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Digital 2020 Supplier Briefing Monday 24 th October 2016
Digital 2020
Supplier Briefing Monday 24th October 2016
Welcome
Julian Cobley
Managing Director
The Skills & Growth Company
Programme
8:30 Welcome
Julian Cobley – Managing Director, Skills & Growth
8:45 Connecting Cheshire & Digital 2020 Overview
Julian Cobley – Managing Director, Skills & Growth
9:00 Broadband Not Spots & State Aid
Jamie Potter, Broadband Delivery UK
9:30 Not Spots & Connection Voucher Scheme
Justin Williams – Connecting Cheshire
9:45 Digital Business Support
John Willis, Business Engagement Manager – Skills & Growth
10:00 Project Management & Communications
Justin Williams
10:15 Q&A Session
10:30 Summary & Next Steps
Connecting Cheshire &
Digital 2020 Overview
Julian Cobley
Managing Director
The Skills & Growth Company
We’ve now
reached
92,000 premises
across
Cheshire
But, we have
much more
work to do…
Where are we now?
• Phase 1 & Phase 2 to date - reached over
92,000 additional premises with fibre
• Over 580 cabinets installed and 80
community switch-on events held
• Take-up amongst the highest nationally - 40%
• Leveraged over £3m back into the project
via Phase 3 ‘gainshare’ arrangement with BT
• Phase 3 due to run late17 to summer 18
700 new
roadside
cabinets…
Phase 1 & 2
£38.5m Infrastructure Investment
Over 100
engineers…
1,000 miles of
fibre-optic
cable.
Independent Speed Data
<2Mbps >24Mbps >100Mbps
Eddisbury 2.3% 80% 2.3%
Tatton 1.3% 88% 41%
Crewe & Nantwich 0.4% 95% 0.9%
Macclesfield 1% 92% 71%
Weaver Vale 0.3% 94% 24%
England Average
0.6%
93%
54%
Premise speed data by constituency including commercial providers
Source: Thinkbroadband.com – Sept .16
Connecting Cheshire coverage to date:
approx. 92% FTTC and 8% FTTP
Independent Speed Data
Source: Thinkbroadband.com – Oct .16
Superfast coverage >24Mbps
• Cheshire East – 91.5%
• Cheshire West and Chester – 92%
• Halton – 97.3%
• Warrington – 98%
Phase 1, 2 & 3* Coverage
*Phase 3 indicative
Digital 2020 Overview (Phase 4)
A 2 year, £11m ERDF project covering Cheshire
& Warrington LEP area:
Digital 2020 will enhance access to digital
technology for SMEs in the Cheshire &
Warrington LEP area. It will improve the quality
(speed and reach) of digital infrastructure and
boost the use of digital technology by
businesses.
Digital 2020 Overview (Phase 4)
Made up of 3 complementary strands:
• Not Spots: extending superfast broadband to
under-served areas
• Connection Vouchers: helping businesses
access and exploit ultrafast broadband
• Digital Business Support: advice and guidance
to secure digital-led business growth.
Digital 2020 Project Overview
Seeking partners for 3 strands:
• Not Spots
• Connection Vouchers
• Digital Business Support – provided by Skills &
Growth Company
• Centralised PMO – provided by S&G Co.
Digital 2020 Project Overview
How the strands of Digital 2020 will contribute
to the two Specific Objectives in the ERDF call:
2a: Increase
Coverage
2b: Increase
Productive Use
Not Spots X
Voucher Scheme X X
Digital Support X
What’s in it for you?
• Cheshire is open for business – strong demand in rural areas for faster speeds
• Dynamic knowledge economy - HS2, SKA, Science Corridor, Creative & Digital
• Cheshire economy out performs North West and on a par with South East
• Stats: Regional level – over 6% higher prosperity than national average, including London Typical Rural Localities – 57% home-owners, av. home £350k – ‘Affluent Achievers’
• Approx. 4,640 eligible SMEs in scope, in predominantly rural areas
BDUK – Reaching 100%
Connecting Cheshire – Supplier Engagement
Jamie Potter, Broadband Delivery UK
24 October 2016
Delivering Superfast Broadband Objectives
• Superfast broadband coverage available to 90% of UK homes and
businesses and on track to achieve 95% by Dec 2017.
• Access to Universal 2Mbps standard broadband now in place.
• New Local Body procurements to rollout to additional areas
Typical Procurement Scope
Wholesale Contract Model
Consumers
Prime/ Consortia
Retail Service
Providers
BDUK
EU funding
Local funding
Funding
Subs
Subs
Subs
Local Body
Contract Contract
• Scope: to deploy an NGA solution targeted at “NGA white” areas
and offer wholesale broadband products and infrastructure services
– Areas that do not, or will not, receive speeds of at least 30Mbps mapped
through a public consultation process
Typical Procurement Scope
Gap Funding Model
Capex Build Cost
NPV of Future Profits
Gap (Public Funding)
Public Funding given to supplier to build the network, up to the level needed to close the gap
Government goal to minimise gap, delivering
maximum premises with
minimum public funding
Typical Procurement Scope
Typical Risk allocation
• Risks primarily owned by supplier – Network design risk
– Technology selection, supply and integration risk
– Planning and implementation risks
– Cost outturn risk
– Service delivery risk
– Take-up risk
– State Aid – repayment of clawback
– State Aid – repayment of illegal aid
• Risks primarily owned by local body – Securing sufficient funding to meet objectives
– Identifying target priority areas
– Designing project to attract suppliers
– Political and practical consequences
– State Aid – ensuring project compliance
£
£
£ £ =
BDUK
Funding
European + Local Project
Funding
Commercial
Sustainability
Supplier’s
Investment
Consumer
Revenue (driven by take-up)
£
Supplier’s
Running Costs
State Aid Requirements
The National Broadband Scheme (2016)
• State aid is the use of public resources which distorts competition and
affects trade between Member States, e.g. grants, loans, benefits in kind
• Projects must comply with the Commission’s ‘2013 Broadband guidelines’
which outline their policy on applying State aid rules to broadband projects
• In May 2016, the UK secured an ‘umbrella scheme’ from the EC http://ec.europa.eu/competition/state_aid/cases/263954/263954_1760328_135_4.pdf
• Decision sets out the criteria for compatible projects under a scheme
• BDUK’s National Competence Centre assures individual projects for
compliance
State Aid Requirements
How procurements must be run
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• Local Bodies must justify their choice of project delivery model and
their design of the procurement process
• Immediate procurements will only be on ‘open access’ basis
– Products can be used for any commercial and public
telecommunications purpose (i.e. including backhaul)
• Procurements must be technologically neutral and select the Most
Economically Advantageous Tender
– Local Bodies’ must use preset selection and award evaluation criteria
• Bidders who own or control infrastructure within the intervention
area must enable other bidders to re-use it within their bids.
• Bidders will need to sign up to a ‘code of conduct’ about sharing information during the bid process
– Bidders will need to make their passive infrastructure available consistent with the requirements of the Civil Infrastructure Directive
– Regulated products also will be available.
– Code of Conducts outlines the how and when information about that infrastructure will be shared between bidders.
State Aid Requirements Existing Infrastructure Code of Conduct
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• Must target the NGA white areas with NGA qualifying technologies
• E.g. FTTP, HFC (docsis 3), FTTC, and Fixed Wireless Access (configured appropriately)
• Infrastructure must be capable of delivering access speeds over 30Mbps
and a “step-change” in capability – including at least a doubling of speeds
• Wholesale access to the passive and active network must be made available
to third parties
• Applies to new and existing infrastructure used in the intervention area
• New infrastructure must enable additional capacity to be made available for future demand
(where technically and legally feasible)
• Prices based on those available in more competitive areas
• Access must be provided for at least 7 years after implementation is complete (indefinitely for
passive assets)
• Clawback mechanism to recover excess subsidy over life of the contract
State Aid Requirements Scope of what’s required
25
Required forms of wholesale access:
• Passive access via dark fibre, duct, pole and other new physical assets e.g masts
• Physical access to cabinets including power provision
• Copper loop unbundling e,g. LLU or SLU
• Mast access via mast space including power provision
• Antenna sharing
• Active access e.g. bitstream and for backhaul
• Other forms of access requested (subject to reasonable demand test)
Wholesale access products and pricing:
• Prices must be consistent with UK or European benchmarks of other competitive offerings or based upon non-discriminatory cost allocation
– Bidders will need to submit wholesale product descriptions, pricing and benchmark information as part of the bids for BDUK assurance
• Vertically integrated suppliers must not discriminate against other retail providers
– Product reference offers must be available 6 months before offering service
State Aid Requirements Wholesale Access
26
Further BDUK Support
27
• These slides will be uploaded to the “BDUK New Procurement Pipeline”
page: https://www.gov.uk/government/publications/bduk-new-
procurement-pipeline
• The “BDUK New Procurement Pipeline” webpage will become a central
reference point for all upcoming BDUK procurements and associated
supporting guidance such as:
• Code of Conduct for bidders to share existing infrastructure
• State Aid guidance
• Terms and Conditions template documents
• Invitation to Tender template documents
• Timetables of upcoming and live procurements
• BDUK 1:1s with suppliers where required
Not Spots & Connection
Voucher Scheme
Justin Williams Connecting Cheshire
Digital 2020 Project Overview
Not Spots - £6.65m to reach minimum 1,400
‘high growth’ SMEs:
• A technology neutral deployment, to support
investment in the most cost effective and
sustainable solutions, offered by the
marketplace
• Minimum 30Mbps service availability
• Will benefit residential and business premises
Digital 2020 Project Overview
Not Spots Timetable:
• OJEU Invitation To Tender (Nov – Dec 2016)
• Award (Jan 2017)
• Contract (Feb-Mar 2017)
• Scheme to Commence (Apr 2017)
• Scheme to Complete (Mar 2019)
Digital 2020 Project Overview
Connection Vouchers - £1.79m to reach 417
‘high growth’ SMEs:
• Extension to the UK Government’s Super
Connected Cities Programme, offering SMEs
transition to ultrafast speeds
• In line with State aid regulation, this will be
accessible to all eligible SMEs
• Complementary to the Not Spots Project
Digital 2020 Project Overview
Connection Vouchers
• Eligibility criteria
• Grant Agreement
• Up to £4000 per assist
• Voucher redeemable once full invoice is paid
by SME
• Target of 417 SMEs (1.8% of total)
• SME expenditure over and above the Voucher
contributes to the Match Fund
Digital 2020 Project Overview
Connection Vouchers Timetable:
• OJEU Invitation To Tender (Nov – Dec 2016)
• Award (Jan 2017)
• Contract (Feb-Mar 2017)
• Scheme to Commence (Apr 2017)
• Scheme to Complete (Mar 2019)
Digital Business Support
John Willis Business Engagement Manager Skills & Growth Company
Performance Framework
By aligning all the Council’s skills and growth services together, we’re here to do everything we can to nurture the growth of people, businesses and the region.
Introduction
Performance Framework
Everyone deserves the opportunity to succeed and every business the opportunity to thrive.
Digital Business Support
• £1.2m strand
• 35 SME projects benefitting from up to 20
hours of intensive project support
• 200 SME projects benefitting from lighter
touch support over 12 hours
• Seeking project partners across 3 strands
Digital Business Support
The Opportunities
• Marketing & Lead Generation
To promote and encourage take up of the Business
Support Programme
• Business Engagement – Master Classes
Suite of specialised events throughout Cheshire &
Warrington using a range of specialised advisors and
coaches.
• Digital 2020 SRO & Compliance
Project management resource including systems and
process to ensure effective and compliant delivery of a
EU funded programme.
Programme Management
Justin Williams Connecting Cheshire
Programme Management
Key Areas of Focus
• Overall Programme Management
– Running the Programme Management Office
– Programme Plan
– Budgets
– Risks & Issues
– Reporting
• ERDF Regulatory Compliance & Audit Requests
• Data Analysis
• Marketing & Communications
Programme Management
Digital 2020 Programme
Manager
Digital Engagement
Manager
Digital Engagement
Officer
Senior Support Officer
Data Analyst
Dig
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02
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Not Spots Project
Digital Support Programme
Voucher Scheme Project
Connecting Science Parks Project
WiFi Coverage
Digital Skiils - training and development
Communications
• Award winning demand
stimulation campaign
• Experienced engagement and
marketing team
• Recruited 100 Digital Champions
• Digital inclusion strategy
Questions?
