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FUNDING 'THE LAST 5%'

#1
greetings mr brookes. i am briefing , initially, our councillors on funding the 'last 5%' for faster broadband. this seems to be the term adopted for those mainly rural users promised 'min 10mbps by 2020 as a universal service' by the PM
#2
Good Morning Mr Fowler
We have a number of different scenarios that I would ask you to clarify before we look at the provision of this information. Are you asking for the position currently, the position at the end of this contract or the position at the end of Phase 2. Each one will have a different number associated and none of them, at this point, will take account of any underspend we may further utilise.
Regards
Steve
#3
Good Morning Mr Brookes,

Sorry for the delay,

This is initially about Lincolnshire as a whole and East Lindsey district or the Louth & Horncastle parliamentary constituency in particular- whichever you have the best data for- post phase 2 which i understand to be the 90% to 95% uplift.

I was not aware of any phase 2 funding for this part of the county. If there is, pls clarify.

Assuming that 'the last 5%' is to be funded from the public purse (?), and as the early trials in Scotland and Northern Lincolnshire appear to cost very roughly £1.5M each, WHO PAYS, HOW MUCH,& WHEN here pls?

Also, is 'the last 5%' < 10mbps going to be more than 5% in this part of Lincolnshire?

many thanks, df

#4
Good Morning Mr Fowler,

When we embarked upon the current project, Phase 2 never existed and it wasn't until we had started this contract that Phase 2 started to emerge. The objectives of the current contract are 90% Superfast broadband coverage across the county by 31st March 2016 and a minimum download speed of 2Mb/s for the remaining 10%. It is worth noting at this point that the 90% coverage is a county-wide objective and doesn't apply to individual Districts, Constituencies, Towns or Communities.

With regard to Phase 2, funding is circa £4.2M in total, made up of funding from BDUK, LCC and BT. With this funding, we are attempting to hit 95% county-wide coverage. The current status of Phase 2 is that BT has previously submitted a deployment plan that we subsequently rejected for a number of reasons. As a result, they are re-modelling Phase 2 and will provide a revised deployment plan very shortly.

In addition, BT has agreed to release £4.6M into Phase 2. This repesents money from a Gainshare agreement form the current contract. The Gainshare agreement is driven by customer take-up numbers and was due to run at intervals across the next 10 years. Instead, this money has been released up front with future accrued funding added as we move through the extended period described.

Further to this, we may well have a significant amount of underspend from the current contract to add into the Phase 2 'Pot' and specific figures will be finalised in the Summer.

Clearly, until we see the revised Phase 2 model, we do not know what will be included in terms of areas, but when we do know, we can then work out how we invest the remaining funding into those areas that didn't benefit first time around. Any reinvestment into an area will be based upon value for money, so in other words, cost, levels of coverage and speeds obtained. What we will not do, is spend a disproportionate amount of money on individual cases where better value could be obtained elsewhere.

With regard to how much we will spend in East Lindsey, this will depend upon what Phase 2 looks like and what proves to be cost effective post-survey. Final costs for work carried out are seen at Milestone stages, so it is impossible to tell you how much exactly will be spent in East Lindsey. What I can say is that a little over 30% of the total premises covered in the current contract are in East Lindsey and we are fully aware that there are many more areas in that district that require additional work, but as I mentioned previously, value for money will be the key driver.

In terms of your comment re. the last 5% and < 10Mb/s; it is worthwhile pointing out that the 10Mb/s minimum download speed is a Government aspiration by 2020 and forms a part of their Universal Service Obligation (USO) that they are discussing with leading operators at the moment. The current contract works to a Universal Service Committment (USC) for 2Mb/s. The USO does not form a part of Phase 2 and neither does the USC because we will have met the USC in the current contract.

As far as the remaining 5% is concerned, it is way too early to give estimates on what ultimately remains because there are too many unknown factors, such as how much underspend remains, post-survey costs etc that will influence the end result.

Regards
Steve
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