{"id":11080,"date":"2016-02-03T12:19:30","date_gmt":"2016-02-03T12:19:30","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=11080"},"modified":"2016-02-04T06:52:03","modified_gmt":"2016-02-04T06:52:03","slug":"government-publish-results-from-alternative-uk-rural-broadband-pilots","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2016\/02\/government-publish-results-from-alternative-uk-rural-broadband-pilots.html","title":{"rendered":"Government Hails Alternative UK Rural Broadband Pilots a Success"},"content":{"rendered":"

The Government has today published a new report on the “successful<\/em>” outcome of their recent Market Test Pilots, which were setup in 2014 to help trial alternative network solutions (fibre optic, satellite<\/a>, wireless etc.) for bringing superfast broadband (24Mbps+) to remote rural areas.<\/p>\n

<\/p>\n

The original \u00a310 million<\/strong> Innovation Fund actually contained 8 pilot projects (details<\/a>), which were all intended to test alternative approaches to the normally BT<\/a> and Virgin Media<\/a> dominated national infrastructure solutions. However MLL’s project to create a common wholesale OSS \/ BSS platform for integrating \/ aggregating via a rural fixed wireless network hit “unforeseen implementation complexity and commercial risks<\/em>” and eventually pulled out.<\/p>\n

The remaining 7 pilot projects include Avanti and Satellite<\/a> Internet, who are using 24-30Mbps capable satellite<\/a> broadband; Airwave, Quickline<\/a> and AB Internet, who are using fixed wireless access networks; and Call Flow and Cybermoor, who are using a mix of fibre optic and fixed wireless technologies. Officially the pilots must all be deployed by March 2016<\/strong> and a couple have only just started to roll-out.<\/p>\n

\"broadband_uk_market_test_pilots\"<\/div>\n

Overall the report found a positive outcome to the pilots and noted that some of the related networks, such as those run by Call Flow, Quickline<\/a>, Airband<\/a> and AB Internet, have already become involved in several regional state aid supported contracts (examples here<\/a>, here<\/a>, here<\/a> and here<\/a>).<\/p>\n

Key Findings of the Pilots:<\/strong><\/span><\/p>\n

* Suppliers can successfully mix technologies to deliver cost-effective superfast broadband solutions in hard to reach areas;<\/p>\n

* Smaller suppliers can bid for, win and deliver open public procurements at competitive costs, including meeting the necessary EU-wide State aid requirements for receiving public funding;<\/p>\n

* Communities can work together with suppliers to create viable commercial conditions for small projects; and<\/p>\n

* New partnerships have been fostered, including with other network providers such as Janet and Network Rail Telecom, which will lead to new opportunities to deliver services once the pilots have ended.<\/p><\/blockquote>\n

At present the Government’s Broadband Delivery UK<\/a> programme is already aiming to make superfast broadband (24Mbps+<\/strong>) services available to 95-96% of the United Kingdom by 2017\/18, albeit mostly via contracts with BT<\/a>. But once a new state aid agreement has been reached (here<\/a>) then the likelihood is that altnets will play a bigger role in plugging the final 3-4% (BDUK Phase 3<\/strong>).<\/p>\n

The Government is now said to be “discussing with suppliers how to ensure the long term sustainability of their projects<\/em>” and how the lessons learned can be applied to help local authorities extend the rollout of superfast broadband to those places not yet covered by existing plans.<\/p>\n

Ed Vaizey, Digital Economy Minister, said:<\/strong><\/p>\n

“The Government\u2019s rollout of superfast broadband is the fastest of its kind anywhere in the world and is a truly massive engineering project. Our pilot scheme has demonstrated that alternative technologies can help us take superfast speeds to the hardest to reach areas of the UK and I\u2019m very pleased that smaller suppliers are now competing for, and winning, contracts for the next phase of the rollout.”<\/p><\/blockquote>\n

Andy Conibere, Managing Director of Call Flow, added:<\/strong><\/p>\n

“Participating in a large scale project like the Market Test Pilot programme, has enabled us to improve our processes, as well as driving change in the industry. As a result, we have been able to successfully bid for, and win, significant State Aid funding to build similar solutions in Berkshire.<\/p>\n

Call Flow are now planning to build on this experience, and will be bidding for the State Aid funded opportunities in the coming months, with contract values exceeding \u00a350M. Additionally, we are exploring funding options to take advantage of the significant commercial opportunities that still exist that do not require State Aid intervention.”<\/p><\/blockquote>\n

A full summary of the pilots<\/a><\/strong> and their progress can be viewed online, although we’ve also done a quick list below to show what was achieved and some of the costs involved. How much of an impact this will have going forward still very much depends upon the level of flexibility in state aid that the Government can secure from the EU.<\/p>\n

Equally it will require local authorities to relax some of their risk aversion to smaller altnet operators and give them greater consideration, as opposed to being dependent upon BT<\/a> which has become increasingly reluctant to tackle the most remote rural areas where their economic model is harder to develop or sustain.<\/p>\n

We’d also add that some of the pilots are still in the early deployment phases and so it’s important to consider that when looking at uptake, similarly a few of the older networks are still deploying to new areas. Likewise the BDUK programme has already shown that take-up needs a year or two to mature before you can start to properly gauge the impact of a new service.<\/p>\n

Airwave<\/strong><\/span><\/h3>\n

NGA technologies: Point-to-multipoint broadband fixed wireless access at 2.4Ghz or 5.8Ghz, Wi-Fi at 2.4Ghz, LTE small cells, and TV white space.
\nLocations: The Esk Valley and The Upper Dales.<\/p>\n

Project size<\/strong>
\nPremises cleared for State Aid (intervention area): 376
\nForecast premises passed by the pilot : 270 (72% of the intervention area)
\nForecast premises connected by March 2016: 60 (22% of the premises passed)<\/p>\n

Summary project costs<\/strong>
\nBDUK funding for infrastructure capital costs: \u00a31,286,133
\nTotal infrastructure capital costs: \u00a31,614,204
\nPublic subsidy per premises passed: \u00a33,421
\nCost per premises passed (intervention area): \u00a35,979<\/p><\/blockquote>\n

AB Internet<\/strong><\/span><\/h3>\n

NGA technologies: Fixed wireless superfast rural broadband network.
\nLocations: Monmouthshire<\/p>\n

Project size<\/strong>
\nPremises cleared for State Aid (intervention area): 1,696
\nForecast premises passed by the pilot: 1,600 (94% of the intervention area)
\nForecast premises connected by March 2016: 288 (18% of the premises passed)<\/p>\n

Summary project costs<\/strong>
\nBDUK funding for infrastructure capital costs: \u00a3593,200
\nTotal infrastructure capital costs: \u00a3636,159
\nSupplier contribution: \u00a342,959.78
\nInvestment ratio: 93%
\nPublic subsidy per premises passed: \u00a3370.75
\nCost per premises passed (intervention area): \u00a3397.59<\/p><\/blockquote>\n

Call Flow<\/strong><\/span><\/h3>\n

NGA technologies: FTTP<\/a>, FTTC<\/a>, FWA
\nLocation: Hampshire<\/p>\n

Project size<\/strong>
\nPremises cleared for State Aid (intervention area): 1,670
\nForecast premises passed by the pilot: 1,610 (96.4% of the intervention area)
\nForecast premises connected by March 2016: 225 (14% of the premises passed)<\/p>\n

Summary project costs<\/strong>
\nBDUK funding for infrastructure capital costs: \u00a31,258,560
\nTotal infrastructure capital costs: \u00a31,258,560
\nPublic subsidy per premises passed: \u00a3782
\nCost per premises passed (intervention area): \u00a3782<\/p><\/blockquote>\n

Cybermoor<\/strong><\/span><\/h3>\n

NGA technologies: FTTP<\/a>, FWA
\nLocation: Northumberland<\/p>\n

Project size<\/strong>
\nPremises cleared for State Aid (intervention area): 287
\nForecast premises passed by the pilot: 287 (100% of the intervention area)
\nForecast premises connected by March 2016: 215 (75% of the premises passed)<\/p>\n

Summary project costs<\/strong>
\nBDUK funding for infrastructure capital costs: \u00a3350,0005,6
\nTotal infrastructure capital costs: \u00a3550,000
\nPublic subsidy per premises passed: \u00a31,220
\nCost per premises passed (intervention area): \u00a31,915<\/p><\/blockquote>\n

Quickline<\/strong><\/span><\/h3>\n

NGA technologies: Testing a range of line of sight, near line of sight, and non-line of sight technologies to build a superfast wireless network.
\nLocations: North and North East Lincolnshire<\/p>\n

Project size<\/strong>
\nPremises cleared for State Aid (intervention area): 4,211
\nForecast premises passed by the pilot: 4,211 (100% of the intervention area)
\nForecast premises connected by March 2016: 2,305 (55% of the premises passed)<\/p>\n

Summary project costs<\/strong>
\nBDUK funding for infrastructure capital costs: \u00a32,000,000
\nTotal infrastructure capital costs: \u00a32,447,037.87
\nPublic subsidy per premises passed: \u00a3475
\nCost per premises passed (intervention area): \u00a3581<\/p><\/blockquote>\n

Satellite Internet<\/strong><\/span><\/h3>\n

Basic technologies: Satellite backhaul with fixed wireless distribution; satellite direct to home.
\nLocation: Exmoor (x 2) and Mendip (x 1).<\/p>\n

Project size<\/strong>
\nPremises cleared for State Aid (intervention area): 420
\nForecast premises passed by the pilot: 280 (66% of the intervention area)
\nForecast premises connected by March 2016: 200 (48% of the premises passed \u2013 Note, this may well be lower given smaller areas. Take up was expected to reach circa 25% which would give 105 premises connected)<\/p>\n

Summary project costs<\/strong>
\nBDUK funding for infrastructure capital costs: \u00a384,750
\nTotal infrastructure capital costs: \u00a384,750
\nPublic subsidy per premises passed (Avg): \u00a3313.00<\/p><\/blockquote>\n

Avanti<\/strong><\/span><\/h3>\n

NGA technologies: Satellite broadband wholesale platform
\nLocations: Northern Ireland: Antrim and Fermanagh; Scotland: Aberdeenshire; Dumfries and Galloway and the Borders.<\/p>\n

Project size<\/strong>
\nPremises cleared for State Aid (intervention area): 23,472
\nForecast premises passed by the pilot: All of the intervention area plus most of the UK.
\nForecast premises connected by March 2016: 1,000 (capped by project)<\/p>\n

Summary project costs<\/strong>
\nBDUK funding for infrastructure capital costs: \u00a3850,000
\nTotal infrastructure capital costs: \u00a3954,000 with supplier contributions to date.
\nPublic subsidy per premises connected: \u00a3850 (expected to reduce to circa \u00a3550 with state aid clawback)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The Government has today published a new report on the “successful” outcome of their recent Market Test Pilots, which were setup in 2014 to help trial alternative network solutions (fibre optic, satellite, wireless etc.) for bringing superfast broadband (24Mbps+) to remote rural areas.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[471,38,34],"class_list":["post-11080","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-bduk","tag-politics","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nGovernment Hails Alternative UK Rural Broadband Pilots a Success - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Government has today published a new report on the "successful" outcome of their recent Market Test Pilots, which were setup in 2014 to help trial\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2016\/02\/government-publish-results-from-alternative-uk-rural-broadband-pilots.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government Hails Alternative UK Rural Broadband Pilots a Success - 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