What Funding Means
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Somerset County Council (Logo) Devon County Council (Logo) North
Somerset Council (Logo) Plymouth City Council (Logo) Torbay Council
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EXECUTIVE SUMMARY: Devon and Somerset Superfast Broadband Plan
“Faster broadband for all by 2015 – superfast for all by 2020”
The private sector is only likely to deliver superfast broadband to 62%
of businesses and households in Devon and Somerset. Our businesses and
residents tell us that superfast broadband is vital for growth and to
give rural communities the same opportunities as urban areas. Tackling
this is a top priority for local authorities and our Local Enterprise
Partnerships.
Our plan will secure access to superfast broadband to over 800,000
premises, 65,000 businesses and 1.6 million people by 2020. It will
deliver 100% broadband coverage by 2015 with over 85% benefiting from
superfast broadband. It will deliver universal superfast broadband by
2020. It will help deliver 50% take-up and support businesses and
residents to make the most of this opportunity. It will enable the
public sector to deliver better and more efficient services.
The first step of our plan depended on securing funding from government
(via Broadband Delivery UK, part of the Department for Culture, Media
and Sport). This has been achieved, with the announcement of a £30m
contribution on 27th May.
This early recognition and support from BDUK further strengthens our
plan. Our vision is bold, our plans are ambitious but realistic given
funding constraints, and it is a project that we can and will deliver.
Our Approach
Implementing this Plan will deliver a step change in our broadband
infrastructure and is the single greatest contribution we can make to
drive economic growth and improve the quality of life for all our
residents in the next decade. It also substantially delivers the
Coalition Government’s aim to create the best network in Europe by
ensuring superfast broadband runs from Bristol to the Isles of Scilly.
This Plan is a joint approach covering the five local authority areas of
Devon and Somerset County Councils, Torbay Council and Plymouth City
Council (which make up the Heart of the South West Local Enterprise
Partnership) and North Somerset Council (part of the West of England
Local Enterprise Partnership). Working together will enable us to secure
the best deal from the private sector and save £9.5m of public funds. It
is backed by all 19 of our MPs and has been shaped by significant input
from our businesses and communities, and is a top priority our Local
Enterprise Partnerships.
Our Aims and Targets
o deliver 100% broadband coverage by 2015 (reliable, robust and
upgradable services above 2Mbps), with a minimum of 85% being superfast
broadband (a minimum of 20Mbps) delivered through an open network;
o deliver 50% take-up, providing fairly priced services through at least
10 service providers;
o deliver superfast broadband for all by 2020 and even higher speeds
where needed
o increase our GVA by £0.75 billion per annum by 2020 by improving
access to markets, enabling improved productivity, strengthening our
rural economy, helping small businesses grow, driving inward investment,
supporting action to improve skills, tackling displacement to other
areas, supporting key growth sectors including the low carbon economy;
o tackle digital exclusion, ensuring rural communities have the same
access to services as urban communities;
o deliver a transformation in public service provision, providing faster
and more reliable access to better resources and services, including
education, adult social care, healthcare and law & order,
o secure the delivery of the Big Society: connecting up our communities
and giving them
real control over their services.
The scale of our challenge
Current broadband services across our area are poor in terms of speed,
reliability and bandwidth, and the market will not deliver the level of
service needed by our businesses, communities and public sector. Our
analysis shows that the private sector is currently committed to deliver
superfast broadband to only 38% of premises, and that by 2015 only 62%
of our premises will have access to superfast broadband if left to the
private sector alone. Our evidence base has been developed over a number
of years and we have a good understanding of our ‘not spots’ and ‘slow
spots’ and the issues being faced from regular business and resident
surveys. Over 20% of respondents to an ongoing survey (accessed from
www.connectingdevonandsomerset.co.uk) of over 6000 businesses and
residents said that they currently receive less than 1 Mbps, and that
service reliability is as
much as a problem as speed.
Our evidence shows that our rurality, population density and topography
represent significant challenges to delivering superfast broadband, and
make it much more expensive in our area than the national average. Our
plan tackles the most challenging terrain in Southern England, covering
two national parks and a high proportion of remote upland areas.
Rurality and population density are key factors in the market failure to
deliver the broadband our communities need. This is why our plan is so
vital to the prospects of our businesses and communities: two-thirds of
our output comes from these areas and many of our growth areas and
investment priorities are in danger of being left in the digital slow
lane.
Support for our plan
Every single one of our 19 MPs, across all political parties, backs our
bid. Every single local authority involved backs our bid. Every single
political party within those local authorities backs our bid. This bid
has overwhelming political support. We have the enthusiastic backing of
The Heart of the South West Local Enterprise Partnership and also the
West of England Local Enterprise Partnership. Our plan demonstrates our
LEPs delivering for business and working across boundaries on shared
priorities. Business organisations (including Chambers of Commerce and
Industry, The Federation of Small Businesses, Institute of Directors,
Business Link) fully support our plan and recognise the tremendous
importance that better broadband has to the future economic
competitiveness of this area. The NHS, our two police forces and our
further and higher education institutions are totally
behind the bid. This bid has overwhelming private and public sector
support.
As part of an extensive early market engagement process, we have already
engaged with nearly six thousand residents and businesses. The message
that came back was overwhelmingly positive. Superfast broadband is
important, is essential, to the aspirations of our businesses and
communities. Just a few highlights: Almost 90% of businesses surveyed
say improved broadband is vital to their future. Over 20% of respondents
said that they currently receive less than 1Mbps. Looking to our
residents and communities, almost 90% said that current broadband held
them back. This bid has overwhelming public support.
Our timetable and delivery plans
We have the expert team in place to start delivering this plan now. Our
project management and governance arrangements are robust and fully
funded by the local authorities. The procurement process to secure a
private sector partner will get underway in July 2011. Getting the best
deal from the private sector is vital to delivering our vision and this
procurement process and securing EU ‘State Aid’ approval is likely to
take around 12 months – though we will do everything we can to shorten
this timetable. The Local Authorities do not intend to become telecoms
companies – we intend to adopt a gap funding model with a pay back
mechanism which seeks to ensure the ongoing financial viability and
sustainability of our plan.
Public funding for broadband infrastructure, under EU State Aid rules,
is only eligible to be used in those areas where it is forecast that the
private sector alone will not deliver to in the foreseeable future. Our
capital spend will therefore be focused on the 38% of premises (over
13,000 businesses and 300,000 homes) where we expect that the private
sector will not deliver superfast broadband. Our plan will also address
the needs of our whole area though (1.6 million people and around 65,000
businesses), ensuring that we raise demand in these areas, ensure the
private sector delivers superfast broadband as early as possible to
those areas, and ensuring that businesses and residents have the support
they need to make the most of this opportunity.
Demand stimulation and support
Superfast broadband infrastructure alone will not deliver our vision.
Our plan aims to ensure that as many businesses and residents take-up
broadband services, and that they have the right support to ensure they
have the confidence and the skills to make the most of this opportunity.
This will build on our successful track record: the Connecting Somerset
partnership was recognised as one of the 10 best practice projects of
its kind throughout Europe. Our programme of promotion, mentoring,
skills development and support will help raise take-up to 50%.
Strategic benefits
Our plan will have a significant strategic impact at both national and
local level. Nationally, our plan will make a significant contribution
to the Coalition Government aim to have the best superfast network in
Europe by 2015, also realising good value for money through the scale of
our partnership. It will also make a significant contribution to the
Coalition Government's aim of creating the competitive environment for
private sector led growth and recovery. Within Devon and Somerset the
delivery of our plan will make a significant strategic impact on our
economic competitiveness and business productivity, public sector
transformation and efficiency, community well being and realising the
"Big Society". We estimate that delivery of our plan will raise GVA by
£0.75 billion across Devon and Somerset by 2020.
Conclusion
The message is clear. Our plan will deliver the single greatest
contribution to boost economic growth; to transform public services; to
delivering digital inclusion and to bring new opportunities to
individuals and communities across Devon and Somerset for years to come.
Our plan and our bid have unprecedented support across our area and have
the financial backing and support from BDUK. Preparations for
procurement and application for state aid approval are underway that
will ensure that superfast broadband becomes a rural reality.
Further information
Updates and news will be published on
http://www.connectingdevonandsomerset.co.uk/.
21st June 2011
© Copyright Devon County Council 2011 Source: Connecting Devon and Somerset 21 June 2011