Presentation to 2016 INCA Conference

1. Digital Infrastructure Investment
Update on the DIIF and feedback from market engagment

2. 2
The Infrastructure and Projects Authority
Government’s centre of expertise
for infrastructure development,
financing, assurance and
support. Part of and reports
jointly to HM Treasury and
Cabinet Office.
The purpose of the IPA is the
timely and cost-effective delivery
of infrastructure and major
government projects and
programmes.
Digital Infrastructure Investment

3. 3
Background
• HMG recognises fibre is the future – both 5G and FTTP
• Supports infrastructure competition
• Wants to help independent network developers compete
• Sees access to finance as one potential barrier
Digital Infrastructure Investment Fund (DIIF)
Digital Infrastructure Investment

4. 4 Digital Infrastructure Investment
The Investment Challenge
High Low
Small
Large
BT
Virgin Thames
PF2s
Tesco
Size
Demand Risk
Combination of small scale and difficult credit profile
leads to low “Return on Effort”

5. 5
Ambitions for the Fund
• Represent an additional option rather than displace other
financiers
• Provide a range of investment types, from senior debt
through to equity
• Raise profile of Digital Infrastructure as an asset class
• Directly increase the size and strength of the sector
• Provide centre/s of expertise to help altnets become
financeable
Catalyse Private Sector Investment into Digital Infrastructure
Digital Infrastructure Investment

6. 6
Outlook is positive
• Infra funds are taking notice
• Increasing acceptance in the market that fibre is the future
and has a value
• Government wants to see you succeed!
Digital Infrastructure Investment