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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


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


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


13. Appendix D 57

Parish Maps 57

14. Appendix D 59

Glossary of Terms 59


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


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.

http://news.bbc.co.uk/2/hi/technology/8068676.stm

http://www.broadbandperformance.co.uk/availabilitymap.aspx


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.


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.


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


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.


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.


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


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



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.


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.


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.


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,


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


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:


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).


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.


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.


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)

http://www.ja.net/documents/development/llu/llu-technical-document.pdf


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.


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.


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


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.


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.


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


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


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


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.


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


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


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.


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


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).


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


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.


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


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


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


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.


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


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.


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


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


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


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.


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


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.


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.


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


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.




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


13. Appendix D

Parish Maps



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


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


from the commercial, community and municipal sectors.

USC Universal Service Commitment – Digital Britain ambition to provide

universal minimum 2Mbps broadband

WTS Whitespaces Broadband Service

Documents

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