Faster Broadband for Dorset 1 of 33

Transcription

1 Connecting Dorset Fast Dorset s Local Broadband Plan Faster Broadband for Dorset 1 of 33

2 APPLICANT INFORMATION Project Name: Connecting Dorset Fast (ConDor Fast) Lead organisation: Dorset County Council (DCC), on behalf of the Dorset Local Enterprise Partnership (LEP). DCC is a Tier 1, Local Authority. Address: Dorset County Council County Hall Colliton Park Dorchester Dorset, DT1 1XJ Lead Contact Details and position held: Helen Heanes, Senior Economic Development Officer Ian Doyle, Economic Regeneration Manager Contact telephone numbers: (Helen Heanes), Ext: 2617 (Ian Doyle) address: h.e.heanes@dorsetcc.gov.uk i.doyle@westdorset-weymouth.gov.uk Postal address: Dorset County Council County Hall, Colliton Park Dorchester Dorset, DT1 1XJ If the bid is a joint proposal, please enter the names of all participating bodies and specify the co-ordinating authority Dorset County Council is the coordinating authority on behalf of the Dorset Local Enterprise Partnership (LEP). The local authorities which are part of the LEP are: Borough of Poole (BoP); Bournemouth Borough Council (BC); Christchurch Borough Council (CBC); East Dorset District Council (EDDC); North Dorset District Council (NDDC); Purbeck District Council (PDC); West Dorset District Council (WDDC) and Weymouth & Portland Borough Council (WPBC). The private and community sector are represented on the ConDor Fast Project Board, through the Dorset Digital Task Force (DDTF) for the business sector, and representation from the local community broadband groups, Dorset Community Action (DCA) and Dorset Association of Parish and Town Councils (DAPTC). The Vice-President of the Dorset LEP is also a Member of the Board Start Date of Project: (day/month/year) 1st February Partners have been working together on this project for some considerable time and will be in a position to move forward as soon as BDUK approves the revised Local Broadband Plan. End Date of Project: (day/month/year) 31 December 2014 this is dependent on allocation of a suitable procurement slot for a calldown contract from the National Framework. Faster Broadband for Dorset 2 of 33

3 Contents SECTION A PROJECT OVERVIEW...4 Summary...4 A1. Vision and strategic context...4 A2. Background...9 A3. Local Broadband Context Evidence of Need/ Gap Analysis...11 A4. Scope of Project...14 SECTION B CUSTOMER AND COMMUNITY ENGAGEMENT...15 B1. Demand stimulation...15 B2. Demand Registration...16 B3. Stakeholders...17 SECTION C FINANCIAL INFORMATION...18 C1. Funding Requirements...18 C2. Funding Structure...19 SECTION D COMMERCIAL INFORMATION...20 D1. Commercial Case...20 D2. Market Engagement...21 D3. Procurement Strategy...22 SECTION E DELIVERABILITY...23 E2. Timetable...29 E3. Expected Strategic Benefits...29 E4. Risk management/log...31 CEO Sign Off...33 ANNEXES Faster Broadband for Dorset 3 of 33

4 SECTION A PROJECT OVERVIEW Summary Universal provision of Superfast broadband is critical to the future economic and social prosperity of the county of Dorset. The Connecting Dorset Fast (ConDor Fast) project aims to deliver the most appropriate Superfast broadband solution for all users, maximising benefits in a cost effective manner across the business and domestic community. Economic benefits The project has the overwhelming support of the business community directly and through the newly formed Dorset Local Enterprise Partnership (LEP). Superfast broadband is essential not only for future economic growth, but also in ensuring that existing domestic and international businesses remain competitive. Social benefits Access to high speed connectivity throughout the county underpins the County s and the Coalition s social inclusion and educational priorities; this includes reducing rural isolation, reducing out of county commuting, access to e-learning and workforce transformation. Deliverability The project will be delivered by a balanced and appropriately resourced team with the necessary experience and skills set. Final mile The plan envisages the identification of and solutions for any final mile gaps (possibly affecting as much as 5% of premises) within the auspices of the project. Joined up Each of the councils in Dorset (all of whom are partners in the Dorset LEP) has come together to research, plan, part fund and resource the project in a coherent and cohesive manner. To demonstrate their commitment local authorities are making a significant 10M contribution. The project is supported by local MPs and MEP, Julie Girling, and has received significant input from local communities and businesses with the shared aim of delivering Superfast broadband for the benefit of all. A1. Vision and strategic context Vision The ConDor Fast vision is for Superfast broadband throughout Dorset that will deliver the single greatest contribution: to boost economic growth through o accelerating GVA growth in the local economy o Businesses reaching customers in new and innovative ways, improving customer service, streamlining operational practices and achieving greater productivity o Supporting rural small businesses, employing a significant proportion of the workforce but suffering from slow broadband because of their rural location o supporting the retention and growth of small businesses, particularly in creative and knowledge intensive industries o retaining and growing employment Faster Broadband for Dorset 4 of 33

5 o raising and modernising skills and achievement levels o breaking the lower wage / lower skills / lower productivity cycle to transforming public services; o Improving access to all public sector services for businesses, communities and individuals in a cost effective and sustainable manner o Elderly people in need of care will be able to stay at home secure in the knowledge that through Superfast broadband they remain connected to essential care services. to delivering digital inclusion and; to bringing new opportunities to individuals and communities across Dorset including: o People with disabilities or caring responsibilities, for whom it is not possible to travel to work, will through Superfast broadband, gain access to home working opportunities. Home working opportunities will make it easier for people to have an improved quality of life, with greater control over where and when they choose to work, with home broadband connections as powerful as in a city office. o Communication with friends and family in far places, which can change forever through video communications o E-Learning will give otherwise inaccessible learning opportunities for all ages in all communities throughout Dorset o People of all ages who may have never before considered setting up their own business, will discover new opportunities and options through Superfast broadband connectivity With provision of access to Superfast broadband across the County it will be possible to realise the vision to remove the digital divide by: Rapidly improving Superfast broadband infrastructure throughout Dorset and for the county to be a leader in digital infrastructure development. Supporting the uptake of on-line services for residents and business users. Improving digital and technology access and skills for citizens and businesses that will foster socially and economically stronger communities. Through this vision we ultimately want to achieve 100% Superfast broadband coverage at speeds in excess of 30Mbps for all premises in Dorset by 2020, with a short-term coverage rate of a minimum of 95% of premises by This is in line with the Digital Agenda for Europe where 100% of premises will have at least 30Mbps connectivity by 2020 and 50% of premises will have connectivity of 100Mbps. It is recognised that for a few premises access to Superfast broadband may be very difficult to achieve in the short term. In these cases the short term goal is to achieve a reasonable level of broadband coverage which will allow participation in society, business and commerce on a day to day basis, through achieving access speeds in excess of 2Mbps, with an improvement in broadband performance and having a solution which is capable of being easily upgraded in the near future and in any event by To achieve this vision we will work closely with communities wishing to improve their local connectivity over and above the infrastructure supported through this programme. For instance this may include supporting communities wishing to develop local Fibre to the Premise (FTTP) solutions using their own resources, providing sub loop unbundling options, reducing way-leaves and supporting civil works. All communities will be encouraged and supported to stimulate demand through registration schemes and other activities. Faster Broadband for Dorset 5 of 33

6 The programme will prioritise areas across Dorset for rollout, based upon the target of at least 95% availability to premises. Prioritisation will be based upon the draft criteria below: Identification of where there is market failure with little or no business case for the telecoms market to invest. Current provision. Business type, size and number within an area. Lower population densities Social and economic needs Additional information to support prioritisation will also be used such as: data collected by the Council; demand surveys; digital action groups; business partnerships; data from the telecoms industry and nationally commissioned research. Broadband Model for Dorset This Local Broadband Plan refers to and builds on the previous work and engagement undertaken with the Dorset Public Sector Network (DPSN) Project Team. These work streams have now been split and will be managed as separate projects, with separate teams and governance arrangements. The model proposed within this submission is utilisation of a call-down contract from the National Framework Agreement as negotiated by Broadband Delivery UK (BDUK) through a Competitive Dialogue process. Under this model it is proposed that the communications supplier, wherever possible, makes use of the existing fibre based broadband capacity in the county (e.g. Network Rail, Electricity Company infrastructure, DPSN) to create a skeleton Superfast broadband network. From this, wider network extensions can reach the majority of existing communication infrastructure hubs (telephone exchanges and street cabinets), thus extending core fibre based infrastructure deeper into the community. Householders and business would therefore have access to Superfast broadband at an affordable connection price and internet provider subscription. Strategic Context The submission of this Local Broadband Plan is supported throughout the County by all tier one and tier 2 local authorities (listed in the applicant Information section). All of these authorities recognise the importance of digital inclusion and between them have prioritised an investment of 10M for this project. The decision to invest in this as well as seeking funding from BDUK is based on overwhelming feedback from businesses and citizens that connectivity is poor or nonexistent in many areas across Dorset. There is strong evidence that access to technology and good connectivity allows businesses to grow at faster rates than those not making best use of this technology and that, educationally and socially, life chances are improved. The need for improved connectivity and performance is therefore one of the key drivers within the project. The award of funding from BDUK will enable significant improved connectivity to premises across the County. The strategic need for broadband infrastructure improvement in Dorset is a common requirement throughout the Dorset Sustainable Community Strategy : Shaping our future and for the newly formed Dorset LEP. The overall aim of the Dorset LEP is to deliver growth through enterprise and the environment with a vision to support a strongly performing, productive and sustainable Faster Broadband for Dorset 6 of 33

7 economy, characterised by a greater incidence of higher paid and higher skilled jobs and to do this in a manner that harnesses and protects our unique environmental assets. The importance of broadband throughout Dorset comes across strongly in the objectives and priorities of the LEP. To improve electronic and physical connectivity, particularly through high speed broadband coverage is one of only four LEP Objectives, with achieving excellent high-speed broadband - focusing initially on the rural Dorset area noted as one of the key priorities for action. The vision for Shaping our future is of a living thriving Dorset where everyone has a part to play in creating a better quality of life. The Dorset Strategic Partnership (DSP) examined the challenges and determined the priority areas to be addressed to achieve this vision. The DSP received a separate report detailing the strategic need for improved broadband in September 2009, following which Dorset County Council (DCC) was asked to lead on this issue. Within all priority areas of the Dorset Sustainable Community Strategy the requirement for improved broadband and telecommunications is either explicitly identified or implied. The most relevant priorities are listed below with a sample of where improved broadband will help meet some of the challenges: 1. A strong economy offers better job opportunities for people in Dorset. The challenge: Business infrastructure and connectivity upgrades include: improved sustainable rail, road and sea transport options, higher quality broadband and mobile phone coverage, more quality employment land and premises in urban and rural locations, increased opportunities for business skills training and stronger links between further education and local economic priorities, businesses become more sustainable by producing fewer carbon emissions 2. Everyone can live in a good quality home and neighbourhood that meets their needs. The challenge: New housing has adequate infrastructure such as sustainable transport and good broadband and mobile telecommunication connections as well as access to jobs, services and quality green space. 3. Dorset people can access work, education and training, health care, essential shopping and leisure opportunities. The challenge: Improvements are made to the way in which we get services to people rather than people to services. People know about the range of ways they access services and opportunities, including developing opportunities for enhancing broadband provision for the benefit of residents and businesses in Dorset. 4. People are safe and feel safe in their communities. The challenge: Health care provision and security can be provided for vulnerable households and monitored remotely 5. Everyone has the opportunity to take part in cultural activities. The challenge: Barriers to taking part in cultural activities are reduced using sustainable options. These include more accessible information on what cultural activities are available, access to transport, more access to local facilities, adequate telecommunications and the costs of taking part Faster Broadband for Dorset 7 of 33

8 6. Everyone has the opportunity to live a long and healthy life and to receive the high quality care that meets their needs. The challenge: Individuals live in a physical and social environment that improves health and wellbeing and they have access to an improved and more integrated range of local, personalised and accessible health promotion, prevention and treatment services and care options that suit their needs. 7. Dorset people experience lasting benefits from hosting the sailing events for the 2012 Olympics and Paralympics Games in Weymouth and Portland. The challenge: Digital and communication connectivity is improved across Dorset. The evolving business plan for Dorset LEP has a clear priority to provide Superfast broadband across the county for local businesses and residents to encourage diverse working patterns, including working from home. Extensive business consultation on the LEP proposals shows better broadband speed is one of the top four priorities of businesses in the rural and urban parts of Dorset. Partnership working across all tiers of local government and other public service providers in Dorset is vital for driving improved efficiencies by delivering effective integrated services and providing citizens with greater choice. The vision of DPSN is to deliver and facilitate highquality network services for both Dorset s public sector service providers and the wider community to ensure the County is fit to prosper and grow in the future. Being able to deliver joined up services over the internet is vital; success will be wholly dependent on the ability and willingness of the councils customers - its citizens to access these services online. The DCC Citizens Panel survey undertaken in summer 2010 shows that most citizens would like to be able to access more public sector services on a self-serve basis. 63% of Dorset s citizens would like to interact with general services online. Dorset local authorities have a good foundation from which to respond to this request in their shared public facing website; Should it not be possible to provide access to Superfast broadband in some areas the aim is to ensure any investment is future-proofed by making smart technology decisions that provide an improved service in the first instance and that doesn t prevent upgrade in the future. It is recognised that a blend of technologies will be required to achieve the outcomes but using this proposed approach the partners are certain that, with intervention funding, it will be truly possible to create access to a Superfast broadband network for the benefit for all who live and work in Dorset. Dorset s Councils have the full support of their Members and have agreed funding from the committed 10M to establish a team to lead the project and achieve its vision. Dorset s Councils will work together to ensure funding for infrastructure development is planned and managed to ensure complementary solutions for premises near borders. Dorset has four surrounding Councils: Wiltshire, Somerset, Devon, and Hampshire. Success of the programme will require that early planning work is undertaken with these neighbours to ensure premises are not missed nor funded twice, and that delivery solutions are complimentary. Contact is being made with each of these Councils to share current plans and identify premises on the border that fall within the final third. Faster Broadband for Dorset 8 of 33

9 A2. Background Dorset is a largely rural county of outstanding natural beauty. There exists a blend of local government arrangements with 2 unitary councils; i.e. the Borough of Poole (BoP) and Bournemouth Borough Council (BC), the Tier 1 County Council and six Borough and District Councils. This proposal is submitted on behalf and for the benefit of the whole county. Knowledge of broadband supply in Dorset has been informed through research undertaken by SamKnows and Broadband Access Strategies LLP. The purpose of the research was to take forward the Next-generation access report produced by Analysys Mason for the South West Regional Development Agency (SWRDA) in February 2010 and to understand the situation in Dorset at a more granular level so that targeted activity could begin to stimulate and aggregate demand. Existing Coverage From the SamKnows Broadband Analysis: County of Dorset report (September 2010), average broadband speed for 17% of properties across Dorset is less than 2Mbps. However, this hides some wide discrepancies at Tier 2 local authority level, with the boroughs of Christchurch and Weymouth & Portland each having 4-5% of properties at less than 2Mbs, whilst the two most rural districts of West and North have 23-24% within this range (both of these districts are amongst the most sparsely populated districts in the country). This is supported by Point Topic, Broadband Infrastructure Index 2010, which forecasts the following coverage levels of Superfast broadband if left to the commercial sector without intervention funding: Local Authority Index Bournemouth 76.23% Poole 71.97% Christchurch 60.76% Weymouth & Portland 44.41% East Dorset 43.4% Purbeck 36.08% West Dorset 30.54% North Dorset 23.61% Through the programme of business and community briefings and consultations undertaken during winter 2010 spring 2011, it has become apparent that a number of premises in both North and West Dorset are still only able to get dial up connections. Annex A, Figure A1 indicates the available speeds with red areas indicating the postcodes experiencing the slowest connections. It should be noted that rather than postcode centroids, the diagram has been formed using the actual shape of the postcode area. Clusters clearly exist in the far north, central and southern areas of Dorset along with a string of poor connectivity along the boundaries of exchange areas in the north east. A degree of caution is needed since the eye may be drawn to the larger red areas and urban postcodes cover a much smaller geographical area than rural ones. The size of an area of poor connectivity does not necessarily reflect in any way its degree of economic importance. Annex A, Figure A2 draws out the particularly poorly served areas in yellow and is provided for clarity. Annex A, Figure A3 indicates the likely speeds based on an understanding of ADSL2 performance (as at summer 2010) and is plotted to full postcode level. While ADSL is available from every telephone exchange serving Dorset, areas of note are marked on Annex A, Figure A3 in red; these are the areas where the predicted download speed will be below 2Mbps. The green Faster Broadband for Dorset 9 of 33

10 areas are those where homes and businesses can expect at least 6Mbps download speed, while the amber and yellow areas depict the middle speed either side of the (summer 2010) national average. The EU State Aid map for Basic broadband can be found at Annex A, Figure A4. Exchange Types The project team have ascertained the Market Type of each exchange; as defined by OFCOM. Only 39% of exchanges are classified as Market Type 2 or 3, thus providing an alternative supplier, with the majority of which within the Bournemouth and Poole conurbation. Of the 88 exchanges, only 16 have sufficient competition for OFCOM to fully deregulate the market, while 52 exchanges are classed as Market Type 1 areas where there is no competition. Superfast Broadband /NGA Forecast Further analysis shows the likelihood of the market being able to provide Superfast broadband to areas of Dorset within the next 3 years and classifies these as Superfast Broadband (or Next Generation Access (NGA)) black, grey and white areas- as defined by the European Commission. Annex A, Figure A5 represents the current position based on BDUK and BT data (as available under the Non-Disclosure Agreement). Recent announcements by BT have indicated that the telephone exchanges at Blandford, Boscombe, Broadstone, Dorchester, Ferndown, Highcliffe, Lychett Minster, Poole, Portland, Ringwood, Southborne, Verwood, Weymouth, Wimborne and Winton will be included in their upgrade plans to support Superfast broadband services by end Cable provision For most parts of Dorset BT is the sole communications provider. However, Virgin Media does have a noticeable presence within the Bournemouth and Poole conurbation. Here cable coverage extends into a small area of Christchurch and East Dorset. Annex A, Figure A6 details a view of cable provision based on published information. Virgin Media is also present in the A303 corridor (Mere and Tisbury) just outside of North Dorset, but adjoining the growing Market towns of Shaftesbury and Gillingham. Other To complete the known picture in Dorset; H2O Networks/ Fibrecity had been investing in dark fibre connections to homes in Bournemouth through use of the waste water network. However there were difficulties following disagreements with Wessex Water and financial problems with the parent company. Work had ceased for the first 6 months of We understand from BC that the business has been brought out of administration by City Fibre Holdings. There have been 250 free trial places available over the last month for residential users to experience the network, with many of these slots already filled. Prior to its financial difficulties H20 had been considering investing in further roll-out to the Blandford and Christchurch areas but no further progress has been made. Currently the network is live in BH10 and BH11 postcodes where the free trials are taking place through the Bournemouth based Internet Service Provider (ISP) Fibreband ( C4L ( a Dorset based company, are working closely with the Dorset Chamber of Commerce and Industry (DCCI) to pilot a wireless solution for Small and Medium sized Enterprises (SMEs) requiring an improved service. If successful, the DCCI are hoping to negotiate a packaged arrangement for businesses in Dorset. Faster Broadband for Dorset 10 of 33

11 The project team recognise the need to validate all research to ensure intervention funding is legitimate in relation to State Aid and is only deployed where necessary. A3. Local Broadband Context Evidence of Need/ Gap Analysis Topography The topography within Dorset presents wireless and mobile telecommunications providers, along with digital radio and TV broadcasters, with continuous challenges as the rolling hills, river valleys and rugged coastline are not conducive to good coverage. This often leaves broadband as the only possible choice for many citizens. Annex B, Figure B1 details the topology, additionally Annex B, Figure B2 details Dorset s rurality. Transport links are limited with Dorset having no motorways and only 109 miles of trunk road. However the county is served by 3 ports, 1 airport and 3 railway lines. Deprivation Overall Dorset is not a severely deprived area, as detailed in Annex B, Figure B3. However, under The Index of Multiple Deprivation, most of the county does fall within the 20% most deprived Super Output Areas (SOA) for housing and services, as detailed in Annex B, Figure B4. Access to further and higher education, training, employment, health care etc is vital for Dorset and is mentioned within the Local Development Framework (LDF) Core Strategy and is where Superfast broadband can really make a difference. Public transport services in the rural part of the county are not attractive to private sector provider s services and are expensive and infrequent; therefore there is a greater dependency on the need for Superfast broadband to take services to people rather than people to services. Premises In Dorset there are 357,680 premises with addresses in the BA, BH, DT, EX, SP and TA postcodes, with over 90% of premises coming under either BH or DT. ConDor Fast targets the more rural and isolated parts of Dorset. As seen in Annex A, Figures A1 and A2, the gaps in broadband coverage tend to be in the north, west and south of the county. Annex D, Figure D1 and D2 details residential premises based on postcode and exchange area respectively. Annex C, Figures C1 & C2 detail local authority service delivery points and schools based on postcode (DCC and Borough & District councils only). Demand Community Groups and Residents Whilst putting together the first version of the Local Broadband Plan earlier this year, the project team consulted various community groups using the DPSN Engagement Model (which provides a structured approach to engaging with stakeholder groups) and in so doing understood where communities are actively pursuing a better broadband service for their area. Not surprisingly the most active groups are in the north and west of the county which are identified as the areas with possibly the weakest service as featured at Annex A, Figures A1 and A2. Further research conducted by the Market Research Group at Bournemouth University identifies areas where there is likely to be a community broadband champion with enthusiasm to create a group. This development work is being tested in West Dorset through a series of area based seminars and presentations. This work is being guided by six volunteer representatives from three of the well established community broadband groups and will feed into the community led, Community Broadband Forum. Faster Broadband for Dorset 11 of 33

12 A number of other local surveys have also taken place, usually undertaken in areas where broadband has been highlighted as an issue in town or parish plans. One of the most successful of these was undertaken by the Community Partnerships Executive of North Dorset (CPEND) comprising responses from approximately 1200 residents and businesses, showing overwhelming support for broadband improvements. Additionally local research presents a positive indication of e-attitudes within the county, as can be seen at Annex D, Figure D3. CPEND is made up of four community partnership chairs, councillor representation from town and parish Councils, the district and county councils, along with representation from the DSP and Dorset Community Action (DCA). It is chaired by one of the community partnership chairs. ( A presentation and facilitated panel discussion was held by the project team with the Dorset Association of Town and Parish Councils (DAPTC) on 11 November 2011, attended by over 100 residents, businesses and community groups. The success of the event, with overwhelming support for the project and associated benefit s, also demonstrated demand and potential financial commitment from the rural communities of Dorset. The Community Broadband Forum has been established to act as a reference point for communities and individuals and engagement with the DAPTC is continuing. The ConDor Fast Project Board includes representation from the Community Broadband Forum, DAPTC, DCA and the Dorset Digital Taskforce (DDTF), representing businesses. Demand Businesses Analysis of the likely business demand for Superfast broadband started with parallel surveys of local SMEs and micro businesses, conducted jointly by DCCI and DCC in spring The results from the 900 survey responses were compelling and identify issues and requirements as follows: 1. 12% of firms received less than 1MBps 2. 39% of firms received speeds of between 1 4Mbps 3. 31% of firms received speeds of between 5 8Mbps 4. 53% received their supply from BT or Virgin Media 5. 92% of businesses wanted to use broadband communications technology to increase their business performance 6. 99% of businesses would like to upgrade to faster broadband within the next 24 months (86% within 12 months) 7. 88% of businesses said that high-speed broadband was either essential or critical to their business 8. 87% of businesses want to transfer and receive larger amounts of data 9. 82% wanted to achieve remote working with clients or business collaborators % of businesses wanted to use broadband communications technology to reduce their carbon footprint and decrease their CO2 emissions % of businesses wanted to implement changes to their ICT over the next 24 months (53% within 12 months) 12. Over 25% of businesses would pay 40 per month or more for faster broadband Furthermore, a survey of businesses undertaken by the local Chambers in Dorset in 2011 shows that 45.7% of respondents get between 0 2Mbps, 28.6% get between 2-4Mbps and 14.3% get 4-8Mbps. Although the size of this survey was too small to be statistically valid, the broadband speed is still concerning and demonstrates the need for improved broadband connectivity. Faster Broadband for Dorset 12 of 33

13 Research undertaken by Broadband Access Strategies LLP has identified cluster areas where the greatest economic benefit from broadband investment can be derived. The cluster analysis consisted of companies with a turnover of between 50K and 1M with an address within a postcode area with an average broadband speed of less than 2Mbps. Companies with a turnover of more than 1M are excluded as they are considered to be able to afford a leased line or wireless broadband connection to meet their needs, regardless of location. A cluster analysis is then performed linking postcode areas through a boundary based, nearest neighbour routine. The clusters are ranked in terms of total company turnover for organisations within the cluster that have an ADSL speed of less than 2Mbps. Annex E, Figure E1 details the top ten business clusters in terms of turnover in light blue hatching with the next ten identified with pink hatching. It is clear from the overlay of the clusters that there are many areas that have very poor broadband speeds that don t fall within the top 20 clusters. The lack of either a significant number of businesses with moderate turnover, or fewer businesses with higher turnover, in these areas has meant that they have not made it through the ranking of the clusters. If the strategic vision is to be achieved, the needs of all the poorly served areas will need to be addressed whether or not they have the highest economic priority. The areas with the highest priority in terms of turnover, all lie either to the east or south of the county; with the two clusters in the east, close to Bournemouth airport, having the very highest turnover, ( 88M and 66M). These areas are identified in red at Annex E, Figure E2 with other nearby clusters shown in light blue and pink hatching. Additionally, Annex E, Figure E3 identifies the anticipated demand for Superfast broadband by clusters of business sectors using technology (again with light blue and pink hatching to show priority). Dorset has lower levels of Gross Value Added (GVA) in rural compared to urban areas. The 2008 figures for GVA (based on per head of resident population) below show the disparity between the rural and urban areas of the County. Additionally, 2010 work-place based earnings in Dorset were only 87% of the national average. These areas offer the greatest opportunity to realise economic / GVA growth UK SW Dorset (DCC) Bournemouth/ Poole GVA (per head per 20,541 18,682 14,983 20,732 annum) Index (UK=100) In conducting the cluster research detailed above, the potential GVA uplift was also estimated. Using statistics previously reported by SWRDA, the calculated uplift on a per employee basis across the region was between 3.39% and 3.75% depending on the number of employees in the company. Bandwidth limitations which restrict many companies in Dorset would indicate that for companies in postcodes with bandwidths of less than 2Mbps, the potential for GVA uplift through availability of adequate bandwidth would be much higher. The estimate calculation used a very conservative figure of 3.49% for the potential GVA uplift for those companies that are located in the largest clusters based on turnover (Annex E, Figure E1). The methodology used is based on the average GVA per employee across the top level industry classifications used by the Office of National Statistics (ONS) and the South West Observatory. When the average uplift of GVA of 3.49% is applied to only the top 19 clusters of SME companies, with annual turnovers between 50K and 1M, the analysis shows the Faster Broadband for Dorset 13 of 33

14 GVA uplift for these businesses alone would be just over 3M p.a. This does not include the GVA uplift for companies with over 1M p.a. turnover, social benefits, or the economic benefits of home-working. Clearly analysis of all Dorset businesses in the same way would present a significantly higher county wide GVA increase. In addition to this the Superfast Broadband Business Support Programme (please see Section B2 below) is forecast to generate 2.42M additional net GVA across Dorset as a result of its business demand stimulation activities. A4. Scope of Project The objective of the project is to facilitate all properties in Dorset having access to Superfast broadband, enhancing the ability of Dorset citizen s to participate in society, business and commerce on a day to day basis. This is central to the Dorset LEP Priorities To improve electronic and physical connectivity, particularly through high speed broadband coverage as well as the DPSN vision to deliver and facilitate high-quality network services for both Dorset s public sector service providers and the wider community to ensure the County is fit to prosper and grow in the future The ConDor Fast project will cover the entire geographic shire county of Dorset including Bournemouth and Poole (357,680 premises of which 172,670 premises or 48.3% are in white areas). In practice the majority of premises within the conurbation are likely to be provided for by the private sector without additional intervention funding. The immediate partnership is considered to be those local authorities that have signed up to the Dorset LEP and have therefore been identified in the Applicant Information Section at the start of the document. This represents one tier 1 authority, two unitary authorities and 6 tier 2 Authorities, as listed below: Borough of Poole (BoP) unitary authority Bournemouth Borough Council (BC) unitary authority Christchurch Borough Council (CBC) tier 2 authority Dorset County Council (DCC) tier 1 authority and accountable body East Dorset District Council (EDDC) tier 2 authority North Dorset District Council (NDDC) tier 2 authority Purbeck District Council (PDC) tier 2 authority West Dorset District Council (WDDC) tier 2 authority Weymouth & Portland Borough Council (WPBC) tier 2 authority As previously stated there are a number of active community broadband groups that the project team is working with and these have been actively involved in project development work. However, the extensive range of organisations that have been consulted and involved to date suggest this will grow considerably during the life of ConDor Fast. The deliverable will be to ensure that all properties in Dorset have access to Superfast broadband thereby enhancing the ability of Dorset citizen s to participate in society, business and commerce on a day to day basis. The key areas of work for the ConDor Fast project are to: Develop and oversee delivery of access to Superfast broadband to the hard to reach (i.e. the final 5%) areas of the county (this may be dependent on grant funding and demonstrable need) Pursue external intervention funding opportunities (EU, nationally and regionally) Faster Broadband for Dorset 14 of 33

15 Continue to grow community and business involvement Develop, establish and maintain a governance model which is inclusive and enables participation by all differing stakeholder groups Work collaboratively with other initiatives to overcome the digital divide and promote understanding of how improved telecommunication services support economic growth Develop, manage and maintain benefits realisation plan SECTION B CUSTOMER AND COMMUNITY ENGAGEMENT B1. Demand stimulation Since December 2010 a programme of engagement with community groups, businesses and academia has been undertaken through a series of well attended presentations and workshops, which have attracted media coverage. The main components of the demand stimulation work programme are: Build on work undertaken to date with visits to areas with poor broadband, starting with clusters that from analysis appear to be suffering most in economic terms, to carry out face to face market research with business owners to understand the bottom line effect. Identify a local broadband champion in each cluster to encourage private and commercial interest in improving the situation; ideally this should be a business owner or a locally elected person keen to see economic improvement in their area. Understand both the statistics and the real situation and engage with broader interest groups and stakeholders; namely: o all public services, including health, education and emergency services o elected members, including local MPs, county, district borough and local parish councils o business groups, such as DCCI, Federation of Small Businesses (FSB), Country Landowners & Business Association (CLA), National Farmers Union (NFU), Institute of Directors (IoD) etc o special interest groups such as creative media and engineering design companies. Build an inventory of public sector and other assets (e.g. church towers and masts) that could support the provision of broadband at a local level. Monitor developments in BDUK, government policy, EU and other funding opportunities, work in other counties to ensure that Dorset is up to date and able to react as quickly as possible to future opportunities Develop draft funding applications using best practice, developed with information from communities and businesses. This information can be used with some modification to respond to funding opportunities. Further develop a web-portal to keep stakeholders informed of events at county, regional and national level. The portal has demand registration and market research components to gather information and provide a level playing field for potential broadband suppliers. (This will be complementary to the Local Authority Research Centre (LARC) on Huddle.). Continue to engage with potential and existing suppliers, particularly those companies specialising in rural and community based solutions. Introduce businesses to the benefits of ICT, encouraging them with specialist training programmes to make the best of Superfast broadband when and where it comes to Faster Broadband for Dorset 15 of 33

16 Dorset. This will focus on applications and uses and on developing understanding of the business benefits of Superfast broadband. Liaise with neighbouring regions to formulate common plans for the capital support for satellite broadband to remote businesses and establish a broadband road show to demonstrate the value of Superfast broadband to targeted business segments. Manage the development of and oversee submission of a state aid submission for Dorset. To complement and support the above activity, Connecting SW (regional economic development group focusing on broadband) have secured 6m of EU competitiveness funding to support a programme of Superfast Broadband Business Support, last-mile connections and demand stimulation activities across the SW (excluding Cornwall). Dorset has indicated full support for this programme and is engaged in the Commissioning Team. The programme is expected to go live in April 2012 and will link into the delivery of the Local Broadband Plans. Dorset is looking forward to making the most of this opportunity which is supporting the roll-out of Superfast Broadband to businesses. Additionally, it is anticipated that the Superfast broadband supplier, under the BDUK National Framework Agreement, will contribute resources to demand stimulation activities. These are expected to complement the resources put into demand stimulation by the Superfast Broadband Business Support programme and the DPSN supplier in areas like the public sector and tele-health. B2. Demand Registration The programme of work described above is resulting in an ever increasing body of evidence from all stakeholder groups; Communities & Consumers Community engagement is on-going and has been taking place with both established and fledgling broadband groups. The project team is working with the Digital Hub at Bournemouth University to identify potential community leads that can be engaged in the project and encouraged to become broadband champions and initiate community activity. As part of the demand stimulation work a Superfast broadband web portal has been established on the website. Work on this is underway and will include research information and resources for prospective community broadband groups. The portal incorporates a demand registration tool. Information on demonstrable demand from individuals, businesses, communities and the voluntary sector will be available to any supplier or community. Businesses As part of business engagement activity a series of road shows have been delivered to and through various audiences around the county, including the DATPC, the former Dorset Economic Partnership (DEP), DCCI, the DDTF and Business Link. Working in partnership with Business Link in 2011 a series of workshops have been undertaken with businesses across the county. These workshops have been used for registering business interest and levels of commitment. Following the survey of businesses in 2010, Business Link undertook private sector consultation in January 2011 on the proposals for establishing a Dorset LEP (face-toface consultation with 118 rural based business and 557 responses to online survey). The results show the areas with the biggest broadband concerns are Ferndown, rural North Dorset, Sherborne, Bridport, and Dorchester surroundings. Broadband service is a Faster Broadband for Dorset 16 of 33

17 significant issue amongst small businesses, with 65% of businesses with 5 employees or less reporting this as a problem. A wide range of business sectors reported major broadband issues, with manufacturing and professional services (marketing, web design and consultancy) showing strongly. Sales and marketing were reported as hindered by poor broadband and slow opening of websites was reported as a major problem. The conclusions from the Dorset LEP consultation are Faster broadband everywhere, especially in the rural countryside. Current capacity does not for example allow video conferencing. The Issue is not one of cost but of supply / capacity. This has fed through to the objectives and priorities of the Dorset LEP, as detailed in Section A1. Additionally Bournemouth University is keen to work with ConDor Fast and the Dorset LEP on this project. Public Sector Organisations The evidence of public sector demand is well documented and formed part of the evidence base provided to potential DPSN Suppliers with the Final Statement of Requirements. However the ability for some of these services and benefits to be realised are reliant on public sector customers (i.e. Dorset s residents and businesses) being able to access services on line and interact fully with the public sector by electronic / digital means. To support this, the public sector partners involved in the Dorsetforyou website have developed specific material to help people with learning difficulties to access services on line. B3. Stakeholders Consultation with stakeholders on broadband has been an on-going process since the decision was taken to widen the scope of the DCC Wide Area Network (WAN) procurement project to include other public sector partners in summer The initial focus engaged tier 2 local authorities, neighbouring unitary councils and other public sector organisations. The project was formally launched on 26th January 2010 with an event at the Weymouth & Portland National Sailing Academy attended by more than 90 elected members, public sector representatives and suppliers. As a result a comprehensive stakeholder database was created and has been maintained throughout the WAN procurement project. Following the splitting of the two work streams the ConDor Fast project retains access to and use of this database. As mentioned previously, in spring 2010, surveys of local SMEs were undertaken. The information gleaned prompted the inclusion of businesses within the scope of the OJEU Notice for the DPSN Procurement. The OJEU notice identified a wide range of potential partners, who have been kept informed of progress on the Local Broadband Plan. The ConDor Fast project reports to the governance structure described in Section E1 below. Additionally regular updates are provided to the Dorset Leaders & Chief Executives Group, DCC Cabinet, as well as to other Local Authority Committees (including Audit and Scrutiny Committees). Specific briefings are also provided for DCC s Leader and the Portfolio Holder when required. At a meeting on 2nd February 2011, DCC Cabinet approved the submission of a Dorset bid to the BDUK Spring 2011 Award Round based on the DPSN model detailed in the earlier Local Broadband Plan submission. A decision was made to take a separate approach to the Local Broadband Plan project and DCC Cabinet resolved on 5 October 2011 to in principle underwrite capital funding of up to 6.665M, as part of the match funding for this project. This allocation is two thirds of the match funding required for the project. The remaining third of the match funding has also been agreed in principle by the tier 2 authorities during December 2011, full details of this can be found in Section C1. Faster Broadband for Dorset 17 of 33

18 The local authority partners have agreed that they will work with the Superfast broadband supplier over such things as planning applications (e.g. for cabinets) and highways works. SECTION C FINANCIAL INFORMATION C1. Funding Requirements Proposed Contributions Dorset Proposal - Capital Funding Requirement 38M BDUK allocation 9.44M Local partners match funding 9.44M Communications provider 19.12M Total: 38.00M It is expected the full amount will be spent between the financial years 2011/ /15 (inclusive). These figures do not include recurring revenue costs for the broadband service itself, nor staff and revenue costs to run the project and carry out demand stimulation activities: In analysing the funding requirement, the partners have considered the best and worst case scenarios and also pricing illustrations from potential suppliers. The worst case is classified as the solution requiring the most intervention funding. The worst case scenario assumes no benefit is leveraged from any existing infrastructure investment and assumes the rollout will be based on a pure FTTP solution. Whilst acknowledging BT s planned investments and recognising that many different permutations could be deployed, the indicative intervention required, based on modelling work carried out by Analysys Mason, would suggest that this type of blanket solution would be simply unaffordable with a circa. 178M - 180M gap funding requirement. According to the Department Culture, Media and Sport (DCMS) press release of 16 August 2011 and the associated BDUK Funding Allocation, within Dorset there are 357,680 premises of which over 48% are in Superfast broadband / Next Generation Access (NGA) white areas. This puts Dorset in the upper quartile for Superfast broadband white areas (see BDUK funding allocations) and reflects the challenges facing a potential supplier in reaching the most rural parts of Dorset. An indication of the expected Superfast broadband/ NGA position (without intervention funding) for Dorset has been modelled and is provided at Annex A, Figure A5. The project team have previously discussed different approaches with potential suppliers, both independently and during the dialogue phase of the DPSN procurement when illustrative cost data was provided. These separate and independent sources have estimated costs of between 38M - 40M, which is in the region of the amount shown above. This gives reassurance that the ConDor Fast project objectives are achievable. The following assumptions have been made in support of the figures shown in the Table for Capital Infrastructure below: Faster Broadband for Dorset 18 of 33

19 1) Recurring revenue costs for the broadband service and resources required to run the project and conduct demand stimulation activities are not included in the figures (i.e. project costs detailed at Section E1 are not shown in the table below) 2) The potential suppliers capital investment at least matches the amounts put in by BDUK and the local partners 3) DCC s agreement to be Accountable Body- as approved by Cabinet on 5 October ) Local partners capital contributions (including project team costs) are approved as follows: L.A. / LEP Amount Approved by Date Dorset LEP Letter of approval from Chair Dec 2011 DCC 6.665M Cabinet 5 Oct 2011 W&PBC 0.153M Management Committee 6 Dec 2011 CBC 0.100M Resources Committee 7 Dec 2011 EDDC 0.729M Policy & Resources Committee 7 Dec 2011 WDDC 1.260M Executive Committee 13 Dec 2011 PDC 0.351M Council 13 Dec 2011 NDDC 0.742M Cabinet 19 Dec 2011 TOTAL M Funding Table Capital Infrastructure Only Total funding 2011/ / / / / /17 required (GBP) Millions Millions Millions Millions Millions Millions Private sector (telecom company) investment Sub Total BDUK funding Other funding (Local Authority) Sub Total Other funding (European/ERDF) Private sector (nontelecom company) investment Sub Total TOTAL Number of postcodes 0 1,375 8,120 1, covered by the funding Number of premises (residential& nonresidential) covered by the funding 0 22, ,000 20, C2. Funding Structure The scope of the Project is covered in Sections A1, A3 and A4 above. It should be reiterated that the project team s preferred approach is to run a mini-procurement for a call-down contract taken from the National Framework that BDUK is procuring. With this approach, Faster Broadband for Dorset 19 of 33

20 rather than provide a prescriptive and specific technical design, the project team will specify proposed outcomes and provide technical data and information via the Data Room. The BDUK suppliers will then decide whether to bid into the ConDor Fast mini-procurement. They will provide details of their intended solution and will be asked to demonstrate how their solution will deliver these outcomes. The procurement itself will be technologically neutral. The National Framework contract is based upon a gap funding model whereby the supplier will own and operate the infrastructure and assets. However, in some parts of the county the local community may be able to assist with some of the infrastructure cost e.g. through digging ducts or with way-leaves. Additionally all local authority partners have agreed at the Project Board that they will work with the Superfast broadband supplier over such things as planning applications (e.g. for cabinets) and highways works. SECTION D COMMERCIAL INFORMATION D1. Commercial Case Analysys Mason, in consultation with DCC s Director for Corporate Resources and Chief Financial Officer, has provided support in considering the commercial funding model options and provided assistance in the preparation of a State Aid paper. The preferred commercial model is a gap-funding one. It is envisaged that this funding will be released to the supplier on achievement of pre-agreed milestones within the project delivery plan. Under this model, the supplier is to own and operate the network infrastructure and associated services. As a condition of State Aid, the supplier will need to make the network infrastructure available to ISPs, who will then be able to deliver to the domestic market on an open access and wholesale basis. Following consideration of the options appraisal the following approach is preferred: Ownership and operational approach Neither the ConDor Fast project nor the Dorset LEP Partners will own or operate the infrastructure. Delivery approach A single broadband rollout via a call-down contract from the BDUK National Framework Agreement will be used for deployment. It is anticipated that this will cover all civil works necessary for the deployment. Connections to premises will be negotiated between the individual and the ISP and will in the majority of cases most likely involve re-use of the existing copper wire infrastructure. If necessary in a minority of instances (the final 5%), the final-mile connections and/or connections to community hubs may be delivered as multiple mini-projects (e.g. using Defra funding) as funding sources for these activities may have different obligations, timing and constraints. Additionally, differing technical approaches to final mile connections may mean that it is not feasible for a single roll-out project across the county for this element. Funding approach The project team have secured funding from local partners to match the BDUK allocation and provide resources for the project team (a summary of local authority funding Committee minutes is attached at Annex F). The split of this funding between local authorities is based on the number of premises with speeds of less than 2Mbps (as at spring 2011) and is made up as follows: Faster Broadband for Dorset 20 of 33