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Whitespace broadband for
remote and rural
communities Final Report
5 March 2010
Developed for:
Technology Strategy Board
Whitespace broadband for remote and rural communities 2 of 61
Prepared by:
Storey Creative Industries Centre
And
Nordicity
Whitespace broadband for remote and rural communities 3 of 61
Table of Contents
1. Executive Summary 6
1.1 Description of company business 6
1.2 Overall problem statement and why it is significant 6
1.3 Brief description of feasibility study 12
1.4 Eventual impact 15
1.5 Outcome of study 16
1.6 Impact of the study 16
1.7 The way forward 17
1.8 Lessons learned 19
2. Description of the overall problem addressed 19
2.1 Significance 19
2.2 Expected eventual impact 20
3. Outline of the proposed study 20
3.1 Approach adopted during the feasibility study 20
4. The deliverables 21
4.1 Initial design 21
4.2 Technical work (showcasing the outcomes achieved) 22
4.3 Service Offering 29
4.4 Financial Viability 30
Whitespace broadband for remote and rural communities 4 of 61
4.5 Financial Viability of a Stand-alone Internet Service 30
4.6 Financial Viability of Bundled Internet and Telephony Service 39
5. Study Conclusions and Next Steps 44
5.1 Business Assumptions and Risk Affecting Financial Viability 44
6. Expected impact of achievements 45
6.1 Expected impact of achievements 45
7. Gap analysis 45
7.1 Concepts and partners required to turn the proposal into fruition 45
8. Next steps 47
8.1 A development plan or justification for idea 47
9. Lessons learned 49
9.1 Study scope and implementation 49
9.2 Resources/partners 50
9.3 Best practices 50
10. Appendix A 51
Profile of Households in Lancaster Parishes 51
11. Appendix B 53
Competitive Analysis – Incumbent Tariffs 53
12. Appendix C 56
Key Informant Interviews 56
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13. Appendix D 57
Parish Maps 57
14. Appendix D 59
Glossary of Terms 59
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Whitespace Broadband for remote and rural communities
1. Executive Summary
1.1 Description of company business
Broadband connectivity has been recognised in the UK and other OECD
countries as a key enabler to quality of life for households and viability
for business. In the parishes of rural Lancaster, the lack of broadband
connectivity has limited the development of existing and new businesses
and impinged on the quality of life of residents. This project provides an
analysis of a potential whitespaces broadband service (WBS) in the
Lancaster parishes and concludes that it has the potential to be both
technical feasible and financial viable. The study identifies next steps
(regulatory, financing, etc.) required to develop a detailed business and
financial plan and obtain support of stakeholders. The study also
considers the implications of WBS technology for other regional and
remote markets in the UK.
1.2 Overall problem statement and why it is significant
Of the 350 households in the Quernmore and Over Wyresdale parishes
of rural Lancashire, many operate farming businesses and small and
medium enterprises (SMEs) as solicitors, insurance agents, media
consultants. A pre-requisite for these firms and organisations to flourish
Whitespace broadband for remote and rural communities 7 of 61
in the rural communities, is affordable, reliable high-speed broadband
access. Increasingly, high-speed bandwidth (10Mbps or higher) - down
load and upload, have become the standard for users of media rich data
streams in the urban areas.1 This level of bandwidths is not available in
the rural areas where long line lengths limit service to the households to
512Kbps, resulting in about 3 million homes in the UK having broadband
speeds of less than 2Mbps (‘not-spots’ as shown in a recent report
commissioned by the BBC.2 The UK government promised to provide all
homes in the UK with speeds of at least 2Mbps by 2012.
In addition to the commercial opportunity cost, a plethora of other users
in the same rural communities – from farmers, home businesses and
residential users would benefit socially and economically from broadband
access. As video applications become generalised, there will be strong
demand for broadband speeds well in excess of 2Mbps by households
and small businesses in rural areas such as Lancashire, across the UK.
1 6-8Mbps refers to current bandwidth in urban areas that are expected to roll out in
rural areas in medium term. In the longer term, speeds of 1Gbps and beyond will
become the standard where fibre is available.
2 'UK broadband 'notspots revealed’? 2009 BBC on line article summarises the research.
The study was based on a sample of underserved households through out the UK
(http://news.bbc.co.uk/2/hi/technology/8068676.stm) and associated mapping
(http://www.broadbandperformance.co.uk/availabilitymap.aspx). Note. Many of the ‘not
spots’ were in urban fringe as opposed to rural areas.
Whitespace broadband for remote and rural communities 8 of 61
Two way broadband connectivity is essential for the roll out of public
service applications such as e-Learning, e-Health, e-Veterinary as well as
continuous learning education, virtual support groups to break social
isolation3 and leisure activities. There are also significant environmental
benefits in the shift towards a digital society and economy. For example,
rural households must drive to video stores in service centres such as
Lancaster to rent movies and games whereas these services are already
more widely available on-line in urban households over high-speed
(currently up to 1Gbps) cable networks.
The Universal Service Commitment (USC) established a minimum
connectivity service standard of 2Mbps by 2012. Currently, the
connectivity for households in the parishes of Over Wyresdale and
Quernmore, Lancashire are significantly below that standard, with most
having very limited- to no-broadband access at all. In the course of this
study, we estimate the following connectivity for the 350 properties
(total) in the two parishes, based on our analysis of BT’s network, parish
maps and consultation:
3 Virtual affinity groups have been developed in rural communities for vulnerable
citizens invalid shut-ins, the elderly, etc. Through the use of video conferencing, these
groups provide mutual support and efficient means for social services to provide
resources to assist in resolving problems.
Whitespace broadband for remote and rural communities 9 of 61
70 properties (20 percent) are beyond the service area of BT and
have no service;
230 properties (66%) have speeds between 512Kbps and 1Mbps –
with most at the lower 512Kbps threshold,
Only 50 properties (14%) have speeds of between 1Mbps to
2Mbps; and,
No properties have 2Mbps service or greater.4
Most OECD countries consider broadband access as a key enabler in the
transition to the digital economy, enhanced productivity and
competitiveness in a globalised market place and correspondingly, have
developed national broadband strategies or action plans. In these
national broadband plans, there is a common recognition that broadband
access is a utility service that must be available equally to both rural and
urban households in order to avoid a ‘digital divide’.
4 Our analysis for this study was based principally on an analysis of the BT network –
distance from central switch, overlaid on parish maps and distance of those households
from the switch. We also obtained feedback from the two parish councils and anecdotal
evidence/discussions with householders. Thus, while notionally, 512Kbps service is
available up to 6.4K from the switch, we found the service degraded significantly
beyond 6K from the switch. A detailed breakdown of household connectivity in the two
parishes is presented in Appendix 1.
Whitespace broadband for remote and rural communities 10 of 61
In the US, the Federal Communications Commission (FCC) has developed
a national broadband plan which includes the goals of enhancing
Internet service to at least 100Mbps in both rural and urban areas across
the country and 90% subscribership to broadband service by households
by 2020. 5
Australia has announced a national broadband strategy - including build
out of ‘fibre to the node’ national network by private operators. These
operators will deliver at least 12Mbps connections to 98 percent of the
population.6 The 2 percent of remaining households will be covered by
an ‘Australian Broadband Guarantee’ to incentivise ISPs to deliver
broadband service in underserved areas.
In UK, the government set out its strategy for a ‘digitally rich’ UK:
“Universal internet access is vital if we are not only to avoid social
divisions over the new economy but to create a knowledge economy of
the future which is for everyone. Because it’s likely that the internet will
be as ubiquitous and as normal as electricity is today. For business. Or
5 Article ‘ FCC Outlines Some National Broadband Plan Details’ The Wall Street Journal,
February 23, 2010. See also ‘FCC details national broadband plan priorities’ Fierce
Wireless Newsletter
6 Article ‘Australia shows US how a real broadband strategy works’ Ars technical July,
2008. http://arstechnica.com/old/content/2008/07/australia-shows-us-how-a-real-
broadband-strategy-works.ars
Whitespace broadband for remote and rural communities 11 of 61
for individuals.”7
As positioned in the strategy paper ‘Connecting the UK, the Digital
Strategy’, 99% of the population were expected to have access to
broadband services by mid 2005.8 The importance of providing
broadband connectivity to rural areas was explicitly recognised in this
paper:
“The digital revolution has not been restricted to metropolitan centres.
The Government has worked closely with those in rural areas to ensure
that the benefits technology can deliver are shared across the UK. We
have worked with stakeholders at all levels in the public, private and
voluntary sectors to identify best practice and value for money to address
the problems and issues relevant to rural areas.”
More recently, under Digital Britain’s Next Generation Access (NGA)
initiatives, there has been consideration of redefining minimum
connectivity speeds under USC from the current 2Mbps upwards by 2017;
however no official policy for enhancement of bandwidth has been
adopted. In the long term, the roll out of new LTE and WiMax
technologies will enable bandwidths counted in gigabytes as opposed to
7 The Prime Minister – Knowledge 2000 Conference.
8 ‘Connecting the UK, the Digital Strategy’, March 2005 Prime Minister’s Office and DTI.
Whitespace broadband for remote and rural communities 12 of 61
the gigabits.9 Moreover, the National Plan for Digital Participation aims to
reduce the number of people not online by 60% by 2014. Initiatives such
as the Open Age online centre can be complimented by extending high-
speed broadband to the elderly and less mobile citizens in remote and
rural areas for social and medical video conferencing.
As higher bandwidth applications become generalised and integral to the
digital economy, the universal service commitments - in the UK and other
OECD countries, will increase correspondingly to ensure the
competitiveness in the global marketplace and social equity. Scandinavian
and Pacific Rim countries such as Korea, Singapore, etc. are already well
on their way to (near) universal high-speed broadband connectivity.
1.3 Brief description of feasibility study
In evaluating alternative network solutions for the Lancashire parishes
(and by extension, other rural and remote areas in the UK), for viability
and capacity to meet the demands of business and residential users in
the medium- to long-term, the network should be able to provide
connectivity speeds for a range of user groups in the range of 2Mbps-
10Mbps i.e. significantly higher than the current 2Mbps USC. Whilst in
9 LTE long-term evolution of broadband services which replace HSPA and other recent
technologies.
Whitespace broadband for remote and rural communities 13 of 61
the longer-term perspective of LTE and other technologies, 10Mbps
might appear to be relatively modest; this level of connectivity would
provide a medium term solution to the high intensity users and a longer-
term solution for low- to medium-user groups.
Thus, we examined the ability of alternate technologies to provide
broadband speeds in the 2Mbps to10Mbps connectivity range in the two
parishes including existing service providers - which currently provide or
potentially could provide, telephony and ISP services in competition with
BT as well as newer platforms which have not yet rolled out in the UK.
Existing service providers include competing local exchange carriers
(CLECs such as TalkTalk).10 These generally have the same limitations as
BT given that the distance from the switch governs connectivity speeds.
They also typically lease capacity on the backbone infrastructure from BT.
Satellite services (Sky, Tariam and Freesat11) have the potential to provide
10 Quernmore is served by Lancaster exchange, which has four CLECs present in it. These
are AOL, C&W, Sky and TalkTalk. It is categorised by OFCOM as market 3 and
deregulated. All CLECs lease the existing BT MPFs and deliver ADSL over them.
Over Wyresdale is served by the Forton exchange, which has no CLECs operating in it. It
is categorised by OFCOM as market 1 and hence continues to be regulated.
11 Freesat does not offer broadband as such, but the boxes do have a broadband
connection so one can connect it to your existing home broadband service if one want
(it’s optional). Connecting up one’s box in this way will allow one access to future
Whitespace broadband for remote and rural communities 14 of 61
video, data and voice services. However, connectivity speeds, even with
newer MPEG-4 technology, are very low relative to other solutions as
they are configured for entertainment services (television, films, etc.).
Other significant weaknesses in satellite as a broadband service are the
asymmetrical nature of connectivity in the return path (uploading),
relative high cost per Mb delivered and the potential for service
disruption/degradation due to weather events. 5.8GHz solutions such as
those used in the Hebrides and other remote locations provide higher
bandwidths available than BT copper network (<100Kbps) and are thus
generally useful for areas that cannot be reached by BT service.
Amongst the newer technologies, whitespace broadband services appear
to provide both the connectivity speeds necessary to meet the current
and mid term demands of users and cost structure which ensures
business viability.
Whitespace gear has been successfully rolled out in the UHF bands and
is based on proven technology that can deliver the speeds (10Mbps or
better) and reliability of service (4*9) required to attracted commercial
and residential customers. Amongst its technical attributes are:
‘Ground hugging’ propagation in hilly terrain
planned internet-based services such as BBC iPlayer. Freesat. Website 22 February 2010.
http://www.freesat.co.uk/index.php?page=help.Question&id=139
Whitespace broadband for remote and rural communities 15 of 61
Ability to penetrate through vegetation, stone walls and
obstructions;
Resilient quality of service during weather events rolling eastwards
from the Irish Sea.
Whilst whitespace technologies can not offer the long term capabilities of
FTTP, it should be seen as a medium to long term solution (and longer
term especially in regional and remote markets) which would bridge the
gap between 1st Generation low-speed distance limited ADSL and NGA
via fibre delivery. In considering the feasibility of whitespace technology,
we compare the bandwidths, reliability and financial viability against
existing landline, wireless and satellite service options available in the
target markets of Lancaster.
1.4 Eventual impact
The eventual impact of the roll out of whitespaces technology in
Lancaster and other similar regional and remote areas of the UK has the
potential to significantly enhance the ability of CDI and other SMEs to
operate from the rural areas, improve the efficiency of existing farming
operations and improve the quality of life of residential users.
Whitespaces services have the potential to be a cost effective solution in
advancing the goals of Digital Britain to overcome the digital divide
between rural and urban users, enable the transition to a digital economy
and make Britain more competitive.
Whitespace broadband for remote and rural communities 16 of 61
1.5 Outcome of study
The outcome of this study has been to demonstrate the merits of a
whitespace broadband service (WBS) rollout in two Lancaster parishes
including it technical features (bandwidth, reliability, quality of service),
attractiveness to target users and financial feasibility relative to existing
and alternative solutions.
In particular, we demonstrated that a new whitespace service would
significantly enhance the ability of SMEs including farmers to operate
from the rural areas, improve the efficiency of existing farming operations
and improve the quality of life of residential users.
The study identified key spectrum management issues at Ofcom (power
levels, licensing, cognitive monitoring) that would impact on the potential
viability of whitespaces broadband services in the UK.
1.6 Impact of the study
Demonstration of the technical merits, attractiveness to users and
financial feasibility of a whitespaces network in Lancaster in this feasibility
study should logically lead to further steps to ‘gate’ the concept
including business and technical plan for whitespaces service in the area.
Whitespace broadband for remote and rural communities 17 of 61
This study should also lead to consideration of this technology for other
regions in the UK.
The successful demonstration of the technology in Lancaster might lead
to consideration of whitespaces broadband technology as a key element
of Digital Britain’s broadband study and changes to spectrum
management practices by Ofcom.
1.7 The way forward
In light of the positive outcome of this evaluation of whitespaces
technology, the following action plan for the potential implementation of
a whitespaces broadband service in the Lancaster parishes has been
identified:
1. Consultation with the two Lancaster Parish Councils, the regional
development agency and other stakeholders on the following:
o Results of the study demonstrating potential benefits and
costs for residential and small and medium business user
categories in the parishes,
o Willingness of stakeholders or other third party agencies to
participate in discussions with whitespaces service providers
on potential solutions, and if positive, in a potential joint
equity company to operate a whitespaces broadband
network.
Whitespace broadband for remote and rural communities 18 of 61
2. Depending on the outcome of the consultation with the
stakeholders, a further study would be required to develop a
Business and Technical plan for the Lancaster parishes, sources of
financing, form of the operating company, etc.
3. Exploration of potential funding sources (including whitespace
service providers, private investors, the parish councils, and public
agencies. Amongst potential sources of funding from public
agencies are the North West Development Agency (NWDA), the
European Community Regional Development Fund (ERDF), and the
nascent UK Universal Service Broadband fund.
4. Discussions with Ofcom on spectrum management issues that
would impact on the features and viability of a whitespaces service
in Lancaster (and other remote markets in the UK). These include
acceptable power levels from transmitting towers / masts and the
need for on going measurement of band occupancy for fixed
whitespace broadband networks in rural areas through geo-
location or other cognitive devices.
5. A demonstration whitespaces project in the Lancaster parishes -
sanctioned by Ofcom that would provide technical data to Ofcom
to conclusively show non-interference and thus acceptability of
whitespaces technology to existing broadcasting users might be
proposed. This project would require an initial spectrum
monitoring of bands in the target areas in order to establish
occupancy and power levels of broadcasters in UHF bands,
Whitespace broadband for remote and rural communities 19 of 61
selection of a pair of unoccupied bands for whitespaces usage and
regular monitoring of potential interference in adjacent bands as
mast effective radiated power levels (ERPs) are progressively
ramped up to demonstrate non-interference with broadcasting
users.
1.8 Lessons learned
A feasibility study of whitespaces technology for the two Lancaster
parishes is just the start of a long business and technical planning
process which as part of a due diligence process, must take into account
existing users of the UHF spectrum, Ofcom spectrum management
practices in the UHF band, private and public financing sources,
negotiation of access to incumbent facilities, etc. before a roll out is
envisaged.
2. Description of the overall problem addressed
2.1 Significance
The quality of life and viability small and medium businesses (SMEs)
located in rural areas across the UK are negatively affected by bandwidth
limitations. Hence the ‘digital divide’ identified in the UK and other OECD
countries between urban and rural households and SMEs. Enhancements
in connectivity for rural users would alleviate urban congestion, enhance
Whitespace broadband for remote and rural communities 20 of 61
competitiveness and play a key role in the transition of the UK to the
digital economy.
2.2 Expected eventual impact
If the proposed whitespaces broadband services solution were to be
successfully adopted in the two Lancaster parishes, the quality of life and
the ability of the parishes to attract and keep new business would
increase. This in turn would enable job creation and retention of youth in
the rural areas.
Similar technology solutions might be envisaged for other regional and
remote markets across the UK with similar benefits.
3. Outline of the proposed study
3.1 Approach adopted during the feasibility study
This study included primary and secondary research into whitespaces
broadband services (WBS) in the global market and the potential
technical feasibility and financial viability in two Lancaster parishes.
In assessing financial viability, we assessed the relative attractiveness and
limitations of the service offerings and pricing of incumbent landline and
satellite operators in comparison with services and prices of a proposed
WBS. The primary research activities in this study included interviews with
management in the following organization and corresponding objectives:
Whitespace broadband for remote and rural communities 21 of 61
Lancaster parishes to evaluate the potential receptiveness to a new
service,
Ofcom to considered the spectrum management regulatory
framework
Alternative service providers (e.g. 5.8GHz service in the Hebrides)
to better understand the roll out and regulatory issues.
The study outcome included a network configuration and pro forma
financial statement for the WBS service.
4. The deliverables
4.1 Initial design
The study team reviewed the technical parameters of existing whitespace
broadband systems in the global markets with a view to feasibility of
adaption to the Lancaster parishes.
The initial technical parameters configuration of network for Lancaster
were developed in consultation with a number of whitespace firms which
have successfully built out and operated whitespace broadband systems
in other countries such as Canada and the US. One of these firms,
Advance Interactive Inc. of Richmond, British Columbia, Canada provided
technical information on the location of masts, power level and coverage
(see maps for topography of the parishes, location of masts, overlay of
likely coverage on parish maps).
Whitespace broadband for remote and rural communities 22 of 61
4.2 Technical work (showcasing the outcomes achieved)
Using the technical information from the service suppliers, we have
demonstrated the technical feasibility of servicing business and
residential users in the two parishes using two masts. The coverage takes
into account the hilly topography and vegetation of the parishes.
Key Technical Components
The proposed whitespace broadband system would include the following
key elements and technical components:
Spectrum Bands and Connectivity
The whitespace broadband service (WBS) would provide full duplex
service (i.e. simultaneous sending and receiving with full bandwidth) with
no degradation of service speeds) to households / businesses throughout
the two parishes. The service would operate at 128-QAM modulation
rates and require two 8MHz (non-adjacent)12 DTT multiplex channels in
the UHF band.
12 The proposed service does not require bonded adjacent channels to deliver the
35/8Mbps connectivity.
Whitespace broadband for remote and rural communities 23 of 61
The service would have the ability to deliver shared bandwidth
connectivity of 35Mbps download (reception from the towers) and up to
8Mbps upload from customer premises.
Service Offering Connectivity Speeds and Usage Caps
Based on user profiles from other global markets13, four service / pricing
packages would be offered (see details in Service Package Description in
Appendix):
Platinum: this service targeting businesses with continuous high
bandwidth needs, provides 10Mbps download/5Mbps upload with
a 40GB/month usage cap.
Silver: this service targeting heavy residential users, provides
6Mbps download/2Mbps upload with a 40GB/month usage cap
Steel: this service targeting lighter residential users, provides
2Mbps download/1Mbps with 10GB/month usage cap
13 In Canada and Alaska, where Advanced Interactive operates the generally accepted
contention ratios (i.e. total bandwidth available versus bandwidth in use) are typically
between 20:1 in busy hour period (typically traffic peaks late afternoon after children
return from school and in the early evening) and 40:1 in off peak periods i.e. in busy
hour periods, 1 in 20 users are simultaneously using broadband applications on line. In
UK, contention ratios for business are between5:1 and10:1; whereas for residential users
the ratios are in the order of 20:1 and 50:1.
Whitespace broadband for remote and rural communities 24 of 61
These connectivity speeds of the WBS compare very favourably with
current service packages of incumbent landline service operators such as
BT and Talk Talk. These services deliver 2Mbps symmetrical service up to
approximately 5K and 512Kbps or less beyond that threshold.14 The WBS
service provides the same bandwidth connectivity through out the service
area – in contrast to the landline services. When compared with satellite
connectivity, which are generally 2Mbps download and much less upload,
as well as being much more expensive on a per Mbps basis, the
competitive advantage of WBS is even greater.
The comparison of WBS service to other current service options must of
course take into account not just connectivity speed but also price,
service reliability and bundled features of the proposed service. These
features and bundle service packages are described in section 5.3 ‘Service
Offering’ below.
Antenna and Masts
14 Whilst in theory, BT landline service declines from 2Mbps to 512Kps around 5.1K from
the switch, anecdotal evidence in the two parishes place this threshold at 5K or less. See
http://www.ja.net/documents/development/llu/llu-technical-document.pdf (graph, page
13)
Whitespace broadband for remote and rural communities 25 of 61
The simulation of power and terrain indicates that two antenna will be
required to cover all the households and businesses in the two parishes.15
Antenna would be installed on existing transmission towers: Masts 1
owned by Cable and Wireless and Mast 2 – owned by Over Wyresdale
(see Map in Appendix and Assumptions below). Mast 1 - the radio site
(1) is located on Langthwaite Hill looking west is the main mast would be
linked by microwave with Mast 2 (as a subsidiary mast).
We have assumed a 4-Watt transmission power level (see Assumptions
below). While the service could feasibly operate at 2 watts – Ofcom’s
current permissible level for DTT multiplex channels, the reliability of
service would be less than 4*9 in severe weather events.
Customer premises equipment
Antenna and Receivers: The WBS service would use Yagi antennas
and receivers. The antenna would generally be installed on the
outside of buildings - given homes and business structures in the
parishes are often built of stone or brick.
15 Mast 1 alone does not provide coverage of all areas in Over Wyresdale Parish. In the
technical analysis proposed as part of a second phase study, one would need to look at
using directional antenna to focus coverage on target area whilst minimizing radiation
outside that area which could cause interference.
Whitespace broadband for remote and rural communities 26 of 61
Modem and Set top Boxes: The service would use DOCSIS cable
modems which are inexpensive and have demonstrated reliability16
Technical Issues and Assumptions
A number of assumptions regarding the use of the UHF spectrum and
existing infrastructure are critical to the technical feasibility and financial
viability of the proposed service.
Leasing versus build of masts
A key assumption in determining financial feasibility is the leasing (rather
than construction of new masts) of space on existing masts for
transmission of whitespace services.
Thus, it our understanding that antenna could be installed on existing
transmission towers: Masts 1 owned by Cable and Wireless and Mast 2
owned by Over Wyresdale Parish (see Map in Appendix) based on the
following:
16 Data Over Cable Service Interface Specification (DOCSIS). These modems are reliable
and inexpensive. Approximately 25 million of these modems are in use globally.
Whitespace broadband for remote and rural communities 27 of 61
Preliminary analysis indicates that the masts are physically sound
and have the required spacing / clearance required for the
antenna.
Ofcom’s policy to encourage sharing of facilities by incumbents by
setting the framework for negotiations between new service
providers and incumbents leads us to believe that an agreement
to lease space on the mast is a realistic option.
Availability of channels
Given the remoteness and rural nature of the parishes and distance to
major markets, we believe that it reasonable to assume that the UHF
band is underutilised for broadcasting in the two Lancaster parishes. A
preliminary analysis indicates that of 41 channels available on the UHF
band, only 12 channels are currently in use. Thus, we believe it is
reasonable to assume that two vacant (non adjacent) channels could be
found for a whitespaces broadband service. As a pre-requisite for launch
of the service, spectrum monitoring in the UHF bands would have to be
undertaken at the expense of the new whitespaces venture, to identify
the two channels and the technical analysis would be provided to Ofcom
for review.
Transmission Power from the Masts
Whitespace broadband for remote and rural communities 28 of 61
Ofcom currently has called for low power (up to 2 watts) transmission in
the UHF band for whitespaces wireless broadband services in the UHF
band. The low power threshold set by Ofcom and the November 17th,
2009 consultation on dynamic cognitive devices such as geo-location
assumes the whitespaces broadband devices might be mobile. The
proposed WBS technology and associated devices however, are fixed.
Given the remoteness, rural nature and distance to major markets of the
two Lancaster parishes in question, we believe that fixed WBS
transmission devices operating at 4 watts or greater would not result in
interference with existing broadcasting services.
In order to demonstrate the ability of fixed WBS service to reliably
provide broadband service to households throughout the parishes and to
operate without interference, the service would be rolled out using 2
watts in partnership with local stakeholders (as discussed above).
Once the initial service rollout complete, a request for an experimental
license to operate at 4 watts would be made to Ofcom with the support
of the local partnership. It is expected that a trial WBS service would be
subject to due diligence spectrum monitoring and reporting to Ofcom
over an agreed upon trial period. Subsequent requests would be made to
Ofcom to demonstrate the safety of operating at power levels above 4
watts by progressively raising the power levels– with associated due
diligence spectrum monitoring and reporting to Ofcom.
Whitespace broadband for remote and rural communities 29 of 61
4.3 Service Offering
In the Technical section (above), an outline of the connectivity speeds
and usage caps of the various ISP service packages was provided. The
proposed WBS Internet connectivity speeds would constitute a major
attribute of WBS service in comparison with existing BT, CLEC and
satellite services and as a stand-alone ISP, the WBS service would be
viable.
However, in addition to the Internet, WSB can be configured to provide
local and long distance telephony at very little additional cost whilst
increasing its attractiveness significantly to rural subscribers. In the
section below, we describe the telephony and other services that would
increase the attractiveness of a potential WBS service attractive to
residential and business users rural Lancaster:
A one stop double-play service bundle (Internet connection, and
local and long distance voice over IP (VOIP) would offer significant
advantages over existing BT or its competitors (Talk Talk, B Sky B,
etc.);
The voice service over IP includes virtually unlimited telephony17
(telephone and fax numbers included) to other users of the service
as well as low cost local, regional and international service;
17 Subject to reusable use capped at 1000 minutes.
Whitespace broadband for remote and rural communities 30 of 61
The voice service would include at no additional cost, call
forwarding to mobile devices, call waiting, caller ID, etc.
Email account(s), personal web site, web-based personal file
manager, significant storage space for files and emails, spam
control.
WBS would be able to support customer access to television and
movie entertainment services (e.g. Apple TV) via third party service
suppliers;
A full description of the service package is presented in Appendix.
4.4 Financial Viability
Based on a preliminary analysis of estimated costs and revenues for a
WBS operation serving subscribers in the two Lancaster parishes, we
believe the venture would attain the target subscriber count within 6
months and become financially viable within 12 months of network roll
out - even in the scenarios of less than optimal subscriber up take and
regulatory framework. We demonstrate the viability of WBS as a
standalone ISP and subsequently, as a bundled ISP and telephony service.
4.5 Financial Viability of a Stand-alone Internet Service
Revenue Projections
Whitespace broadband for remote and rural communities 31 of 61
Revenue projections are based on an analysis of the attributes of a
potential WBS service package relative to competitive service packages of
incumbent and potential competing service suppliers (See Appendix) as
well as assumptions regarding community backing of the WBS service
(see Business Assumptions below).
It is estimated that at a minimum, 196 of a potential 350 subscribers
would be attracted to the service within 6 months of roll out of the
service – based on a partnership with the parishes. This represents 56
percent of the potential 350 households / businesses in the two parishes.
While we believe that WBS service would attract upwards of 300
subscribers18 in the rural parishes and possibly even subscribers in the
town19, we have used the conservative scenario to demonstrate the
economic viability at the lower threshold (see tables below).
18 In the conservative scenario, the remaining 154 household / businesses would either
not be interested in broadband services (personal preference for BT narrow band or no
service, vacation properties, etc.) or are in transition (sale of property, etc.).
19 In light of the experience of WBS in other rural markets, it is likely some residential
and business customers in towns such as Lancaster would subscribe to the new service.
Typically, a portion of the subscriber base in the towns is dissatisfied with incumbent
service levels, pricing, etc. and is looking for an alternative service supplier. In the case
of Lancaster and other towns in the WBS service area, the 10/5Mbps service speeds,
free long distance, and one stop triple play service bundle (Internet connection, local
and LD telephony and possibility of add on entertainment services would offer
Whitespace broadband for remote and rural communities 32 of 61
The distribution of customers in the various service packages (below) is
based on analysis of current service packages / connectivity in the
parishes, the various household and business client profiles and
experience of AI with customers in other global markets. Thus, the
projection of uptake of the higher connectivity packages is deliberately
conservative, in the expectation that customers will trade up to higher
speeds once they become familiar with the service and available
applications.
WBS Revenue Projections Based on a Standalone Internet Service
As shown in the figure below, under the conservative scenario of 196
subscribers
16 subscribers ‘platinum’ customers (8% of total 196
subscribership20) are drawn from businesses requiring the fastest
connectivity 10Mbps download/5Mbps upload. These customers
would pay a total £250 per month for the Internet service.
significant advantages over existing BT or its competitors (Talk Talk, B Sky B, etc.).
However, as Ofcom might take dim view of a new WBS service targeting customers in
towns that have 2Mbps service, we have not included these potential subscribers in the
Business Plan projections.
20 Alternatively, the 16 properties represent 5% of the potential customer base of the
combined 350 Over Wyresdale and Quernmore properties
Whitespace broadband for remote and rural communities 33 of 61
Businesses would typically be CDI firms, consultancies, solicitors,
media editors, etc. looking to use the service as part of daily
business processes and as a way of avoiding travel costs.21 The
monthly fee is significantly less than alternative service options22
35 (18% of total subscribers) ‘silver’ customers with 6Mbps/2Mbps
connectivity, pay a total £100 per month; The silver subscribers
would typically be either residential users who intensively
download and/or share videos (e.g. teenagers and young adults)
or business users who have less intense needs than the platinum
customers described above (e.g. occasional use of
videoconferencing);
145 (74%) ‘steel’ customers with 2/1Mbps connectivity pay a total
£ 35 per month would be typical households with moderate video
usage.
Table 1 – ISP Connectivity, Pricing, Revenues and Service Description with Breakout by Parish
21 The monthly subscriber cost is less than the cost of a single 1st class return trip to
London £270.
22 Currently, the alternative for business is to obtain a leased line from BT. A dedicated
10Mbps leased line from cost £10,800 per year plus £5,000 for installation if fibre at
door; up to £260,000 in more distant areas of Over Wyresdale.
Whitespace broadband for remote and rural communities 34 of 61
Over Wyresdale
Properties -
Services Qty
£ per
Month
£ Total
Monthly
Ratio Mbs
Needed
Over Wyresdale
Properties -
Services
Premium Service
(CDI) (10Mbs/5Mbs
& Real Static IPs) 5 £250.00 £1,250 10:1 5
Premium Service
(CDI) (10Mbs/5Mbs
& Real Static IPs)
Silver Service
(6Mbs/2Mbs) 13 £100.00 £1,300 15:1 5.2
Heavy Residential
User Service
(6Mbs/2Mbs)
Steel Service
(2Mbs/1 Mbs) 46 £35.00 £1,610 20:1 4.6
Basic Residential
Service (2Mbs/1
Mbs)
Sub Total £4,160 14.8 Sub Total
Quernmore
Properties -
Services Qty
£ per
Month
£ Total
Monthly
Ratio Mbs
Needed
Quernmore
Properties -
Services
Platinum Service
10Mbs/5Mbs & Real
Static IPs) 11 £250.00 £2,750 10:1 11
Premium Service
(CDI)(10Mbs/5Mbs
& Real Static IPs)
Silver User Service
(6Mbs/2Mbs) 22 £100.00 £2,200 15:1 8.8
Heavy Residential
User Service
(6Mbs/2Mbs)
Steel Service
(2Mbs/1Mbs) 99 £35.00 £3,465 20:1 9.9
Basic Residential
Service (2Mbs/1Mbs)
Sub Total £8,415 29.7 Sub Total
Total 196 £12,575 45 Total
Whitespace broadband for remote and rural communities 35 of 61
Table 2 – Summary ISP Service: Pricing and Revenues for Two Parishes
Internet Service Qty Price Monthly Total
Platinum (10Mbs/5Mbs & Real Static IPs) 16 £250
Silver Service (6Mbs/2Mbs) 35 £100
Steel Service (2Mbs/1 Mbs) 145 £35
Total Monthly Revenue at Hub 196
It is projected that the WBS stand-alone Internet service would generate
£64 per customer per month with total revenues of £12,575. It is
expected that the service would be able to generate this level of
revenues on an monthly basis within the 6 months after launch. Thus
once the WBS is established, it is projected to generate £239,613
annually on a subscriber base of 200.
Partnership with the Local Stakeholders in the Operating Company
As indicated above, the support of the parishes is critical in assuring the
success of the WBS rollout. The operating company would be a
partnership in the form of a joint venture company between a proven
whitespace operating firm and a local agency such as a regional
development council and/or a third party entity. Majority ownership
would be held by the local entity.
The operating company would hire the proven whitespace broadband
firm to build the whitespace broadband network and provide on going
network maintenance and billing services under contract with. The build
Whitespace broadband for remote and rural communities 36 of 61
out would require approximately 3 months once regulatory licenses and
permits have been obtained.
The backing and active participation of the local partner in the WBS
operating company are essential to the success of the venture as a
locally-owned and operated company would be able to:
Create awareness and uptake of the proposed service based on
local ‘pride of ownership’23
Define service levels that meet the needs of various user groups
and the financial constraints of the operating company.24
Cost and Operating Profit Projections
The cost of installation of customer premises equipment (CPE) is
estimated at £219 per customer or a total of £43,010 for the 196-
23 In rural areas in Canada, a significant portion of subscribers are recruited at
community events and at the church hall after religious services on Sunday
24 Maintenance and customer care charges are basically a ‘pass through’ cost to
subscribers and depend on expected service levels. If the community accepts a lower
level of service e.g. daytime only, a combined staff position that handles customer care
and technical problems would suffice. If expected service levels require 24/7 on call with
defined response times, the operating costs increase correspondingly. Community-
owned operating companies generally operate at lower service levels based on
customer consensus.
Whitespace broadband for remote and rural communities 37 of 61
customer subscriber base. Customers would pay for the CPE costs up
front. Local installers familiar with satellite equipment would be hired on
a commission (i.e. per installation) basis.
Total installation costs for the complete system – Including transmission
equipment (on existing C&W towers) is approximately £219,440 (see
figure below).
Table 3 – Capital Costs
Capital of System Qty Price Monthly Total
Complete System Installed at Mast 1 & Mast 2 1 £219,440 £219,440
Total Cost of Installed System £219,440 £219,440
Customer Premise Equipment Capital Costs Qty Price Monthly Total
Wireless CPEs, equipment and installation 196 £219 £43,010
Total Customer Premise (CPE) Equipment
Capital Cost per Hub £43,010
Lease-to-Purchase of Capital Equipment,
based on mortgage rate of 5% per year Qty Price Monthly Total
Monthly and annual Cost for 5 year mortgage 12 £3,950 £47,400
Total cost over 5 years = £339,240.
It is estimated that total operating costs would be £6,615. The single
largest expense item is £1,881 for operational staff to provide customer
Whitespace broadband for remote and rural communities 38 of 61
service, billing and collection and technical services at both the CPE and
the tower sites followed by long distance costs. Server maintenance (sum
of Community/Axxess and Voice/Axxess) is next in importance, followed
by payments to incumbent operators for services including Internet
connectivity, telephone lines and tower rental and DID numbers.
Table 4 – Assumption regarding operating costs
Assumptions regarding monthly costs Qty Price Monthly Total
Internet connectivity approximately 10/100
Mbps Fibre 2 £627 £1,254
Maintenance for CommunityAxxess Server 2 £940 £1,881
Tower Rental 2 £500 £1,000
Operational Staff 1 £2,000 £2,000
Miscellaneous Costs 1 £200 £200
Overheads 1 £200 £200
Insurance 2 £63 £125
Total Monthly Cost £6,660
Total monthly costs for the WBS are estimated at £6,660 and
corresponding annual costs of £79,923. Total Gross Yearly Operating
Profit would be £70,977 on an annual basis from year 2 onwards. When
the mortgage costs of lease-to-purchase of capital equipment (table
above) of £47,400 are considered, the Total Net Yearly Profit is projected
at £23,577 (year 2 onwards).
Whitespace broadband for remote and rural communities 39 of 61
4.6 Financial Viability of Bundled Internet and Telephony Service
Revenue Projections
In the bundled service, revenues from the Internet are added to
telephony revenues (figure below).
Table 5 – Revenue projections for a bundled Internet and telephony service
Internet Service Qty Price Monthly Total Price
Platinum Service (10Mbs/5Mbs & Real
Static IPs) 16 £250 £4,000
Silver Service (6Mbs/2Mbs) 35 £100 £3,500
Steel Service (2Mbs/1 Mbs) 145 £35 £5,075
Total Monthly Internet Revenue 196 £12,575
Telephone Service Qty Price Monthly Total Price
Platinum 16 £14 £224
Silver 17 £14 £238
Steel 72 £14 £1,008
Total Monthly Telephone Revenue 105 £1,470
Long Distance Telephone Service Qty Price Monthly Total Price
Platinum 16 £50 £800
Silver 17
Article I. £1
0 £170
Whitespace broadband for remote and rural communities 40 of 61
Steel 72 £5 £360
Total Monthly Long Distance Revenue 105 £1,330
For the Internet, we assume the same revenues as under the previous
stand-alone scenario. For telephony revenues, we assume that a total of
105 subscribers of a potential 350 would be attracted to both the local
and long distance telephony services. For long distance services
(including regional and international services), the cost advantages of
virtually unlimited calling for premium customers (1000 minutes per
month) for £50 per month should be attractive, as are they for the silver
(500 minutes) and steel packages (250 minutes).
Long distance service and ISP service will to some extent drive
subscribership to local telephony as well, although once the value of the
features associated with local service become known, the service should
become attractive in its own right. Thus, for local telephony, we assume
that all of the 350 potential subscriber base would remain customers with
existing telephony25; however, approximately 105 or 30 percent could be
25 The alternative for customers would be to keep their landline phones and then take a
package from one of the CLECs for telephony services. For instance TalkTalk offer a
package for £28.48/month giving unlimited phone calls to local and national numbers.
Whitespace broadband for remote and rural communities 41 of 61
persuaded to use the new service for £14 as a second line. The value
proposition for local telephony is the features for which they pay heavily
from incumbent service providers as well as unlimited calling to other
subscribers of the service and in the local exchange. Services such as call
forwarding to cell, call waiting, caller ID, etc. which are relatively
expensive from the Incumbent would be included in the local telephony
price of£14 per month. The fact that WTS service can be equipped with
backup gear in case of power outages should provide a selling point to
potential subscribers concerned about reliability.26
For comparison purposes, the local, national and NTS tariffs and
associated charges27 of BT and THUS28 are presented in Appendix B.
BT charges £43.01 for a similar deal and Sky is £26. These packages put a cap on what
could be charged for voice over WBS.
26 In rural areas, many residences perceive the incumbent service to be the only choice
which provides 24/7 4*9 reliability during weather events, power outages, etc. and might
initially be reluctant to give up the incumbent landline service.
27 ISDN B channel are charged at £12/month. DDI numbers are charged at £300 per 100
numbers setup charge but no monthly charge thereafter. ISDN30 line install charge is
one off £320 including 8 B channels. Additional B channel setup charge is £40/B
channel one off capital charge.
28 THUS is a local competitive telco, subsidiary of C&W
Whitespace broadband for remote and rural communities 42 of 61
Cost and Operating Profit Projections
As shown in the tables below, the incremental costs of a combined
Internet and telephony services operation are modest: capital costs are
14% greater than those for Internet alone (£250,788 versus £219,440 total
cost); operating costs are 19% higher (£7,911 versus £6,660 per month
and customer premises equipment costs are identical. Thus, it makes
sense to consider a WBS that provides both Internet and telephony.
Table 6 – Capital Costs
Capital of Systems Qty Cost Total Cost
Complete System Installed at Mast 1 & Mast 2 1 £250,788 £250,788
Total Cost of Installed System £250,788 £250,788
Customer Premise Equipment Capital Costs Qty Cost Total Cost
Wireless CPEs, equipment and installation 196 £219 £43,010
Total Customer Premise (CPE) Equipment Capital
Cost per Hub £43,010
Table 7 – Operating Costs
Assumptions regarding Monthly Costs Qty Cost Total Cost
Internet connectivity approximately 10/100 Mbps
Fibre 2 £627 £1,254
Maintenance for CommunityAxxess Server 2 £940 £1,881
Tower Rental 2 £500 £1,000
Operational Staff 1 £2,000 £2,000
Miscellaneous Costs 1 £200 £200
Whitespace broadband for remote and rural communities 43 of 61
Overheads 1 £200 £200
Insurance 2 £63 £125
Telephone Lines 11 £19 £207
DID Numbers 105 £1 £66
Maintenance for VoiceAxxess Server 1 £313 £313
Long Distance Cost 50% £1,330 £665
Total Monthly Cost £7,911
Overall Yearly Operating Profit for the combined system - is 26% higher
(£89,568 versus £70,977) than that for a stand-alone Internet operation
and Total Net Yearly Profit, 50% higher (£35,424 versus £23,577 - see
figure below).
Table 8 – Operating profit and net profit
Assumptions regarding
Monthly Costs Qty Cost Total Cost
Total Yearly Revenue 12 £15,375 £184,500
Total Yearly Cost 12 £7,911 £94,932
Total Gross Yearly Operating Profit £89,568
Assumptions regarding Monthly Costs Qty Cost Total Cost
Lease-to-Purchase of Capital
Equipment, based on mortgage rate of
5%/yr.
Monthly and annual Cost for 5 year
mortgage £250,788 12 £4,512 £54,144
Total Net Yearly Profit £35,424
Whitespace broadband for remote and rural communities 44 of 61
5. Study Conclusions and Next Steps
A WBS which provides both Internet and voice services in the two
Lancaster parishes is likely technical feasible and has the potential to be
profitable on an annual basis from the 2nd year onwards for the local
operating company.
A WBS system would provide significant benefits to rural households and
businesses in Lancaster and would be a cost efficient method to extend
broadband service in the area.
On the strength of the findings of technical feasibility, profitability and
benefits, a second study comprising a detailed business plan and
technical plan should be developed. Discussions between local
stakeholders and potential WBS service suppliers should be undertaken.
Finally, Ofcom and development agencies should be consulted on
regulatory matters and public financing participation respectively.
5.1 Business Assumptions and Risk Affecting Financial Viability
There are a number of potential risks that investors and stakeholders
need to consider carefully in order to mitigate or eliminate the impact.
The potential subscriber base is relatively small. However, if there is
interest in the other parishes, service could be rapidly expanded to those
areas.
Whitespace broadband for remote and rural communities 45 of 61
If the local stakeholders such as the regional government, Parish Councils
and the development agencies are not actively involved in backing the
operating company, there are significant risks of lower subscriber base
and higher operating costs (due to unrealistic service expectations).
Ofcom’s approval of a WBS service is not without uncertainty. Local
stakeholder backing is essential in successfully negotiating an
experimental operating licenses and ultimately, favourable operating
parameters from Ofcom.
In the absence of licensed spectrum, incumbents such as BT, TalkTalk, etc.
could launch their own WB services.
6. Expected impact of achievements
6.1 Expected impact of achievements
The WBS would significantly enhance the broadband connectivity in the
Lancaster parishes and as a result, improve the viability of businesses and
quality of life for residents.
7. Gap analysis
7.1 Concepts and partners required to turn the proposal into fruition
Whitespace broadband for remote and rural communities 46 of 61
The backing and active participation of the local stakeholders in the WBS
operating company are essential to the success of the venture as a
locally-owned and operated company would be able to:
Create awareness and uptake of the proposed service based on
local ‘pride of ownership’29
Define service levels that meet the needs of various user groups
and the financial constraints of the operating company.30
Table 9 – SWOT Analysis
29 In rural areas in Canada, a significant portion of subscribers are recruited at
community events and at the church hall after religious services on Sunday
30 Maintenance and customer care charges are basically a ‘pass through’ cost to
subscribers and depend on expected service levels. If the community accepts a lower
level of service e.g. daytime only, a combined staff position that handles customer care
and technical problems would suffice. If expected service levels require 24/7 on call with
defined response times, the operating costs increase correspondingly. Community-
owned operating companies generally operate at lower service levels based on
customer consensus.
Whitespace broadband for remote and rural communities 47 of 61
8. Next steps
8.1 A development plan or justification for idea
In light of the positive outcome of this evaluation of whitespaces
technology, the following action plan for the potential implementation of
Strengths
Competitive cost
License exempt
Hard-coded locations
High-speed NGA
Weaknesses
Geolocation device
technology
Geolocation database
management
Hidden terminal problem
United for Local
Television (ULTV)
opposition
British Entertainment
Industry Radio Group
(BEIRG) opposition
Opportunities
Community-owned telco
Model for other
communities
Threats
Long-term viability
Slow maintenance and
emergency response
Insufficient wattage
Whitespace broadband for remote and rural communities 48 of 61
a whitespaces broadband service in the Lancaster parishes has been
identified:
1. Consultation with the two Lancaster Parish Councils , the regional
government and the development agency on the following:
o Results of the study demonstrating potential benefits and
costs for residential and small and medium business user
categories in the parishes,
o Willingness of local stakeholders and/or other third party
agencies to participate in discussions with whitespaces
service providers on potential solutions, and if positive, in a
potential joint equity company to operate a whitespaces
broadband network.
2. Depending on the outcome of the consultation with the
stakeholders, a further study would be required to develop a
Business and Technical plan for the Lancaster parishes, sources of
financing, form of the operating company, etc.
3. Exploration of potential funding sources (including whitespace
service providers, private investors, the parish councils, and public
agencies. Amongst potential sources of funding from public
agencies are the North West Development Agency (NWDA), the
European Community Regional Development Fund (ERDF), and the
nascent UK Universal Service Broadband fund.
4. Discussions with Ofcom on spectrum management issues that
would impact on the features and viability of a whitespaces service
Whitespace broadband for remote and rural communities 49 of 61
in Lancaster (and other remote markets in the UK). These include
acceptable power levels from transmitting towers / masts and the
need for on going measurement of band occupancy for fixed
whitespace broadband networks in rural areas through geo-
location or other cognitive devices.
5. A demonstration whitespaces project in the Lancaster parishes -
sanctioned by Ofcom that would provide technical data to Ofcom
to conclusively show non-interference and thus acceptability of
whitespaces technology to existing broadcasting users might be
proposed. This project would require an initial spectrum
monitoring of bands in the target areas in order to establish
occupancy and power levels of broadcasters in UHF bands,
selection of a pair of unoccupied bands for whitespaces usage and
regular monitoring of potential interference in adjacent bands as
mast effective radiated power levels (ERPs) are progressively
ramped up to demonstrate non-interference with broadcasting
users.
9. Lessons learned
9.1 Study scope and implementation
Whitespace broadband for remote and rural communities 50 of 61
The scope of this study was limited to a feasibility analysis of whitespace
broadband services in two parishes of Lancaster and identification of next
steps, risks and threats/strengths of the WTS as a business concept.
9.2 Resources/partners
For the project to proceed, there is a need for a partnership between
local stakeholders and an experienced whitespaces operator who can
source, engineer the appropriate modifications and install a commercially
viable base station and client units that would conform to UK standards.
9.3 Best practices
Best practices in commercial WBS systems are to be found principally in
jurisdictions such as Canada and the US.
Whitespace broadband for remote and rural communities 51 of 61
10. Appendix A
Profile of Households in Lancaster Parishes
(Including Connectivity and Take Rate Estimates)
Quernmore Parish has 221 properties (and population of 532). Over
Wyresdale (Abbeystead) has 129 properties (and population of 129)
Of the 221 properties in Quernmore the number would break down as
follows:
0 with broadband of above 2Mbps
~50 with broadband of 1 to 2Mbps
~150 with broadband speed of less than 1Mbps, almost certainly
at 512Kbps
21 outside of range and with no broadband at all
For Over Wyresdale: estimated 129 properties
0 with broadband above 2Mbps
0 with broadband between 2Mbps and 1Mbps
80 with broadband speed between 1Mbps and 512Kbps with the
vast majority of those at the 512Kbps end.
49 properties with no broadband at all
Whitespace broadband for remote and rural communities 52 of 61
For the purposes of the study, it is assumed that virtually all of the 350
properties would be candidates for wireless delivery because the vast
majority achieve <2Mbps, with most of those at 512Kbps and quite a few
without any service at all.
Take up rates in deeply rural areas in the UK tend to be around 50% of
premises so a customer base estimate for white space delivery would be
approximately 175 properties.
Additionally, there is potential for further customers because the radio
site (1) on Langthwaite Hill also faces west and might well provide
coverage of unserved areas in its reach. However, a conservative starting
point is 175 customers.
Whitespace broadband for remote and rural communities 53 of 61
11. Appendix B
Competitive Analysis – Incumbent Tariffs
Table 10 – BT & THUS Tariffs
Peak Evening Weekend
BT 0600-1800 M-F 1800-0600 M-F 0000-2359 S-S
Local 3.36 0.851 0.851
National 6.73 3.36 1.27
Local NTS 3.36 0.851 0.851
Peak Evening Weekend
THUS31 0800-1800 M-F 1800-0800 M-F 0000-2359 S-S
Local 1.201 0.75 0.65
National 1.6 0.8 0.8
Local NTS 3.02 1.35 1.31
Table 11 – Competition analysis – Service provider comparison based on Post Code LA2 9EL
31 International calls on THUS are tariff considerably lower than on BT. For instance, for
a UK-Canada call, the peak rate BT=20.10/m, evening=19.10/m and weekend = 17.75/m.
THUS charge 2.6p/minute for all charge bands.
Whitespace broadband for remote and rural communities 54 of 61
Provider Broadband Telephone Television Bundle
BT BASIC
Max Speed 256Kbps
10G/mo. Limit
£23.53/mo.
All plans
require phone
subscription
BT Vision -
TV
subscription
service –
bundled with
landline
subscription
12 mo. Contract.
Weekday install
£89.99
Weekend install
£109.99
BT EVERYDAY
Max speed 250Kbps
20G/mo. Limit
£32.53/mo. BT Vision -
TV
subscription
service –
bundled with
landline
subscription
12 mo. Contract.
Weekday install
£89.99
Weekend install
£109.99
BT UNLIMITED
Max Speed 256Kbps
Unlimited G/mo.
£36.53/mo. BT Vision -
TV
subscription
service –
bundled with
landline
subscription
12 mo. Contract.
Weekday install
£89.99
Weekend install
£109.99
Sky BASIC
TV & Broadband Base
Broadband of up to
2Mbps
Max Speed 256Kbps
2G limit
£23+line rental
£29/mo. With
phone rental
All Sky plans
require TV
subscription
12 mo. Contract
One-off £118 set
top box,
installation &
phone activation
Whitespace broadband for remote and rural communities 55 of 61
Provider Broadband Telephone Television Bundle
Sky EVERYDAY
10G/mo. Limit
(Add £5/mo.)
£34/mo.
£6 phone rental All Sky plans
require TV
subscription
12mo. Contract
One-off £118 set
top box,
installation &
phone activation
Sky UNLIMITED
(Add £10/mo.)
£39/mo.
£6 phone rental All plans
require TV
subscription
12mo. Contract
One-off £118 set
top box,
installation &
phone activation
Freesat Freesat does not offer broadband as such, but the boxes do have a
broadband connection so you can connect it to your existing home
broadband service if you want (it’s optional). Connecting up your box in this
way will allow you access to future planned internet-based services such as
BBC iPlayer.32
32 Freesat. Retrieved 22 February 2010.
http://www.freesat.co.uk/index.php?page=help.Question&id=139
Whitespace broadband for remote and rural communities 56 of 61
12. Appendix C
Key Informant Interviews
Table 12 – Key informant interviews
Name Organisation Segment
William Webb Ofcom Regulator
Rhys Hurd Ofcom Regulator
Gerald
Chouinard
Canada Research Council (Industry
Canada), Ottawa, Canada
Researcher - fundamental research into
wireless services & standards
Miranda Kong Spectrum Engineer, Coordination &
Fixed Services, Spectrum Planning &
Engineering Industry Canada, Ottawa,
Canada
Whitespaces Technology and Regulatory
Licensing
Jung Yee CTO, WiLan
Ottawa, Canada
Designer and manufacturer of
whitespaces broadband equipment ;
network design and implementation
Karim Lakhani
CEO
Harry Davis
Technical
Consultant
AXXESS/First Broadband, Vancouver,
Canada
Service Provider in Canada & US with
interest in UK and global markets
Donnie Morrison Highlands & Islands Enterprise, UK RDA
Qiang Ni Brunel University, UK Geolocation Expert
Alan March BEIRG, UK Opposition
Bruce Alexander Quernmore Parish, UK Parish Council
Whitespace broadband for remote and rural communities 57 of 61
13. Appendix D
Parish Maps
Whitespace broadband for remote and rural communities 58 of 61
Whitespace broadband for remote and rural communities 59 of 61
14. Appendix D
Glossary of Terms
Table 13 – Glossary
Term Description
ADSL Asymmetric Digital Subscriber Line – a data communications
technology that enables faster data transmission over copper
telephone lines than a conventional voice band modem can
provide.
BEIRG British Entertainment Industry Radio Group – a trade association
for those who use radio spectrum in the Programme Making &
Special Events (PMSE) industry
BT BT Group plc
CDI Creative and Digital Industries
CLEC Competing local exchange carriers
ERP Effective radiated power - a standardised theoretical measurement
of radio frequency (RF) energy using the SI unit watts, and is
determined by subtracting system losses and adding system gains
FCC Federal Communications Commission – the US
telecommunications regulator
FTTB Fibre to the Building - fibre reaches the boundary of the building,
such as the basement in an multi-dwelling unit, with the final
connection to the individual living space being made via
alternative means
FTTH Fibre to the Home – fibre reaches the boundary of the living
space, such as a box on the outside wall of a home
FTTN Fibre to the Node – fibre is terminated in a street cabinet up to
several kilometers away from the customer premises, with the final
Whitespace broadband for remote and rural communities 60 of 61
connection being copper
FTTP Fibre to the Premises - a blanket term for both FTTH and FTTB, or
where the fibre network includes both homes and small
businesses
Gbps Gigabits per second – a unit of data transfer rate
Geolocation database Ofcom favours a geolocation database to prioritise and determine
which spectrum is unused in the vicinity
GVA Gross value added – a measure value of goods and services
produced in an area or sector of an economy
Hidden terminal
problem
Legitimate user of spectrum may not be noticed (e.g. hidden by
hill or building), and thus experience interference
ISP Internet service provider
Kbps Kilobits per second – a unit of data transfer rate
LTE Lont term evolution
Mbps Megabits per second – a unit of data transfer rate
MPEG-4 A patented collection of methods defining compression of audio
and visual (AV) digital data
NGA Next Generation Access – a replacement for existing
communications access networks that will deliver unlimited
broadband services
Not-spots Areas with significant holes in broadband availability
Ofcom Office of Communications – The independent telecommunications
regulator and competition authority for the communication
industries in the UK
OECD Organisation for Economic Co-operation and Development
UHF Ultra high frequency radio bands with frequencies between 300
MHz and 3 GHz (3,000 MHz)
ULTV United for Local Television - an umbrella group representing local
television practitioners, advocates and voluntary organisations
Whitespace broadband for remote and rural communities 61 of 61
from the commercial, community and municipal sectors.
USC Universal Service Commitment – Digital Britain ambition to provide
universal minimum 2Mbps broadband
WTS Whitespaces Broadband Service