Transform Digital Conference 08-05-2014 broadband, technology, fibre, digital, Wireless

1. Broadband Delivery UK
Transform Digital Conference
Chris Townsend – CEO Broadband Delivery UK

2. Department for Culture, Media & Sport
The importance of the digital economy
• Internet economy in the UK is worth 8.3% of GDP – more than any other
G20 country and twice the G20 average – and is projected to grow to 12.4% by
2016 (Boston Consulting Group, March 2012)
• The digital economy comprises 270,000 active companies in the UK, for
which revenues are growing 25% faster than non-digital counterparts (NIESR,
July 2013)
• Online retail sales are projected to be 23% of total retail sales by 2016 (BCG,
March 2012)
• Faster broadband is estimated to add £17 billion to the UK’s economy by
2024 (SQW for DCMS, Nov 2013)

3. Department for Culture, Media & Sport
The position today
BT superfast coverage only
(incl. commercial & non-BDUK)
BT and Virgin premises
Virgin
only
76%9%
21.912.9
45%
2.7
Number of UK premises (millions)
UK % premises coverage of superfast broadband
100%
28.8
73% as at June 2013
Gap
• Commercial deployment has taken the UK ahead of its European competitors.
• UK now leads the top five EU Member States for broadband and mobile
coverage, take up, usage, choice and price (Ofcom European Broadband
Scorecard 2014).
• Superfast broadband is now available to 73% of UK premises – up from 45% in
2010 – and superfast broadband take-up is 25%, up from 5% in 2011 (Ofcom).
• But almost 7 million homes and businesses across the UK will not be covered
by the commercial roll out. Tackling these remaining premises will deliver
economic benefits and reduce the digital divide

4. Department for Culture, Media & Sport
3-phased approach
BDUK is delivering the Government subsidised Superfast Broadband Roll-
out programme:
Phase 1: (£530m to reach 90 % of UK premises by 2016; and standard
broadband (2Mbps) for all by the end of 2016).
Progress: 44 projects across the UK; Already reached more than 500,000 new
premises. Roll out is accelerating: now at 20,000 per week and rising to
40,000 per week. Will pass 1 million premises by the summer.
Phase 2: (£250m to reach 95% of the UK by end of 2017).
Progress: 35 new projects. 4 already under way. BDUK aiming for local bodies
to complete majority of new procurements by December 2014 and remainder as
early as possible in 2015.

5. Department for Culture, Media & Sport
Phase 3: The hardest to reach areas
Phase 3: (Exploring options for going beyond 95% incl £10m market test pilots
testing new solutions).
Progress: 26 suppliers responded to the ITT, with bids that offered solutions
using:
i. Proven technologies deployed in hard to reach areas; .
ii. novel operating models;
iii. innovative public / private funding models.
Winning bidders to be announced in June 2014. Aim to have initial findings from
projects on new solutions for the hardest to reach areas by September 2014.

6. Department for Culture, Media & Sport
Support for local community projects
Rural Community Broadband Fund (BDUK and Defra):
• 3 projects going ahead (Rothbury, Fell End, Northmoor) and 3 have conditional offers
• 17 local communities have funding for extra coverage through their LA contracts
• 4 further projects have submitted initial proposals for funding
Other local projects:
• Community projects e.g. B4RN in Lancashire
• Commercial supplier projects without public funding (Gigaclear, CityFibre etc)
• Projects with local public funding (CallFlow in Kent, AB Internet in Lincs, Air Band
Community Internet in Worcs) - BDUK has given state aid clearance
Important that communities are able to take forward projects in NGA white areas:
• Communities can ask LAs for coverage plans
• BDUK also encouraging all LAs to publish coverage maps to 7 digit postcode level
Phase 3: BDUK expecting a number of community-focused bids as part of the £10m phase
3 pilots and will carefully review the models put forward

7. Department for Culture, Media & Sport
Super Connected Cities Programme
• £150m to support 22 major UK cities develop digital infrastructure
capability assisting them remain internationally competitive and attractive
places to invest, visit and do business.
• In December launched the Connection Voucher Scheme to help SMEs
access faster and better broadband. The scheme provides grants of £250 to
£3,000 to cover capital connection costs and is administered by the cities
through over 350 registered suppliers.
• Also providing free Wi-Fi to around 1000 public buildings (libraries, museums
and community centres) by 2015; and supporting wireless coverage in major
city centres.

8. Department for Culture, Media & Sport
We are also addressing
gaps in mobile coverage
95% 100%0%
27.30.0 Number of UK premises (millions)
UK % premises coverage of mobile phone services
28.8
• Mobile Infrastructure Project (£150m) is addressing the 0.3-0.4% of premises without any
Network Operator coverage (complete not spots). The project aims to provide coverage
to:
 7 out of the 10 A Roads in not spots; and
 30k+ of the 70k premises with no coverage at all.
• DCMS is also looking at how to address areas with partial coverage
All operators (voice 2G)
[A] <1% complete notspots
MNOs 4G roll out to 98% (indoors) by end 2015
[B] 4% partial notspots

9. Department for Culture, Media & Sport
Benefits of the investment!
Uplift to GVA of £6.3bn by 2024 (phase 1)
Broadband Impact Study, SQW for DCMS, Nov 2013

10. Department for Culture, Media & Sport
BDUK Priorities April – June
• Managing relationships with key suppliers to accelerate delivery.
• Award contracts for Market Testing Pilots and develop BDUK’s
understanding of the role of communities and local bodies in making these
projects successful.
• Securing public support and recognition for the programme and BDUK.