{"id":35454,"date":"2023-08-21T00:01:04","date_gmt":"2023-08-20T23:01:04","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=35454"},"modified":"2023-08-21T09:21:01","modified_gmt":"2023-08-21T08:21:01","slug":"bduk-prep-new-option-for-uk-rural-gigabit-broadband-builds","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/08\/bduk-prep-new-option-for-uk-rural-gigabit-broadband-builds.html","title":{"rendered":"BDUK Prep New Option for UK Rural Gigabit Broadband Builds"},"content":{"rendered":"

Multiple industry sources have informed us that the Government’s Building Digital UK<\/a> agency is fielding interest in a new funding option for rural-focused procurements under their \u00a35bn Project Gigabit<\/a> programme, which appears set to target smaller community style builds of around 200-500 properties.<\/p>\n

At present over 76% of UK premises can already access a gigabit-capable network (details<\/a>), which falls to 53% when just looking at FTTP<\/a> technology (i.e. the gigabit figure is boosted by Virgin Media<\/a>\u2019s HFC upgrade \u2013 here<\/a>). But Ofcom<\/a> currently forecasts gigabit coverage to hit 92% by March 2025 (here<\/a>), with purely commercial deployments alone being expected to deliver over 80% of that.<\/p>\n

Project Gigabit is thus intended to help tackle that final 20% and, more broadly, aims to help extend networks capable of delivering \u201cgigabit<\/em>\u201d (1000Mbps) download speeds (and uploads of 200Mbps+) to \u201cat least<\/em>\u201d 85% of UK premises by the end of 2025, and then \u201cnationwide<\/em>\u201d coverage (c.99%) by around 2030 (here<\/a>).<\/p>\n

The project uses a variety of methods in order to tackle this gap, although our readers are probably most familiar with their Gigabit Infrastructure Subsidy<\/strong> (GIS) rollout contracts with network operators (both at a smaller ‘Local<\/em>‘ and larger ‘Regional<\/em>‘ or ‘Cross-Regional<\/em>‘ level) and the demand-led Gigabit Broadband Voucher Scheme<\/a> (GBVS).<\/p>\n

The New Funding (Procurement) Option<\/strong><\/span><\/h3>\n

According to our sources, BDUK are currently fielding interest in the prospect of introducing a new funding option, which would focus on subsidised procurements for smaller builds (c. 200-500 properties) across three LOTS (North, Midlands and South). These would be even smaller clusters than the ‘Local’ contracts that have so far been awarded via the GIS contracts, which normally cover a few thousand premises each.<\/p>\n

This is also the same sort of area as is normally covered by the voucher scheme (i.e. builds for specific communities), except suppliers in this new option would benefit from upfront funding. By comparison, securing vouchers and getting paid has become somewhat of a slow and tedious process for some suppliers, which has also been disrupted by regional programme suspensions and cases where some schemes have been unexpectedly cancelled (here<\/a>) – leaving supplies with the financial headache of a wasted effort.<\/p>\n

At present the details are quite thin, although we understand that multiple suppliers could be involved with each of the above LOTs (possibly 12-35 per LOT). But the catch is that BDUK seem likely to introduce additional eligibility checks (e.g. cashflow requirements), which may partly reflect the natural risk aversion of politicians and the growing threat of instability in the wider alternative network (AltNet) space.<\/p>\n

On top of that, suppliers who bid on smaller builds will also be required to offer wholesale access to their network, just like with the larger subsidy contracts. The expectation is that all of these caveats could discourage smaller network operators from taking part, although it’s still a bit too early to judge.<\/p>\n

A spokesperson for BDUK confirmed to ISPreview that they were engaging with industry partners and considering the best options for delivering connectivity to those areas that aren’t currently included in commercial suppliers’ plans or by existing local, regional, or cross-regional contracts. But they weren’t able to provide any further detail on the new funding option or when it might become available.<\/p>\n","protected":false},"excerpt":{"rendered":"

Multiple industry sources have informed us that the Government’s Building Digital UK agency is fielding interest in a new funding option for rural-focused procurements under their \u00a35bn Project Gigabit programme, which appears set to target smaller community style builds of around 200-500 properties.<\/p>\n","protected":false},"author":1,"featured_media":32092,"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],"class_list":["post-35454","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"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nBDUK Prep New Option for UK Rural Gigabit Broadband Builds - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Multiple industry sources have informed us that the Government's Building Digital UK agency is fielding interest in a new funding option for rural-focused\" \/>\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\/2023\/08\/bduk-prep-new-option-for-uk-rural-gigabit-broadband-builds.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BDUK Prep New Option for UK Rural Gigabit Broadband Builds - 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