2. Background
• Government objective: “best superfast
broadband in Europe by 2015”
• Market expected to deliver to around 70% of
country but not “final third”
• Broadband Strategy launched with £530m
Government funding to deliver:
– Superfast broadband to around 90% of the
population
– A 2 Mbps universal service commitment to
everyone
3. What is the RCBF?
• Rural Community Broadband Fund
– £20M joint DEFRA and BDUK fund
– Support communities in the final 10% wanting
more than “basic broadband”
4. RCBF & Local Broadband Plans
• RCBF extends the scope
of community
engagement Community
• Proposals should be
endorsed by
– A majority of the RCBF
premises in the target
area
– A local accountable body
(e.g. Parish Council)
– The Local Authority
5. Who Can Apply?
Community Enterprises
• E.g. Cooperatives, Companies Limited by Guarantee or
Community Interest Companies
Charities
Local Authorities
• On behalf of communities
• Includes Parish Councils
Other Local Partnerships
• Beneficiaries, not individual Communications Provider businesses
• E.g. Groups of local private businesses
6. RCBF is “superfast” only!
Taking superfast broadband further & deeper
• Extending Local Broadband Plans
• Delivering national infrastructure
• It is not to support temporary solutions
Superfast means at least 24 to 30 Mbps
• The fund is technology neutral
• Projects may choose any combination of “NGA” technologies
• Individual satellite services are excluded
• Compliance with industry standards is required
7. Where & How much?
• Support sustainable • Funding will need to be
business plans in the at least matched by
hardest areas private investment
• There is a limit of £300
per premise connected
8. Where’s the match funding?
Those who will
receive the service Community share offers and other forms of
committing to pay a community investment
connection charge
Those committing to An openly procured
receive the service Network Operator
Private family trusts
for a minimum committing funds to
period at a set cost the project
Etc, etc.
(this isn’t exhaustive!)
9. The toolkit
• Will become a living web-based resource
• Pointers to existing guidance & material
– INCA Beyond Broadband bit.ly/ulnx4d
– FttH Council Business Guide bit.ly/uHO1iB
– Erisa Broadband Portal bit.ly/uENpgc
– Rural Broadband Partnership bit.ly/vrIdOu
11. High-level Process
GO!
Full
Submission
Detailed Engineering
to RCBF
EoI to High-level Engineering
RCBF
Decision Point!
Business Planning
Demographic Analysis
Establish
12. Keys to success
• A solid business plan • Only 1 is technical
• A reliable network • Only 3 or 4 are a forte
• A basic set of services of traditional operators
• Customer care • 4 relate to your
• A local set of services community!
• Communication
• An “us feeling”
* Kees Rover’s 7-pillars
13. Who buys when
This is where This is where services
speed sells and engagement sell
Innovators Early Adopters Early Majority Late Majority Laggards
2.5% 13.5% 34% 34% 16%
Diffusion of ideas
14. Capacity & Capability
Community DIY
Enterprise
Community Investment Capacity
Concession
Partnership
Using LA
Partners Build & Benefit
Demand Aggregation
Community Capability
Do Nothing
15. #1 Demand Aggregation
• The community decides it
wishes to have more than Upside Downside
the minimum
• The community works to No additional No control
– Improve quality of the cost to over the
solution from a minimum community solution
in-fill solution to an NGA
based solution May achieve May not
– Confirm actionable NGA achieve NGA
verifiable demand in
support of the case for
more investment
With LA
Partners
16. #2 Build & Benefit
• Community is willing to
help deliver NGA Upside Downside
– E.g. civil
engineering, way-leaves
or additional funding No additional risk
Limited say in the
solution
• Community happy that
RoI is gained from Significant sweat
equity or cash
benefitting from an Will deliver NGA
with no
commercial return
improved service
• Open Access & ISPs
delivered by LA partner
With LA
Partners
17. #3 Partnership
• The community want to
raise some of the risk Upside Downside
capital & expect an
investment return
• Partners are needed to
– Provide additional
investment
– Build & operate the
network
• Open Access & ISPs
delivered by partners
• Investment and Exit plans
need to be considered
Community
Organisation
18. #4 Concession
• The community are able to
raise all the risk finance
• They have no ambition to be a Upside Downside
network operator
• A concession is offered by the
community to design, build
and operate their network
• The community must steer
strategic decisions
• Open Access &ISPs delivered
by the concession partner
• Investment and Exit plans
need to be considered
Community
Organisation
19. #5 DIY
• The community are able to
raise all of the finance Upside Downside
• They have a strong desire to
be the network operator
• The community
design, build & operate
their own network
• Open Access & Service
Providers delivered by the
community
• Investment and Exit plans
need to be considered
Community
Organisation
20. How do I apply?
Rounds EOI will require you to
• Round 1 – closed 31st demonstrate that:
January 2012 • Your are likely to be If successful, you will
Submit an Expression • Round 2 – to be within the final 10% be invited to prepare
of Interest to your announced, planned to • There is sufficient local a Full Application
local RDPE Lead open May 2012 need & demand within an agreed
• There is the capacity to timescale
deliver reasonable value
for money
21. Thank you!
Adrian Wooster
adrian@wooster.org.uk
07788 167776
Editor's Notes
RCBF supported projects are strategic NOT tactical
Some of this material is contradictory and there are gaps in publicly available informationThe material will be collated into a single source, with clear attribution to the authorsGaps will either be highlighted, requested from partners, commissioned or delivered by BDUK
Community investmentBroad view – could be true sweat equity as well as cashCommunity AmbitionThe desire of a community to be an active stakeholder in the projectAll approaches are considered equal IFThey deliver the outcome requiredPass value for money criteriaHave a community mandate
Model in test in Cumbria
Community strategic involvementIntroducing a social impact – inclusionTraditional social enterprise models may not be appropriate when large proportion of the investment is externalIt will also need to be perceived as a professional investment opportunity, whether its seeking high-network-individuals within the community or external investors. Longer term options are numerous – refinance by the European Investment Bank or a trade sale, for exampleThere is on reason why the partner couldn’t be the LA partner
There is no reason why the concession couldn’t be taken by the LA partner – a community NYnet.Being built and run by specialists, possibly as part of a group of concessions, exit strategies are numerous including trade sale to the concession owner or to a third party network operator.
The community will need to demonstrate they understand what this entails, and that they are in a position to take long-term strategic decisionsSecuring service providers will be very challenging for networks smaller then Digital Region!Proving sufficient quality to provide confidence to the health service for tele-health, for example, will be very hardExit strategies are challenging – trade sale will require substantial due diligence for what may be perceived as a small increase in customer-base.These decisions will affect community members for possible another generation – 20 years!