FibreSpeed: a working model for regional Next Gen investment

Chris SmithCommercial Directorchris.smith@geo-uk.net

Delivering broadband inclusion in Wales

Local Broadband InitiativesRegional Innovative Broadband Support Scheme (RIBS) – “notspots”

Super Fast BackboneFibreSpeed – North Wales

Demand Aggregation Public Sector Broadband Aggregation (PSBA)

FibreSpeed: the network• Geo won a competitive

tender to build and operate a 320km network Manchester to Anglesey

• Funded by EU, WAG & Geo• Initial cost £30m over 15

years• Build completed in 15

months: now live• Code powers• Wireless access• An essential infrastructure

for Next Gen broadband services

FibreSpeed: the business

• Open access network• Service provider

channel model• High speed data

services• Brings infrastructure

competition to North Wales

• First sales closed; healthy sales pipeline

• Pricing benchmarked to SE England

• 14 business parks• State aid compliant

End-User End-User End-User

The public/private partnership challenge

Proof of market failureto attract EU/UK public sector funding

Proof of demand to to attract private sectorpartnership

shared risk and reward profile

A commercial blueprint for digital inclusion

Indicative Cash Flows

Y0 Y15

Time

Money

WAG Bidder

• Agreed cost and ROI profiles over life time of the deal

• Shared risk and reward• Long term investment

15 to 20 years with exit options

• SPV model• SPV Ltd • Supply partners• Agile resource

Regional SPV

Geo

• Geo is a British company - launched in 2004• Next Gen network solutions• Newest networks across UK (3,000km); London (100km)• Significant constructor of new duct & cable (20km/week)

• Unique and disruptive “open access” business model which puts the full power of optical fibre in the customer’s hands:• Design; Build; Operate; Commercialise

www.geo-uk.net