Slide 1

Funding Models public/private conundrum Annette Murphy, Sales & Business Development Director Wednesday, 02 December 2015 Slide 2 Introduction 530M of public funds by 2015 requires private sector investment to complete the task Two Forms: Inorganic Investment: public/private collaboration to fund initial roll outs and run ventures Organic Investment: the right levels of public/private intervention to drive additional organic Private Sector Investment Slide 3 Hurdles to be overcome Inorganic Public/Private Intervention Different views of market attractiveness Different planning horizons Different business objectives vertical/horizontal integration Organic Private Sector Investment Remove barriers to entry sufficient to attract ongoing private sector investment Slide 4 Critical to successful funding models are; Taking a long term view of investment Establishing risk/reward profiles that recognise different drivers Get the business model right: horizontal separation of wholesale and retail Understand your barriers to entry Slide 5 55 Fibrespeed: Removing the barriers to private investment Geo won a tender to build and operate a 270km open access network from Manchester to Anglesey Funded jointly by European Regional Development Fund, WAG & Geo Initial cost: 30m over 15 years Build completed in 15 months: now live An essential infrastructure for new broadband services Slide 6 66 FibreSpeed The Business Model Brings infrastructure competition to North Wales Pricing benchmarked to SE England Sells exclusively to service providers who engage the retail market Open access Includes passive network components Ideal model for FTTH development by the public sector Consistent with state aid regulations End-User Slide 7 7 FibreSpeed: Driving organic private sector investment in Wales VDSL 2+ solution offered to Welsh Rural Village of Erbistock Microwave link to FibreSpeed and then FTTC solution Utilises BT sub-loop unbundling product Providing up to 40Mbps downlink 100 Mbps Backhaul from FibreSpeed Privately Funded Roll Out Next generation WiFi, WiMAX, Point to Point carrier class infrastructure High speed broadband service to rural areas Access to an existing cost effective backhaul solution was crucial to the business case Highly repeatable model Privately Funded Roll Out Slide 8 Geo solution Thank You