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Competition in Next Generation Broadband Delivery Malcolm Corbett INCA

Malcolm corbett

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Page 1: Malcolm corbett

Competition in Next Generation Broadband Delivery

Malcolm CorbettINCA

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Home Office Equipped in 2003

ADSL Broadband = 512Kbps

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Home Office 2013

Broadband = 20 Mbps  down / 1 Mbps up

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Work – Play – Life

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Every Minute of Every Day

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Everything is becoming SMART!

We need a network that can support new services and new economic, social and community activities

INCA members call this A Transformational Digital Infrastructure

Fibre and Wireless

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NGA Public InvestmentCommercial Superfast Broadband – 65% of population 

Private Sector

Public Sector

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NGA Public InvestmentBDUK Average State Aid – Final 1/3

71% Public – 29% Private

Private Sector

Public Sector

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NGA Public InvestmentBDUK Deep Rural – Final 10%89% Public – 11% Private

Private Sector

Public Sector

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NGA Public InvestmentRural Community Broadband Fund

Public 50% ‐ Private 50%

Private Sector

Public Sector

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BDUK Framework Suppliers

Challenges in Current Programme• BDUK Framework – choice of one supplier• Concerns about future proofing• Concerns about value for money• Concerns about capacity constraints 

affecting delivery by 2015• Non‐incumbents currently disengaged• 2mbps in Final 10%, 2.5m homes/biz

Opportunities• State aid approval achieved• Models other than ‘gap funding’ allowed• RCBF demonstrating that other models can 

attract community buy‐in• Network of non‐incumbent operators 

‘flying under the radar’ in Final 10%• Local schemes often supported by larger 

companies

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Who Are the Competitors?

They are InnovativeCost EffectiveCompetitive

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Discussion with Government

“I am very much in favour of competition.”

“Very interested in proposals that increase investment.”

Rt. Hon. Maria Miller MP, Secretary of State, DCMS

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Encouraging Competition ‐ Investment ‐ Innovation

• Government should signal willingness to support competition– Direct some of the £300m from the Additional Funding Project into loans and other 

investment, rather than simply grant. State Aid intensity therefore <50%.– Encourage co‐ordination of smaller‐scale providers through direct support of trade and 

user association activity, for economies of scale and facilitating procurement• Measures:

– Support for consortium development, standardised approaches to development, business models and investment

– Procurement/investment templates for local authorities– Support for Open Access service provider platform– Support for reduced backhaul costs and development of new digital exchanges

• Community engagement:– Support measures for demand stimulation– Support community investment through EIS and other schemes

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Outcomes

• Competition providing coverage in deeply rural areas and ultrafast urban

• State aid levering private investment of £3 for every £1 of public funding

• Innovation in access provision• Digital exchanges linking urban and rural areas• Community engagement and investment• New digital business creation

Transformational Digital Infrastructure

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Thank You!

[email protected]/Twitter: MalcolmCorbettwww.inca.coop