Gov Invites Broadband ISPs to £800m UK Project Gigabit Rollout

The Government’s Building Digital UK team has published a Prior Information Notice (PIN) for their Gigabit Infrastructure Subsidy (GIS) programme, which is valued at £800m+ and reflects the part of their £5bn Project Gigabit scheme that aims to help gap-fund the rollout of gigabit-capable broadband ISP networks into rural areas.

At present around 70% of UK premises can already access a gigabit-capable network (c. 38% via just FTTP) and that’s mostly thanks to commercial builds, which are expected to push gigabit coverage up to around 80% by the end of 2025 (mostly urban build). But public funding will then be needed to tackle the rest (final 20%) due to the disproportionately high cost of deployment (i.e. making it unviable for many private sector players).

Project Gigabit was thus designed to extend such download speeds to reach at least 85% of UK premises by the end of 2025, before hopefully achieving “nationwide” coverage (c. 99%) by around 2030 (here). The programme uses a mix of different approaches, from connectivity vouchers targeted at specific communities, to dark fibre deployments in the public sector and subsidies for wider deployments. The new PIN relates to the latter.

The PIN for the Government’s Gigabit Infrastructure Subsidy Programme (Cross-Regional Framework – Type C) doesn’t tell us anything hugely new, particularly since the prior Spring 2022 Update from the same team has already listed various local areas and regions that are in active or planned procurement.

Speaking of areas in active procurement, some of the first contracts are due to be awarded this month or next – e.g. North Dorset (Lot 14.01), North Northumberland (Lot 34.01), Teesdale (Lot 4.01) and Cornwall (Lot 28). The publication of such a PIN confirms that the procurement programme is making process, which we take as a sign that the first contracts under the wider scheme are indeed due very soon.

Description of the procurement

BDUK intends to establish a Cross-Regional Single Supplier Framework, known colloquially as Type C, to award call-off contracts over the life of the Gigabit Infrastructure Subsidy Programme. The Cross-Regional Framework is intended to target premises that are unsuccessfully delivered either via Type A and B procurement or contract delivery within the Gigabit Infrastructure Subsidy programme. Call-Off Contracts awarded under the Cross-Regional Framework will subsidise the design, build and operation of gigabit-capable Supplier networks providing long-term, sustainable availability of wholesale gigabit broadband services in the hardest to reach parts of the UK.

BDUK has hosted a series of previous engagements with suppliers, including 121 engagements with Openreach and other suppliers who expressed an initial interest, to discuss the Cross-Regional Framework approach. The drafted Terms & Conditions (T&Cs) have now been developed and BDUK wishes to re-engage the market. Suppliers interested in engaging with BDUK to discuss the intention for the Framework and to access the contract terms and conditions should contact the supplier mailbox: bduksuppliers@dcms.gov.uk. Suppliers have a two week window from the date of PIN publication in which to express an interest, the deadline being 1st September 2022.

Once the Terms & Conditions have been issued to Suppliers that have expressed an interest, they will have up to 2 weeks to review and provide feedback. BDUK will consider all feedback but this may not result in changes being made. Suppliers will be invited to 121 sessions to discuss this Framework in further detail.

This PIN Notice does not commit BDUK to publishing a procurement and is intended for market engagement purposes only. The value of this PIN is indicative and is subject to change should BDUK decide to issue a procurement.

End.