire Broadband Survey has been highly successful receiving 5065 responses from residents and 526 from businesses clearly showing the demand for better broadband provision. The survey will be open until end of April 2012 the responses will be collated and used to inform the project. Our resident s survey analysis has included linking to BDUK data on distances of respondents postcodes from serving exchanges, and serving exchange per postcode, in order to provide insights on the relative experience of users in different parts of the county. Key findings included: 17% of respondents stated that their internet was unreliable or very unreliable. o Perceptions of reliability were markedly lower in Market 1 areas: 20% respondents in Market 1 areas stated their internet was unreliable/very unreliable, compared to 13% in Market 3 areas o Perceptions of reliability were lower the further away survey respondents were from an exchange (see chart on right): 27% of respondents who live over 3km from an exchange stated that their internet was unreliable/very unreliable, compared to 13% for those who live under 3km from an exchange 62% of respondents to the survey use the internet for home purposes only, 35% of respondents use the internet for both home and business purposes. Business usage is more prevalent for those who live in rural areas and have to travel more than 20 miles to work o Perceptions of reliability were lower for respondents who use the internet for both home and business usage: 21% of respondents who use the internet for business purposes stated it was unreliable/very unreliable (compared to 17% overall) o 23% of the total survey sample use the internet for business and work at home regularly. Of these respondents, 22% reported their internet was very/fairly unreliable, and 27% reported that they were very/fairly dissatisfied with the customer service provided by their ISP, compared to 21% of the total sample. 39% of respondents stated that they were aware of business/groups in their community that would benefit from fast broadband provision. o The proportion of respondents who were aware of business/groups in their community that would benefit from fast broadband provision was higher in rural areas. The proportion increased to 48% for respondents who live between 3-5km from an exchange, and 72% for those who live over 5km from an exchange i.e. in the most rural parts of the county (see chart). o 54% of respondents in Market 1 areas were aware of business/groups in their community that would benefit from fast broadband provision, compared 18 Digital Derbyshire Local Broadband Plan

19 to 43% in market 2 areas and 28% in Market 3 areas Key findings from the business survey included the following: Broadband connectivity was cited as important or very important by 96% of businesses. However, approaching one third of respondents (32%) stated that their current broadband provision is poor or very poor in terms of its quality and suitability for business purposes o The rating of current broadband provision was notably worse for businesses further away from an exchange (see chart) o 44% and 43% of respondents in Market 1 and Market 2 areas stated that their broadband provision is poor/very poor in compared to 21% in Market 3 areas 70% of business respondents stated that the provision of superfast broadband would improve their overall business performance o The proportion of businesses stating that superfast broadband would improve their overall business performance increased to 75% for firms in Market 1 areas 45% of respondents stated that their current broadband provision negatively affects operations/productivity. o The proportion of respondents for whom their current provision negatively impacts business operations/productivity increased to over two-thirds for respondents at least 3km from an exchange (see opposite) o 55% of businesses in Market 1 areas stated that their current provision negatively impacts business operations/productivity compared to 35% of businesses in Market 3 areas For those respondents who were aware of their current broadband speed (242), 38% identified speeds of up to 2Mbps and 43% of 2-8Mbps o Only 12% of respondents identified existing broadband speeds of 20+Mbps Although large businesses are generally able to afford more expensive connectivity solutions for their own sites, we have received strong support from Derbyshire s large businesses and developments (e.g. Markham Vale Enterprise Zone) for our plan as well as the rural SMEs, in recognition of the increasing importance of flexible working, online transactions, transferring large files and the necessity for their SME supply chains having access to high quality connectivity. With the survey respondents are able to broadband@derbyshire.gov.uk to provide further feedback and comments; this provided a lot of anecdotal evidence of the poor services the Derbyshire community experience. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Current broadband provision negatively impacting business operations/productivity, by distance from exchange [source: Broadband survey] 34% 35% Under to % 1000 to % 2000 to % 3000 to 5000 Distance from exchange (m) 79% Digital Derbyshire Local Broadband Plan 19

20 Department for Culture, Media and Sport BDUK Broadband Delivery Project B3 Stakeholders To date the engagement with local public and private sector stakeholders has confirmed significant support for the aims and objectives Digital Derbyshire and the Local Broadband Plan. Within our communication strategy and project plan communication is essential and a key driver to the success. We have established a Planning and Environment Group with all of the district, borough and National Park authorities represented. The key focus of this group is to embed broadband into planning infrastructure and policy whilst considering the environmental benefits. In order to reduce disruption a key priority for the group is to look at planned street and road works over the coming years and agree a co-ordinated approach to ease the roll out of broadband in Derbyshire. The Economic Development Group has been established for six months and brings together all district and borough councils and the National Park Authority. The key focus of this group is to embed broadband into local economic development activity, promote broadband benefits and Digital Derbyshire across local organisations and businesses, identify key business clusters, promote and support local Broadband Champion activity and to ensure key partner involvement in the project delivery. Derbyshire s Councillors and MP s are supportive of Digital Derbyshire and there is an eager appetite to see broadband infrastructure develop in Derbyshire; letters of support have been received from MPs and MEPs. Local MPs have held business briefings and discussed the issues of broadband connectivity and provision; these have been well received within the business community. In order to capture the enthusiasm and support from these key stakeholders and partners we are developing a Broadband Partnership Group. This group will bring together a wider forum of stakeholders to outline community needs/demands, outline opportunities for investment and undertake education and promotions activity. We are keen to ensure all of our partners and stakeholders are fully involved with the project, we will be working to encourage them to support the GO ON campaign as we begin to roll out the GO ON messages and communication for Derbyshire. Regular updates and reports will be provided at the Derbyshire Partnership Forum, Local Enterprise Partnerships D2N2 and SCR and Derbyshire Economic Partnership, where all stakeholders are represented. Furthermore the website is heavily promoted for interested partners and stakeholders to keep up to date with broadband developments in Derbyshire. 20 Digital Derbyshire Local Broadband Plan