{"id":33074,"date":"2023-02-27T14:47:22","date_gmt":"2023-02-27T14:47:22","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=33074"},"modified":"2023-02-27T16:39:00","modified_gmt":"2023-02-27T16:39:00","slug":"winter-2023-update-on-project-gigabit-uk-broadband-rollout","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/02\/winter-2023-update-on-project-gigabit-uk-broadband-rollout.html","title":{"rendered":"Winter 2023 Update on Project Gigabit UK Broadband Rollout"},"content":{"rendered":"

The Building Digital UK<\/a> team has today published their latest quarterly Winter 2023 update on the Government’s \u00a35bn rural Project Gigabit<\/a> broadband rollout scheme, which has so far awarded six contracts – worth \u00a3164.8m – and launched 14 further procurements with a combined estimated value of \u00a3906.7m.<\/p>\n

The project itself aims to extend networks capable of delivering 1000Mbps (1Gbps) download speeds to “at least<\/em>” 85% of UK premises by the end of 2025 and then “nationwide<\/em>” coverage (c.99%) by around 2030 (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 is expected to be unlocked as the industry responds.<\/p>\n

NOTE:<\/strong> The project is technology neutral, thus operators 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
\"Project-Gigabit-BDUK-Coverage-Forecast-Winter-2023\"<\/div>\n

At present around 73% of UK premises can already access a gigabit-capable network (c.45% via just FTTP<\/a>) and that’s mostly thanks to Virgin Media<\/a>’s (VMO2) upgrade of their existing HFC networks (here<\/a>). But it\u2019s anticipated that commercial builds alone will push gigabit coverage up to over 80% by around the end of 2025 (mostly in urban areas), while Ofcom<\/a> predicts overall gigabit coverage will hit c. 92% in March 2025 (here<\/a>).<\/p>\n

Project Gigabit 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 (rest of the funding) – better known as the Gigabit Infrastructure Subsidy<\/strong> (GIS) programme.<\/p>\n

Today\u2019s article is focused upon the GIS programme and related procurement work, which sees ISPs bidding through a new Dynamic Purchasing System<\/strong> (DPS) to extend their networks across disadvantaged parts of the UK.<\/p>\n

What’s New in the Winter 2023 Update<\/strong><\/span><\/h3>\n

Since the last update, BDUK has followed their initial contract awards by signing two new contracts for Central Cornwall<\/strong> (Lot 32.03) and South West Cornwall<\/strong> (Lot 32.02) – worth a combined \u00a336 million – with alternative network provider Wildanet<\/a> (here<\/a>). The rollout is expected to help upgrade more than 19,250 hard-to-reach homes and businesses in the region.<\/p>\n

The combined value of all the contracts signed so far comes to around \u00a3164.8m in public investment and will upgrade nearly 92,950 premises (c.\u00a31,773 per premises passed). As it stands, the total value of Project Gigabit\u2019s procurements launched to date is around \u00a31bn, which could see up to 730,000 extra premises being passed by a gigabit-capable network.<\/p>\n

In the “next few months<\/em>“, BDUK added that we will witness a further acceleration of the rollout of Project Gigabit, with contracts set to be awarded covering locations across Cambridgeshire, Norfolk, Suffolk, the New Forest and Shropshire, and spades in the ground in many of the places covered by contracts signed last year.<\/p>\n

However, so far all of this has been in England, while the devolved countries of Wales, Scotland and Northern Ireland are still in the preparation stage. But we do get a good idea of the next steps for these areas.<\/p>\n

Status of Devolved Countries<\/strong><\/span><\/p>\n

\u27a4 In Wales<\/strong>, initial market engagement has taken place with suppliers and final intervention areas are now being developed with the aim of launching procurements by the summer.<\/p>\n

\u27a4 The Open Market Review for Northern Ireland<\/strong> launched on 8 December and closed on 27 January. The responses are currently being evaluated, with a Public Review expected to launch in April and procurement expected to start in the autumn.<\/p>\n

\u27a4 In Scotland<\/strong>, a Public Review is scheduled to launch in March, with procurements expected to follow later this year. The Public Review responses to the proposed local procurement in the Inverness area have been evaluated and assured by Highlands and Islands Enterprise (HIE), and soft market testing is now underway with interested suppliers.<\/p><\/blockquote>\n

Elsewhere, BDUK has partnered with National Parks England, Openreach<\/a> (BT<\/a>) and wayleaves (land access agreements) firm Trenches Law to sign an accord<\/a> which will enable efficient gigabit-capable rollout while protecting these beautiful landscapes (i.e. reducing barriers to broadband deployment in England’s 10 national parks).<\/p>\n

Finally, BDUK has identified the first areas for inclusion into a possible Cross-Regional Supplier Framework<\/strong>, which are listed below (see tender<\/a>). The idea of this is to appoint a supplier to target premises (i.e. subsidise the design, build and operation of a new gigabit network) in areas where no or no appropriate market interest has been expressed before, or areas that have been descoped or terminated from a prior plan.<\/p>\n