{"id":30058,"date":"2022-02-09T00:23:11","date_gmt":"2022-02-09T00:23:11","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=30058"},"modified":"2022-02-09T07:11:10","modified_gmt":"2022-02-09T07:11:10","slug":"project-gigabit-updates-on-start-of-first-live-uk-procurements","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/02\/project-gigabit-updates-on-start-of-first-live-uk-procurements.html","title":{"rendered":"Project Gigabit Updates on Start of First Live UK Procurements"},"content":{"rendered":"

The UK Government’s Building Digital UK<\/a> team has published an update on the start of their first procurements under the \u00a35bn Project Gigabit<\/a> broadband rollout, which is now inviting bids for contracts worth up to \u00a3292m to upgrade rural premises across Cumbria, Durham, Northumberland, Cambridgeshire, Dorset and Teesdale.<\/p>\n

Project Gigabit seeks to extend 1Gbps capable networks to reach at least 85% of UK premises by the end of 2025 and then universal coverage by around 2030 (here<\/a> and here<\/a>). The funding released for this will depend upon how the industry responds. So far only \u00a31.2bn<\/strong> has been released from the budget up until 2024, but more may be unlocked, provided the industry shows it can deliver.<\/p>\n

NOTE:<\/strong> All of this 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 around 65% of UK premises can already access a gigabit-capable network (c.30% via just FTTP<\/a>) and that’s mostly thanks to Virgin Media<\/a>’s upgrade of their existing HFC lines (here<\/a>). Generally, it’s hoped that commercial builds could push gigabit coverage up to c.80% (mostly in urban areas), but public funding will then be needed to tackle the rest due to the disproportionately high cost of deployment.<\/p>\n

The new project is thus designed to focus on improving connectivity for those rural and semi-rural areas in the final 20% (5-6 million premises<\/strong>). This 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 or GIS (rest of the funding).<\/p>\n

Today’s article is focused upon the latter gap-funded solution – the Gigabit Infrastructure Subsidy<\/strong> (GIS), 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

Progress so far<\/strong><\/span><\/h3>\n

The first procurement phase (Phase 1a<\/strong><\/a>) was announced in March 2021 and, after a few revisions, that covered parts of Cumbria, Cambridgeshire, Durham (inc. Tyneside and Teesside areas and Northumberland), Cornwall and Isles of Scilly. Some 234,000 premises will also be tackled in Wales<\/strong> as part of the wider project (here<\/a>).<\/p>\n

The Phase 1b<\/strong> and Phase 2<\/strong> procurements then followed in August 2021 (here<\/a>), which targeted 480,000 premises across Shropshire, Norfolk, Suffolk, Worcestershire, Hampshire, the Isle of Wight, Derbyshire, Wiltshire, Gloucestershire, Lancashire, Surrey, Leicestershire, Warwickshire, Nottinghamshire, Hertfordshire, Staffordshire, Lincolnshire and Yorkshire.<\/p>\n

After that, Phase 3<\/strong> was unveiled in October 2021 (Autumn Update), which aimed to cover 570,000 premises across parts of Cheshire, Devon, Dorset, Somerset, Essex, Herefordshire, Gloucestershire, Lincolnshire, East Riding and North Yorkshire. At the time of the Phase 3 update, only Cumbria had actually progressed to the stage of opening up for bids from potential suppliers (i.e. live procurement).<\/p>\n

The big news today<\/a> is that Cambridgeshire, North East England, North Northumberland, Teesdale and North Dorset have now also moved into the live procurement phase. Including Cumbria, this reflects a potential upgrade for up to 187,000 rural premises<\/strong>, with a total indicative contract value of \u00a3292 million<\/strong>.<\/p>\n

Live Procurements (Q1 2022 Update)<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Local or Regional Supplier procurement<\/strong><\/td>\nArea\/Lot Number<\/strong><\/td>\nProcurement start date<\/strong><\/td>\nEstimated contract commencement date<\/strong><\/td>\nEstimated number of uncommercial premises in the procurement area<\/strong><\/td>\nIndicative Contract Value<\/strong><\/td>\n<\/tr>\n
Local<\/td>\nNorth Dorset (Lot 14)<\/td>\n05\/01\/2022<\/td>\n08\/08\/2022<\/td>\n7,100<\/td>\n\u00a311.0m<\/td>\n<\/tr>\n
Local<\/td>\nNorth Northumberland (Lot 34.01)<\/td>\n11\/01\/2022<\/td>\n08\/08\/2022<\/td>\n3,900<\/td>\n\u00a37.3m<\/td>\n<\/tr>\n
Local<\/td>\nTeesdale(Lot 4.01)<\/td>\n11\/01\/2022<\/td>\n08\/08\/2022<\/td>\n4,100<\/td>\n\u00a36.6m<\/td>\n<\/tr>\n
Regional<\/td>\nCumbria (Lot 28)<\/td>\n20\/10\/2021<\/td>\n06\/09\/2022<\/td>\n60,800<\/td>\n\u00a3109.2m<\/td>\n<\/tr>\n
Regional<\/td>\nNorth East England (Lot 4)<\/td>\n18\/01\/2022<\/td>\n24\/11\/2022<\/td>\n61,800<\/td>\n\u00a389.6m<\/td>\n<\/tr>\n
Regional<\/td>\nCambridgeshire and adjacent areas (Lot 5)<\/td>\n07\/01\/2022<\/td>\n17\/11\/2022<\/td>\n49,700<\/td>\n\u00a368.6m<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Naturally, the ‘estimated’ details above are subject to change (final contract decisions often have a significant impact). In addition, once a contract has been awarded, you typically have to allow several months for final engineering surveys and other things to take place, before the physical build itself can begin. In other words, nearly all of the above procurements won’t enter build until early 2023 or later.<\/p>\n

We should add that local supplier procurements tend to be focused toward smaller operators (e.g. alternative networks) or projects, while regional procurements are aimed more at operators with “substantial operational capacity and financial backing<\/em>” (e.g. Openreach<\/a>, Virgin Media<\/a>, CityFibre<\/a> etc.).<\/p>\n

In terms of the ongoing discussions with the devolved administrations in Northern Ireland<\/strong> and Scotland<\/strong>, it still remains unclear precisely how Project Gigabit’s funding will be apportioned and managed. But preparatory work is now underway to launch a gigabit Open Market Review<\/strong> (OMR) for Scotland in the “coming weeks<\/em>” (used to identify the intervention area for state aid), which is the first step on the way to procurement. A similar OMR is due to follow for N.Ireland sometime in 2022, but there’s no solid date yet.<\/p>\n

Finally, the latest update also includes an updated list of the forthcoming procurement pipeline, which reflects some of the other areas across Phases 1-3. Areas marked with * below reflect those that are still under consultation with the market about the suitability of further Local Supplier procurements, which could complement the need for Regional Supplier procurements.<\/p>\n

Forthcoming Procurements<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Local or Regional Supplier procurement<\/strong><\/td>\nArea\/Lot Number<\/strong><\/td>\nProcurement start date<\/strong><\/td>\nEstimated contract commencement date<\/strong><\/td>\nEstimated number of uncommercial premises in the procurement area<\/strong><\/td>\nIndicative Contract Value<\/strong><\/td>\n<\/tr>\n
Local<\/td>\nLot 32 Cornwall and Isles of Scilly<\/td>\nFeb – Apr 2022<\/td>\nSep – Nov 2022<\/td>\n9,700<\/td>\n\u00a318m – \u00a324m<\/td>\n<\/tr>\n
Local<\/td>\nLot 32 Cornwall and Isles of Scilly<\/td>\nFeb – Apr 2022<\/td>\nSep – Nov 2022<\/td>\n9,900<\/td>\n\u00a318m – \u00a324m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 7 Norfolk<\/td>\nFeb – Apr 2022<\/td>\nJan – Mar 2023<\/td>\n111,400<\/td>\n\u00a3115m – \u00a3195m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 2 Suffolk<\/td>\nFeb – Apr 2022<\/td>\nJan – Mar 2023<\/td>\n86,100<\/td>\n\u00a389m – \u00a3151m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 27 Hampshire*<\/td>\nMar – May 2022<\/td>\nJan – Mar 2023<\/td>\n148,100<\/td>\n\u00a3148m – \u00a3251m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 25 Shropshire*<\/td>\nMar – May 2022<\/td>\nJan – Mar 2023<\/td>\n64,300<\/td>\n\u00a361m – \u00a3104m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 24 Worcestershire<\/td>\nMay – Jul 2022<\/td>\nApr – Jun 2023<\/td>\n45,600<\/td>\n\u00a350m – \u00a384m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 13 Oxfordshire and West Berkshire<\/td>\nMay – Aug 2022<\/td>\nApr – Jun 2023<\/td>\n67,000<\/td>\n\u00a367m – \u00a3114m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 29 Kent<\/td>\nMay – Jul 2022<\/td>\nApr – Jun 2023<\/td>\n109,500<\/td>\n\u00a3119m – \u00a3203m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 26 Buckinghamshire, Hertfordshire and East of Berkshire<\/td>\nMay – Aug 2022<\/td>\nApr – Jun 2023<\/td>\n137,100<\/td>\n\u00a3140m – \u00a3237m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 19 Staffordshire<\/td>\nMay – Aug 2022<\/td>\nApr – Jun 2023<\/td>\n70,800<\/td>\n\u00a372m – \u00a3123m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 1 West Sussex<\/td>\nMay – Aug 2022<\/td>\nApr – Jun 2023<\/td>\n56,700<\/td>\n\u00a366m – \u00a3112m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 16 East Sussex<\/td>\nAug – Oct 2022<\/td>\nJul – Sep 2023<\/td>\n41,200<\/td>\n\u00a349m – \u00a383m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 12 Bedfordshire, Northamptonshire and Milton Keynes<\/td>\nAug – Oct 2022<\/td>\nJul – Sep 2023<\/td>\n81,300<\/td>\n\u00a384m – \u00a3144m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 3 Derbyshire<\/td>\nAug – Oct 2022<\/td>\nJul – Sep 2023<\/td>\n57,000<\/td>\n\u00a364m – \u00a3110m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 30 Wiltshire and South Gloucestershire<\/td>\nAug – Oct 2022<\/td>\nJul – Sep 2023<\/td>\n84,800<\/td>\n\u00a385m – \u00a3145m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 9 Lancashire<\/td>\nAug – Oct 2022<\/td>\nJul – Sep 2023<\/td>\n82,000<\/td>\n\u00a390m – \u00a3153m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 22 Surrey<\/td>\nAug – Oct 2022<\/td>\nJul – Sep 2023<\/td>\n99,400<\/td>\n\u00a3101m – \u00a3171m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 11 Leicestershire and Warwickshire<\/td>\nNov 2022 – Jan 2023<\/td>\nOct – Dec 2023<\/td>\n112,900<\/td>\n\u00a3114m – \u00a3194m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 10 Nottinghamshire and West of Lincolnshire<\/td>\nNov 2022 – Jan 2023<\/td>\nOct – Dec 2023<\/td>\n89,700<\/td>\n\u00a390m – \u00a3152m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 8 West Yorkshire and parts of North Yorkshire<\/td>\nNov 2022 – Jan 2023<\/td>\nOct – Dec 2023<\/td>\n125,200<\/td>\n\u00a3128m – \u00a3218m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 20 South Yorkshire<\/td>\nNov 2022 – Jan 2023<\/td>\nOct – Dec 2023<\/td>\n56,800<\/td>\n\u00a359m – \u00a3103m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 17 Cheshire<\/td>\nFeb – Apr 2023<\/td>\nJan – Mar 2024<\/td>\n74,300<\/td>\n\u00a385m – \u00a3144m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 6 Devon and Somerset<\/td>\nFeb – Apr 2023<\/td>\nJan – Mar 2024<\/td>\n159,600<\/td>\n\u00a3198m – \u00a3337m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 15 Herefordshire<\/td>\nFeb – Apr 2023<\/td>\nJan – Mar 2024<\/td>\n23,700<\/td>\n\u00a330m – \u00a360m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 18 Gloucestershire<\/td>\nFeb – Apr 2023<\/td>\nJan – Mar 2024<\/td>\n44,700<\/td>\n\u00a340m – \u00a380m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 14 Dorset<\/td>\nMay – Jul 2023<\/td>\nApr – Jun 2024<\/td>\n56,500<\/td>\n\u00a362m – \u00a3105m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 21 Essex<\/td>\nMay – Jul 2023<\/td>\nApr – Jun 2024<\/td>\n78,400<\/td>\n\u00a379m – \u00a3135m<\/td>\n<\/tr>\n
Regional<\/td>\nLot 23 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
Regional<\/td>\nLot 31 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

The fact that some of these won’t enter contract commencement until late 2024 is a concern as, by that point, several long years will have passed due to the admin side before some areas even reach the build phase. Some of these contracts will thus only start to build in 2025, which is the same year that Project Gigabit originally set for achieving the 85%+ target (thanks to commercial builds, the Government will probably still achieve that).<\/p>\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). In addition, 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","protected":false},"excerpt":{"rendered":"

The UK Government’s Building Digital UK team has published an update on the start of their first procurements under the \u00a35bn Project Gigabit broadband rollout, which is now inviting bids for contracts worth up to \u00a3292m to upgrade rural premises across Cumbria, Durham, Northumberland, Cambridgeshire, Dorset and Teesdale.<\/p>\n","protected":false},"author":1,"featured_media":24271,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[471,56,414,38,1997,89,537,71],"class_list":["post-30058","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-scotland","tag-uso","tag-wales"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nProject Gigabit Updates on Start of First Live UK Procurements - 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