UK Better Broadband Subsidy Scheme Issues Over 10,000 Vouchers

The UK Government’s Better Broadband Subsidy Scheme, which offers grants worth up to £400 to help homes and business that are unable to access a broadband speed of at least 2Mbps, has so far issued over 10,000 voucher codes and consumed £3.1m of its budget. But it’s also about to end.

The scheme itself was first revealed at the end of 2015 (here) and at the time it aimed to provide help for an estimated 300,000 premises (mostly rural areas), specifically those that couldn’t currently receive a minimum download speed of 2Mbps and which might not benefit from the £1.6bn+ Broadband Delivery UK rollout of 24Mbps+ capable “superfast broadband” services (expected to reach 98% UK coverage by around 2020).

Initially the BBSS, which stemmed from the Government’s old non-binding “2Mbps for all” Universal Service Commitment (USC) that never quite achieved its ambition, only focused on providing the grants to Satellite based broadband providers. However, it was soon extended to Fixed Wireless Access (FWA) ISPs and we’ve also seen some fixed line providers making use of it too (e.g. BT’s Community Fibre Partnerships).

People who applied for the grant received a subsidy code (voucher) that could cover most or all of the cost of the installation and commissioning of a basic broadband service, including any necessary equipment (but not the monthly service subscription). The Government has informed ISPreview.co.uk that over 10,000 codes have so far been allocated.

In terms of funding, the original USC actually had a budget of around £60 million, although we understand that most of this was later fed back into the wider “superfast broadband” rollout programme and as a result the BBSS saw its total allocation shrink to just £5 million. So far £3.1 million of that has been allocated to the voucher codes.

In the grander scheme of things the BBSS has certainly helped a lot of people to access faster connectivity, although its proportional impact on the underlying problem remains fairly small and many people may not have been aware of its existence. The scheme will close to new applications at the end of December 2017, although the Government are considering the possibility of an extension (we’re told a decision is due “shortly“).

A DCMS Spokesperson told ISPreview.co.uk:

“To date the Better Broadband has provided immediate help to more than 10,000 homes and businesses, many in remote areas around the UK, who were struggling with the slowest broadband speeds. This is on top of the 4.5 million homes that the Government rollout of superfast broadband has already reached. A decision on the future of the Better Broadband scheme will be made shortly.”

The Government are separately working to introduce a new legally-binding 10Mbps Universal Service Obligation (USO), which could be enforced from 2020. On the surface this would appear to conflict with the prospect of a BBSS extension, although the Broadband Deliver UK programme team informs us that it would instead continue to provide immediate help to those who are sub 2Mbps, at least until the USO rollout reaches them.

We might learn more when the Government gives their first 2017 Autumn Budget speech next week. In the meantime those who still want to apply for a code can do so for a little longer at the link below.

Better Broadband Subsidy Scheme
https://basicbroadbandchecker.culture.gov.uk