Contact Details. Lead Organisation: Northumberland County Council County Hall Morpeth Northumberland NE61 2EF

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2 Contact Details Lead Organisation: Northumberland County Council County Hall Morpeth Northumberland NE61 2EF Lead Contact Details: Stephen Gray Programme Director Contact Us: Page 1

3 Contents Northumberland Local Broadband Plan Page A1 Vision and Strategic Content 3 A2 Background 6 A3 Gap Analysis 10 A4 Scope 12 B1 Demand Stimulation 16 B2 Demand Registration 18 B3 Stakeholders 19 C1 Funding 20 C2 Funding Structure 22 D1 Commercial Case 24 D2 Market Engagement 24 D3 Procurement Strategy 25 E1 Project Management 26 E2 Timetable 29 E3 Expected Benefits 30 E4 Risk Management 33 Appendices Plan sign off form Key Supporters Engagement Plan Case Studies Maps inorthumberland detail Exchange Details NGA Forecast 73 Acknowledgments Document redacts BT Data to meet non-disclosure agreements BT Contains SamKnows data SamKnows Contains Ordinance survey data Crown copyright Page 2

4 Section A Project Overview A1 Vision and Strategic Context A superfast broadband infrastructure is essential for Northumberland so that it can rebalance its economy, create a climate of investment and growth and lessen its dependency on the public sector economy. We therefore see a next generation broadband infrastructure as a major agent for positive change in Northumberland. This infrastructure investment will help to: - Build a dynamic and knowledge/digital based business economy, especially new business and SMEs - Revitalise communities and build sustainable rural communities eliminating the digital divide whilst improving people s lives and opportunities improved broadband in Northumberland will increase GVA and create over 1700 new jobs St. Chads College Durham University October Deliver new and innovative customer focussed forms of public services at a lower cost to the state Everyone who works in, lives in and visits Northumberland will ultimately be able to access the best possible and most affordable broadband services. This vision has been endorsed with our residents, our political representatives, North Eastern Local Enterprise Partnership (LEP), businesses, public, voluntary and emergency services through a range of surveys, events, meetings, workshops and other communication activities. 1 Our Local Broadband Plan has four basic themes: 1. Investment in a broadband infrastructure where our ambition is for all relevant premises to have access to a minimum and consistent service of between 2Mbits and 10Mbits by 2015 and that 90% of all premises will have access to a superfast broadband service (at least 25Mbits) by 2015, then 95% by 2018 and finally 100% by Our Plan recognises that because of Northumberland s geography, topography, network of small exchanges and large numbers of direct lines that we will need a mix of technologies and an evolutionary approach to meeting these ambitious targets. Included in the scope of our Plan will be initiatives to improve the quality of mobile phone services in Northumberland. It is essential that Northumberland is able to benefit from the future release of bandwidth that will provide access to 4G based broadband. 1 Appendix 1 list of supporters Page 3

5 2. Demand stimulation initiatives to increase take up of broadband based processes generally and superfast broadband processes specifically so that Northumberland is able to optimise the broad range of economic, social and public service benefits a next generation broadband service can provide. 3. In parallel with stimulating demand we will design and deliver digital inclusion initiatives that will work towards ensuring that everyone will ultimately be able to utilise a vastly improved broadband infrastructure irrespective of their age, skills, income or location. 4. Put in place the connectivity infrastructure to stimulate SME and other business growth, enable new entrepreneurial opportunities within Northumberland, rebalance the economy and creating new business lifestyles re-location opportunities. Through the procurement process we will appoint a main contractor who will act in a cofunding capacity to deliver these four themes and help generate a more competitive broadband retail service across Northumberland. The strategic context for our Plan is represented by a range of challenges where we believe an effective broadband infrastructure coupled with the right technologies and awareness building will have a catalytic effect on the design and delivery of effective solutions to these issues. These challenges include: - tackling the inequalities in education provision created by the disparities in quality and consistency of broadband services from the school and home Key issues education economic health rural communities social public services tourism environmental - increasing access to further and higher education resources and developing the concept of a virtual university for Northumberland - supporting, developing, nurturing, attracting and retaining the talent that will help grow a revitalised modern economy in both our urban and rural areas - encouraging enterprise, inward investment and business development, throughout the private sector, to generate new business start-ups, more business expansion, improved survival levels and increased productivity - enabling businesses to compete effectively by improving integration with global markets and national and international supply economies and by strengthening Northumberland s capacity for exporting - helping the elderly, vulnerable and infirm to continue to live in and enjoy their own homes with the constant assurance that they are safe and secure Page 4

6 - supporting the housebound and those who have restricted opportunities to leave their home, to develop and deploy work skills into meaningful and rewarding employment and to reduce their sense of social isolation - designing and delivering new lower cost models of public service delivery, channel shifting services such as more online transactions, tele-heath/care and better online information systems to enable customer self service - supporting services provided by the voluntary sector and community organisations as well as helping to increase public engagement in democratic processes - assisting in keeping the life and spirit of our rural communities intact, making it more attractive for younger people to stay and be able to continue their education and for rural businesses to develop and prosper - protecting our outstanding environment and reducing our carbon footprint by enabling more people to reduce general journeys and commuting to work by increasing work from home opportunities - using broadband as an integral element in helping to protect communities and neighbourhoods from crime and providing our emergency services with the additional means to provide the best levels of responsive and coordinated action - adding further value to the attraction of the outstanding quality of life in Northumberland and, underpinning the strategic importance of tourism to the local economy, by helping to enhance the overall visitor experience Our vision therefore is intentionally ambitious and is based on a whole county approach and alignment with local plans and Government policies including: - our Corporate Plan which commits to improving broadband connectivity 2 and our Economic Strategy 3 which aims to improve access to leading edge technology and communications infrastructure including next generation broadband - the Local Growth White Paper (October 2010) which aims to create a fairer and more balanced economy - the Plan for Growth (March 2011) which aims to achieve a strong, sustainable and balanced growth - the Growth Review (and Rural Growth Review) which aims to create the right conditions for business growth 2 Northumberland Corporate Plan Northumberland Economic Plan Page 5

7 - the UK Low Carbon Transition Plan (July 2009) which aims to decarbonise the economy - the Localism Bill (2011) which will devolve greater powers to councils and neighbourhoods and give local communities more control over housing and planning decisions - the Big Society aim to take power away from politicians and give it to the people 4 A2 Background please refer to MAP section in Appendix 4 Pages 54 to 67 Place Map 1 Northumberland is renowned for its outstanding landscape and its quality of life. It has a total population of 312,000 with no single community larger than 35,000 residents. It has the lowest number of people per square kilometre (61) in England. Northumberland has an area of 5013km 2 of which 96% is officially classified as rural and has a very challenging topography (see MAP 1). Transport infrastructure Map 6 The limited road and rail infrastructure provision emphasises the issues this level of rurality creates. There are no motorways in Northumberland. The A1 main link road, located to the east of the county, is reduced to single carriageway over long distances. The east coast rail link to London is a four hour journey from Berwick in the north of the county. There is a single cross county (east to west) rail route. The nearest airports are in Newcastle and Edinburgh. The rurality of Northumberland and the limited road and rail infrastructure restricts the economic potential of the county and produces large numbers of short car and bus journeys and increased social isolation for those with limited or no access to cars, bus routes and services. There is a significant reliance on the increasingly expensive and publicly subsidised bus network. (See MAP 6) Demographics Map 4 Northumberland has an ageing population with currently 2 in 10 of the population aged 65 years and older compared to 1.6 in 10 nationally. This is expected to increase to 3 in 10 by 2030 compared to an increase to 2 in 10 nationally. This demographic shift will impact on consumption of services. An ONS survey 5 highlights that older people are less likely to use the internet whilst research 6 has concluded that they would benefit from using it. By contrast, the younger population (20 to 29) is forecast to decrease by 7.3% compared to an average increase of 6% across England Downing Street website May ONS survey May Manifesto for a Networked Nation Page 6

8 Such age related factors will significantly influence future economic performance, public service delivery and cost as well as the general sustainability of our rural communities. There are stark economic contrasts in personal wealth and social well-being between Northumberland s residents, with significant parts of the county amongst the most deprived in the country (see MAP 4) and others amongst the most affluent. In parts of the south east of the county over 28% of working age adults are in receipt of benefits and 1 in 3 children age 0 to 4 live in poverty. With 60% of the local workforce employed by the state, Morpeth in Northumberland has the highest proportion of public sector workers of anywhere in the country, according to Office for National Statistics. Guardian February 2011 Public Sector Northumberland County Council became a unitary authority in 2009 after the merger with the county s six District Councils. The new Council also incorporates responsibility for the fire service. Following the merger, the Council started a comprehensive transformation programme. The geographical size of Northumberland and its poor connectivity (transport, broadband and mobile phone signal quality) significantly impacts on the costs of service delivery. The county is currently over reliant on the public sector for employment and economic growth. 34% of all jobs (FTE workers) are currently in the public sector. This equates to about 31,000 FTE workers. There are strong connections with Tyneside. One in three Northumberland residents commutes to Tyneside where one in three jobs is in the public sector. Better broadband will support the county s plans to rebalance the economy towards private sector employment and growth. Education Map 5 There are no universities and a very limited number of higher and further education resources. Higher education can generally only be reached by travelling to Tyneside or Edinburgh based colleges and universities as illustrated in MAP 5. Overall GCSE performance (53.9% 5 or more A to C grades including English and Maths) exceeds the national average (53.4%) but in parts of the south east it can be low (43%). The percentage of the working population with 'no qualifications' is 11.5% compared to 11.1% in England. In some parts of Northumberland however over 40% of working age adults have no qualifications. By contrast it is estimated that only 19% of graduate residents continue to reside in Northumberland. Economy Map 3 & Northumberland's economic base has changed dramatically over the past 30 years following the decline of its heavy and mining industries. Page 7

9 This decline was offset in part by increases in service sectors and a buoyant manufacturing sector, primarily located in the south east of the county but over 80% of our businesses employ less than five staff and less than 1% employs more than 250. The overall employment rate is 75%. There is an inextricable dependency on the broader North East economy for employment with nearly 1 in 3 of the working population commuting daily to Tyneside. The business base of Northumberland is dominated by SMEs and micro enterprises, partly reflecting the county s sparse population and physical remoteness from supply chains and markets. MAP 3 illustrates the geographical spread of businesses. Future local economic development policy will focus on the growth sectors of renewable energy, tourism, manufacturing, knowledge based and creative businesses. Economic projections up to 2030 indicate that without taking action our economy may be neither resilient nor sustainable in the long term. Intervention is needed to rebalance the economy with action focused on the delivery of four strategic priorities: - become a low carbon economy - create the conditions for sustainable growth - support resilient and diverse sectors - enable inclusion and enterprise Central to delivering these priorities will be access to leading edge technology and NGA broadband. Source: Northumberland Economic Strategy GVA performance per head in Northumberland is the 5th lowest in England and has grown more slowly (51%) since 1995 compared to England as a whole (87%). Wages and disposable incomes are lower than the national average. Unemployment is consistent with national averages but JSA claimants in the age range is 40% higher than the national average. Broadband Maps 8-12 Broadband take up in Northumberland is 66% 7 compared to the national figure of 71%. In combination with this relatively low take up, an ONS 8 survey in May 2011 highlighted that 22% (more than 1 in 5) of Northumberland s population had still not used the Internet. In a survey of residents and businesses that use the internet, 90% strongly agreed or agreed that it is more important to them than it was 5 years ago and 78% strongly agreed or agreed that they expected it would become even more important to them in the next five years. 9 This same survey process was used in the Northumberland National Park where 89% of residents also expected that internet would become more important in their lives in the next five years. 10 Current broadband services in Northumberland are mainly delivered through a network of 86 exchanges 13 of these are located outside Northumberland. There is no cable based broadband service in the county. Please also refer to Maps 8 to OFCOM 8 ONS May SMSR Panel Consultation report (Broadband) produced for Northumberland County Council September National Park Northumberland residents survey Page 8

10 66% of the exchanges in Northumberland connect to fewer than 1000 properties with nearly of the 158,000 properties in Northumberland on direct lines. We estimate that over 62% of the premises connected to these exchanges are over 1 kilometre from the exchange. Table 1: Northumberland exchange network profile Exchanges Exchanges (internal) Exchanges (external) Cable LLU exchanges Exchanges with less 1000 Only 12 of the Northumberland based exchanges have been 'unbundled' and provide an alternative internet service provider (ISP) to BT. Until a few weeks ago I have been able to listen each morning to a religious service but now when I switch on the video stops and the person is sometimes standing with his hands up or his mouth open before the video starts again. This continues every few seconds and makes it impossible for me to listen to the address, which in the past I have been able to so for many years. As I have just had a heart attack and had to give up driving and as I am 97 years old I rely more than ever on such programmes on my computer. Northumberland resident June 2011 Currently, only three exchanges have been upgraded to the BT 21CN standard which can deliver broadband speeds of up to 30Mbits. These services use existing copper cabling so are still prone to signal degradation over distance. Mobile phone signal quality is generally poor, particularly in rural areas and there are few publicly accessible Wi-Fi services. The main broadband service in Northumberland s public sector is through Northnet (a fibre and wireless mesh network) which is managed by the Council and provides a daily service to over 10,000 users. The Council s wireless mesh service provides broadband to some of its schools and other services using the Northnet network to provide a backhaul service. However, many of the rural schools still use private sector services and have insufficient bandwidth to take advantage of the increasing range and availability of web based resources. Page 9

11 A3 Gap Analysis - please refer to MAP section in Appendix 4 As only 12 of the 73 exchanges in Northumberland have been 'unbundled' to offer an alternative broadband service to BT there is an absence of overall price competition. We have engaged with BT to understand their current plans for roll-out across Northumberland and this is reflected in this plan. Appendix 6 & 7 sets out BT s summary plan in relation to upgrades to exchanges and the existing infrastructure. The impact of the BT Open Market Review which leaves 61 of our exchanges without NGA broadband so our plan is based around this challenge to the remaining areas of Northumberland. Although OFCOM reports an average speed of over 6Mbits across Northumberland, a wide range of surveys and anecdotal evidence has repeatedly reported recurring commercial and residential dissatisfaction with inconsistent broadband speed, quality and availability. A Northumberland County Council broadband speed survey 11 had 540 responses between August and October. 68% reported that they either could not get a connection or that the average speed was less than 2Mbits. 43% of our schools have a broadband service of less than 2Mbits. Broadband speed survey No service 90 16% Less than 1Mbits % From 1 to 2Mbits 72 13% From 2 to 5Mbits 97 17% Over 5Mbits 69 12% Total 540 Demand for a better broadband service grows proportionately to the publicity of the ever increasing range, sophistication and choice of services that the internet can and will continue to provide. Our county network of generally under resourced exchanges though cannot meet current levels of demand and are poorly positioned to deliver the services that will be developed for superfast broadband. 11 Northumberland County Council Broadband Speed Survey 2010/11 Page 10

12 Table 2: average Northumberland exchange broadband speed at exchange level Broadband speed in Mbits Exchanges - each point denoting exchange : Source Point Topic The impacts are felt particularly at evening and weekend peak times from children not able to access web based homework assignments to businesses not able to sell products on line, to restricting the ability of the public sector to transform service delivery and in frustrating visitors unable to access internet services. Combining the outcomes of our surveys with the data provided by BDUK (September 2011) and Point Topic confirms that our current broadband service will not meet the aspirations of the Government nor the vision we have defined in our Plan, without a significant level of private and public sector driven intervention and initiatives. The BDUK convention to describe the probability of market led improvements in broadband services categorises exchanges as white (no or little probability), grey (potentially) or black (announced improvements) is (in part) dependent on the availability of cable based provision. As there is no cable provision (and none forecasted) in Northumberland all of our exchanges are currently defined by BDUK as either white or grey. We estimate that 81% of Northumberland s exchanges are currently in the BDUK white category effecting up to residential and 8000 business based properties. 12 The Council requested an Open Market Review from BT in October This review highlights that seven of our exchanges are now scheduled to be upgraded and that a further five could be potentially considered. These exchanges are in the few centres of relatively high populations and do not cover all of the cabinets connected to the exchanges. We estimate that after these upgrades we are still left with 81% of Northumberland s exchanges in the BDUK white category effecting up to residential and 8000 business based properties. 12 Based on BDUK formula for defining white areas and Council Tax property details as source Page 11

13 Please refer to Appendices 6 and 7 for a full breakdown of our exchange network Our proposed approach therefore to delivering our vision and meeting the Government s objectives by 2015 will include: - stimulating significant levels of demand sufficient to attract market investment for as many exchanges possible - recognition that joint (public and private sector) or single (public sector) investment in exchanges will be necessary to exploring and exploiting the potential service provision options from the Council and its partners public sector networks (Northnet etc.) - working with rural communities and our main contractor delivery partner to plan and design the most effective high value/lowest cost mixed technology solutions (wireless and fibre) - using the planned resources of the programme delivery team and data room to support the above plan and support process - campaigning vigorously for an improved mobile phone coverage specifically to be able to use 4G connectivity services - using the lessons learnt from the BDUK pilot studies to inform decision making. The potential benefits from a radical improvement in broadband services and accessibility will only be fully realised when all of our residents and businesses are able to access and use broadband services. It is equally important therefore that we concurrently address the stimulation of demand for broadband and the issues of digital inclusion. To deliver this vision in a large geographical area with many small centres of population, distributed across very difficult topography and an existing poor broadband infrastructure will be challenging but the Council and its partners and stakeholders are determined to meet this challenge as indicated by the funding commitments made in this Plan. A4 - Scope Vision The Northumberland vision is for the whole of the county to have access to a sustainable and future proofed superfast broadband infrastructure by 2020 creating a platform for business growth, public sector transformation and enhancing lives and opportunities within our communities. Page 12

14 Our vision is intentionally ambitious as we recognise the wide ranging and positive impact superfast broadband will provide, including - access to a world class communications infrastructure that will stimulate inward investment, business development and increased productivity - a catalytic effect on the design and delivery of public services - increasing access to the wide ranging economic and social benefits available through the Internet to the whole of our community - increased opportunities for flexible and home based working in a large and mainly rural area with a limited public transport infrastructure. This represents a significant opportunity to contribute to our carbon reduction programmes Objectives In delivering this vision the Local Broadband Plan will: - Ensure that all target premises will have access to a minimum 2Mbits service by Ensure that 90% of all target premises will have access to a superfast broadband service of at least 25Mbits by 2015, then 95% by 2018 and finally 100% by 2020 Underpinning this roll-out will be a dedicated set of programme and project resources that will work closely with the infrastructure delivery partner. In addition these resources will focus on the on-going delivery of a demand stimulation plan and marketing/communications activity to maintain and further raise the profile and opportunity provided to all with superfast broadband. Other activities across the Council and other public sector partners will also align to drive forward the benefits of delivery such as local economic activity, transforming public service delivery and educational opportunities. To deliver this vision our programme will target those areas of the county where there is clear evidence of actual or potential market failure. We currently estimate that this will include up to residential and 8000 business addresses. Our White Areas and overall roll-out strategy will be further refined during the pre-procurement and State Aid consultation activity. We recognise the challenges we face in delivering our vision and specifically the need to generate additional funding to that provided by the BDUK initiative. Our programme delivery process therefore will incorporate resources that will focus on developing other funding streams notably through the current ERDF programme, the potential Connecting Europe Facility. Page 13

15 We will also proactively encourage and support the development of community schemes that meet the criteria of the Rural Broadband Fund and (where appropriate) the Rural Growth Fund. Our programme will therefore be multi layered and phased to: 1. deliver the procurement and achieve contract award by December establish a robust project to support and drive the broadband roll-out 3. meet the Government s 2015 objectives 4. stimulate demand for incrementally higher superfast broadband speeds 5. progressively increase digital inclusion across all social sectors 6. deliver our vision for the whole of the county to have access to superfast broadband by 2020 Partner support please also refer to Appendix 1 The structure of the Local Broadband Plan delivery arrangements reflects our commitment to work in close partnership with our key partners and stakeholders (Section B3) including our network of parish councils and community groups. Our Plan has cross party support and the support of our newly formed LEP please refer to Appendix 1 for a list of our supporters and their letters of support. As we move into a delivery structure we will roll-out new governance arrangements at strategic and stakeholder level, namely: - Using the Leadership Board, which represents of all public sectors, voluntary and business interest across Northumberland please see E1 for further details on governance and structure - Creating an inorthumberland Advisory Board that will be the driver for our Demand Stimulation activity to encourage further registration, take-up interest and building a network of business and community digital champions Broadband Roll-Out Premises and post codes The Council will refine its White Areas and priorities for roll-out as part of its pre-procurement planning work. In building this Plan we have consulted with suppliers and especially relied upon data released by BT, for example, their planned exchange upgrades to superfast broadband services (through a non-disclosure agreement with the Council). There is no cable based service in Northumberland. We are exploring other fibre investments made across Northumberland as part of the next phase of this project and will refine this information accordingly in our plan. Page 14

16 The table following shows some a summary of the key data that impacts upon our roll-out. Exchanges 73 Planned NGA Exchanges (not all cabinets) Exchanges covered by Local Broadband Plan Number of premises of potential market failure Total number of postcodes 9054 Total of direct lines 17000** The range and types of premises involved, for example, 17,000 direct lines, means that we have to look for a multi-technical solution that is right for Northumberland and matches our current funding strategy. Northumberland has many widely dispersed and small communities in rural areas. Many of the existing exchange connections use direct lines** and we estimate that over 60,000 properties are over 3 kilometres from their exchange. This means a combination of FTTC and FTTP alongside some localised solutions using wireless and a last 2% of satellite will be necessary for our overall solution. Our roll-out plan, defined as local requirements in the outline solution we are presently working on will help us to further refine the approach we will take. Community led initiatives We will proactively support the development of viable community led initiatives including community hubs where there is a local appetite and where we can align this to our overall plan. Importantly such support will need to be dependent upon enabling solutions that are sustainable in the longer term. This support will include a pro-active and predictive approach to planning applications and the development of localised community broadband tool kits. Page 15

17 Section B Customer and Community Engagement B1 Demand Stimulation Data Room Northumberland has already made a strong start in building its data room. For example, we have established a SharePoint database which will be the platform for our dataroom storage. It will also act as the interface for data sharing in the procurement and clarification process with suppliers. Northumberland has invested heavily in the use of reliable and accurate GIS systems and we have deployed this technology in support of this application. For example, we have developed a database that holds the details of every single property in Northumberland and merged it with the exchange and cabinet data provided by BDUK (September 2011). The outcomes from our demand stimulation activities (see below) will be registered in the database. The details of all the Northumberland exchanges and their cabinets are also incorporated into the database and cross indexed against the properties they are connected to. All of this detail will be interfaced with our GIS systems to produce highly detailed mapping including the actual and factored distances between every property, exchange and cabinet. A GIS officer will be assigned to the team during the pre-procurement and procurement process. The scope of the data is being extended to incorporate a wide range of additional criteria, including mosaic social profiling, to inform the procurement process, prioritisation and roll out elements of the Plan. This level and type of detail will enable detailed cost and solution modelling in support of the procurement process and will facilitate the effective management and control of the subsequent roll out details, expenditure and key performance indicators. Demand Stimulation Engagement Plan please refer to Appendix 2 for details of our Engagement Plan Our demand stimulation process started in October 2011 through the launch of our inorthumberland web site and a range of promotional events. (Please refer to Appendix 5 for further details of inorthumberland). Our full Engagement Plan (Appendix 2) is supported by an approved revenue budget (please refer to C2) through to This does not include any additional funding we may secure through the procurement process from a commercial partner. Broadband take up in Northumberland is relatively low (66% 13 ) compared to the national average of 76% 14. The ONS 15 also estimated that in % of our population had still not used broadband. 13 OFCOM Communications Market Report OFCOM Communications Market Report ONS May 2011 Page 16

18 Demand stimulation and increasing the levels of digital inclusion are therefore critical to delivering our vision of stimulating economic growth and transforming public service delivery. Our inorthumberland Advisory Board is therefore structured to represent the public, private, business, voluntary and community sectors to ensure that a fully balanced approach is taken though the delivery of the Plan. (Please refer to Section E for details) The Engagement Plan is also similarly structured to engage with all sectors and will specifically ensure that - our businesses are supported to optimise the productivity and general commercial benefits IT and faster broadband services brings - the scale of digital inclusion is significantly increased across all age and social groups to enable the channel shift in public sector service delivery The initial phases of our Engagement Plan are in progress and include: - the launch of an inorthumberland web site ( and social networking tools all of which promote the purpose of the Plan - registering with Race on Line 2012 and promoting their activities through our web site, schools, libraries and other outlets - commissioning a range of surveys - meetings with our local MPs and MEPs, scrutiny committees, business and local leadership groups, parish councils and community and voluntary groups - development of a bid for ERDF funding to provide comprehensive support to business to enable them to take advantage of a world class 16(see caption) broadband infrastructure - schedules of broadband related awareness and training events for residents started in October 2011 across the county along with workshops with local business groups (example - Chamber of Commerce, Federation of Small Businesses and the Country Landowners and Business Association) - promotional and display materials (posters, postcards and leaflets) publicising the Plan have 75% of the economic impact of the internet arises from traditional companies that don t define themselves as pure internet players. The businesses that have seen the greatest value creation have benefits from innovation leading to higher productivity triggered by the internet' McKinsey May Internet matters: The Nets sweeping impact on growth, jobs and prosperity. McKinsey May 2011 Page 17

19 - been distributed to outlets across the county including libraries and community groups - partnership arrangements have been agreed with a range of organisations to jointly promote broadband related initiatives through their web sites and events - regular newsletters and press release are sent to our local media organisations, business organisations, the LEP, public sector partners, parish councils, community and voluntary groups to keep them informed on the progress of the Plan - the recruitment of local Broadband Champions has started. Their role will be to promote the purpose and activities of the Plan inside local communities. - over 25,000 of (the 160,000) properties in Northumberland are classified as social housing. A pilot project has been developed to focus on the special requirements in this sector. - through our planning processes broadband connectivity is now promoted into any local property development or redevelopment proposals B2 - Demand Registration Whilst our surveys have confirmed the increasing importance of broadband to residents and businesses (please refer to Section A2) they have also expressed significant and wide spread concern about the general reliability, quality and speed of broadband, particularly in rural areas. There is latent demand for a much improved and faster service. Rothbury, a small rural village, for example came 29 th in the BT UK Race to Infinity competition in 2010 through a campaign led by their local Councillor. We have used our Engagement Plan process to start to capture detailed evidence of this demand: - our inorthumberland web site includes functionality to enable individual residents and businesses to register their interest in a superfast broadband service - libraries, customer service and community centres have promotional material and demand registration cards. The staff have been briefed to explain the purpose of the process, how to promote it and to explain the importance of registering demand - the details from these two processes are recorded in our database (please refer to B1) and indexed against the individual property. Over 700 responses have been received to date Page 18

20 These are initial steps. We are recruiting a marketing agency to work in conjunction with our Programme Team, Corporate Communications service, partners and stakeholders to develop, launch and then deliver an intensive communication plan and demand registration campaign to coincide with the potential approval of our Local Broadband Plan and the subsequent procurement process. The revenue budget for demand stimulation is phased in recognition of the need to maintain the momentum of the campaign through to B3 Stakeholders please refer to Appendix 1 There is very strong corporate and political commitment to the Local Broadband Plan and its objectives. The development of the Plan has been led by the Corporate Director for Local Services, Caroline Bruce and the Deputy Leader of the Council, Roger Styring. The Council has approved the funding commitments detailed in the Plan. We have actively sought and received support from the: - LEP - MPs - Northumbria Health Care Trust - Northumberland s emergency services police, fire and ambulance - Environment Agency - National Park - Northumberland Tourism - National Association of Local Councils - Community Action Northumberland - Chamber of Commerce - Federation of Small Business - Institute of Directors Throughout the delivery of the Plan we will continue to consult with businesses, local Councillors, our large network of parish councils and community groups to ensure that there is effective engagement and ownership at a local level and that our Engagement Plan is appropriate and fit for purpose. Page 19

21 Section C Financial Information C1. Funding Requirements Northumberland County Council proposed funding structure The following tables set out the proposed initial capital funding structure for the Northumberland Local Broadband Plan: Table 4: BDUK funding - Millions Current Status Capital Northumberland Council County 7 million Approved by Council BDUK 7 million Indicative allocation Private sector * 14 million Indicative figure subject to procurement process and overall commercial interest Total Capital 28 million Page 20

22 Table 5: phasing of funds millions millions millions millions local authority contribution 4 million 3 million BDUK contribution 7 million private sector contribution 6 million 6 million 2 million Total 13 million 10 million 5 million post codes premises - residents* premises businesses Our Local Requirements set out in the outline solution developed during the Pre- Procurement Phase will further clarify our position on roll-out to premises and businesses and in what priority. Although Northumberland County Council want to deliver the objectives of the Local Broadband Plan as quickly as possible the actual phasing and costs of delivery will be subject to the outcomes of the procurement process. Constraints The Council recognises that in its very rural areas - the complexities caused by the difficult topography and accessibility - the widely dispersed small communities - and their small exchanges many just configured for direct line connections will increase costs disproportionately to benefits, may limit overall commercial interest (and therefore match funding) and will mean that delivering its vision of a world class broadband infrastructure for all, will have to be done in incremental stages through to 2020, with the first phase structured to meet the Government s 2015 objectives - Page 21

23 - all properties to have access to a minimum 2Mbits service - 90% of all properties to have access to a minimum 24Mbits service Consequently, in parallel with the first delivery phase the Council and its partners will work to secure additional capital and revenue funding for future investment in the Local Broadband Plan. Bids will be developed for both revenue and capital level ERDF to stimulate demand and to improve broadband services to new and existing businesses and to encourage increased and more effective use of technology to boost productivity and reduce costs. The National Park in Northumberland has incorporated provisions for broadband infrastructure into their bid from the Rural Growth Fund. Alongside this the Council and two local community groups have submitted bids to the Rural Broadband Fund for over 1 million. We will proactively encourage and support community level interest in the next phase of this Fund, due to be announced in April Throughout the programme delivery period there will be on-going and pro-active research to determine where there are further opportunities to match this capital budget against complimentary UK and regional initiatives - a funding advisor will form part of the Programme Team. The delivery of the Plan will be aligned with the Council's transformation programme and the programmes of our partners to further ensure that the optimum benefits are generated from all other relevant funding streams, for example, through the potential investment in our Estate Transformation programme and any re-configuration of the Northnet network. C2. Funding Structure Estimates of the costs of providing superfast broadband services to 90% of premises in Northumberland range between 30 and 40 million depending on the configuration split between FTTC and FTTP. This represents the gap in funding between current indications of actual and planned independent investment by BT in Northumberland s exchanges (there are no cable service providers) and the potential funding available through the BDUK based initiative. Example a configuration of 70% FTTC / 30% FTTP ranges circa 30 to 33 million. Actual costs of the full solution for 2015 will be determined by a range of factors including - the procurement process where we will test how bidders solutions will deliver against our requirements - the actual level of independent investment by BT in Northumberland Page 22

24 - the achievable FTTC and FTTP configuration from the level of available funding - potentially extending the deployment of the PSN Northnet network - the mix of technology solutions - and specifically the use of satellite in our remote areas where capital investment requirement would be low - the potential for a gap funded model to generate future revenue for re-investment Due to the range of constraining and complex factors described in A2 (geography, topography, rural exchanges, direct lines, small population dispersed over wide areas) we have forecasted the risk of funding gaps and have incorporated resources into the Programme Team to focus on sourcing additional funding streams, proactively support the development of community led schemes and to work with our partners on initiatives that contribute to our vision. Demand stimulation As part of the procurement process we will negotiate contributions towards the costs of an intensive demand stimulation programme to encourage and maximise take up. We have indemnified resource for marketing & communication and for community engagement with the public and with voluntary, business and public sector organisations as part of our Demand Stimulation Plan. Accountable body Northumberland County Council will act as the accountable body for the funding agreement with BDUK (and any other relevant supplementary funding secured for the delivery of the Plan) and for all relevant contracts with commercial service providers. Asset ownership The public sector contribution to the development of a superfast broadband infrastructure will be based on a gap funded model. Subject to compliance with regulatory requirements, relevant capital funds will be held in the balance sheet of the organisations that will ultimately build, own and operate the broadband services envisaged by our Local Broadband Plan. Page 23

25 Section D Commercial Information D1 - Commercial Case It is judged that the potential benefits to the economy, education and other major public services and the general and the increased wellbeing of our communities justifies significant public capital and revenue investment in this programme alongside investment from commercial providers. We expect that the initial funding tranche will not be sufficient to meet our vision but we will drive our programme through an incremental build up to our target for the whole of Northumberland to have access to superfast broadband by Option Appraisal We have explored different options for delivering superfast roll-out, for example, in partnership, via a separate OJEU, through a PPP route and via the BDUK framework. We have broadly concluded that the BDUK framework offers the best and most preferable solution as it: - Enables the quickest route to a structured and time bound procurement - Provides an on-going level of support, tools and materials throughout the procurement process - Offers pre-agreed and pre-negotiated contract clauses and T&Cs which reduces cost, complexity, workload and time-related legal negotiations - Maintains enough scope through the input of local requirements to set priorities and scope that is right for Northumberland - It simplifies to a large extent the State Aid requirements including reducing the risk of clawback - The limited market of private sector suppliers appear to prefer this option - Reduced risk in comparison to all other options We conclude therefore that a Market Intervention Call-off contract using the BDUK framework and operating a gap funded model offers the best option. The Council does not intend to retain any of the procured infrastructure assets, subject to the procurement process outcomes. D2 - Market Engagement We have had detailed discussions with BT about their future plans for Northumberland and continue to have discussions with BT, Fujitsu, wireless and satellite service providers. We are planning a number of local trials of wireless and satellite services and have developed a business case to develop a pilot study that targets providing broadband to social housing in Northumberland ( properties). Page 24

26 BT has confirmed that 7 of our exchanges will be upgraded to NGA with provisions for a potential additional 5 in the future. There are 7 ADSL2 exchanges across the county including 5 of those exchanges currently scheduled to be upgraded to NGA. There is no commercial cable infrastructure in Northumberland and only two identifiable (community) wireless based services. An Industry Open Day is being developed to discuss our Plan in more detail with both major suppliers and local SMEs. A communication process has been launched in October 2011 under a brand name inorthumberland to help promote the scope and purpose of the Plan to all parts of the community. The recruitment of the programme delivery team incorporate resources to complete and to maintain then data room requirement which will form the basis of the preliminary and actual procurement processes and the state aid submission. D3 Procurement Strategy The Council has previously designed, developed and procured and continues to manage an NGA broadband network (Northnet). The Local Broadband Plan procurement process will be led by the Corporate Director for Local Services (who is responsible for procurement) and the Corporate Finance Director. It will be directly managed by the Programme Director and Procurement Manager who will also use internal and external technical expertise. Subject to BDUK approval of our Local Broadband Plan, Northumberland County Council will act as the accountable body for the whole of the subsequent procurement process and for the delivery contract with the main contractor. It will use the BDUK procurement framework contract process, if after consultation with BDUK, the Council is assured that it will meet its requirements and will comply with its own procurement policies and legal obligations. The Council recognises the major benefits the framework provides, notably that it will be OJEU compliant and that it is developed in conjunction with technology specialists. It also appreciates the BDUK provision of a State Aid 'umbrella' agreement and will plan to prepare the detailed evidence to comply with the BDUK agreement structure. It is hoped that the procurement framework process produces a strong 'competitive tension between suppliers and that we can appoint a single main contractor to develop the probable mixture of technology solutions (fibre/wireless/4g) to deliver our Local Broadband infrastructure plans alongside a possible redesign of the Northnet network. Where public funding is being used to subsidise capital investment in broadband infrastructure it is incumbent on both the Council and the proposed main contractor to commit to minimising public subsidy by stimulating demand to levels where there could be an increased probability of a number of internet service providers willing to invest in exchanges. Agreement on a shared approach to this issue and to the issue of digital inclusion will be a key component in our overall procurement strategy. Page 25

27 SECTION E - Deliverability E1 Project Management, Resourcing and Funding The delivery of Superfast Broadband is a major transformation project within the Council and as such it has corporate and political sponsorship at the highest level. Broadband delivery also forms part of our wider Partnership and Delivery Programme and will be delivered through a newly established Corporate Programme Office (CPMO). A new Programme Director has been appointed, Stephen Gray, who will lead both the Broadband Procurement and Delivery and direct the work of the Programme Office. Alongside this a new governance structure will be implemented within the Council creating a Corporate Delivery Board to which the broadband procurement and delivery phases will report. The governance arrangements are shown in the diagram below. Externally we will use the Leadership Forum which is a well-established group of public sector, voluntary and business sector senior strategic representatives (i.e. CEO level) to enable the profile and support that Broadband will need. This group will also be the conduit into the Local LEP and Enterprise Zone Development Board. We have also established two new governance structures, namely: inorthumberland Advisory Board this group will be a cross section of Council, other public sector and voluntary sector and business representatives. It will focus on the delivery and roll-out of the Demand Stimulation Plan the Engagement Plan to drive up the interest and profile of superfast broadband, quicken the pace of demand registration and build a network of community and business digital champions. It will also be a conduit for marketing and communications campaigns associated with broadband. Page 26

28 Broadband Delivery Group this group will be act in an advisory role to the Broadband Delivery team offering support, resources and guidance on any technical, legal and other issues associated with the procurement and roll-out of broadband. It will be largely a local authority group but others may join where relevant. The project will be delivered through robust programme, project and risk management techniques, for example using MSP and Prince2 processes. The project will be subject to regular programme assurance as part of corporate delivery. The Plan will be delivered by a Broadband Delivery team to be fully recruited externally/internally by March 2012 following handover from the existing project board and project team arrangement. The Broadband Delivery lead roles will be full time positions reflecting the strategic importance of this major capital and revenue programme to the Council. The main structure of the team is set out in the diagram below, showing the supporting resources and the links to other corporate and governance areas. All resources will be full time supported by other Council resources shaded below the structure. We also will carry contingency funding to bring in specialist external resources as required. Page 27

29 Key features of the Broadband Delivery team The main components of the Broadband Delivery team are: Programme Director Stephen Gray was appointed to this post in Feb This post has a direct report to the Council s Senior Management Team and will be coopted to the Corporate Delivery Board. The role will also work across other partnership programmes to ensure that the Council has a strategic and joined up approach to its connected economic regeneration, transformation and community engagement Client Service Manager recently appointed who is responsible for the definition of the local requirements and data room preparation as part of the outline solution we will develop pre-procurement. This person is also responsible for the input of a senior data analysts and GIS officer, both confirmed secondments within the Council Two Community Engagement Officers for Business and Community to drive demand stimulation and registration. These posts will work closely with the Stakeholder Advisory Group to drive forward the Engagement Plan A Technical Solutions lead, secondment internally from ICT that will advise on the technical rigour of the detailed solution presented by the bidders A Marketing and Communications Specialist, currently being advertised, that will be part of the Corporate Programme Office but will prioritise Broadband as the main work programme over the next 6 months A Project Office with a Co-ordinator and Programme Administrator to support project design, management, reporting and other key activity areas such as funding option and administration Supporting Resources identified and agreed across the Council that will provide part-time input including: o o o o o o o o Legal Services Procurement Funding Support Finance Planning Economic Development ICT Policy and Research Communications Revenue budget for programme delivery - funded by Northumberland County Council The budget for the procurement and roll-out of Broadband has been identified and agreed by the Council. Page 28

30 E2 Timetable based on use of BDUK procurement framework We have established an overall project delivery timeline and are currently preparing the Project Initiation Document to commence mobilisation. All team resources will be in place by the end of March and the team is rapidly moving towards its pre-procurement phase of the process. The table below gives indicative timelines. Table 7 Timetable Activity Timeline Local Broadband Plan submitted December 2011 Demand Stimulation & Data Room preparation On-going Programme team recruitment January 2012 Governance and Delivery April 2012 Pre-Procurement Activity April - August 2012 Issue ITT, Detailed solutions invitation Aug/Sept 2012 Final Tender & Evaluation December 2012 State Aid consultation December 2012 Contract award December 2012 Commence plans for roll out planning and community consultation Site surveys/data room confirm final technical specifications January 2013 February 2013 Commence implementation April st phase completion (start June 2013) May nd phase completion May rd phase completion May 2018 Final phase June 2020 Page 29

31 E3 - Expected Strategic Benefits The strategic benefits relate to the three aims in our Vision (see Section A) namely- - build a new, modern post-industrial economy - refer to Tables develop more sustainable communities - refer to Table 11 - deliver new and innovative customer focused forms of public services at lower cost to the state - refer Table 12 The definitions of these benefits are based on: - the main outcomes of an economic modelling exercise by North East Economic Model (NEEM) St Chad s Business College, University of Durham specially commissioned for our Local Broadband Plan - recommendations detailed in the Northumberland Next Generation Broadband report produced by SQW Consulting and associated workshops Economic Benefits The St. Chad s model has been used extensively as a forecasting tool by local authorities and former regional development agencies. It incorporates specific functionality to test the potential impact of investment (and not investing) in next generation broadband networks. The main outcomes from the Northumberland modelling process were an overall gain of 1754 new jobs and an increase in GVA of 97 million by Table 8: employment benefits year baseline new jobs county total * *Note there is a forecast decline in employment due to a recession in the private sector combined with public sector cuts Page 30

32 Table 9: GVA benefits ( millions at current prices) year baseline improvement county total The SQW report and internal workshops developed the following additional potential benefits from investment in broadband infrastructure and proposed measurement processes: Table 10: additional economic benefits rationale activities intended outcomes intended impacts measurements ensuring a level playing field for Northumberland businesses demand stimulation and digital inclusion encourage main contractor to use local contractors in programme roll out ERDF business support project enabling fibre to the cabinet/property for all key business locations improve other broadband connectivity options improve connectivity broadband independent surveys mobile to increases employment in expansive use of superfast broadband and related technology growth in inward investment evidence of talent attraction and retention growth in creative and knowledge economy sectors increased skills and higher skilled jobs productivity gains increases in tourism spend increase in agile working protected jobs new jobs business retention new business start ups increased productivity business growth increased GVA positive image for business in Northumberland increase in earnings increased propensity for young talented people to stay or be attracted to work and live in Northumberland employment figures number of start-ups and new business location by sectors, increase employment numbers GVA growth skill levels earning levels employee profile in age improved visitor feedback and increase in visitors attendance at internet awareness sessions demand superfast broadband for Page 31

33 Table 11: community benefits rationale activities intended outcomes intended impacts measurements enabling community wide access to superfast broadband demand stimulation and digital inclusion activities investment in exchanges and/or developing and supporting bespoke community level solutions use Northnet as backhaul resource specifically to rural areas independent surveys increased improved access to education, skill building and employment opportunities access to improved public services increased propensity to develop home based businesses the young, elderly and infirm able to live in sustainable rural communities access to cost saving internet services community engagement in building own solutions increased work and business diversification opportunities efficient, cost effective public service delivery sustainable, protected communities environmental improvements democratic representation increase in home based working reduced journeys improvements in business and employment growth increased number of on line public service transactions increased customer satisfaction (in public services) reduced car and bus journeys demand for superfast broadband attendance at internet awareness sessions increased development of telehealth and telecare provision home based working reduced car and bus journeys increased engagement in democratic processes Page 32

34 Table 12: public services benefits rationale activities intended outcomes intended impacts measurements improve public services through innovative and increased exploitation of broadband and associated technologies demand stimulation and digital inclusion shared approach with sector partners catalytic effect on transformation programmes radical improvement in access to web based education resources lower transaction and other costs increased use of on line services optimised use of reconfigured Northnet raised educational and skill development attainment levels relative to national averages and local employment needs new investment in Northnet and partner networks extend Northnet backhaul resource specifically to rural areas development and design of innovative web based service delivery improve options for mobile connectivity to broadband independent surveys open up access to web based health service and delivery options including tele health and tele care full utilisation of Northnet as asset increased opportunities for agile working and home based working positive reputational effect improvement in democratic processes increased efficiencies and improvements in service delivery creation of a virtual on line university standard service increased customer satisfaction environmental protection resilient connectivity reduction in need for public sector office space increased public engagement in democratic processes single service channels public sector efficiency savings increase in home working reduced journeys improvement in health and social well being expansion of Northnet based activity levels of integration with other public services improved qualitative voting and lobbying patterns customer satisfaction and reputational status Page 33

35 E4: Risk Management The Council has a formal and well established risk management methodology. Risk management will be a key responsibility of the programme board and management team and will be an integral element of the programme s performance management and quality assurance process. Table 13: Risk register Risk Description Likelihood Severity Threat Mitigation 1 2 demand stimulation fails to raise take-up/realise benefits the wider public sector does not fully utilise to help fully transform service delivery. M H M design multi option approaches for different target groups L M L design shared targets and include sectors in programme board membership a lack of interest/capacity or general resistance constrains community hub type solutions (wireless and fibre) unable to achieve sufficient private sector investment failure to secure sufficient revenue funding to deliver objectives technical, legal and commercial barriers prevent the most effective re-use of public sector networks (Northnet) planning permission/way leaves leads to delivery delays failure to secure suitably qualified main contractor that will deliver objectives to deadlines example due to capacity constraints in market M H M predefined engagement plan for each community setting out business case and support and solution options M H M early implementation of demand stimulation plan / clear evidence of demand / pre-procurement agreements M H M ensure plan has total support of all key bodies and is aligned as priority M H L pre-procurement agreements and resolution of any issues in advance of procurement M M M include planning officer in programme team. Use of data room process to anticipate potential issues L M M position tender as compelling commercial and public relations opportunity to attract best quality interest. Support with professional dialogue and presentation process Page 34

36 failure to secure best value due to weak competitive tension detailed surveys by main contractor increases costs delivery by private sector does not meet required standards pace of technological change outpaces solution delivery cost exceeds budget due to unforeseen issues legal challenge from unsuccessful bidders delays programme insufficient capacity and resources to manage the programme failure/delay in obtaining state aid notification L M M expert support at every phase of procurement process. Liaise with OFCOM on techniques to improve competition. Ensure Northnet include in scope of tender L M L procure independent advice, use data room to model cost solutions ahead of procurement L M L effective management, SLA structure, regular KPI measurements, contractual obligations and penalties in place, manage expectations M M L phase programme delivery, structure procurement, periodic reviews M H M provide contingency, use pilot study outcomes, early stage legal involvement and robust, technically sound procurement process, tight budgetary control and reporting L L L robust technically sound procurement process, effective communication, pre-plan formal responses to claims L H L pre define required resources. Budget for contingency. Effective recruitment and job descriptions. Performance measurement L H L use BDUK umbrella. Ensure all internal processes are involved Page 35

37 absence of supplier competitiveness and low take up levels impacts on ROI State Aid notification not being approved Call off only attracts one supplier M H L effective, well managed demand stimulation processes clear visible support from all major stakeholders. Performance measurement monitored regularly M M H work closely in partnership with BDUK to eliminate risk and deliver a well-planned public consultation process M M M Council keeps supplier market warm preprocurement and continue to attract new funding and stimulate demand Page 36

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39 Appendix 1 - Key supporters Paul Woolston Jim Mackey Mark Dennett Alex Bennett Tony Dell Sue Longstone Tony Gates Giles Ingram Guy Opperman MP Sir Alan Beith MP Ronnie Campbell MP Ian Lavery MP Stephen Hughes Martin Callanan Fiona Hall Angus Collingwood-Cameron Peter Baggott Councils David Francis James Ramsbotham Chair Local Enterprise Partnership Chief Executive, Northumbria Healthcare (NHS) Chief Superintendent, Northumbria Police Acting Chief Fire Officer, Northumberland Fire Authority Chair, North East Ambulance Service North East Area Manager, Environment Agency Chief Executive, Northumberland National Park Chief Executive, Northumberland Tourism MP for Hexham MP for Berwick MP for Blyth Valley MP for Wansbeck Northumberland MEP Northumberland MEP Northumberland MEP North East Director, Country Land and Business Association Policy Committee, National Association of Local Director, Community Action Northumberland Chief Executive, North East Chamber of Commerce Simon Hanson Development Manager, Federation of Small Businesses Sue Rankin Secretary, Institute of Directors, North East Page 38

40 Appendix 2 Local Broadband Plan Programme Draft Engagement Plan (extract) Page 39

41 Engagement Plan 1. Stakeholders Community Parish Councils Community Group associations Community broadband providers and interest groups General community Private Sector LEP Leadership Group Chamber of Commerce FSB Landowners Association NBSL Northumberland Tourism Farmers Union SMEs Start ups Politicians Local MP s and agents MEPs and agents Councillors Parish Councillors Public sector Local authority Education centres All other public sector service providers National park Housing associations Miscellaneous Page 40

42 2. How we will engage promote programme through inorthumberland branding use professional marketing agency to develop effective engagement methods employ communication manager and staff for programme community representation on programme board use stakeholders own communication channels including intranets use lessons learnt from pilot study areas and other local authority areas utilise and extensively promote inorthumberland web site use social networking tools awareness events targeted mail shots and surveys recurring campaign programmes demand registration processes training courses technology trials engagement in national programmes example : Go-Online newsletters information leaflets press packs competitions compilation and promotion of case studies provide support to relevant local community group broadband schemes capture relevant data in data room Page 41

43 3. When will we engage engagement - started on trial basis from August 2011 launched inorthumberland web site detailed questionnaire process (through Peoples Panel) September 2011 newsletters published November 2011 onwards awareness training October 2011 onwards engagement with social housing providers to develop pilot study process December 2011 full time communication team recruitment started February Who will be responsible Programme Director SMT and supporting groups Broadband Delivery Group and inorthumberland Advisory Group Communications Manager CEO and Senior Responsible Officer Sector representatives Local digital champions for business and community Page 42

44 Appendix 3 Case studies Case Study 1 I live in Howick (near Alnwick) and our connection is appallingly bad. I speak to my Internet Service Provider (ISP) and they blame the phone line; the telephone company blames the ISP. I just go round in circles. Everyone in the village has a problem residents and those businesses that operate here. It is almost as if you live in the country, you re not supposed to be bothered about the internet. That couldn t be further from the truth. We are desperate for better connections. Di Sparks, Howick resident Page 43

45 Case Study 2 Helping Residents Get Online Northumberland is thought to have one of the lowest rates of internet usage in the country. Owing to a combination of factors from lack of confidence, affordability or education - it is estimated that one out of every five people has yet to go online. In late autumn 2011, Northumberland County Council s library network worked with a voluntary organisation, Northumberland Community Development Network (NCDN) to run 26 free courses across the length and breadth of the county. These courses were promoted to signpost people to the volunteer helpers who were on hand to help them take those first tentative steps onto the World Wide Web. 265 people received help through the County s library network 146 of them using the internet for the very first time. NCDN report similar numbers of people helped through their events predominantly held in community centres and old people s centres. Julia Lyford, director of NCDN said: We recruited a great number of people to help out at these events all of whom committed to give up some of their free time on an infrequent basis. Clearly the appetite is there for people wanting to develop their skills to go online. We plan to build on this week into a long-term calendar of regular internet starter sessions recruiting more and more volunteers to help reduce the digital divide in Northumberland. Page 44

46 Case Study 3 Fontburn Community Broadband Project A couple of years ago, Louise Kirkwood was home alone near Fontburn, Northumberland. Her husband was away on business and Louise was struggling to contact him. Outside, it was blowing a gale something that is not unusual for this remote part of Northumberland and as a result, Louise s landline was clicking on and off. Her internet connection so unreliable at the best of times was non-existent and her mobile could not connect to a signal inside the house. In a peak of desperation, Louise stepped out into the cold night air in a vain attempt to get her mobile to work. As she stood in the middle of the dark unlit country lane rain splattering down and wind howling all around her Louise thought to herself there must be an easier way than this. From that lonely dark winter night, the Fontburn broadband project was born. A group of local residents got together with the intention of bringing a more reliable internet connection to the small hamlet. A couple of years later, they have succeeded in bringing a wireless connection to Fontburn sharing a 3Mbps connection among 11 properties. Obviously this speed is not sufficient for everyone to use data hungry applications all the time so the community works together to self-police the network. It has given the villagers a taste for what is possible and this small community is now desperate for faster speeds which can be equitably shared across many more properties. Louise said: Faster internet connections have really benefited those families who have joined the scheme. We ve helped school children with their studies and new businesses to grow. We ve had a taste of what a faster internet connection can do yet at times it just isn t fast enough for all these families to use it concurrently. We need another solution but our project has shown just what is possible when you put your mind to it. Page 45

47 Case Study 4 Goats on the Roof Nina and Darren Remnant own one of the most unusual coffee shops and cafes in the country. The aptly named Goats on the Roof literally does have goats, on the roof. The wooden built structure has a turfed roof and a ladder to allow the goats to climb up and down to graze. A simple idea which was inspired by a visit to Canada has resulted in a thriving business. The café business was a diversification from their rare breed farm operation rearing more than 100 sheep and pigs to produce a variety of high quality delicatessen foods. Nina said: We started the business 18 months ago in early Being in a remote location, set back from a main road, we realised that the café was going to be a destination location. People had to plan to come to see us so promotion was key. The café is one of 11 premises connected to Fontburn broadband project a community-led initiative that shares a 3Mbps wireless connection. Nina is quite direct when it comes to describing how her business has benefited from this connection. Quite simply, without the connection, we would not have a business. Our website has had a phenomenal effect on attracting customers we ve even have people reserving tables via Twitter. We keep our Wi-Fi connection open for customers and visitors to use the password is goats. That way, we attract people into the café who pop in with their laptop, sit down for a coffee and cake and surf the web as they go. We would like a better connection and a choice of service providers. The connection is quite expensive and not always that quick but it has served us well. Page 46

48 Case Study 5 Running an Internet Business without a Phone Line Reuben Carrdus is an Internet entrepreneur, running two successful IT businesses from Wooler in north Northumberland. Wooler is a remote town with a population of less than 1,800, set in one of the most stunning landscapes at the heart of Northumberland s National Park. It was this landscape that attracted Reuben to relocate his family from Oxfordshire seeking a slice of the good life for him, his wife and their two young children. You might expect Reuben to have the very best Internet connections available. However, Reuben s isolated home doesn t even have a landline connection and he can only gain one bar on his Vodafone mobile phone. BT has quoted Reuben 36,000 to connect his house to the telephone exchange making a landline an unaffordable luxury and one which, owing to the long distances to the nearest exchange, would not necessarily provide a reliable connection. Having tried a satellite broadband solution at home (something which is now switched off owing to the headaches the family felt it was causing), Reuben has taken on a small office in the Cheviot centre, a community centre and business hub based in nearby Wooler. Reuben said: A few nights ago, I was working on a tender document until 11:30pm at night. It was only when this was finished that I could then drive home. It would be great if I could viably work from home but it just isn t possible. It is only with the connection provided at the Cheviot Centre that I am able to run my two IT businesses both so reliant on a reliable, stable internet connection. My children share a netbook so when they need to do homework, they come into my office, download what they need and take it away to look at back at home. It certainly isn t ideal. Page 47

49 Case Study 6 Learning from Northumberland Moople.net is run from Northumberland by Reuben Carrdus see case study 5. Moodle is an education resource that aggregates cloud-based technology such as Google Apps for Education and Microsoft Office 365 into a single user-friendly interface. It means that schools and colleges can bring together a number of different learning and productivity resources into a single system. Reuben started the business in January 2011 and within 10 months, he has signed up more than 500 schools. Every primary and secondary school in Kirklees (West Yorkshire) now makes use of this system alongside several larger independent private schools. Reuben said: I run my business entirely from rural North Northumberland out of a community business centre as I do not have a landline at home owing to its remote location. With the connection I have here, I connect to my business partner in Staffordshire, our data servers in Frankfurt and Nottingham, designers in India and China and developers in America. If I need to showcase the system to clients, I use Skype and a video conferencing system to run live demos of the system. It just shows what is possible with a reliable connection. Moople allows students and teachers to share resources and collaborate on group work. It also allows teachers to issue and collect homework assignments direct from the system no more excuses of I ran out of printer ink or the dog ate my homework! It means teachers and students can remain in constant contact something that is especially useful for rural schools who are sometimes forced to close for days on end during bad winter weather. Page 48

50 Case Study 7 Connecting Rural Healthcare For a rural community spread across a larger geographic area, ensuring quick access to high quality medical care is a challenge. Winding rural roads and remote locations means than some patients can be more than an hour away from emergency care when they fall ill. We see a future where broadband technology can help bring specialist medical care to even the most remote corner of Northumberland. For example, take the pilot project in Lancashire and Cumbria, delivering stroke services to patients at eight hospitals in Lancashire and Cumbria. When a major stoke happens, time is of the essence and a speedy diagnosis with medical intervention can make a huge difference to the patient. The Telestroke initiative allows any one of 15 stroke physicians to consult patients from home using broadband technology. Patients reaching hospital outside normal hours can now be diagnosed by a consultant using a mobile screen, called a telecart, at their bedside. Paul Davies, consultant stroke physician at North Cumbria University Hospitals NHS Trust, said: We are using technology to take the stroke specialists to the patient, rather than moving the patient long distances, around rural areas, to where the specialists work. In an acute stroke, time is of the essence and the sooner treatment can be provided, the better. Not only does such a project directly benefit the patient with faster diagnosis and care, but The Cardiac & Stroke Networks Lancashire and Cumbria predicts that the programme could save an estimated 8m each year for the hospitals concerned. Page 49

51 Case Study 8 Getting Northumberland s Tourism Businesses Online When Giles Ingram came to his role as chief executive of Northumberland s tourist board, he found that the county s tourism businesses were falling behind the rest of the country in terms of internet usage. With support from the then Regional Development Agency (RDA) - One NorthEast - Giles worked to promote the benefits of online booking facilities and the importance of a web presence. Giles said: Tourism is so vital to Northumberland s economy and what we found was that many businesses were just not using the web to its full effect. Many people were sceptical about how the web would benefit their business and some just didn t know where to start. We worked with One NorthEast to develop a piece of software that businesses could use to manage their online reservations. We also ran free courses to teach online marketing techniques helping those nervous business owners by equipping them with the skills and confidence to go online. Within a short space of time, Northumberland s tourism businesses leapfrogged the rest of the North East to become the county with the highest proportion of businesses using the internet. In an age where evidence shows that most people plan their holidays online, the importance of this cannot be underestimated. As technology continues to develop and advance we need to work to continue delivering solutions to our businesses and visitors. Our businesses now need faster and more stable connections with repeated evidence showing that their current connections are just not up to the job. Furthermore, as we step into the post-pc era, we need to ensure that Northumberland s tourism sector can access the fastest internet speeds possible in as many locations as possible sometimes using mobile and handheld devices. Page 50

52 Case Study 9 Howick Hall and Gardens Howick Hall and Gardens near Alnwick is a popular tourist attraction. In 2009, the gardens won the prestigious national award of Garden of the Year from Gardens Illustrated magazine. Run as a charitable organisation, the staff and volunteers rely heavily on donations to continue their work with one supplementary income stream coming from GiftAid. Basically, when a British tax payer makes a donation to a charity, the charity is able to claim tax back on the donation from the Treasury. Termed as GiftAid, for every 1 donated, the charity is entitled to an additional 28 pence from the chancellor s coffers. For a small charitable organisation such as Howick Hall, this can make a huge difference. To make it easier for donors to apply for GiftAid, the charity invested in some Electronic Point of Sale tills (EPOS). The tills use an internet connection to search for the donor s home postcode to find their full address automatically generating a completed form for the donor to sign. Di Sparks who runs the office said: The simple fact is that the tills don t work. Our internet connection is so poor that the system crashes and they just don t do what they are supposed to. It is one thing to suffer IT problems when you are on your own in an office. It is quite another thing to have problems when a queue of customers is building around you. We have spent thousands of pounds on IT consultants and wasted staff time in trying to fix this problem. It seems that IT people from the towns don t appreciate how bad it is for people in the countryside. In this day and age, people expect the internet connections to just work. We are so dependent on them now that it is a real problem when they don t. Page 51

53 Case Study 10 A Cautionary Tale Trackaphone is a growing business one which started out in Northumberland before being forced to relocate to neighbouring Tyneside as a result of the County s poor broadband connections. Trackaphone provides a service to businesses across the UK allowing them to track their vehicles and employees in real time via GPS satellite monitoring. The manager can log into an online system which maps out where all of the vehicles and employees are at any given moment. This allows companies to make more efficient use of their resources by deploying their staff in the most logical and effective way possible saving both time and money. Any business providing such a service is largely dependent on good quality, reliable internet connections. When the business began life from an Industrial Estate in Amble, owner Phil Derry invested 60,000 in installing a high-speed connection to the offices. This was leased from BT at an on-going rate in excess of 6,000 each year a huge expense, but one the business could not afford to be without. By 2006, the business was beginning to outgrow the Amble offices. Phil started to look at alternative offices within Northumberland but, being unable to find one of sufficient size with the connectivity the business required, he was forced to make the decision to relocate the business to Gateshead. Phil said: As much as we would have liked to keep the business within Northumberland, the infrastructure was just not in place to allow us to do so. In the end, we were able to find offices in Gateshead which meant we could instantly benefit from high-speed internet connections. We had to make the decision that was right for the business and we simply would not have been able to grow had we stayed in Amble. Page 52

54 Case Study 11 Fast is Not Enough We Need Superfast! Internet Search Marketing (ISM) provides online marketing services to businesses across the UK. By their very nature, such businesses rely on good quality internet connections needing to upload and download phenomenal amounts of data each and every day. When ISM started out, the then business owners worked with the Council to install highspeed connections into their offices. At the time, the Council was undertaking work to install its own public sector network across Northumberland so ISM was able to benefit from a connection into this infrastructure. When the credit crunch began to take effect on the global financial markets, ISM s Singapore-based owners decided to withdraw their backing from the business. For a while, it looked like ISM would be forced to close, however, seeing that a viable business still existed, the managers decided to lead a management buyout and grow the business once more. Current chief executive, Gary Herron said: We all knew that ISM was a viable business with great prospects so none of us took that much persuading that a buyout was the best option for our futures. However, the change in circumstances within the business meant that we could no longer sustain the size of office nor the number of staff we had previously. Our data connection was so valuable to the business that we immediately spoke to the Council to see what support they might be able to offer. We discovered that a business incubation facility existed in nearby Berwick and that that too benefited from connections into the Council s high-speed network. We learnt that we were eligible to move into this facility and signed a new tenancy in July of this year. Had this office and connection not been available on a smaller scale to the one we previously occupied, the management buyout might not have been a viable option or we might have had to look at taking the business out of Northumberland. While we are very grateful for the connections we currently have via the Council network, we would like faster speeds. We transfer a huge volume of data each day our daily backups alone take 6 hours to upload over the network. As a result, we have paid for an additional line from BT to provide additional capacity for our engineers. Page 53

55 Case Study 12 An e-commerce Strategy Leads to Jobs in the Rural North If you are going to open a shop retailing outdoors equipment to women, where better to do so than on the doorstep to Northumberland s National Park in Wooler? Wooler is a small town, with a population just over 1,800 residents. When Alison Wright decided to open her shop, Gear for Girls in 2005, she realised that the local market would not sustain the business for long and that she would need to invest in an online presence. Alison said: I knew the web was going to be incredibly important for the business, so I spent a great deal of time and effort in getting our brand and website just right. This has turned out to be the best decision I ever made as today, more than 80% of our business comes from online. Gear for Girls currently employs four people full time, one person part time and two freelance staff who support Alison in the web development. For a town such as Wooler, this is a significant number of jobs. Alison said: I do a lot of the web development myself, having learnt over the years. The connection is ok during the day, but in the evening in can grind to a halt as more and more people try to go online. Uploading photos can be a nightmare at times and video can be near impossible. The connections are ok for now but we would certainly welcome faster, more stable connections. This would guarantee the viability of us being in Wooler; in the long-term, we might have to look at moving out of the town if the connections did not keep pace with technology. I know that our business has provided a real draw to the town. I have customers who travel to us from both Edinburgh and Newcastle who have viewed items online but wanted to visit us to try them on before buying. I m sure we ve helped bring extra visitors to the town. Page 54

56 Appendix 4 - MAPS No. Section Title Index of Maps - contains confidential data 1 Topography Topography highlights the rugged terrain in the county 2 Population Population centres shows key towns and areas of population 3 Business Business concentrations shows locations of registered businesses 4 Social Areas of deprivation based on the DCLG index of multiple deprivation 5 Education Distances to further education highlights the constraints created by county having only college of Further Education, no universities etc. 6 Public infrastructure Transport infrastructure shows the road, rail and airport links 7 Northnet PSN infrastructure shows the main PSN Northnet (managed by Council) 8 Broadband Exchange locations locations of exchanges and if unbundled or ADSL2 9 Speed Broadband speeds shows average speeds by exchange no superfast or cable provision 10 Lines Direct lines shows number of direct lines by exchange 11 Not spots & slow spots Residential premises Coverage 12 White, Grey and Black areas Target areas Based on BDUK data all of the county currently falls into either Grey or White Page 55

57 MAP 1 MAP 1 Topography Northumberland has a very rugged topography dominated by the Cheviots the highest point set at 815 metres above sea level. The main centres of population are in the south east of the county close to industrial centres and road and rail infrastructure. Page 56

58 MAP 2 MAP 2 Population centres The main centres of population (in yellow) are in the south east of the county. The overall population is The largest town has residents. Northumberland is typified has having large numbers of small communities (in green) dispersed over a very large and rugged area and has the smallest number of people per hectare in England. Over 28% of the population is over 60 and this is expected to rise further in the future. Page 57

59 MAP 3 MAP 3 Business concentrations There are registered business premises in Northumberland. The largest private sector employer Alcan is set for closure in This will have a wide ranging impact notably on local SME suppliers. Typically there are large business clusters in the main population centres but increasing numbers in the more rural areas. Demands to improve broadband services in these areas are increasing. Page 58

60 MAP 4 MAP 4 Areas of deprivation Northumberland has areas of significant deprivation due to employment, age, low income and the remoteness to services in many parts of the county. The highlighted area is amongst the most deprived in the country. Page 59

61 MAP 5 MAP 5 Distance to further education This is critical to the future economic well-being of the county. There are no universities and a single major college in the south east of the county. This map highlights some of the major barriers - distance and cost specifically - to accessing further education. Access to a superfast broadband infrastructure will enable the development of web based Page 60

62 MAP 6 MAP 6 Transport infrastructure There are no motorways in Northumberland and limited stretches of dual carriageways. There is a mail rail service to London and a cross county service from Newcastle to Carlisle which runs through the county. The nearest airports are in Newcastle and Edinburgh Page 61

63 MAP 7 MAP 7 PSN infrastructure The main PSN network in Northumberland is Northnet. This is a fibre optic based service leased from BT. It provides services to Northumberland County Council and the Fire Service offices and depots, some schools, community centres, health centres and businesses. It also incorporates a Council owned wireless mesh. Page 62

64 MAP 8 Redacted BT Information Page 63

65 MAP 9 MAP 9 Exchange broadband speeds Based on average speed data at each exchange - provided by Point Topic (2011) - this map highlights that the average speed is (at the exchange) below the 6Mbits claimed by OFCOM. 68% of respondents to a NCC commissioned survey recorded broadband speeds below 2Mbits. Page 64

66 MAP 10 MAP 10 Direct lines This map highlights the disproportionately large number of direct line connections in Northumberland. Page 65

67 MAP 11 MAP11 Slow spots & not spots The white circle denotes a radius of 2.5 kilometres from the position of the exchange. Properties outside this radius will be affected by slow and no broadband services. The majority of exchanges are small with above average levels of service contention. Note there is no cable based broadband service in Northumberland MAP 12 Page 66

68 Redacted BT Information Page 67

69 Appendix 5 inorthumberland details In reflecting the ambitious and all-inclusive objectives of the programme, a dynamic programme brand has been developed. The inorthumberland identity purposefully omits the reference to technology with evidence suggesting that overtly technological messaging and imagery alienates large parts of the population. There is no visual representation of IT equipment or typical internet imagery for example, beams of light to represent fibre connections or web netting. In contrast to many other projects of this nature, our brand deliberately steers clear of this and focuses on individuals, connections and outcomes. The project team is already working to address the challenge of more than 1 in 5 people in Northumberland having yet to use the internet. inorthumberland represents the benefits of a connected community illustrating the outcomes, strength, advantages and opportunities. The use of the letter i places the individual at the centre. This mirrors the usage in popular consumer technology and lends itself to various interpretations for example Internet Interconnected - Intelligent etc Regardless of whether the individual at the centre of the process is a person, business, school, hospital or community group it clearly demonstrates that connectivity strengthens the county both socially and economically. Ordinarily with a campaign such as this, you would focus on key audience segments. The brief for the inorthumberland campaign is to appeal to all sectors of Northumberland s demographic and therefore, our campaign and brand needs to be all-inclusive and offer the potential to tailor messaging to focus of key audience sectors. The colour coding of icons representing benefits and outcomes alongside connecting lines means that the imagery works as whole while allowing the potential to focus on key sector areas (i.e. healthcare or business). This builds on a similar principle to the London Underground map where you can navigate your way across London from any tube station leading to multiple opportunities and outcomes. A portfolio of marketing materials launched in October - is being used by the team to drive engagement and stimulate demand from seven key audience groups: 1. residents 2. businesses 3. education 4. tourism 5. public services 6. healthcare 7. voluntary sector Page 68

70 Northumberland inorthumberland Digital Inclusion Events A3 Poster issued across Northumberland to signpost people to free volunteer-led taster sessions, aimed at helping people take their first steps onto the internet. Page 69

71 Northumberland inorthumberland Awareness Poster A3 Poster issued across Northumberland via libraries, community centres, council-run customer service centres and leisure facilities. Page 70

72 Northumberland inorthumberland Postcard Panoramic postcard, used as an off-line feedback form for those unable to access the internet. 10,000 distributed across Northumberland via all 34 fixed libraries, 4 mobile libraries and community centres. A further 2,000 cards shared among the four Northumberland MPs for use at events and constituency surgeries. Page 71

73 Northumberland inorthumberland Website The inorthumberland website was created to provide a central point of reference for all broadband activity across Northumberland. In representing the a project that aims to bring the best of the internet to the county, the site aggregates content and links to the primary social network sites Twitter, Facebook, YouTube and LinkedIn. Page 72