21 June 2011 NGA Network Principles & Planning Tom Fulford-Brown, Business Development Manager, Geo

NGA – The Ambition NGA will deliver a “First Class Digital Infrastructure” Objective is to secure Universal Broadband Access –Widespread geographical coverage –High quality bandwidth –Affordability Natural market deployment may reach 70% of population coverage Government intervention necessary for rural communities BDUK Pilot procurements underway

Principles: NGA Definition 1.Open Access Networks capable of delivering broadband access services 2.Enhanced characteristics - fully symmetrical, high capacity and low latency 3.Cannot be delivered over first generation copper networks 4.Intervention in NGA should only be required every 40 years 5.NGA will pave the way for a faster, efficient and innovative digital society 6.People now consider NGA as the “4th Utility” We believe that the ‘Public Investor’ should intervene in true NGA long life fixed infrastructure rather than short life access technology investments

Principles: Open Access A true open access network –Is open at Layer 1: fibre and co-location –Enables technology choice for service providers at Layer 2 –Welcomes unbundling and structural separation As critical in the backhaul market as in the access layer Broadband Services Network Transmission Network Infrastructure

Principles: Open Access Model End User Service Provision (Multiple Providers) Active Operator Passive Operator Infrastructure SPV Barriers to Entry LOW MEDIUM HIGH Innovation/ Competition HIGH MEDIUM LOW

Long term investment Essential long term infrastructure for all NGA projects –Fibre to the Premise –Fibre to the Cabinet –Fibre to the Mast –Fibre to the Village Pump (Community Fibre Projects) Must be truly open to all players –The best place for public sector investment is backhaul & middle mile –Not a short term technology upgrade –Enables access layer investment and competition with service providers Funding Sources –EU / ERDF –Central Govt / BDUK –Infrastructure provider private investment –Retail service provider investment

The NGA Model Backbone Enabling Middle Mile Local Access Area of Scope Definition Mast Cabinet Premise Wholesale Retail Service Providers

Understanding the Market Identify the number of businesses and residents Identify strategic hub site locations –Business Parks –Major Public Sector sites –Datacentres –Wireless Masts Identify existing backhaul & wireless infrastructure Develop an NGA Coverage Strategy –New fibre backhaul deployment –New fibre access deployment –New wireless mast construction

Open Access wholesale telecommunications network Fibre and wireless infrastructure Fully compliant to EC State Aid guidelines for broadband Passive (Dark fibre and co-location) infrastructure available Active (Ethernet and wavelength) service available Full structural separation between wholesale and retail Available to Retail Service Providers at competitive prices FibreSpeed Case Study A successful Welsh Assembly Government NGA Intervention Project

Key Messages Secure Universal Broadband Access Deploy Open Access network infrastructure based on detailed analysis of businesses and population distribution Best place for public sector investment is backhaul & middle mile Enables access layer investment and competition between service providers