Merck Moving Beyond Passwords: FIDO Paris Seminar.pptx
David Cullen NYnet
1. The Connecting North Yorkshire
Model for Rural NextGen
David Cullen, Chief Executive NYnet Ltd
INCA Seminar
York, 24th November 2011
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2. What is the Broadband problem in the sub-region?
è Geography and population distribution mean that
telcos will not develop the infrastructure necessary to
provide B/B to many NY residents
è Low number of connections (= users) per kilometre of
network = unattractive commercially
è Large number of no-spots where “proper” B/B is
simply not available
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4. Some other relevant statistics
è Approx 18% of population receiving below the
USC
è Approx 45,000 residents (7.6% of population)
unable to access any usable BB
è 13.7% of working age population self employed
(8.4% YH, 9.4% national)
è Self employed + micro-businesses (1 − 4 people)
account for 49% of jobs in Dales and 37% in
Moors
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5. NYnet – long standing objectives
1. Provide an infrastructure capable of delivering advanced
next-generation broadband services to the public sector,
citizens and business.
2. Provide ‘faster, better and cheaper’ public sector networks
to enable more efficient and effective public and corporate
services.
3. Stimulate economic growth through helping the market to
deliver next-generation broadband services to business and
residential users.
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6. NYnet – bringing the ‘anchor tenants’
Connectivity customers
• WAN 2 - 172 non school sites
Over 800 (90%) public
- 375 schools
sector sites:
• Districts + Police + Fire + 2 x Parks
the largest and most
• PCT – 130 sites successful PSN in the
• 1 other public sector organisation UK?
• 9 business parks
• 7 community schemes covering over 20 communities
Value Added Services
• VPN Services Turnover
for NYCC 2011/12 Forecast - £8.3m
• DR Framework
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7. The Connecting North Yorkshire Vision
Our vision is to bring the advantages of high-
quality broadband to 100% of businesses and
citizens in York and North Yorkshire by 2017. We
want to enable all to participate in the digital world
so that they can carry out their business when
and how they wish.
High quality B/B = B/B appropriate to people’s needs
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8. Brief History of CNY
June 2009 Government release Digital Britain (DB) report
Sept 2009 NYnet Board considers implications of DB report
2 responses proposed
è address not spots @ 2mbs
è Market Towns initiative
Jan 2010 NYnet Board approves revised Business Strategy
è not spot pilots to test technology etc
è Market Towns – identify possible £ streams
è submission to extend State Aid so can progress above
June 2010
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State Aid approval confirmed – just needed the £ !
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9. July 2010 Central Government Ambition for Broadband
• We want communities and local authorities to have a say in
how these networks will be built.
• Community need should drive the process, not Government
decisions made in Whitehall.
• A world class communications network is an essential
element of recovery and will help us to grow the economy.
• The delivery of public services will be more efficient and cost
effective, as well as more inclusive, and this is crucial for
local authorities.
• The strategy brings together the many policy areas that we
are working on across Government which will enable this to
happen, as well as setting out the Government’s approach to
investing the £530m secured as part of the TV Licence Fee
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settlement to help deliver superfast broadband into more
rural and remote locations.
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10. July 2010 BDUK launched
• 2 key strands:
è universal service commitment
(USC) @ 2 mbs) = NYnet’s vision
è Next Generation Access
• part of DCMS – staffed by civil servants + consultants
• local authorities to lead
• want to do pilots
Aug/Sept 2010 NYCC/NYnet submit proposal to become a BDUK pilot
based on
• NYnet’s exising track record
• State Aid approval in place
F
• discussions re ERDF funding already in hand
(= matched funding)
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11. October 2010 Informal advice from BDUK re pilot status for NYCC
10 Dec 2010 Formal BDUK letter – NYCC one of 4 ‘superfast
broadband’ pilots
28 Jan 2011
Presentations to LGNYY – unanimous support
24 June 2011
9 Feb 2011 Inaugural meeting of CNY Board, consisting of three main
stakeholders:
BDUK, NYCC, NYnet
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12. CNY Board responsible for
è preparing Vision (and Strategy)
è securing funding
BDUK NYCC is the
ERDF Accountable Body
Performance Reward Grant
anything else
è overseeing the procurement – being undertaken by NYnet as sub
contractor to NYCC
è manage interface of CNY with existing NYnet business
è liaise with stakeholders
è comms/PR
è Go ON project
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13. Procurement – Key dates
• OJEU published
• Expressions of interest received
• Shortlist agreed by CNY Board
• Invitation to participate in dialogue - ends Nov 2011
• Invitation to continue dialogue - ends March 2012
• Final Tenders submitted - early June 2012
• Contract Awarded - late June 2012
• Roll-out begins / ends - Q3 2012 / Q2 2014
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14. As modelled CNY will provide
è Next Generation Access to market towns
(= 45% of population)
è high-speed hubs to approx 250 communities that will provide
backhaul infrastructure for community projects using Partners who
provide the Access Network and Internet Services
On average 1 hub will support 3 parishes – there are 731 parishes,
of which 356 have < 200 residents
è ultimately ratio of market towns to hubs will depend on
£ available relative to outcome (= cost) from procurement process
è estimate need £50m to complete the Vision
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15. ‘Before Connecting North Yorkshire…’
Now
York & Harrogate “Superfast” = >24Mbs +
‘Market Towns’ c. 8Mbs near exchanges
Rural Areas/ small Market c.2Mbs with high contention
Towns (lots of people using the
same bandwidth)
‘Deep Rural’ 0.5 – 2Mbs (the ‘poor/ not
spots’: 18% of N Yorks-
highest in the country)
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16. ‘……..and After’
Now Following CNY
York & Harrogate “Superfast” = >24Mbs + No change
‘Market Towns’ c. 8Mbs near exchanges >= 24Mbs
Rural Areas/ small Market c.2Mbs with high contention 2 - 24Mbs depending on
Towns (lots of people using the l o c a t i o n , t e c h n o l o g y,
same bandwidth) investment etc
‘Deep Rural’ 0.5 – 2Mbs (the ‘poor/ not Target of <2% with 2Mbs,
spots’: 18% of N Yorks- rest 2 – 24Mbs as above
highest in the country)
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17. The Strategy for 100% Coverage
D:
Areas
with
minimum
of
2MBs
(satellite
etc)
Category
D
Target:
<2%
C:
Infill
areas
requiring
grant/
fund
support
to
achieve
2-‐24Mbs
Categories
B&C
Target
c.
8-‐23%
B:
Infill
areas
at
2-‐
24Mbs
funded
through
CNY
Category
A
Target:
A:
Areas
receiving
>24MBs
75-‐
90%
through
CNY
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18. Commercial Models
è State Aid Approval (and common sense) requires procurement
to consider various commercial approaches
è ‘Traditional’ Gap Funding of a telco’s own network
è Design, Build and Operate (DBO) an infrastructure for the
Authorities (NYnet and NYCC) to run and receive income
è A DBO+, where the telco partner also invests for share of
revenues/ margins
è Gap Funding will always favour an incumbent or determined
entrant with deep pockets comfortable with a long RoI
è Bidders remain interested in both models
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19. Investment Issues
è Still have a ‘worst case’ of £18m shortfall over 10 yr business
case:
è Modelled need for £50m
è £17.8m (BDUK) + £8.5m (ERDF 47% match) = £26.3m
è Anticipated margins from public sector ‘anchor tenants’
revenue- the key differentiator in N Yorks
è Good news: plenty of capital on the global investment markets
for secure, stable infrastructure initiatives
è Bad news: UK Broadband not seen as ‘secure and stable’
è Need to do all we can to change this perception and help
suppliers raise investment 19
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21. …. vs take-up
Project
Project Target Actual Planned %
Start Date
NANDS 04/03/2011 As many as 68 141 48
possible
Gillamoor 01/09/2010 As many as 120 150 80
possible
VOM 04/03/2011 107 107 150 100
Bradley 04/03/2011 100 047* 200 47
Barlby 04/03/2011 100 027* 150 27
RHB 07/09/2011 100 ** 200 **
Nun Monkton TBA 100 ** 100 **
Key * first quarter figures
** not operational yet 21
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22. Summary
è ‘Think like a telco’….
è Find a champion/ champions- at every level
è There isn’t enough money to go around, public sector
need to invest all it can
è Public Sector aggregation plays a major part
è Engage communities and community level providers
è Explore alternative models that can bring different
investment and enable local communities
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23. David Cullen
Chief Executive, NYnet Ltd
david.cullen@nynet.co.uk
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