{"id":25320,"date":"2020-12-22T00:01:39","date_gmt":"2020-12-22T00:01:39","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=25320"},"modified":"2021-02-09T14:40:45","modified_gmt":"2021-02-09T14:40:45","slug":"draft-strategy-for-5bn-uk-gigabit-broadband-rollout-published","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/12\/draft-strategy-for-5bn-uk-gigabit-broadband-rollout-published.html","title":{"rendered":"Draft Strategy for \u00a35bn UK Gigabit Broadband Rollout Published UPDATE"},"content":{"rendered":"<p>The Government has today published the draft procurement strategy for their new \u00a35bn Gigabit Broadband Programme (F20), which is a consultation on their plan to ensure that gigabit-capable networks reach a &#8220;<em>minimum<\/em>&#8221; of 85% UK coverage by the end of 2025 (before getting &#8220;<em>as close to 100% as possible<\/em>&#8221; thereafter).<!--more--><\/p>\n<p>The Government has initially only released <strong>\u00a31.2bn<\/strong> of this funding for the next 4 years. But they&#8217;ve today said that the commitment to invest \u00a35bn &#8220;<em>still stands<\/em>&#8221; and they &#8220;<span id=\"gmail-docs-internal-guid-eef8b111-7fff-b538-9a00-341f29c3d311\"><em>will accelerate this investment if industry can demonstrate it has the capacity to deliver further and faster.<\/em><\/span>&#8221; In any case, they won&#8217;t actually need much of this until the build starts, which is likely to be around end of 2021 or early 2022 (assuming no delays and that&#8217;s a big assumption).<\/p>\n<div align=\"center\"><img decoding=\"async\" class=\"ngg-singlepic ngg-none\" style=\"padding: 0px; width: 100%;\" src=\"https:\/\/www.ispreview.co.uk\/wp-content\/gallery\/2020-uk-internet-statistics\/gigabit_programme_funding_nov_2020.png\" alt=\"gigabit programme funding november spending review 2020\"><\/div>\n<p>At present it\u2019s often predicted that commercial deployments of gigabit-capable broadband networks alone will push coverage to over 70% of premises by the end of 2025 (some expect c.80%), which seems viable. However a lack of clarity on key issues, such as overbuild between rivals, a shortage of skilled engineers, post-2020 state aid rules (Brexit negotiations) and uncertainty over long-term rollout plans, make it difficult to be certain.<\/p>\n<p>By comparison the new programme, which is more centralised and will be overseen by the <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/bduk\" target=\"_blank\">Building Digital UK<\/a> team within DCMS, is focused upon tackling the final 20% of hardest to reach premises &#8211; using an outside-in build strategy (i.e. starting in rural areas first). We&#8217;ve already done a <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/11\/government-start-5bn-uk-gigabit-broadband-rollout-for-85.html\">summary<\/a> of all this and the publication of today&#8217;s <a href=\"https:\/\/www.gov.uk\/guidance\/resources-for-communications-network-providers\" target=\"_blank\" rel=\"noopener\"><strong>Draft Procurement Strategy<\/strong><\/a> confirms much of that, while also adding some extra details.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> Today c.34% of the UK (up from 10% last year) can already access a 1000Mbps+ broadband service via full fibre <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a> and Cable (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/docsis\">DOCSIS<\/a> 3.1) networks (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/11\/gigabit-broadband-isp-coverage-jumps-to-34-of-uk-premises.html\">here<\/a>).<\/div>\n<blockquote><p><span style=\"color: #339966;\"><strong>Summary of Key Points from the Strategy<\/strong><\/span><\/p>\n<p>&#8212; The approach in England will be centralised, although the Government still claims to be working &#8220;<em>closely with the Devolved Administrations in Scotland, Wales and Northern Ireland from early 2021 to develop plans to complement these contracts and extend gigabit coverage across the UK<\/em>&#8221; (i.e. we don&#8217;t yet know how the funding \/ programme will work for those administrations).<\/p>\n<p>&#8212; Contracts are likely to be issued for lots of different clusters of premises (bundles) &#8211; some for larger areas and others for smaller ones. The consultation anticipates up to 26 large regions of England that are most likely to attract commercial investment, but require subsidy to reach the hardest 40,000 to 80,000 premises in each area.<\/p>\n<p>The government expects larger broadband suppliers, including challengers to incumbents, to bid for these areas (since it favours their economies of scale) and will prioritise people with slower speeds (i.e. sub-30Mbps but NOT to the exclusion of all else). This includes areas of Northumberland, Yorkshire, Lancashire, Shropshire, Worcerstershire, Gloucestershire, Somerset, Oxfordshire, Berkshire, Devon, Dorset, Sussex, Norfolk, Suffolk, Essex, Buckinghamshire, Cambridgeshire, Northamptonshire, Shropshire, Staffordshire, Derbyshire and Lincolnshire.<\/p>\n<p>&#8212; Contracts will also be issued for lots of smaller contracts to connect around 1,000 to 8,000 premises, to stimulate competition across a wider range of small, medium-sized and rural specialist telecoms providers and help them to scale-up. This could include areas of Cumbria, Westmoreland, Yorkshire, Devon, Somerset, Dorset, Herefordshire, Lincolnshire, Oxfordshire, Kent and Sussex, depending on where these providers wish to compete.<\/p>\n<p>&#8212; DCMS \/ BDUK are also exploring how to make available a small number of contracts covering very large areas that are the least commercially attractive to build in. &#8220;<em>This would help make sure that no areas are left behind &#8211; even those where there is a limited prospect of competition<\/em>,&#8221; although they&#8217;ve yet to finalise the proposal for this.<\/p>\n<p>&#8212; The Government has confirmed their worst kept secret, which is that they will look to extend the existing <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2019\/05\/200m-uk-rural-gigabit-broadband-connectivity-programme-starts.html\"><strong>Rural Gigabit Voucher Scheme<\/strong><\/a> from April 2021 onwards. Obviously, this will need to be done in a way that complements rather than competes with the aforementioned contracts (larger value vouchers are a strong possibility too) and that forms part of today&#8217;s consultation.<\/p>\n<p>&#8212; The existing approach adopted by the <strong>Local Full Fibre Networks<\/strong> (LFFN) programme, where public money is used to help build Dark Fibre to connect public and community buildings (e.g. council houses, schools, libraries and GP surgeries) will continue. Such networks can then be harnessed by the commercial sector to help extend <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a> broadband into surrounding homes and businesses etc.<\/p><\/blockquote>\n<p>Assuming all goes well then the new procurements for gigabit infrastructure, which will be handled through a <strong>Dynamic Purchasing System<\/strong> (DPS), are set to begin in <strong>Spring 2021<\/strong> (around April). Big operators like <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a> (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>) will naturally take part, but we also expect <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/kcom\" rel=\"nofollow\" target=\"_blank\">KCOM<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">Cityfibre<\/a> and possibly even <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vm\" rel=\"nofollow\" target=\"_blank\">Virgin Media<\/a>&#8217;s new network sibling (<a href=\"https:\/\/beta.companieshouse.gov.uk\/company\/12175177\" target=\"_blank\" rel=\"noopener noreferrer\">Liberty Networks<\/a>) to also take part, along with lots of other alternative networks (AltNets).<\/p>\n<p>In theory the rollout could help to extend coverage to a further <strong>5-6 million premises<\/strong>, which would be similar to what the original BDUK Superfast Broadband Programme (SFBB) achieved, albeit with significantly faster connectivity.<\/p>\n<blockquote class=\"bq1\"><p><strong>Matt Warman, UK Minister for Digital Infrastructure, said:<\/strong><\/p>\n<p>&#8220;Today we\u2019ve set out our bold programme of national infrastructure projects to future-proof the UK\u2019s internet networks so we can build back better from coronavirus and create new jobs and economic opportunities.<\/p>\n<p>We will begin these procurements rapidly so broadband providers big and small can move quickly to get the job done and level up communities with this much faster, next generation broadband.&#8221;<\/p><\/blockquote>\n<blockquote class=\"bq1\"><p><strong>Clive Selley, CEO of <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a>, said:<\/strong><\/p>\n<p>&#8220;This is a big step towards levelling-up the UK. Whilst private investment will pay for the vast majority of broadband upgrades across the country, we\u2019re keen to help Government reach more isolated communities. At <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/openreach\" target=\"_blank\">Openreach<\/a>, we\u2019ve got the biggest and best team of engineers in the industry, with unrivalled experience connecting rural homes and a huge ambition to match.<\/p>\n<p>We\u2019ve all seen the importance of having decent broadband this year, so we\u2019re keen to crack-on and do the lion\u2019s share. We\u2019re also convinced that Full Fibre technology can be a huge catalyst for the UK\u2019s future prosperity so there\u2019s no time to delay.&#8221;<\/p><\/blockquote>\n<blockquote class=\"bq1\"><p><strong>Greg Mesch, CEO of <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">CityFibre<\/a>, said:<\/strong><\/p>\n<p>&#8220;We are pleased that Government is committed to making this a truly competitive process. This will deliver value for money, unlock additional private investment and speed up rollout. At <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/cityfibre\" target=\"_blank\">CityFibre<\/a>, our UK-wide full fibre rollout to 8 million premises is well underway. We are creating up to 10,000 new jobs, and as we enter our second decade, we are ideally placed to deliver this vital infrastructure across the UK, ensuring nowhere is left behind.&#8221;<\/p><\/blockquote>\n<p>At the time of writing we haven&#8217;t yet seen the consultation document itself, but we note that the Government&#8217;s announcement states that those covered will see their <span id=\"gmail-docs-internal-guid-eef8b111-7fff-b538-9a00-341f29c3d311\">speeds &#8220;<em>rocket from less than 30 megabits per second to more than 1000, or one gigabit<\/em>,<\/span>&#8221; but there is some confusion here. Firstly, our understanding is that the connection only needs to be classed as &#8220;<em>gigabit-capable<\/em>&#8221; and the end-user still has freedom to choose a slower plan (i.e. they aren&#8217;t forced to take 1Gbps).<\/p>\n<p>Furthermore, documents released in July 2020 revealed that BDUK appeared likely (i.e. not finalised) to require a &#8220;<em>normally available<\/em>&#8221; download speed of at least 500Mbps and uploads of 200Mbps, which in &#8220;<em>limited circumstances<\/em>&#8221; may fall to at least 50Mbps download and 20Mbps upload (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/07\/progress-on-bduk-plan-for-5bn-uk-gigabit-broadband-rollout.html\">here<\/a>).<\/p>\n<p>The above speeds seem more realistic since they aren&#8217;t mandating uncontended leased lines for homes (saying 500Mbps is more about defining real-world capability on residential focused networks with shared capacity etc.) and, in any case, most rural homes would hardly moan at such speeds. Nevertheless, some people may be confused by anything that seems like a dilution of &#8220;<em>gigabit<\/em>&#8221; performance.<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> The <a href=\"https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/536767\/2016_NBS_-State_Aid_Guidance_-NGA_Technology.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">2016 state aid agreement<\/a> did something similar. The deal required 30Mbps+ speeds, but the contracted peak-time minimum requirement was for a connection that could deliver 15Mbps+ some 90% of the time.<\/div>\n<p>The new approach, with its many different sized clusters (bundles), is also quite complex and we think it will be crucial for there to be plenty of public transparency with respect to coverage plans, costs and clawback for each awarded contract. The prior SFBB programme did a reasonable job of this, but some local authorities were much better at communicating the details than others. Hopefully the centralised approach will do better.<\/p>\n<p>Finally, we should remind readers that the Government seems keen to adopt a technologically neutral approach to delivery. Previous updates have talked about <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttp\">FTTP<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/docsis\">DOCSIS<\/a> 3.1 Hybrid Fibre Coax and <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/5g\">5G<\/a> or fixed wireless broadband as all being able to play a part. We should add that the mobile variant of <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/5g\">5G<\/a> is unlikely to deliver gigabit speeds to many rural areas &#8211; such rollouts tend to deliver slower speeds as operators prefer lower frequencies to maximise wide coverage (cost effective but not enough spectrum for the best speeds).<\/p>\n<p>Finally, it\u2019s worth noting how the Government have already warned (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/10\/audit-office-casts-doubt-on-uk-2025-gigabit-broadband-target.html\">here<\/a>) that they consider the &#8220;<em>final 1%<\/em>&#8221; of premises &#8220;<em>could be prohibitively expensive to reach<\/em>&#8221; via even their gigabit programme (the same sort of area that their 10Mbps USO was supposed to help and this has <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/10\/ofcom-opens-probe-into-bt-compliance-with-broadband-uso.html\"><strong>suffered problems<\/strong><\/a>). One recent forecast predicted that the gigabit coverage would most likely reach 98%+ by 2030 (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/12\/point-topic-predict-98-uk-gigabit-broadband-coverage-by-2030.html\">here<\/a>).<\/p>\n<p><strong>UPDATE 3:09pm<\/strong><\/p>\n<p>The following map gives a good idea of how the new procurement boundaries for intervention will look across England, albeit not finalised.<\/p>\n<p><img decoding=\"async\" class=\"ngg-singlepic ngg-none\" style=\"width: 100%; padding: 0px;\" src=\"https:\/\/www.ispreview.co.uk\/wp-content\/gallery\/2020-article-illustrations\/bduk_gigabit_programme_procurement_boundaries.png\" alt=\"bduk gigabit programme procurement boundaries\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government has today published the draft procurement strategy for their new \u00a35bn Gigabit Broadband Programme (F20), which is a consultation on their plan to ensure that gigabit-capable networks reach a &#8220;minimum&#8221; of 85% UK coverage by the end of 2025 (before getting &#8220;as close to 100% as possible&#8221; thereafter).<\/p>\n","protected":false},"author":1,"featured_media":25322,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[406,471,419,56,60,414,38,1997,89,71],"class_list":["post-25320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-5g","tag-bduk","tag-docsis3-1","tag-fttp","tag-mobile-broadband","tag-northern-ireland","tag-politics","tag-uk-gigabit-programme","tag-scotland","tag-wales"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - 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