Digital Agenda Assembly 2011 Parallel workshop: Financing and facilitating bottom up broadband projects

Question to the Groups If and when we want to implement the three models illustrated … Bottom-up Broadband Public Sector Outsource Joint Venture … what are the next steps?

Bottom up Broadband Typically driven by a locally developed and owned cooperative designed to build and own their own network. Key Features Focused on local loop / access network 20k to (potentially) 50m investment Long term investment model / not for profit Localised (although some aggregate to large scale) Can be applied to suburban / rural / low population density solutions. Few technical standards Challenges Smaller scale investment (excludes access to certain funding options) Local skills / capacity to deliver Technologies used and interoperability / linkage to backhaul Ability to attract competition for retail services Long term sustainability Benefits Focus on otherwise excluded groups Society driven / builds on demand Demand aggregation / infectious development of surrounding areas Fast / prolific / successful! Joint Venture / PPP Ownership is split between public and private sector partners with the opportunity to engage a number of parties with a range of interests driven by a common vision. Key Features Potential for scalable local loop / access network, backhaul and core network projects 50m to 50bn investment Creation of single (national) and/or multiple (local) Special Purpose Vehicles to bind a range of organisations to a common vision. Opportunity for innovative funding approaches (bonds, grants, tax breaks). JV can engage incumbent with a range of other organisations. Challenges Least used approach/ evolving approach Historic PPP frameworks / Value for money Creating inclusive JVs / balancing interested parties Benefits Scalable single project methodology that can be implemented from local to national network solutions All parties have long term stake in he project Can be incentive driven on achievement of KPIs Strongly collaborative Open access is a condition of the JV Potential to release incumbent ownership of infrastructure without penalty Public Sector Outsource Public sector targeted contracts where private sector provide but public sector retain ownership. Key Features Targeted, scalable, investment that can address access or core network challenges 50m to 500m investment Public Sector owns and private sector operates the infrastructure Typically small scale ownership / municipality / city network Defined technical architecture Challenges Sourcing investment (beyond public purse) Attracting private operators / competing service providers Getting scale of investment right / choosing future proofed technical solution Benefits Can target areas of market failure Control of technical standards Benefit of public sector investment stability and private sector skills. Open access as a condition Brought to you from