James Saunders Next Gen 09

© Quintain Estates and Development PLC 1

Multi Utility Challenges and Ventures

James SaundersManaging Director, Commercial VenturesQuintain Estates Development


Quintain

• Urban Regenerator– Wembley City– Greenwich

Peninsula

• Focussed on long-termrevenue frominfrastructureownership

• Challenging existingmodels of working withincumbents


What Multi-Utility means to Quintain

• Synergies in deployment• Synergies in operations• Forming alliances of interested parties• Innovating business models• Designing new services that meet real consumer needs


Multi-Utility Challenges

• Competing interests amongst alliance partners

– Different mandates– Different risk tolerances– Different expectations: IRR’s, Year ends– Attitude to open book / documentation– Incumbents don’t play ball unless inside Musco



• Lack of UK Precedents and Experience

– Most Musco’s on hold– Few Esco schemes live– Few NGA networks operational– Consultants with no implementation experience– New business models, technology, alliances– Large corporates stretching into new niche areas– Business model has consistently been the hardest issue to

resolve



• Unclear Regulation

– OfGem, OfWat, OfCom hard to navigate– Little joined up thinking, except protecting consumer– Changing goal posts – Private Wires, Battery Backup– Lawyers stretching to interpret rules (and learning at your

pace)– Changing Regulatory landscape does not encourage new

entrants and new models– Next Gen Telecoms are an after-thought compared to

Decentralised Energy



• Current Market Uncertainty - > build rate uncertainty

– Balance sheets are weaker– Capex plans are difficult to commit– Can’t sell services if no residents or slower move in rates– Developer bears most of the risk in alliances– Partners withdraw from particular area or de-prioritise new

initiativesDeveloper plot-by-plot mentality, not site-wide


So what are developers left with?

• You can form an alliance of incumbents, but this is NOT a MUSCO

Need to take control and set clear criteria that work for you Assemble a flexible team that has the right skills and experience to tackle the

uncertainties ahead Use modular / upgradeable technology Focus on consumer benefits - not premium pricing Flex the business model Prepare to think again – tender operations separately from asset build Hope for, but do not rely on, subsidy regime


What are Quintain doing?

• Quintain are currently not implementing Musco’s• We are focussing on the infrastructure elements that make sense

given development programme• Challenging incumbents view of the world• We seek partners with depth of operating experience (often from

outside UK)• Sustainable Supply Chain management• Prioritising Renewable Energy, Telecoms and Waste Disposal• Taking the “Brave Pill”• Learning, re-applying, exporting


Waste Disposal:

• Goals:– Zero wheelie bin environment– Fewer refuse truck trips– Higher recycling levels

• Solution: Envac Vacuum WasteDisposal

• Results:– 40% Increase in recycling– 90% fewer refuse truck trips– 400 tonnes less carbon per

annum– 15p a month per resident to run


Envac System

1A: Waste is thrown into a waste inlet 1B: The system can be retrofitted with additional inlets 2: Thecomputer- controlled evacuation takes 30 seconds 3: All waste is sucked out through a network pipes ata speed of 70km/h 4: Fans create the partial vacuum that sucks the waste through to the receptionfacility in the terminal station 5: The waste is directed to the correct container 6: The air is cleaned byfilters before it is released


Fibre Optic Communications

• Goals:– High speed broadband, TV, phone and multiple IP services to residents and

businesses– Utilising single fibre connection– Instant activation for resident– Scalable across Quintain developments and others around UK

• Solution: Velocity1– JV with Industria Media– Flexible IP platform capable of delivering multiple services

• Initial Services (because none other available)– 8,16,32,mb/s broadband with 100mb/s boost– Freeview TV and Sky-by-Wire– Phone with free calling packages– Local information portal

• Open Access roadmap

• Results: 90% consumer take-up of services.



What have we learned after 12 months?

• Consumer higher receptive to new services• However you must deliver the market norms

– Service, Support, Quality, Bundles• Consumer very aware of national advertised pricing – “up to” etc• No need to deliver 100mb/s today, but need the capability• Residents can run businesses from home• Residents seek out your development because of superior internet

access• Private customers value Broadband above all else; Affordable

housing TV• Instant activation major benefit, especially in rental market• Marketing story for developers strong• There is a chronic shortage for FTTH ISP’s in the marketplace


THANK YOU

Date post:	02-Nov-2014
Category:	Technology
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James Saunders Next Gen 09

Technology