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UK Superfast Broadband Projects Directory 2014: crunch year for Superfast UK Prepared by: Annelise Berendt Date: 14 February 2014 Version: 1.0 Point Topic Ltd 73 Farringdon Road London EC1M 3JQ, UK Tel. +44 (0) 20 3301 3305 Email [email protected]

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Page 1: UK Superfast Broadband Projects Directorypoint-topic.com/wp-content/uploads/2014/02/UK-superfast-broadband... · 14/2/2014 · UK Superfast Broadband Projects Directory 2014: crunch

UK Superfast Broadband Projects Directory 2014: crunch year for Superfast UK

Prepared by: Annelise Berendt

Date: 14 February 2014

Version: 1.0

Point Topic Ltd 73 Farringdon Road

London EC1M 3JQ, UK Tel. +44 (0) 20 3301 3305

Email [email protected]

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Point Topic – UK Plus report – 2014: crunch year for Superfast UK

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Contents

1. Background 4

2. Introduction 5

3. The service provider picture 8

4. BT Group puts another £50m into the pot 11

4.1 Fibre on Demand developments 11

4.2 Self-install getting closer 12

4.3 Multicast for GEA launched for TV provision 12

4.4 Cornwall passes target and begins to impact local economy 13

4.5 Northern Ireland FTTC network has over 150,000 customers 13

4.6 BT looks to raise its MDU game 14

4.7 Last batch of 19 exchanges quietly announced 14

4.8 BT Retail sees strong fibre-based growth 16

5. Virgin Media increases the speed stakes 17

5.1 Higher speed services and boosts for existing customers 17

5.2 Virgin acquires Smallworld Fibre 17

6. Altnets move into make or break year 18

6.1 CityFibre floats on AIM 18

6.2 Gradwell launches GigaBath based on CityFibre infrastructure 19

6.3 IFNL continues to build homes passed numbers 20

6.4 Hyperoptic launches in Olympic Village 20

6.5 Venus welcomes Connection Voucher Scheme 21

6.6 Community Fibre in Westminster pilot 21

6.7 Velocity1 uses Wembley to showcase the bigger picture 21

6.8 Call Flow Solutions continues private and publicly-funded rollout 22

6.9 Fibre Options seeing increasing developer interest 22

6.10 Gigaclear continues to grow rural footprint 23

6.11 B4RN sticks to its coverage plans 23

6.12 Cybermoor FTTP services go live 24

6.13 LonsdaleNET launches fibre network in Cumbria 24

6.14 TripleConnect in Cumbrian new build fibre deployment 25

6.15 KC fibre connections approach 7,000 lines 25

6.16 The closure of Digital Region 26

6.17 Student fibre sector is a springboard for the wider market 27

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7. Government says Superfast Britain is on track 28

7.1 New £10 million fund for alternative technology providers 28

7.2 New BDUK chief takes the helm 29

7.3 DCMS commissioned report on the benefits of broadband 29

7.4 Rural Broadband Fund contracts in the delivery stage 30

8. Slow going for the RCBF 31

8.1 Fell End completes first phase 31

8.2 Fibre GarDen to work with ITS Technology Group 31

8.3 Noke issues State aid consultation document 32

8.4 Northmoor plans April start 32

8.5 First RCBF funded cabinet goes live in Rothbury 32

9. Urban broadband voucher scheme rolls out 34

9.1 Ten cities offering voucher scheme 34

10. Devolved nation initiatives update 35

10.1 Digital Scotland and CBS progress 35

10.2 Northern Ireland proposes intervention areas 36

10.3 Superfast Cymru sees over 100,000 premises gain high-speed access 37

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1. Background

This short report provides an update to our August 2013 publication, Superfast UK reviews, rethinks

and revises. It covers the latest announcements and activities of the two largest superfast players,

BT and Virgin Media. It looks at progress by the country’s alternative infrastructure suppliers, and

provides an update on the Broadband Delivery UK (BDUK) process, and activities at local authority

and community level. Further details of the projects mentioned here, and many others, can be found

in a separate Superfast broadband projects directory.

As with our previous superfast broadband publications, this report focuses on fibre-based network

deployments including fibre-to-the-cabinet (FTTC), fibre-to-the-premises (FTTP) and fibre-to-the-

building (FTTB) with the exception of student accommodation. We also refer to superfast cable

infrastructure (Docsis 3). Although we do not cover wireless broadband connections specifically,

some of the players mentioned use fixed wireless broadband technology as part of their overall

offering.

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2. Introduction

2014 will be the crunch year for superfast broadband in the UK. The Government is keen to move on

after a barrage of criticism over the past 12 months of the BDUK process and of BT as the only

supplier left in the Rural Broadband Fund framework. It is therefore taking care to celebrate

progress in achieving its revised target to bring superfast broadband – that is over 24Mbps – to 95

per cent of the country by 2017.

Its announcement of a new £10 million fund to support innovative technology solutions for the most

remote communities signals a desire to look beyond the past year of county council Local Broadband

Plans and contracts, and to bolster funding for the final five per cent given the flagging Rural

Community Broadband Fund (RCBF) initiative. This continues to be hampered by wrangling over BT

and local authorities’ lack of detail on where these homes and businesses actually lie.

A new head at BDUK in April 2014 will also provide something of “a new broom”, and is timed to

bring in commercial experience to oversee the next stage of rollout.

The demise of the Digital Region network is a blow to the alterative network operators’ case.

However, nimbler niche providers are ramping up in urban and rural areas, specialising in terms of

premises, location and customers rather than trying to be all things to all end users. Some of these

players are now attracting serious funding and the floating of CityFibre on the Stock Exchange’s AIM

market suggests growing confidence for specialist providers among the alternative network

community. A number of altnets are also involved in the Governments Connection Voucher Scheme.

In terms of the two big players, BT Openreach’s predominantly fibre-to-the-cabinet (FTTC) network

passed over 18 million premises at the end of January 2014. Virgin Media’s network passed

12,520,100 homes at the end of December 2013. The cable operator’s acquisition of Smallworld

Fibre announced in early February 2014 will instantly provide another 40,000 premises.

Point Topic has collated the fibre-based projects of 18 active alternative network operators over 35

community-led initiatives, either underway or at various stages of planning, as published in our

separate Superfast broadband projects directory. These are diverse in nature and illustrate the

range of players and approaches that continue to be active on the UK’s superfast broadband scene.

Table 1 gives estimated fibre-based and Docsis 3.0 superfast connections at the end of December

2013 for deployments with connections of 10 lines and above. The majority are to residential

properties with some to SMEs. We also provide figures for premises passed, giving Point Topic

estimates where actual numbers are not available.

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Table 1: Superfast fixed broadband connections, end-December 2013

Operator Project Locations Technology Connections at end

December 2013

(estimates in italics)

Total premises passed

reported by network

operators end

December 2013

(estimates in italics)

Ask4 Leeds FTTB 7,300 10,000

Atlas

Communications

Middletown, Northern

Ireland

FTTC 50 150

Arc apartments in

Titanic Quarter,

Northern Ireland

FTTB 175 400

Broadband for

the Rural North

(B4RN)

Lancashire, phase 1 FTTP 300 460

BT Openreach Enabled exchange

areas: BT Infinity

FTTC 2,386,000 18,000,000 of which

estimated 112,000 are

FTTP FTTP 14,000

Call Flow

Solutions

Kings Hill, Well Hill &

Knockholt, Crockenhill

& Well Hill, Yalding,

Hunton & Collier

Street, Rolvenden

FTTC 1,300 4,000

Chess Telecom

(acquired

Isrighthere)

Leeds, Liverpool,

London

FTTB 719 1,079

CityFibre Holdings Bournemouth FTTP 250 21,000

Community Fibre Westminster FTTB 20 150

Connexin (took

over assets of

NextGenUs UK

CIC)

Ashby de la Launde,

Lincolnshire

FTTP 60 65

Cybermoor Cumbria FTTP 15 300

Digital Region South Yorkshire FTTC and

some FTTP

3,750 480,000*

Gigaclear and

Rutland Telecom

Rutland FTTC 800 2000

Kent, Oxfordshire and

Rutland

FTTP

Fibre Options Derwenthorpe FTTP 60 64

Overbury FTTP 30 90

FizzyLiving Four sites in London FTTB 50 200

G-Ti Gateshead FTTP 80 80

Hampshire

County Council

Villages of Smannell,

Little London and

FTTC 30 53

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Enham

Hyperoptic London various sites FTTB 5,200 26,000

IFNL Across 17 sites FTTP 6,084 7,180

KC In and round Kingston

upon Hull

FTTP, FTTC,

FTTN, FTTB

6,980 27,879

MediaCityUK Salford Quays in

Salford, Greater

Manchester

FTTB 244 378

Smallworld Fibre

(acquired by

Virgin Media

February 2014)

Irvine, Dreghorn, Troon

and Kilarnock in West

of Schotland, and

Carlisle, Lancaster and

Morcambe in North-

West England

Docsis 3 2,500 40,000

TripleConnect Carlisle FTTH 15 25

Velocity1 Wembley, NW London FTTB 630 630

Virgin Media 30 to 100/120Mbps Docsis 3 3,200,000 13,354,000**

Woolhampton FTTP 10 10

Venus Business

Communications

Battersea (residential) FTTB 24 24

Vtesse Networks

(not taking new

orders)

Across deployments in

Hertford, Rugby,

Broughton and Hatt

and Higher Pill near

Saltash, Cornwall

FTTC 220 1,247

West

Whitlawburn

Housing Co-

operative

Glasgow FTTP 100 100

WightFibre Isle of Wight Docsis 3,

FTTP

2,500 13,000

* Digital Region covers 80% of the homes that are connected to the PCPs it covers. Point Topic estimates this

number to be 391,000 of what we count as 617,000 premises in South Yorkshire. We are continuing to include

figures because no network switch-off has been announced

** Point Topic estimate for homes and businesses passed by the Virgin Media cable network; Virgin Media

reports 12,520,100 homes and residential multiple dwelling units passed at end-December 2013

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3. The service provider picture

There are at least 80 service providers reported to be using Openreach’s fibre-based network, up

from 60 in early October 2012. Openreach made 339,000 net connections during the last three

months of 2013 of which around one third were for service providers other than BT Retail. Point

Topic estimates that total lines for these providers now stand at around 0.5 million.

TalkTalk reported an increase of 35,000 FTTx customers during Q4 2013, bringing its total fibre base

to 177,000. The service provider noted that fibre growth had benefited from promotional activity

during the quarter and has since returned to a more regular pattern of growth. It went on to say that

demand for fibre from its customers remains modest except when it can deliver transformational

improvements in their broadband experience, such as for those customers who currently achieve

less than 2Mbps speeds and might wish to take TV.

The cities are where alternative network operators are perhaps making most headway in terms of

service promotion. Altnets including Venus Communications and Hyperoptic are leveraging the

Government’s Connection Voucher Scheme for SMEs to promote not only their services but their

growing network coverage and technology.

Table 2 lists service providers offering fibre-based products in January 2014 on a variety of next-

generation fibre-based networks.

Table 2: Selection of ISPs offering superfast services, February 2014

Operator Location (if geographical specific) Network

ADSL24 Openreach

AOL (part of TalkTalk) Openreach

Andrews & Arnold Ltd (AAISP)

Openreach

Aquiss Openreach

Ask4 Digital Region including acquisition of RiPWIRE customers, own FTTB installations, Openreach

Atlas Communications Middletown and Titanic Quarter, NI Own FTTC and FTTB installation

BT Retail Openreach

Call Flow Solutions Kings Hill in Kent; Crockenhill in Kent Own FTTC installation

Central Technology South Yorkshire Digital Region

Chess Telecom (now owns Littlebigone)

Openreach

Clara.net Openreach

Clearstream Openreach

Community Fibre Westminster in London Own FTTB installation

Connexin Ashby de la Launde Taken over FTTH network from NextGenUs UK CIC

Daisy Wholesale Openreach

Demon Internet Openreach

Digital City Region South Yorkshire Digital Region

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Eclipse Openreach

EE/Orange Openreach

Elite Openreach

Entranet Openreach

Exa Networks Openreach

Fastnet FTTC on Fluidata wholesale platform (Hampshire); Openreach

Gamma Openreach

Gigler FTTP on CityFibre’s Bournemouth network

Griffin Internet Openreach

Goscomb Technologies Openreach

Hyperoptic London Own FTTB installations

IDNet FTTC on Fluidata wholesale platform (Hampshire); Openreach

Internet For Business Openreach

Internet Central Openreach

Isrighthere Liverpool; Chelsea; Leeds Own FTTB installation

KC Kingston upon Hull area Own FTTC, FTTH and FTTB installations

Littlebigone (now part of Chess Telecom)

South Yorkshire Digital Region

Mainstream Digital Openreach

LonsdaleNET Melkinthorpe in Cumbria Own FTTP installation

MDNX Openreach

Merula Openreach

NewNet Openreach

Oosha Openreach

Origin Digital Region

Plusnet Openreach

Powernet Openreach

Redstone Openreach

Rutland Telecom/Gigaclear Sites in Rutland and Oxfordshire Own FTTC and FTTH installations

SAQ Openreach

Seethelight 17 sites IFNL FTTH installation – retail ISP designed to kick-start deployment

Sky Broadband Openreach

Smallworld Fibre (acquired by Virgin Media February 2014)

Irvine, Dreghorn, Troon and Kilarnock in West of Schotland, and Carlisle, Lancaster and Morcambe in North-West England

Own Docsis 3.0 network

Star Technology Openreach

Spectrum Internet Openreach

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TalkTalk Openreach

TalkTalk Business Openreach

Timico Openreach

Total Web Solutions Ltd Openreach

TripleConnect Carlisle Own FTTH installation

Updata Openreach

UTV Internet Openreach

Velocity1 Wembley Quintain Estates & Development and Industria Media FTTB

Venus Communications Own FTTP installations

Vfast Internet Openreach

Virgin Media Own Docsis 3.0 network

Vispa Openreach

Vtesse Broadband Birch Green and Hertingfordbury, in Hertfordshire

Vtesse Networks FTTC (not taking new customers)

Vivaciti Openreach

Web Tapestry Openreach

West Whitlawburn Housing Co-operative

Cambuslang in Glasgow Own FTTB installation

Whippet Internet Kent Call Flow Solutions

WightFibre Isle of Wight Some FTTP along with Docsis 3.0

Zen Internet Openreach

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4. BT Group puts another £50m into the pot

On 24 January 2014 BT Group announced it will invest a further £50 million into its commercial fibre

broadband programme over the next three years targeting more than 30 cities to bring high-speed

broadband to 400,000 additional premises. The focus of this new investment will be enabling city

cabinets that were not part of BT’s original commercial plans due to technical challenges or local

planning restrictions, deploying fibre to cabinets to serve multi-dwelling units such as apartment

blocks, and laying further fibre including fibre-to-the-premises (FTTP) technology to new build sites

in cities.

The BT Openreach fibre-based network now passes over 18 million premises and had around 2.4

million live connections at the end of January 2014. Openreach’s fibre revenue was up 72 per cent

during the latest quarter. According to BT Group’s Chief Executive Gavin Patterson, the period was a

record quarter for BT Retail’s fibre take-up.

Factoring in this latest investment announcement BT says it is spending more than £3 billion on

deploying fibre broadband – £2.5 billon on its commercial fibre footprint which will cover around 19

million premises, and further funds in rural fibre projects, including many under the BDUK

programme.

On the rural side, the operator says it is making progress with extending fibre to rural areas. It has

won 46 regional broadband contracts including those funded by BDUK, Superfast Cornwall and

Northern Ireland. Build was underway in 36 of these areas at the end of January 2014 passing

around 170,000 premises during the last three months of 2013. BT is also working with RBCF grant

awardee Rothbury in Northumberland (further details are provided below).

Also in January 2014 the company announced a new CEO for Openreach, Joe Garner, who will join in

mid-February 2014 to replace Liv Garfield who is leaving to become CEO of Severn Trent. Garner’s

most recent role was at HSBC and BT highlights his experience of working in a strictly regulated

industry and of dealing with regulators, not least through another previous role as Chairman of the

Financial Services Authority’s Practitioner Panel.

BT has made a number of other announcements since our last report in August 2013 regarding its

next-generation broadband programme. The key ones are outlined below.

4.1 Fibre on Demand developments

Another 82 exchange areas were announced for Fibre on Demand (FTTPoD) coverage in December

2013, with availability scheduled during 2014. Already 60 exchange areas have been named and a

further set of exchanges should be announced by the end of March 2014, bringing the total to 303.

On 28 January 2014 Openreach announced price rises for the FTTPoD product, effective from 1 May

2014. The connection charge will increase from £500 to £750, while the monthly cost will rise from

the current £38 plus VAT to £99 plus VAT under a three-year contract. There are also price increases

for one-off distance-based charges from £2 per metre to £3 per metre. Demand for the product so

far is reportedly low.

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4.2 Self-install getting closer

There have been developments in Openreach’s CPE Enablement programme which is key for self-

installation. This introduces a GEA-FTTC variant that allows service providers to supply their own

integrated VDSLmodem/router device – regarded as an important move leading to self-installation

options from service providers and therefore promoting mass market FTTx take-up. By doing away

with the need for an engineer’s visit, costs should be reduced and customers will not have to wait in

for their arrival.

In late November 2013 the operator announced the early market deployment launch of PCP Only

and communication provider control of modems from 31 December 2013. The programme will run

for around six months bringing two key changes:

PCP Only – this is a connection variant where the Openreach engineer carries out the

“jumpering” activity at the local street cabinet and then closes the job with the service

provider or end user responsible for completing of the installation in the end user premises.

Managed Engineer Installation with CP Device – when an Openreach engineer visits the end

user premises, does everything that they would with a managed install but plugging directly

into the service provider’s device rather than installing an Openreach modem.

Previously only two installation approaches were available – basic install where an Openreach

engineer installed the Openreach modem with anything beyond that down to the end-user, and

managed install which included installation of the Openreach modem, the service provider-supplied

router and checks on the connection using a computer belonging to the end user.

From summer 2013 providers could work with Openreach to verify their VDSL modem/routers for

use on the Openreach network and start to issue them to end users rather than using the Openreach

modem. In September 2013 it was reported that Sky was one of the first providers to move beyond

staff-based trials for self-install FTTC services and was sending at least one customer an integrated

Sky device comprising built-in VDSL2 modem. BT Retail and EE were also reported to be close to

having their own integrated solution with VDSL modem and router in the same equipment.

Also in September 2013 Openreach announced it was considering a potential connection pricing

offer on basic and managed installs to incentivise take-up of fibre broadband by service providers

within the footprint of a selected number of exchange areas. It was asking for feedback on likely

engagement and interest in such an offer.

4.3 Multicast for GEA launched for TV provision

On 25 November 2013 Openreach launched its Multicast for GEA product, aimed at providers

delivering IP-based TV signals to the handover point for the Openreach fibre network for broadcast.

Multicasting is the ability to transmit one data stream which is then split into individual streams

through the GEA access network for delivery to individual premises. This way, the need to send

multiple individual streams across the network to the NGA handover locations is reduced.

Openreach has increased the maximum size of its Multicast for GEA VLAN from 500Mbps to

860Mbps from the early market product. The operator says this change is ideal for customers

looking to transport linear IPTV across the GEA network that are increasing their channel mix or

looking at higher bandwidth technology including HD, 3D and UHDTV.

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Details of Openreach’s historic and current trials are provided in our Superfast broadband projects

directory.

4.4 Cornwall passes target and begins to impact local economy

In November 2013 Openreach’s fibre-based network had passed 206,000 premises in the Superfast

Cornwall project representing 82 per cent of the Duchy. This is higher than the original target of 80

per cent coverage some 15 months ahead of schedule. Over 35,000 homes and businesses have

taken superfast services, including 4,130 SMEs. BT says the Superfast Cornwall project is on-track to

get fibre broadband to 95 per cent of the region, as well as the Isles of Scilly by the end of 2014. The

aim is also for the remaining five per cent of premises (about 13,000) to gain a boost in speeds using

alternative technologies.

At least 26 service providers excluding BT Retail are offering FTTC services on the Openreach

network; BT Retail also provides FTTP services where the technology is available. Plusnet is currently

inviting customers to trial FTTP services and business FTTP services are being sold by several

providers, namely Entanet, Griffin Internet, NBS Network Solutions and Zen Internet, in addition to

BT Business.

Also in November 2013, the operator announced publication of independent research showing that

its superfast network was providing an economic boost to SMEs in the region. Early indications from

the study, claimed to be the first of its kind to explore the economic impact of fibre broadband on

British SMEs, found that after 12 months 83 per cent of SMEs surveyed were saving time and money

as a result of faster speeds and services enabled by fibre broadband. Fifty-eight per cent said their

business is growing because of the new technology, and more than 26 per cent have either created

or safeguarded jobs as a direct result of efficiency and innovation encouraged by superfast

broadband. Over a third of businesses completing the survey (37.5 per cent) reported that superfast

broadband had helped their business generate new sales with nearly a quarter (24 per cent) of that

group pointing to new trade overseas.

The Superfast Cornwall Evaluation Final Midterm Report was completed by SERIO at Plymouth

University in collaboration with Buckman Associates, with survey fieldwork conducted by Marketing

Means. The survey covered 88 businesses which had been connected to superfast broadband for 12

months or longer. This is estimated to represent around 11.6 per cent of the total number of

businesses that have been connected for over 12 months. The survey will be repeated quarterly

throughout the remainder of the project with the sample size increasing.

4.5 Northern Ireland FTTC network has over 150,000 customers

On 12 November 2013 Dundrum-based stove suppliers and fitters, County Down Stoves and Flues,

was announced as the 150,000th customer on BT’s next-generation network in Northern Ireland. At

that time services were available from 24 ISPs on the FTTC infrastructure providing speeds of

80Mbps download and 20Mbps upload.

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The Next Generation Broadband Project in partnership with the Northern Ireland government has

resulted in 90 per cent of premises in Northern Ireland now connected to a fibre-enabled street

cabinet.

As in Cornwall, BT is keen to promote the benefits of superfast broadband for the local economy,

commissioning research that was published back in April 2013 into the potential economic benefits

for Northern Ireland’s SMEs through take-up and use of fibre. Consulting firm Regeneris concluded

that an additional £750 million could be contributed to the Northern Ireland economy within the

next five years through the take-up and use of fibre broadband by businesses in the region.

4.6 BT looks to raise its MDU game

BT Group’s recent announcement that it is to use an extra £50 million to target cities including

bringing fibre to multi-dwelling units (MDUs) builds on the operator’s existing work in this sector.

Openreach showcased one such deployment on its website in September 2013 – an installation for

Gilliard Homes at the company’s New Capital Quay development in the Greenwich peninsula in

South London. Here 12 blocks comprising 1,000 apartments together with a supermarket, shops,

restaurants and cafes have been provided with FTTP technology.

The site had been mothballed back in 2008 due to the recession and construction re-started in early

2011. The FTTP equipment for the apartments consists of four boxes – one to connect the fibre to,

one for the electronics, one for the power supply and one for battery back-up. This kit is located in

specially built service cupboards to be aesthetically acceptable.

4.7 Last batch of 19 exchanges quietly announced

In September 2013 it was reported that BT will enable another 19 exchanges as part of its

commercial rollout, announced by the operator in a low-key manner through regional updates.

These last exchanges should be enabled by spring 2014 with FTTC technology. Coverage areas serve

around 195,000 premises in total, although there is no detail on which cabinets will be enabled on

these exchanges.

It was also reported that an extra 250,000 premises will benefit from infill work in 293 exchange

areas, with cabinets missed out in the initial rollout being enabled under the commercial

programme.

This follows the network operator’s announcement in July 2013 that nine additional exchanges

would be enabled for FTTC services, covering around 58,000 homes and businesses, and that infill

work would also be carried out on exchanges already offering FTTC services, with cabinets covering

about 78,000 premises having a fibre twin added.

Table 3 provides the historic list of exchange enablement announcements. Not all announcements

have given details of premises passed; hence there is a shortfall in the final total figure. Also in

practice exchange numbers fluctuate between the different phases with individual exchanges

moving from one to another. Some are upgraded earlier or later to fit in with practical deployment

considerations or to provide flexibility in the programme in the face of weather issues in particular.

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Table 3: Openreach exchange enablement announcements

Original

announce-

ment date

Phase Exchanges Claimed

premises

passed

In

service

date

Mixed FTTC/

FTTP

exchanges

Notes

Oct-08 PTTC pilot

sites

3 Not quoted July-

09/Oct-

09

Mar-09 2 28 500,000 Apr-10

Jul-09 3 69 1,000,000 Sep-10

Jan-10 4a 63 1,000,000 Sep-10

Mar-10 4b, 5 303 3,500,000 Sep-11 75

Sep-10 6 159 Not quoted Dec-11 45

12/01/2011 7a/Market

Towns

41 300,000 Mar-12 16 In rural market

towns

07/04/2011 7 156 1,500,000 Majority

by end

Dec

2011,

balance

by end

2012

17 mixed, 6

FTTP only

Includes 10

under CP

nomination

programme

from BT Retail's

"Race to

Infinity"

campaign

14/06/2011

Phase 7

update

66 Not quoted Majority

by end

Dec

2011,

balance

by end

2012

unknown Announced 66

new exchanges

in addition to

phase 7

announcement

in April 2011

13/09/2011 Phase 8 114 1,000,000 Autumn

2012

1 FTTP

Northern

Ireland

166 Not quoted

Cornwall 100 Not quoted Includes 1

exchange on the

Iles of Scilly

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FTTP pilot

sites

4 Not quoted FTTP only

except for

York with

FTTC/FTTP mix

Four specifically

announced;

now includes

nine sites where

early market

deployment of

FTTP product

available

12/12/2011 Phases 8a,

8b and 9a

161 1,800,000 2012 FTTC 178 announced

including 17 in

Cornwall as part

of the Superfast

Cornwall project

20/03/2012 Phase 9b 73 705,000 Late

2013

FTTC

26/06/2012 Phase 10 98 800,000 Late

2013

unknown

26/09/2012 Phase 10b 163 1,000,000 2013 unknown

12/02/2013 Phase 11 99 600,000 Spring

2014

FTTC

23/07/2013 Extra 9 58,000 Spring

2014

FTTC

24/09/2013 Extra 19 195,000 Spring

2014

FTTC Low-key

regional

announcements

Total 1,722 12,958,000*

* Not all announcements have detailed premises passed figures, meaning a shortfall in the final total figure –

the commercial programme is due to cover 19 million premises.

An additional 928,000 premises will be fibre-enabled using infill work.

4.8 BT Retail sees strong fibre-based growth

BT Retail reported around 1.9 million customers as of 31 January 2014, having gained 228,000 net

fibre adds during the last quarter of 2013 – its best ever quarter for superfast additions, up by 14 per

cent. In terms of marketing, the service provider has been offering Infinity products with a £50

Sainsburys’ gift card since late 2013.

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5. Virgin Media increases the speed stakes

Virgin Media has a total 3.2 million customers now taking superfast broadband services of 30Mbps

or above, representing 74 per cent of its broadband base. This is an increase of one million in 12

months, including a 209,300 rise during the last quarter of 2013. The cable operator says it continues

to see nearly half of its new internet customers subscribing to speeds of 60 Mbps or higher, showing

strong ongoing demand for faster speeds.

The operator continues to expand its Docsis fibre coax network passing 12520,100 homes at the end

of December 2013, an increase of 48,300 during the year. Virgin Media is now focusing purely on its

cable network now with news reports it will no longer provide ADSL-based services to new

customers. This is its so-called National Broadband service based on the Vodafone’s (ex CWW) LLU

platform and BT Wholesale outside this footprint.

5.1 Higher speed services and boosts for existing customers

The cable operator continues to push the speed agenda stating on 11 November 2013 that it would

be launching a 152Mbps service from February 2014 across its network. It will also be boosting

speeds for existing customers by at least 20Mbps depending on their current service.

5.2 Virgin acquires Smallworld Fibre

On 3 February 2014 Virgin Media announced it has acquired Smallworld Fibre for an undisclosed

amount. Smallworld’s fibre-optic network currently passes 40,000 homes, delivering top broadband

speeds of 100Mbps, cable TV including over 100 channels, and landline phone services to customers

in Irvine, Dreghorn, Troon and Kilmarnock as well as Carlisle, Lancaster and Morecambe.

Virgin Media plans to connect Smallworld’s network to its own superfast infrastructure. Along with

WightFibre, Smallworld Fibre was the only independent cable network operator left in the UK. It

upgraded its network to Docsis 3.0 some years ago and has been offering superfast broadband

packages of 25Mbps, 50Mbps and 100Mbps for some time. This means that WightFibre on the Isle of

Wight is the last independent cable provider remaining from the 1980s cable franchise programme

designed to rollout cable TV across the UK.

Our Superfast broadband projects directory provides historic details of Virgin Media’s pilots, trials

and partnerships in next-generation network deployment.

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6. Altnets move into make or break year

2014 will be a pivotal year for the UK altnets. Some will fall by the wayside. The big alternative

network operator news is of course the death of Digital Region declared in August 2013 and

although no switch-off date has been given, existing end user customers were reportedly being

contacted by their ISPs regarding options.

Other casualties include the FTTH project in Selling, Kent, by Internal Communications Systems Ltd

which was meant to serve around 200 premises. This will be switched off in May 2014 and is

currently believed to have 13 customers on, down from 39 at its height. Fibrewave, which had plans

for an FTTH network covering the communities of Earith, Bluntisham and Colne in Cambridgeshire,

has halted its plans due to the deployment of next-generation infrastructure by Openreach in the

area.

Others, however, appear to be getting into their stride in niche markets, such as Hyperoptic in urban

MDUs or Gigaclear providing FTTP networks in rural areas sometimes funded by the communities

themselves.

Meanwhile a number of new residential and business providers are emerging from the student

accommodation sector. Ask4 and Velocity1 we have featured in the past; Cablecom with a strong

track record in the student market is now appearing as the infrastructure deployment provider

behind several new network and service providers including FizzyLiving and Community Fibre.

Another new player with an experienced operator behind it is TripleConnect with a new build

deployment in Cumbria. Cable operator WightFibre Limited is using the TripleConnect brand to focus

on the new build sector.

Indeed Cumbria has seen two further fibre developments mushroom in the past six months provided

by alternative operators – an FTTP initiative by wireless network provider LonsdaleNET and the

connection of Cybermoor’s FTTP deployment in Alston Moor with backhaul provision now in place.

Our Superfast broadband projects directory, also published this month, lists the country’s alternative

network fibre-based projects.

6.1 CityFibre floats on AIM

CityFibre has seen a busy past six months culminating on 17 January 2014 when CityFibre

Infrastructure Holdings plc, or CityFibre, shares began trading on the AIM market of the London

Stock Exchange raising around £16.5 million before expenses through the issue of Ordinary Shares.

This gave the group a market capitalisation of approximately £31.4 million at the issue price.

Proceeds of the funds raised will be used to expand the group’s fibre-optic networks and to deploy

infrastructure in selected regional cities either through the construction of new networks or via

acquisition of existing fibre infrastructure.

On 13 November 2013 the network operator signed a partnership agreement with Peterborough

City Council following the October 2013 announcement of its intention to privately invest up to £30

million in the city. CityFibre said it had identified Peterborough as an excellent candidate for its

Gigabit city vision due to the city’s recent business growth – it had a record 1,400 SMEs launched in

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2012 – and hunger for innovation supported by a forward thinking local authority. The rollout was

due to begin in spring 2014 and should see 90km of core fibre infrastructure deployed throughout

the city to pass at least 80 per cent of businesses. This first phase was expected to be completed

within 18 months.

The CityFibre model is to provide fibre networks for service providers delivering connectivity services

to local government, businesses and consumers as well as to mobile operators requiring fibre base-

station connectivity to enable 4G services. It also has a partnership with the City of York to provide

this approach eventually rolling out FTTH infrastructure to 80,000 homes.

Also in November 2013 CityFibre’s service provider Gigler launched its Gigler Business service aimed

at SMEs and providing up to 1Gbps download and 500Mbps upload speeds. The service had been

trialled with a number of businesses in Bournemouth. Gigler Business providing 1Gbps/500Mbps

with a 500GB usage allowance is available at £50 per month and Gigler Business Pro with a 1TB

usage allowance costs £95 per month. Both packages have a 12-month contract and require a £100

connection charge. There is no line rental and a business-grade wireless router is supplied.

November 2013 also saw CityFibre and Ask4 sign a wholesale partnership agreement to extend

rollout of ultrafast gigabit-speed connectivity. The agreement will see CityFibre added to Ask4’s

Strategic Supplier list, enabling Ask4 to offer ultrafast, gigabit-speed internet services over

CityFibre’s infrastructure to its business, student residence and MDU customers.

Other news includes that on 24 September 2013 when the company announced the appointment of

Peter Manning as Chairman. Manning is also Chairman of Marston Group and former CEO of Colt

Telecom, and joined the CityFibre Board immediately to support CEO Greg Mesch.

Meanwhile in Bournemouth, where it has the FTTH network passing 21,000 premises that it

inherited from FibreCity, in conjunction with Gigler, CityFibre trialled a fibre-powered free public

WiFi service in September 2013 during the four-day Bournemouth Air Festival. The service was used

by over 4,000 people with users reporting speeds in excess of 30Mbps on their mobiles and at 140m

from a base-station; average access speeds were at 19Mbps download and more than 15Mbps

upload speed.

CityFibre says it now has almost 30,000km of fibre in the ground, connecting more than 350 sites

and data centres across the UK, and claims to be the country’s largest independent provider of fibre

to secondary cities.

6.2 Gradwell launches GigaBath based on CityFibre infrastructure

On 30 January 2014 Gradwell Communications announced the launch of GigaBath, a fibre-optic

network in Bath City Centre. Gradwell leases fibre from CityFibre to provide connectivity to

businesses located in an area covering an arc from James Street West, through Charles Street,

Chapel Row, Queen Square, Gay Street, Barton Street, George Street, down Broad Street and across

Westgate Street. Further spurs will then cover Walcot Street, the Tramshed and Beehive Yard; Great

Pultney Street; and the Circus round to Brock St. Customer demand will determine the next areas to

be connected.

The first phase of the network is already live, connecting the Guildhall Co-working Hub, with the plan

being to enable the remaining network within 90 days of securing an initial 50 customers. A 1Gbps

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connection costs £300 per month with a set-up fee of £250. The price will vary according to contract

length, level of assured bandwidth and the number of static IP addresses required. The basic service

gives a guaranteed bandwidth of 5Mbps, with extra assured bandwidth costing £100 per month per

20Mbps increment. Gradwell is planning to hold a launch event on 10 February 2014.

6.3 IFNL continues to build homes passed numbers

In January 2014 the number of residential customers served by ISP seethelight on Independent Fibre

Networks Limited’s (IFNL) network was 5,780 up from around 5,086 almost a year ago. Homes

passed numbered 7,180, up by over 1,000 year-on-year. Business connections with seethelight

totalled 160 while wholesale residential and business service connections provided by IFNL to other

service providers numbered 144.

The company, part of Inexus Group, which is now owned by Brookfield Infrastructure, also the

owner of GTC, a leading independent infrastructure utility provider in the UK, is currently contracted

to deliver services to 33 sites across the UK. A number of sites are still in the planning or ground

works stage.

Services are provided by seethelight, an ISP also part of Inexus Group, and now include a package

offering broadband speeds of 300Mbps/30Mbps with voice provision in addition to the existing

products of 25Mbps data only, 50Mbps/10Mbps and 100Mbps/20Mbps both with voice. IFNL itself

provides wholesale services to service providers which vary from 10Mbps up to 1Gbps.

6.4 Hyperoptic launches in Olympic Village

In December 2013 Hyperoptic announced the first residents had moved into East Village in Stratford,

the former Athletes' Village, with access to its superfast FTTH broadband service. In addition, all the

private rental residents at the East Village homes managed by Get Living London are being offered

free 20Mbps fibre broadband service from Hyperoptic as part of a number of amenities announced

by the company. The package includes a phone service with free local and national calls during

evenings and weekends. Residents can upgrade to Hyperoptic's 100Mbps or 1Gbps services for the

discounted price of £10 or £20 a month respectively on a 30-day rolling contract. The selection and

installation of Hyperoptic's fibre broadband is part of a larger solution within East Village designed

by technology provider Fifosys Get Living London.

Hyperoptic has also been active in the Government’s Connection Voucher Scheme announcing on 5

August 2013 that it had become a registered partner and would be supporting the scheme in three

of the four test cities – Cardiff, Edinburgh and Manchester – by offering a 100Mbps leased line

product from £250 per month.

There has also been an addition to the Hyperoptic team. In September 2013 Hyperoptic appointed a

new Director of Sales, Per-Gunnar Ostby, previously with Quest Software and prior to that

responsible for sales and products at Be Unlimited, the consumer broadband start-up founded by

Hyperoptic's Chairman Boris Ivanovic and Managing Director Dana Tobak in 2005 and sold to O2 in

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2006. This followed May 2013’s equity investment commitment of £50 million led by Quantum

Strategic Partners Ltd and an appointment in June 2013 of the company’s first Head of Property.

For further details on Hyperoptic see Point Topic’s case study, Hyperoptic: a new breed of fibre

provider, published in February 2013.

6.5 Venus welcomes Connection Voucher Scheme

Another operator involved in the Connection Voucher Scheme is Venus Communications. Focused

on business provision but with a residential fibre deployment at Riverside One in Battersea, London,

Venus had 16 multi-tenant properties on its network including three new sites with 20, 30 and 40

business units in January 2014. The total addressable tenant base of this is 200 businesses.

Venus believes that the Connection Voucher Scheme is “the most significant news in the UK business

fibre industry this decade” and that at least 30 million businesses will benefit from the BDUK

investment, with 25 per cent of the funds going to London. Venus has participated in the scheme

from the beginning in the pilot boroughs of City of Westminster and City of London and is seeing an

uplift in orders, with businesses taking up fibre offers that were previously too expensive to

consider.

In terms of fibre rollout, Venus says it has almost doubled in size, with contracted revenues and

customer base also doubling in the last financial year. Venus has added six data centres to its

Docklands data centre footprint, offering wholesale interconnect opportunities to most of the UK's

carrier market. It is also adding six new London PoPs to its fibre network, bringing coverage to

around 30,000 additional London postcodes representing an increase in geographic coverage of over

50 per cent. New coverage areas include North London (Euston and Camden), North West Central

areas (Paddington and Marylebone) and South West Central (Whitehall and Westminster).

6.6 Community Fibre in Westminster pilot

Another city-based player, Community Fibre, is working with Westminster City Council and CityWest

Homes to bring fibre to homes in Westminster. In January 2014 it had already launched in four

CityWest Homes properties – Norfolk House, Jessel House, Probyn House and Schomberg House –

and plans to roll out to other CityWest Homes properties soon.

The service provider has a “launch pad” demonstration centre at which residents can see the

services on offer. It is currently piloting the service with Westminster Council in the four properties

that provide social housing listed above and says it is looking to expand to more social housing and

also private and business deployments.

6.7 Velocity1 uses Wembley to showcase the bigger picture

Also in the urban arena, the nature of Velocity1’s live deployment in Wembley is changing rapidly. As

well as providing residential superfast broadband connectivity the company is deploying fibre and

fibre-backed WiFi for a number of uses. Event-based WiFi is provided to NFL games held in Wembley

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stadium and to fans; also to NFL to operate over 50 retail points for its merchandising village at the

event, and free TV over WiFi.

The operator, owned by Ireland’s Magnet, is also providing business-to-business connectivity to the

London Designer Outlet and voice and data over fibre to some of the big retail brands based there.

Wembley shopping centre is provided with WiFi and a full suite of analytics for big data is provided

to the management firm – this covers who visits, their profiles, how they move around the stores.

In addition Velocity1 has connected car park barriers in the London Designer Outlet and Wembley

area to enable number plate recognition and is combining this with the WiFi data in order to see the

socio-economic profile of who shops at the centre using licence plate data to capture make and age

of cars. Digital signs in Wembley have been linked by fibre and the next step is to compute car park

and WiFi data to deliver real-time user based adverts to consumers.

In early January 2014 the company was rolling out WiFi across the entire site around Wembley

stadium with capacity for 15,000 concurrent users. It is running the service from lampposts

connected via fibre.

Developer Quintain is also due start building eight new apartment blocks in Wembley in March 2014

to which Velocity1 will provide broadband service. According to the operator Wembley is now a fully

profitable and cash generative FTTx business, and it plans to leverage the deployment as a showcase

more broadly across the UK and internationally.

6.8 Call Flow Solutions continues private and publicly-funded rollout

Turning to the rural sector, Call Flow Solutions is four months into an eight month project to provide

sub-loop unbundled (SLU) and wireless broadband networks to four new areas in Kent – Goudhurst,

Lydd & Greatstone, Godmersham & Crundale, and Lympne & Stanford – by summer 2014. With the

first cabinet going live in early January 2014, the company has received funding from Kent County

Council of around £0.5 million which has received State aid clearance.

The operator is also privately investing in the installation of 20km of fibre in south east Kent which

will pass 5,000 premises. Point Topic estimates the company already passes 4,000 premises with its

SLU networks and a further 4,000 with wireless infrastructure.

Call Flow Solutions has a number of deployments in Kent and East Sussex. In recent years the

operator has carried out a mixture of public and privately-funded network deployments, and has set

up a separate internet service provider brand, Whippet Internet, in order to promote its SLU

deployments and offering. The ISP provides download speeds of up to 80Mbps as well as secure

cloud back-up services and radio broadband. Call Flow Solutions is also working with the Diocese of

Canterbury, putting radio masts onto church towers for broadband provision.

6.9 Fibre Options seeing increasing developer interest

For Fibre Options connections numbers have remained steady since our last update. It is working

with the Joseph Rowntree Housing Trust on a new home development at Derwenthorpe near York

where the operator had FTTH 60 live connections with 64 premises passed as of July 2013.

Derwenthorpe is due to expand to a total of 540 homes with phase two comprising 130 homes

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currently under construction. The Derwenthorpe development ground to a halt at the back end of

2012 but is now forging ahead with Phases 2, 3 and 4 with further connections expected to be made

in February 2014.

Fibre Options is also working with the Overbury Estate in Gloucestershire where around 30

properties are now connected to its FTTH network with up to 90 premises passed. More connections

are planned in spring 2014.

The company has new sites planned and is looking to June or July 2014 for the first connections here

Generally it says that interest is coming from developers, with them adding broadband into the list

of other utility elements such as energy or TV provision. Currently Fibre Options is also a service

provider but it would like to open up its networks to others; scale however is still required.

6.10 Gigaclear continues to grow rural footprint

Gigaclear’s latest announcement on network coverage was made on 5 November 2013 with its plans

to pass 1,500 homes and four business parks in Farmoor and Stanton Harcourt in Oxfordshire, and

Underriver and surrounding villages in Kent. Construction work got underway in Farmoor in

November 2013 and work in Stanton Harcourt commenced in December 2013. Underriver in Kent

was expected to commence in January 2014.

The operator now owns and manages six networks in Kent, Oxfordshire and Rutland, and plans to

have 30 networks in operation by the end of 2014. It has announced plans to complete three more

FTTH networks in spring 2014. Once these new deployments are complete, Gigaclear will have

invested some £2 million in Oxfordshire, £1 million in Rutland and a further £1 million in Kent.

Its order book looks healthy with around 400 communities requesting Gigaclear’s presence. By the

end of December 2013 the operator passed around 2,000 properties, a figure it expects to rise to

12,000 by the end of 2014. The take-up rate for broadband services was running at around 40 per

cent in early January 2014.

On 24 January 2014 Gigaclear stated that it would not be investing in a new network in South

Wiltshire and West Hampshire following an announcement by Wiltshire Council that it will be

applying public funds to BT’s FTTC installation in PItton, Farley, East and West Grimstead and

Winterslow. This means that Gigaclear’s plan to cover these communities no longer make

commercial sense for its investors. The Gigaclear registration campaign had been well supported by

local residents with several hundred confirmed orders achieved.

Further details on Gigaclear can be found in our case study, Gigaclear: bringing FTTP to rural UK,

published in December 2013.

6.11 B4RN sticks to its coverage plans

Broadband for the Rural North (B4RN) in Lancashire was connecting around 30 to 50 homes to its

network each month in January 2014. Wray is the latest community to have been reached by the

FTTH network which had reportedly connected nearly 350 properties in November 2013, up from

135 in July 2013. Wray should provide a large customer base with around 500 to 600 people living

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there. The communities of Arkholme, Quenmore, Abbeystead and Newton all have live customers

and the fibre route to Gressingham from Arkholme has been finished.

Coverage plans have expanded with the project expected to provide fibre to a possible 5,000

properties eventually. Current plans take the network to 4,000, up from the originally planned 3,200.

This expansion includes a 450 home property development at which the developer is putting in

ducting for B4RN to lay fibre in.

In January 2014 there were reports that BT was planning to roll out FTTP to Dolphinholme as part of

its partnership with Lancaster County Council to extend fibre to 97 per cent of premises by the end

of 2015. B4RN reportedly noted that its plans to build an FTTH network in the community long

preceded any published plans by BT to rollout out FTTP network in the same area and that this

brings the subject of overbuild into play. However, B4RN’s deployment is well advanced in the

village with plans dating back to 2011 and deployment will continue. Indeed it notes the choice of

two FTTP providers will be a good thing for residents.

B4RN is also one of a number of communities waiting to hear the outcome of its application for a

RCBF grant, expected at the end of February 2014.

6.12 Cybermoor FTTP services go live

In Cumbria one of the pioneers in rural broadband, Cybermoor, has made fibre broadband

connectivity available to all 300 properties in Alston Moor after putting backhaul provision in place.

Cybermoor laid a high-speed fibre-optic cable between Alston Town Hall and Nenthead Primary

School and has connected homes and businesses in central Alston to the network. It is early days in

terms of marketing the service but live connections numbered around 20 in January 2014 including

several businesses. Packages are available at 25Mbps and 10Mbps speeds.

Cybermoor is a community owned co-operative and also provides a Wi-Fi broadband network for

Alston Moor and the surrounding areas. It has upgraded wireless services covering Alston, Garrigill,

Nenthead, Slaggyford, Carrshield, Ninebanks and Lambley to offer faster speeds and greater

reliability.

6.13 LonsdaleNET launches fibre network in Cumbria

Also in Cumbria, it was reported in September 2013 that LonsdaleNET, better known as a wireless

broadband provider, had begun offering FTTP broadband services to Melkinthorpe in Cumbria.

Service packages including a lite service with a 10GB allowance for £19.95 a month, or an uncapped

1Gbps service for £29.95.

According to reports, Earl of Lonsdale, owner of the Lonsdale Estate, is the company’s main investor.

He decided to tackle the problem of poor rural broadband after struggling with slow connections for

years. The company was created from the Cumbria assets of NextGenUs, which went into

administration in April 2012. It is financed by Lord Lonsdale and uses former Three UK mobile phone

masts as the hubs of its service, underpinned by a dark fibre link to Manchester. Coverage is the

Eden Valley with plans to expand into other areas of Cumbria.

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6.14 TripleConnect in Cumbrian new build fibre deployment

A third fibre initiative in Cumbria was reported in November 2013 in the new development of 850

homes near the M6 and Carlisle city centre. The Crindledyke Farm new build estate will have an

FTTH network providing 1Gbps services from Solway Communications and TripleConnect. According

to Story Homes, the housing developer, this is the first time that it has been able to offer such a

service on any of its developments and feedback from customers has been positive. The network is

proving an additional selling point for its homes.

Behind the TripleConnect brand is Wightfibre Limited, which already provides phone, TV and

broadband services to over 5,000 customers around the UK using a mixture of Docsis and fixed

wireless. It is also reportedly deploying FTTP for one new housing development on the Isle of Wight.

TripleConnect is the business focused on new residential developments. Solway Communications

has traditionally been a fixed wireless network provider.

According to TripleConnect, the development is in its early days with 20 to 30 homes complete in

January 2014. Each new home has fibre pre-installed as it is built so the rollout will follow the build.

Broadband speeds of up to 1Gbps are offered and the standalone price of the 1Gbps package is £100

per month. There are a variety of different packages and bundles ranging from the 30Mbps

Fibre package at £27.50 per month when taking line rental and including Evening & Weekend calls,

or £32.50 for a standalone broadband package with set-up fees of £150. TV options are also

available.

6.15 KC fibre connections approach 7,000 lines

Although not technically an alternative network operator, we also cover the activities of KC in this

section, the incumbent in Kingston upon Hull. At the end of December 2013 KC had passed 27,879

properties of which just over 24,800 were residential with its predominantly FTTP rollout. This is up

from a total coverage of 20,300 premises at the end of June 2013. Connections totalled 6,980 at the

end of 2013, of which 678 were for businesses. Again this is up on the mid-2013 figure of 4,200 live

connections.

In its interim results briefing on 26 November 2013 KC reported a continued strong take-up of fibre-

based services, with 24,700 premises passed and 5,900 customers taking its Lightstream package at

the end of September 2013.

The operator has launched a high definition Smart CCTV service, enabled by the capability of high-

speed fibre, where footage is uploaded to the cloud allowing customers access to secure, real-time

and recorded footage. The operator is also exploring a number of wider opportunities for ‘over the

top’ services leveraging its Lightstream service, which offers guaranteed download speeds that

include 100Mbps and a 350Mbps offering.

On 25 September 2013 KC announced that fibre deployment in streets around Newland Avenue and

Beverley Road were the latest to have access to its superfast fibre broadband service. At that time

the service was available to more than 20,000 properties in locations including Kingswood,

Greatfield estate, Victoria Dock, Beverley, and Swanland. Earlier in September 2013 KC connected its

5,000th customer to the service.

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Also in September 2013 the operator announced that six local student accommodation providers

had signed a deal with KC to install fibre broadband in their properties. Between them Kexgill

Student Accommodation, Accommodation Warehouse, MyPad Accommodation, Wardbright

Accommodation, PD Properties and Longman Jones provide accommodation for thousands of

University of Hull students. The deal means 500 of their properties will be equipped with KC’s

Lightstream service. These are located in the streets around Newland Avenue.

Further details of KC’s approach to fibre deployment are available in KC fibre rollout: taking the

local approach, published in February 2012.

6.16 The closure of Digital Region

Finally on 15 August 2013 Digital Region’s shareholders announced the closure of the network,

halting their search for a private sector partner following increased uncertainty and risk around

compatibility of future funding with EU State aid rules. Users were reassured that services would not

be disrupted and that they would be contacted in due course by their internet service provider and

will be supported over the coming months to switch to alternative service providers to avoid any

disruption to services.

Barnsley, Doncaster, Rotherham and Sheffield councils – along with major shareholder, the

Government’s Department for Business, Innovation and Skills (BIS) – agreed that a managed

closedown of the network and migration of existing Digital Region Limited customers to alternative

networks offered the most cost-effective deal for the public. The estimated cost of continuing with

the project would be an estimated £95.8 million. Closure of the network would save the taxpayer an

estimated £12.5 million, and potentially more, subject to negotiations with existing contractors and

customers.

Shareholders have been firmly focused on using Digital Region Limited (DRL) to achieve a significant

increase in superfast broadband coverage across South Yorkshire to ensure economic

competitiveness did not fall below other parts of the country. This has now largely been achieved by

investment by other providers and shareholders had embarked on a re-procurement exercise in

March 2012 to facilitate the commercial transfer of the network to another provider. Until this

point, the costs of closure and the costs of continuing with the project and realising additional

benefits for residents and businesses of South Yorkshire were finely balanced.

In a further move a notice dated 18 September 2013 on the Digital Region website announces that,

“Notice is hereby given by the Board of Digital Region Limited of the sale of the primary assets, in

whole or in lots, with or without the customers of the business, including the following:

- A fibre-to-the-cabinet network utilising more than 1300+km of fibre optic ducting (c.545km

of which is DRL owned duct, the rest being leased via 3rd parties)

- Deployed across 36 BT exchange areas and 1359 DRL owned street cabinets in the South

Yorkshire region covering 80% of all premises.

- An existing customer portfolio of 6 Internet Service Providers (ISPs) and 4 local authority

councils providing services to 3367 end points.”

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Recent reports suggest that the network is still in use and no switch-off date has been provided.

Some retailers are reportedly helping customers to make arrangements to move to other broadband

solutions.

The network covers 440,000 homes and 40,000 businesses, which was always the target intended in

Digital Region’s first phase. Point Topic estimates that the operator’s coverage of 80 per cent of the

PCPs the network is in equates to 391,000 premises in South Yorkshire representing 63 per cent of

the region. There were six active ISPs – Digital City Region and Central Technology (via the Fluidata

platform) in addition to Ask4, Littlebigone Origin and Fluidata, the latter providing access to its

wholesale platform used by up to 50 ISPs. There were reportedly 3,000 customers on the network

although Point Topic estimates there were 3,750 customers at the end of June 2013.

6.17 Student fibre sector is a springboard for the wider market

Although deployments in the UK’s universities are not covered specifically by this report it is

becoming clear that several alternative fibre operators are emerging from this market to the wider

residential and business sectors.

A number of companies are involved in the student accommodation sector. Cablecom is one of the

leading providers in the student market with 200,000 students on its networks and contracts

including that with Unite, one of the leading commercial student accommodation providers.

Cablecom has two brands – StudentCom addressing the student sector and LivingCom focusing on

the residential and keyworker markets. It is behind deployments in Salford’s MediaCity development

and as mentioned above FizzyLiving, an apartment provider in London. It is also involved with

Community Fibre’s deployment in Westminster. Other major providers to the student market

include Ask4, SDC Group and Velocity1.

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7. Government says Superfast Britain is on track

After rethinking and revision during 2013 the Government’s Superfast Britain programme run by the

Department of Culture, Media and Sport (DCMS), now comprises three elements:

£790 million to extend superfast broadband to 95 per cent of the UK by 2017

£150 million to provide high-speed broadband to businesses in 22 cities

£150 million to improve quality and coverage of mobile phone and basic data network

services.

DCMS’ latest Broadband Performance Indicator published on 28 January 2014 estimates that at the

end of 2013 the number of premises benefiting from superfast broadband as a result of the

programme had almost tripled since September 2013 to 273,731. Table 4 provides the cumulative

total.

It was also reported that half the local authority BDUK projects across the UK have live cabinets and

that approximately 1,000 cabinets have gone live around the country. Many projects were ahead of

schedule and 10,000 premises per week were gaining access to superfast broadband, which was

predicated to increase to 25,000 per week in spring 2014, ramping up to 40,000 per week by

summer 2014.

Table 4: Cumulative total BDUK spend

Cumulative to end of: Premises with superfast

broadband service made

available

BDUK funding (£) Number of premises

covered per £ million of

broadband delivery

programme expenditure

December 2012 254 £434,735 584

March 2013 16,638 £6,767,185 2,459

June 2013 38,343 £6,767,185 5,666

September 2013 111,968 £10,347,568 10,821

December 2013 273,731 £14,182,547 19,301

7.1 New £10 million fund for alternative technology providers

On 15 January 2014 Culture Secretary Maria Miller announced that a £10 million fund will be

available to alternative technology providers who come forward with innovative ideas to help

superfast broadband reach Britain’s most remote communities.

The Government says that its broadband programme is on track to deliver superfast speeds to 95

per cent of the UK by 2017, and that indeed it is not only well underway but current progress is

exceeding expectations. Hence the focus is now shifting to the hardest and most remote five per

cent of premises in Britain.

The new £10 million fund will open on 17 March 2014 to enable a range of pilot projects to be

undertaken. Local authorities are being asked to offer support to these projects and potential

technologies that could be piloted include:

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Using 4G mobile signal to deliver fixed wireless superfast broadband

Using fibre direct to premises

Taking fibre from broadband cabinets to a distribution point further down the network,

increasing speeds by reducing the reliance on copper

Satellite technology.

Suppliers will be able to bid for funding and will need to provide a description of their proposed

project, including the costs and the outputs. BDUK will evaluate proposals on the basis of criteria

such as the quality and prospect of solutions able to scale to address the final five per cent, for the

timeliness and usefulness of the learning that the projects provide, and the level of funding

requested.

7.2 New BDUK chief takes the helm

The new fund announcement coincided with the appointment of a new Broadband Chief Executive,

Chris Townsend, who was Commercial Director of the London Organising Committee for the Olympic

and Paralympic Games. Townsend replaces civil servant Robert Sullivan at BDUK on 1 April 2014 and

will administer Superfast Britain on behalf of the Government, including the latest fund. His

commercial experience is said to be a key factor in his appointment.

Sullivan's job was advertised in October 2013, a month after the BDUK project to expand superfast

broadband to rural areas was heavily criticised as "mismanaged" by MPs following a parliamentary

committee investigation and hearings. The project was said to be nearly two years behind schedule,

with the taxpayer likely to bear a larger share of the costs than originally planned.

7.3 DCMS commissioned report on the benefits of broadband

According to a report published on 14 November 2013 and commissioned by DCMS, for every £1 the

Government is investing in broadband, the UK economy will benefit by £20. The UK Broadband

Impact Study by SQW Group concludes that the availability and take-up of faster broadband speeds

will add about £17 billion to the UK’s annual Gross Value Added (GVA) by 2024. This is an unusually

high level of return for public funding, but SQW considers it to be realistic given that broadband has

an increasingly critical role in the day-to-day operations of the majority of UK businesses. The report

does not include any impacts associated with further interventions resulting from the Government’s

announcements in July 2013 on extending superfast broadband to 95 per cent of premises by 2017.

In terms of social impact, the report concludes that the interventions currently underway will have a

material impact on reducing the digital divide for both households and businesses. Although many of

these social impacts are impossible to forecast with any degree of confidence, the study quantified

some associated with changes in teleworking, estimating that the increase in teleworking facilitated

by faster broadband will save about 60 million hours of leisure time per annum in the UK by 2024 of

which about 10 million hours are attributable to publicly funded intervention. By avoiding

commuting costs, the additional teleworking enabled by faster broadband will lead to total

household savings rising to £270 million per annum by 2024, £45 million of which are attributable to

intervention.

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In terms of environmental impact the study concludes that faster broadband will account for about

1.6 million tonnes of carbon dioxide equivalent savings per annum by 2024. This is equivalent to

about 0.3 per cent of the UK’s current greenhouse gas emissions.

7.4 Rural Broadband Fund contracts in the delivery stage

By the end of December 2013 all English local authorities using the Rural Broadband Fund had signed

contracts with BT and according to DCMS’s Google Spreadsheet, all were in delivery as were

contracts for Scotland and Wales. Northern Ireland was still at the procurement stage.

Table 5 below lists links to local authority and devolved nations’ broadband websites. Further details

are also available by initiative in our Superfast broadband projects directory.

Table 5: Status of Rural Broadband Fund projects, end-December 2013

Devon & Somerset Oxfordshire

Wiltshire, South Gloucestershire Nottinghamshire, City of Nottingham

Highlands and Islands Berkshire Councils

Lancashire, Blackpool, Blackburn with Darwen Derbyshire

Rutland East Riding of Yorkshire

North Yorkshire, York West Yorkshire

Wales Worcestershire

Surrey Leicestershire, City of Leicester

Cumbria Merseyside

Herefordshire and Gloucestershire Central Beds, Bedford Borough, Milton Keynes

Norfolk Essex, Southend-On-Sea, Thurrock

Suffolk Isle of Wight

Cambridgeshire, Peterborough Newcastle upon Tyne

Lincolnshire Greater Manchester

Northamptonshire North Lincolnshire, North East Lincolnshire

Kent and Medway Buckinghamshire, Hertfordshire

Hampshire Coventry, Solihull, Warwickshire

Shropshire Dorset, Bournemouth and Poole

Northumberland Staffordshire and Stoke-on-Trent

Durham, Gateshead, Tees Valley and Sunderland East Sussex, Brighton and Hove

Cheshire Councils Scotland

West Sussex Northern Ireland Source: DCMS/Point Topic

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8. Slow going for the RCBF

Since our last report in August 2013, discontent over the allocation of funds (or lack of) under the

Rural Community Broadband Fund (RCBF) has continued, with both BT and local authorities being

blamed in turn by various parties for failing to publish detailed information on the location of county

Rural Broadband Fund deployment in order that groups looking to gain RCBF funding can identify

their areas as being excluded.

In November 2013 the Independent Networks Co-operative Association (INCA) made a statement

responding to the apparent refusal of funds to two community-led projects – Cotswolds Broadband

in Oxfordshire and Trailways in Dorset – saying that, “the current state of affairs is becoming

increasingly untenable” and that “alternative providers and local communities are frustrated by the

secrecy.” Cotswold Broadband is continuing to look at possible funding mechanisms and is still

working with both BDUK and DCMS to help them find ways to support it and other projects.

In September 2013 Worcester County Council was working with five communities on RBCF funding.

Berkshire County Council has also applied for funding on behalf of a number of communities.

Nevertheless Point Topic knows of at least five communities that had been allocated RCBF grants at

the time of writing – Fell End, Fibre GarDen, Noke, Northmoor and Rothbury.

8.1 Fell End completes first phase

As of 3 January 2014 phase one of the Fell End project had been completed with fibre to 15 homes

expected to be lit by the end of the month. The intitiative is designed to put fibre into this remote

community of 58 premises spread across an 11-kilometre area. Ravenstonedale Parish Council has

raised around £34,000 locally towards the scheme, together with additional funding from the

Prince’s Countryside Fund, The Holehird Trust, TalkTalk Digital Heroes and BT. The Fell End Rural

Community Broadband Project at Threlkeld in Cumbria was reported in September 2012 as the first

rural community to receive a RCBF grant during summer 2012.

8.2 Fibre GarDen to work with ITS Technology Group

Also in Cumbria, the Fibre GarDen Community Broadband project in Garsdale has received RCBF

approval. Digital Dales (UK) Limited, trading as Fibre GarDen, is a community cooperative which has

been working for the past three years towards securing the provision of superfast broadband by

delivering FTTP to every property throughout Garsdale and Dentdale in Cumbria – to connect 525

premises with superfast broadband using funding of £157,500.

In December 2013 following a procurement process Fibre GarDen and ITS Technology Group (ITS)

announced that they had signed a Memorandum of Understanding to deliver the FTTP project.

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On 6 January 2014 Fibre GarDen stated that the project had raised £155,000 in funds from a share

offer to the communities of Garsdale and Dentdale. ITS Technology Group will contribute a further

£70,000 to complete the funding.

This means that the finance required to build a superfast fibre-optic network throughout Garsdale

and Dentdale has been raised and Fibre GarDen is in a position to proceed. The next phase will be to

complete discussions with DEFRA and the Connecting Cumbria Project in order to sign-off contracts

and confirm a build programme.

At the end of July 2013 the group was successful in its funding application to the Social Investment

Business Group (SIB). This funding, part grant and part loan and subject to due diligence, equates to

approximately £200 per property in the two Dales and brings the total funding raised so far to

£435,000 for network build. In addition to this the group had previously raised some £28,000 to

cover start-up costs. The group has also made a request for funding the Venture Capital Fund.

8.3 Noke issues State aid consultation document

The Noke project in Oxfordshire aims to deliver superfast broadband to 61 premises by 2015

including three businesses. The RCBF is supporting the project with a grant of £83,000 and State aid

public consultation document was issued on 12 December 2013. Completion of the project is

planned by March 2015.

8.4 Northmoor plans April start

At the end of December 2013 the Northmoor, Moreton and Bablockhythe Community Broadband

Project in Oxfordshire announced it had secured £200,287 in RBCF grant funding. It is a community-

led project with no commercial backing or supporters and covers 522 properties including 16

businesses, which it says will all be passed by the project – that is, a connection point will be placed

outside the property boundary. This includes homes, businesses and static caravan sites, as well as

community buildings such as the village hall.

An invitation to tender has been launched and a bidder should be selected and the project started

around April 2014, with work completed by the end of 2014.

8.5 First RCBF funded cabinet goes live in Rothbury

On 9 December 2013 both DCMS and BT announced that Rothbury, the first community to receive

RCBF funds, had seen its first cabinet go live meaning over 370 homes and businesses in parts of the

remote Northumberland town could place orders for fibre-based broadband. Superfast broadband

services were also due to be available to 167 premises in the nearby village of Thropton as its first

cabinet on Village Farm went live the following week.

Over £400,000 was secured from the RCBF to rollout superfast broadband across Rothbury with

further funding from BT which was chosen to build and deliver the infrastructure and network which

is expected to reach 98 per cent of premises in Rothbury and the surrounding area by the end of

March 2015. BT said in December 2013 that deployment was three months ahead of schedule. The

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rollout comprises around 22km of fibre-optic cable, six new street cabinets and a mixture of FTTC

and FTTP technologies.

From May 2013 the delivery of this project as well as the larger county BDUK-funded project became

the responsibility of Arch, Northumberland County Council’s private sector arm’s-length

development company under the banner of iNorthumberland.

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9. Urban broadband voucher scheme rolls out

Following trials of the Connection Voucher Scheme in four cities during August and September 2013

under the Government’s Super-Connected Cities programme, 22 cities are participating in the

scheme, as set out in Table 6, opening for applications between December 2013 and March 2014.

All 22 will be in operation by spring 2014 and will remain open until March 2015. Belfast, Cardiff,

Edinburgh and Manchester were the test cities.

DCMS has allocated each city a set amount of funding for use during this period which will allow for

a limited voucher deployment in areas identified as SME priority zones.

Connection vouchers vary in value between £250 and £3,000, and DCMS predicts that up to

£90million of vouchers will be issued over the total lifetime of the scheme. Vouchers can be used

towards the cost of making the physical connection to a business premises. They cannot pay for

monthly rental or for any IT equipment used in your business. DCMS has set up a website dedicated

to the scheme on which businesses can register interest and source potential suppliers.

9.1 Ten cities offering voucher scheme

As of 7 December 2013 DCMS stated that the scheme was available in 10 cities across the UK –

Belfast, Salford, Portsmouth, Cardiff, Derby, Bristol, Edinburgh, Newport, London and Manchester –

and that will be extended to 12 other cities in early 2014.

Funding for the scheme comes from the £150 million Super-Connected Cities programme and the

first 10 cities will share a £100 million pot of money to connect them to better quality, high-speed

broadband.

Table 6: Cities taking part in Connection Voucher Scheme

Aberdeen Coventry Newport

Belfast Derby Oxford

Birmingham Derry/Londonderry Perth

Bradford Edinburgh Portsmouth

Brighton and Hove Leeds Salford

Bristol London (six boroughs with the

remainder joining in early

2014)

York

Cambridge Manchester

Cardiff Newcastle

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10. Devolved nation initiatives update

10.1 Digital Scotland and CBS progress

On 16 January 2014 BT announced another 37 areas across Scotland from Aberdeenshire to

Dumfries and Galloway and from Perth and Kinross to Argyll will be able to access up to 80Mbps by

summer 2014. More than 39,000 homes and businesses in 13 local authority areas across Scotland

will be next to get fibre-based broadband as part of the £410 million Digital Scotland partnership.

The Digital Scotland Superfast Broadband initiative consists of two projects – one covering the

Highlands and Islands area and the other covering the Rest of Scotland. The first locations in the

Highlands and Islands, in Inverness-shire and Moray, were announced in October 2013. January’s

announcement includes the first locations to be named for upgrade as part of the Rest of Scotland

project and further locations in the Highlands and Islands. On 9 July 2013 the Scottish Government

signed a contract with BT for a £264 million investment in broadband improvements. Together with

a £146 million partnership announced in March 2013 to bring faster broadband to the Highlands and

Islands and commercial investment plans by the private sector, the new project aims to ensure that

85 per cent of Scottish properties have access to fibre broadband by the end of 2015 and around 95

per cent by the end of 2017.

Scotland also has the £5 million Community Broadband Scotland (CBS) initiative launched in early

August 2012 with the aim of getting better broadband service into those areas that will not be

covered by the larger Scottish-BT partnership by 2015. This has a number of projects under its wing

as listed in Table 7. Aimed at communities which are currently receiving speeds of less than 2Mbps,

CBS is working with each community project on an individual basis and there is no set limit on the

speeds that can be achieved. Highlands and Islands Enterprise is the lead delivery partner of the

programme which operates across Scotland. CBS has a start-up fund, and is assisting six community

pioneer projects. It also has a network on the ground of CBS advisers and a telephone helpline.

Table 7: Community Broadband Scotland six pioneer projects

Project Description

Ewes Valley (Dumfries and Galloway) A small rural community at a very early stage in its

broadband development plans. Not currently able to

receive a standard broadband service due to distance

from the serving BT exchange

Tomintoul and Glenlivet (Moray) Remote, inland mountain communities located within

the Moray area of the Cairngorm National Park.

Includes the highest village (Tomintoul) in the

Highlands. Area remote from many services

Elvanfoot (South Lanarkshire) A community at an advanced stage in their broadband

plans (Elvanfoot) and with scope to provide a service

to a neighbouring community. Community has

combined with nine other area villages and formed

B4GAL - broadband for Glencaple and Lowther.

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Potential access to funding from area renewable

energy projects

Colonsay (Argyll and Bute) An island with a low population. Active local group has

identified improved broadband provision as a key

component for supporting development and retaining

population

Corgarff and Glenbuchat (Aberdeenshire) Small dispersed settlements within glens at the edge of

the Cairngorms. Area remote from serving BT

exchanges with many residents having to rely on a

satellite broadband provision

Applecross (Highland) A remote coastal community with a low population

and heavily dependent on tourism. No users are

currently able to receive a standard broadband service

in excess of 0.5Mbps. No standard broadband service

possible along the north coast

Those hoping to win project tenders under the CBS include the Almond Project which had planned a

fibre deployment close to Edinburgh but which has since reverted to rural broadband opportunities.

10.2 Northern Ireland proposes intervention areas

BT has already fulfilled the Next Generation Broadband Project contract that it was awarded by the

Northern Ireland Executive to provide FTTC services to across the region. The final milestone of the

Next Generation Broadband Project was completed on 30 April 2011 when the target of at least 85

per cent of businesses in Northern Ireland had access to broadband services of at least 2Mbps in

rural areas and 10Mbps in urban areas. The fibre-based network now passes over 90 per cent of

homes, and over 50 per cent of BT’s retail broadband customers take fibre-based services.

Back in August 2011 further funding of £4.4 million from the UK Government was announced to be

matched by the Northern Ireland Executive. The DETI Telecoms Action Plan 2011-15 proposed that it

would ‘ensure the continuing provision of access to a broadband service in Northern Ireland,

regardless of where you live or do business. The Government has proposed that virtually all

premises across Northern Ireland should be able to access a broadband service with a speed of at

least 2Mbps by 2015 and to provide superfast broadband to at least 90 per cent of premises with

speeds in excess of 24Mbps. A total public sector subsidy of £19.3 million is currently available

including the £4.4 million BDUK funding.

Following an initial consultation, a second consultation was prepared which further refined the

identified need, the potential intervention areas for 2Mbps and 24Mbps services, the regulatory

background and how the proposed intervention would be delivered. The proposed intervention area

for basic and superfast broadband has since been published.

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10.3 Superfast Cymru sees over 100,000 premises gain high-speed access

BT was awarded the contract for delivery of the Next Generation Broadband for Wales (NGBW).

Fourteen areas across the country will benefit from superfast broadband, which is being rolled out in

2013 and 2014. The Superfast Cymru programme will then be extended to all of Wales in 2014 and

2015 with the aim of making the network available to 96 per cent of Welsh premises by spring 2016.

Under the £425 million initiative announced on 24 July 2012, public funding of £205 million including

£56.9 million from BDUK and £89.5 million from the ERDF is being provided.

Superfast Cymru will involve the laying of around 17,500km of optical fibre cable and the installation

of some 3,000 new fibre broadband cabinets. At the beginning of 2014 over 100,000 homes and

businesses in Wales had access to high-speed fibre broadband as part of the Superfast Cymru

programme. The milestone was reached as the village of Cemaes Bay, Anglesey, was switched on to

the technology, one of five new communities to go live on the Isle of Anglesey. Engineers have now

installed over 300 new fibre broadband cabinets and more than 340 kilometres of fibre cable.

In September 2013 the Welsh Government announced that its £4 million Broadband Support

Scheme providing grants of up to £1,000 to those living in rural parts of Wales where broadband

connectivity is below 2Mbps is to be replaced by an almost identical alternative. The new Access

Broadband Cymru scheme went live on 1 October 2013, also providing grants of up to £1,000 per

premises with slow broadband connections, but will only be available to use in areas where the

Superfast Cyrmru programme will not cover.