{"id":26541,"date":"2021-04-06T10:01:04","date_gmt":"2021-04-06T09:01:04","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=26541"},"modified":"2021-04-14T16:44:15","modified_gmt":"2021-04-14T15:44:15","slug":"new-uk-gigabit-voucher-scheme-terms-add-satellite-and-caveats","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/04\/new-uk-gigabit-voucher-scheme-terms-add-satellite-and-caveats.html","title":{"rendered":"New UK Gigabit Voucher Scheme Terms Add Satellite and Caveats UPDATE"},"content":{"rendered":"

As part of their \u00a35bn Project Gigabit<\/strong><\/a> programme the UK Government will this week (8th April) start a new rural focused \u00a3210m gigabit broadband voucher scheme<\/a>. A quick look at the new Terms and Conditions for this reveals some key changes, such as the inclusion of satellite<\/a>, a \u00a3100k funding cap on project changes and other caveats.<\/p>\n

Just to recap. The “new<\/em>” voucher scheme is similar to the previous \u00a3200m Rural Gigabit Connectivity<\/a><\/strong> (RGC) project and thus offers up to \u00a33,500 for businesses, or \u00a31,500 for homes, to help them get a gigabit-capable broadband connection installed.<\/p>\n

As we\u2019ve previously reported, the follow-on scheme is designed to complement the gap-funded supplier contracts that Project Gigabit will separately be issuing to network builders. As a result of this the eligibility criteria for new voucher projects has been narrowed so that only those in the remotest areas (e.g. Ofcom’s Area 3<\/a><\/strong>) are eligible (unless, of course, another operator already plans to cover the location).<\/p>\n

The above decision makes sense given the rural focus of Project Gigabit and the need to keep voucher projects and supplier contracts from clashing in the same intervention areas. In keeping with that ideal, the Government has also just issued some new Terms & Conditions (T&C) to ISPs for the new voucher scheme, which revealed a few other changes (or caveats if you prefer).<\/p>\n

As before, these changes are necessary to keep the different sides of Project Gigabit from clashing, but at the same time they may work better for some projects than for others. The new terms are much broader than the old ones and we haven’t picked out all the big changes yet, but here are a few of the key ones.<\/p>\n

Key 2021 Gigabit Voucher Scheme Changes (New T&Cs)
\n<\/strong><\/span><\/p>\n

\u27a4 We get a clearer definition of a ‘Gigabit Capable Network’.<\/strong><\/p>\n

The terms define Gigabit Capable Network as a “broadband network able to provide a service to end users with a download Access Line Speed capability of at least 1Gbps, with: (a) a Minimum Download Speed of at least thirty three percent (33%) of this download speed; and (b) an upload speed of at least twenty percent (20)% of Minimum Download Speed<\/em>.”<\/p>\n

\u27a4 Satellite<\/a> has been included.<\/strong><\/p>\n

The final ‘Connectivity Requirements’ under the new terms have added a mention of Satellite<\/a>, which no doubt reflects the Government’s recent discussions with the new generation of Low Earth Orbit (LEO) based ultrafast broadband suppliers (e.g. Starlink<\/a> [SpaceX] and OneWeb<\/a>’s mega constellations).<\/p>\n

We have previously predicted that one approach to supporting these would be to include them into a voucher scheme (e.g. to cover the hefty hardware\/install costs) and that now appears to be the direction of travel.<\/p>\n

Schedule 3 \u2013 Connectivity Requirements<\/strong><\/span>
\n1. All connections supported by vouchers under the Scheme must fulfil ALL of the following characteristics:<\/p>\n

1.1 be Gigabit Capable Network compliant at the time of delivery of the connection without the need for future hardware upgrades or modification (excluding Customer Premises Equipment (CPE) \u2013 it is not mandatory to deploy Gigabit Capable Network CPE from the outset if this is not required to deliver service, unless the CPE is embedded into the Network Terminating Equipment (NTE) which must be Gigabit Capable Network compliant);<\/p>\n

1.2 deliver a minimum of 30Mbps to the Beneficiary’s Premises; and<\/p>\n

1.3 the upgraded broadband service must deliver a “step change” in service which is at least a doubling of speeds compared to the service currently being consumed (either upload or download) or speeds of at least 100Mbps, whichever is lower.<\/p>\n

2. Connections which use wireless or satellite technology to meet the Connectivity Requirements are permitted where legal frequencies and technologies are used.<\/p>\n

At present it’s hard to see how either Starlink<\/a> or OneWeb<\/a> in their current form could be considered as meeting the requirement for a “Gigabit Capable Network compliant at the time of delivery of the connection without the need for future hardware upgrades or modification<\/em>.”<\/p>\n

However, Starlink<\/a> expects to reach speeds of 300Mbps+ by the end of this year and there has even been some debateable talk about achieving 10Gbps a few years down the line (here<\/a>). As such we could see SpaceX squeezing into this criteria in the near future. Hopefully SpaceX will also have solved their problems with connection stability by then (disconnections are still far too common for some users).<\/p>\n

Meanwhile we don’t yet know where OneWeb<\/a>, which will send their signal to a central community distribution point (using fixed wireless to connect homes), will sit in all this. OneWeb has significantly fewer LEOs and may struggle to achieve the sort of ultrafast and gigabit style speeds expected above, but we’ll know more when their early commercial beta services start to go live in November 2021.<\/p>\n

\u27a4 Top-Up funding is back.<\/strong><\/p>\n

As before, local authorities and devolved governments will be able to boost the value of the aformentioned vouchers by providing additional public investment as a top-up. At the time of writting none of the local bodies have confirmed their final plans for this, but we expect voucher boosts to re-emerge in many areas just like they did in the prior scheme (e.g. Wales).<\/p>\n

\u27a4 Voucher funding is more restricted.<\/strong><\/p>\n

The new scheme appears to place tighter restrictions on what parts (costs) of a network deployment can be supported by the public funding they provide. For example, certain headend kit, street cabinets and backhaul links may not be eligible. This won’t be such an issue when it comes to funding the expansion of existing networks, but other projects may find it more of a hindrance.<\/p>\n

A number of diagrams are included to help illustrate all this, but the following two give a reasonable idea of where the eligible parts begin and end for different types of deployment (note: there are several other diagrams in the full terms to cover other types of wireless deployment etc.).<\/p>\n

\"bduk_vouchers_funding_eligibility_2021\"<\/p>\n

\u27a4 The new scheme appears to impose a \u00a3100k funding cap on changes to projects.<\/strong><\/p>\n

The new terms appear to impose a ceiling of \u00a3100k funding per project for change requests (the original \u00a3500k general project limit still exists). The threshold isn’t necessarily a hard cap, but any changes to a project that go significantly above this level (>5% change in total project cost) will require a review by the Building Digital UK<\/a> team and that may inject some element of doubt and delay into forward planning.<\/p>\n

We’d expect BDUK to be reasonably flexible when weighing the pros and cons of certain builds. We think they’d be unlikely to reject most bigger change requests.<\/p>\n

Once again, this may be seen as a way of separating voucher schemes from impacting too much on their larger gap-funded intervention contracts.<\/p><\/blockquote>\n

At the end of the day the new voucher scheme has a fine line to walk as it needs to avoid conflicting with the bigger gap-funded intervention contracts under Project Gigabit, which inevitably means some restrictions to keep the focus of new vouchers targeted at the right rural areas.<\/p>\n

Sadly, the Government’s Gigabit Voucher Scheme Website<\/strong><\/a> has been offline for several days while they prepare to launch the new scheme on Thursday (you’ll be able to see the final terms once it’s online), although pre-registration is still possible for existing suppliers.<\/p>\n

UPDATE 14th April 2021<\/strong><\/p>\n

DCMS (BDUK) has now furnished us with a response after we attempted to clarify some of the aforementioned changes. On the Satellite change, BDUK confirmed that due to the technical criteria they are NOT “expecting the voucher scheme to fund any satellite connections in the near term<\/em>” and the main reason for its mention was to ensure a technology neutral approach.<\/p>\n

We also sought to clarify the rationale behind BDUK’s decision to restrict some parts of a network build from eligibility for subsidy. This it what we were told:<\/p>\n

– The voucher scheme isn’t intended to be a funding route to build core network infrastructure. It is intended to be used by suppliers to supplement their commercial deployment and infill neighbouring uncommercial premises.<\/p>\n

– It does this by funding customers the excess construction charges they’ll need to pay in the form of higher connection charges from the supplier because they’re outside of their normal commercial deployment. This way, it remains a subsidy benefiting the consumer.<\/p>\n

– If we were to fund the core networks as eligible costs, this would create more uncertainty over whether the network was genuinely commercial or not (absent the voucher scheme) and whether we were subsidising the supplier for its commercial deployment. Suppliers are made aware of this at registration when they sign up to the Ts&Cs.<\/p>\n

– As you say, this is different to the gap funded contracts where we contract for coverage in an area and directly subsidise a supplier for their capital costs (core or access) to establish the network in that area.<\/p>\n

– One tool may be more or less suitable for any particular area than the other so we need both these tools to achieve our coverage objectives.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

As part of their \u00a35bn Project Gigabit programme the UK Government will this week (8th April) start a new rural focused \u00a3210m gigabit broadband voucher scheme. A quick look at the new Terms and Conditions for this reveals some key changes, such as the inclusion of satellite, a \u00a3100k funding cap on project changes and […]<\/p>\n","protected":false},"author":1,"featured_media":23360,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[471,56,414,38,1997,77,89,71],"class_list":["post-26541","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-bduk","tag-fttp","tag-northern-ireland","tag-politics","tag-uk-gigabit-programme","tag-satellite","tag-scotland","tag-wales"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nNew UK Gigabit Voucher Scheme Terms Add Satellite and Caveats UPDATE - ISPreview UK<\/title>\n<meta name=\"description\" content=\"As part of their \u00a35bn Project Gigabit programme the UK Government will this week (8th April) start a new rural focused \u00a3210m gigabit broadband voucher\" \/>\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\/2021\/04\/new-uk-gigabit-voucher-scheme-terms-add-satellite-and-caveats.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New UK Gigabit Voucher Scheme Terms Add Satellite and Caveats UPDATE - 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