{"id":27978,"date":"2021-10-29T00:01:53","date_gmt":"2021-10-28T23:01:53","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=27978"},"modified":"2021-10-29T08:15:38","modified_gmt":"2021-10-29T07:15:38","slug":"bduk-publish-phase-3-of-uk-rural-gigabit-broadband-rollout-plan","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2021\/10\/bduk-publish-phase-3-of-uk-rural-gigabit-broadband-rollout-plan.html","title":{"rendered":"BDUK Publish Phase 3 of UK Rural Gigabit Broadband Rollout Plan"},"content":{"rendered":"

The UK Government’s Building Digital UK<\/a> (BDUK) team has today published details on Phase 3 of their \u00a35bn Project Gigabit<\/a> rollout programme, which will in this phase work to extend 1Gbps capable broadband ISP networks to a further 570,000 premises in rural and semi-rural areas.<\/p>\n

In case anybody has forgotten, Project Gigabit seeks to extend such speeds to reach at least 85% of UK premises by the end of 2025 and “as close to 100% as possible.<\/em>” The funding released for this will depend upon how the industry responds (i.e. so far only \u00a31.2bn<\/strong> has been released, but more will be unlocked if the industry shows it can deliver).<\/p>\n

NOTE:<\/strong> The project is technology neutral, so it can use FTTP<\/a> (preferred), Hybrid Fibre Coax (DOCSIS<\/a> 3.1+) or fixed wireless (e.g. 5G<\/a>) to plug the gap.<\/div>\n

At present nearly 60% of UK premises can already access a gigabit-capable network (c.27% via just FTTP<\/a>), which should reach c.65% by the end of 2021 (here<\/a>) and that’s mostly thanks to Virgin Media<\/a>’s HFC upgrade. Generally, it’s hoped that commercial builds could push this up to around 80% by the end of 2025 (mostly in urban areas). But after that, private investment alone would struggle to go much further (rural builds become disproportionately expensive).<\/p>\n

In short, Project Gigabit will step in to focus on improving connectivity to those rural and semi-rural areas in the final 20% (5-6 million premises<\/strong>). The project actually consists of several support schemes, including gigabit vouchers (\u00a3210m), funding to extend Dark Fibre<\/strong> around the public sector (\u00a3110m) and gap-funded deployments with suppliers (rest of the funding). In today’s article we’re focused on the latter, which sees ISPs bidding – via a new Dynamic Purchasing System<\/strong> (DPS) run by BDUK – to extend their networks across rural parts of the UK.<\/p>\n

What’s in Phase 3<\/span>
\n<\/strong><\/h3>\n

The first procurement phase (Phase 1a<\/strong><\/a>) of this project was announced in March 2021 and that covered parts of Cambridgeshire, Cornwall, Cumbria, Dorset, Durham, Essex, Northumberland, South Tyneside and Tees Valley. The next set of Phase 1b<\/strong> and Phase 2<\/strong> procurements were then unveiled in August 2021 (here<\/a>), which covered many more areas in England, stretching across a total of 26 counties.<\/p>\n

So far, between Phases 1 and 2, Project Gigabit has already set out a procurement plan for helping to reach 2.2 million additional premises (mostly in England). Some 234,000 premises will also be tackled in Wales as part of the project (here<\/a>).<\/p>\n

By comparison, today’s Phase 3<\/strong> announcement adds a further 570,000 premises<\/strong> to all that and this covers parts of Cheshire, Devon, Dorset, Somerset, Essex, Herefordshire, Gloucestershire, Lincolnshire, East Riding and North Yorkshire.<\/p>\n

NOTE:<\/strong> Project Gigabit in England is centrally managed (by DCMS\/BDUK \u2013 not local councils), while the details on how the scheme will work in Scotland, Wales and Northern Ireland are still unclear.<\/div>\n

Nadine Dorries MP, UK Digital Secretary, said:<\/strong><\/p>\n

“The latest stage of our \u00a35 billion Project Gigabit plan will help hard-to-reach homes and businesses out of the broadband slow lane and plug them into the fastest and most reliable connections available.<\/p>\n

This investment is levelling up in action – building new internet connections in our rural communities so people have the speed, reliability and freedom to live and work flexibly, and take advantage of new technologies.”<\/p><\/blockquote>\n

As we’ve previously reported, the first contracts under Phases 1 and 2, once awarded (assuming no major delays), are expected to commence from May 2022<\/strong>. The very first rollout phase will include 349,000 premises across Essex, Dorset, Cumbria, Cambridgeshire, Northumberland, Durham, Tyneside, Teesside and Cornwall.<\/p>\n

However, it often takes operators several months of engineering surveys before they can begin the rollout itself, which means building on the above may not start until toward the end of 2022. Naturally, with the plan for Phase 3 being unveiled later than Phases 1 and 2, the expected commencement date for related contracts is even later and will start between February and October 2023 (details below). As a result, the physical network build for much of Phase 3 won’t even begin until early 2024.<\/p>\n

Bidders on the related LOTS will be required to ensure that their networks are available for use by other ISPs via wholesale (open access). Various operators, both big and small (e.g. Openreach<\/a>, CityFibre<\/a>, Gigaclear<\/a>, Virgin Media<\/a> [VMO2] etc.), are expected to take part and areas with sub-30Mbps speeds will be prioritised, albeit NOT to the exclusion of all else.<\/p>\n

Alongside all this, the government and local bodies are conducting various Public Reviews<\/strong> and Open Market Reviews<\/strong> (OMR), which is the process they use when trying to identify existing commercial coverage of gigabit-capable networks and any planned coverage over the next c.3 years. By doing that, they can more easily target their support toward areas where commercial projects will not go (i.e. the intervention area).<\/p>\n

Project Gigabit Phase 3 Areas<\/strong><\/span>
\n(Details below are estimated and subject to change)<\/p>\n\n\n\n\n\n\n\n\n\n\n
 <\/td>\nProcurement Start Date<\/strong><\/td>\nContract commencement date<\/strong><\/td>\nModelled number of uncommercial premises in the procurement area<\/strong><\/td>\nIndicative Contract Value<\/strong><\/td>\n<\/tr>\n
Dorset<\/td>\nMay – Jul 2023<\/td>\nApr – Jun 2024<\/td>\n56,500<\/td>\n\u00a362 – \u00a3105m<\/td>\n<\/tr>\n
Cheshire <\/td>\nFeb – Apr 2023<\/td>\nJan – Mar 2024<\/td>\n74,300<\/td>\n\u00a385m – \u00a3144m<\/td>\n<\/tr>\n
Devon & Somerset<\/td>\nFeb – Apr 2023<\/td>\nJan – Mar 2024<\/td>\n159,600<\/td>\n\u00a3198m – \u00a3337m<\/td>\n<\/tr>\n
Herefordshire & Gloucestershire<\/td>\nFeb – Apr 2023<\/td>\nJan – Mar 2024<\/td>\n64,600<\/td>\n\u00a367m – \u00a3113m<\/td>\n<\/tr>\n
Essex<\/td>\nMay – Jul 2023<\/td>\nApr – Jun 2024<\/td>\n78,351<\/td>\n\u00a379m – \u00a3135m<\/td>\n<\/tr>\n
Lincolnshire (including NE Lincolnshire and N Lincolnshire) and East Riding<\/td>\nMay – Jul 2023<\/td>\nApr – Jun 2024<\/td>\n105,700<\/td>\n\u00a3106m – \u00a3180m<\/td>\n<\/tr>\n
Northern North Yorkshire <\/td>\nAug – Oct 2023<\/td>\nJul – Sep 2024<\/td>\n28,200<\/td>\n\u00a325m – \u00a342m<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

We should remind readers that this rollout is NOT an automatic upgrade, thus you will still need to order the service from a supporting ISP (1Gbps is the target speed, but slower and cheaper options will also exist to order). Likewise, no specific network coverage checkers will be available for areas in this programme, at least not until AFTER the contracts have been awarded and the necessary engineering surveys completed.<\/p>\n

Finally, we should add that the Government has previously warned that those in the final 1% may still be \u201cprohibitively expensive to reach<\/em>\u201c, although they\u2019ve recently clarified that less than 0.3% of the country (i.e. under 100,000 premises) are likely to fall into this category (roughly the same gap that the 10Mbps USO has struggled to fill<\/a>). Solutions for those in the final 0.3% of \u201cVery Hard to Reach<\/em>\u201d areas are currently being consulted upon.<\/p>\n

We are expecting details of Scotland’s Project Gigabit rollout to follow soon.<\/p>\n

Project Gigabit Autumn 2021 Update (PDF)<\/strong>
\nhttps:\/\/assets.publishing.service.gov.uk\/..\/Project_Gigabit__Autumn_Update-complete.pdf<\/a><\/p><\/blockquote>\n

UPDATE 7:46am<\/strong><\/p>\n

We’ve noticed in this update that there have been a few changes to the previous Phase 1 \/ 2 plans, which largely reflects the fact that commercial deployments (e.g. Openreach<\/a>’s plan to cover 25 million premises with FTTP<\/a> by December 2026) are now expected to cover significantly more premises than previously envisaged.<\/p>\n

As a result of the above, the amount of premises identified in their regional procurements have been reduced, although the subsidy required to deliver gigabit infrastructure has not been correspondingly reduced, since residual premises are the hardest to reach (i.e. the more rural you go, the higher the cost of build).<\/p>\n

Key changes are as follows:<\/strong><\/span><\/p>\n

1. In Cumbria, the first of our Regional Supplier procurements, we have launched a procurement for 62,000 premises, down from 66,300, for up to \u00a3109m.<\/p>\n

2. In Cambridgeshire, we now expect to procure 40,000 to 50,000 premises rather than our previously modelled estimate of 98,500.<\/p>\n

3. In east Essex, the first area we targeted for a Local Supplier procurement, commercial plans were so extensive that there were only approximately 800 premises where we could justify intervention, compared to an original model estimate of 6,500. We believe targeted Gigabit Vouchers will provide a better solution than procurement in this case.<\/p>\n

4. In Dorset, we have identified a potential Local Supplier procurement which combines two potential Local Supplier areas and will complement significant commercial plans for telecoms providers active in the area.<\/p>\n

5. We are planning to combine Regional Supplier procurement areas in Northumberland and Durham, and have found two areas where we believe Local Supplier procurements will offer bidding opportunities to more telecoms providers.<\/p><\/blockquote>\n

UPDATE 8:10am<\/strong><\/p>\n

Aside from the larger Regional Supplier Contracts<\/strong>, the above changes also make reference to Local Supplier Contracts<\/strong>, which we haven’t talked about much before. Local supplier contracts are generally smaller, focus on the hardest to reach areas and intended to target slow spots in advance of the wider rollout, which may be more attractive to certain smaller alternative network (AltNet) providers.<\/p>\n

Often, Local Supplier Contracts are carved out of the Regional Supplier areas in order to attract more potential suppliers and potentially maximise the pace of delivery in an area. All of these things are complementary, as can be seen by this illustration for Northumberland and Durham:<\/p>\n

\"Project-Gigabit-Local-vs-Regional-Supplier-Example\"<\/p>\n

The first three local supplier procurements under the original Phase 1a areas have already been identified and more will follow.<\/p>\n

\"Project-Gigabit-Phase-1a-Local-Supplier-Procurements\"<\/p>\n","protected":false},"excerpt":{"rendered":"

The UK Government’s Building Digital UK (BDUK) team has today published details on Phase 3 of their \u00a35bn Project Gigabit rollout programme, which will in this phase work to extend 1Gbps capable broadband ISP networks to a further 570,000 premises in rural and semi-rural areas.<\/p>\n","protected":false},"author":1,"featured_media":28009,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[471,56,38,1997,89,537,71],"class_list":["post-27978","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-politics","tag-uk-gigabit-programme","tag-scotland","tag-uso","tag-wales"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nBDUK Publish Phase 3 of UK Rural Gigabit Broadband Rollout Plan - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The UK Government's Building Digital UK (BDUK) team has today published details on Phase 3 of their \u00a35bn Project Gigabit rollout programme, which will in\" \/>\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\/10\/bduk-publish-phase-3-of-uk-rural-gigabit-broadband-rollout-plan.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BDUK Publish Phase 3 of UK Rural Gigabit Broadband Rollout Plan - 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