Pilot Launch Q&A

Why these locations?

They offer the right balance of opportunities to maximise our learning about different commercial deployment models for superfast broadband in geographically challenging locations.

How where they selected?

Locations were nominated by regional and national agencies and Broadband Delivery UK then assessed the merits of each against basic criteria and learning requirements.

Who selected them?

The Regional Development Agencies and Devolved Administrations nominated them and Broadband Delivery UK made the final recommendations to Ministers who then made the final decision.

What about unsuccessful areas – when can they expect to follow?

We would not look at it as there being unsuccessful proposals, as each will be followed up in subsequent waves; it is therefore a matter of timing and not the end of the line for other locations.

How many people will benefit?

The precise number of premises will be determined by the as yet undetermined scale of each pilot – however it is likely that thousands of homes and businesses will benefit as a result of the 4 pilots.

How much will the pilots cost?

We have indicated that we will allocate £5m to £10m to each project, but the final number has yet to be decided and would be subject to a process of due diligence.

When will services improve for residents of these areas?

We would expect contracts to be in place in the summer of 2011 and services to improve thereafter.

Will there be a local involvement?

Yes, the procurement process assumes local involvement and will seek to test the community appetite for getting involved in contributing to and extending the solution.

Who will supply infrastructure? 

The winning bidder or partnerships will supply any infrastructure needed to meet the requirement.

Will BT be the supplier?

The procurement process will follow public procurement procedures, so the supplier in each area will not be known until after the procurement process is completed.

I’m a supplier – how do I get involved?!?

An open public sector procurement will be run for each of the areas, and as part of this we will be engaging with all areas of the industry to ensure you are ready to take part.  Watch this space for more information as the planning of the pilots progresses.

What are the state aid implications?

Wherever state aid is present, notification of that aid will be required and a process is being developed by Broadband Delivery UK to streamline that requirement.

Will consumer get prices comparable to BT infinity?

The market will dictate the final prices, but the intention of the intervention is reduce the capital cost of providing services so that rural users can have access to the same propositions as those in urban areas.

Will services be subsidised?

Funding is available to assist with capital expenditure only, so the services provision must be covered by revenues from consumer pricing.

How do you know there is demand in these areas?

A requirement of the proposals was that they illustrate that demand exists and this will be a factor in future public interventions elsewhere.

Will it all be superfast?

The Pilots are about testing the commercial viability of Superfast broadband in geographically challenging areas, so it may demonstrate the limits and feasibility of delivering superfast in some locations.

What about the USC?

A pilot requirement is that a minimum standard broadband service should be available to virtually everyone within the relevant location.

What technology will be deployed?

We would expect a mix of next generation components will be deployed. This will include fibre based solutions, wireless solutions and satellite.  The mix will be different in each area.

Will there be a tender exercise?

Yes.  The tender process will run under the public procurement guidelines.

Who will run a tender exercise?

Broadband Delivery UK will work with procurement and networking experts in each of the pilot areas.

 What will the commercial model be?

A variety of commercial models will be tested in the pilot phase.

Who is paying for the pilots?

The pilots will be paid for using a combination of private, public and local funding.

Where will the money come from?

Central Government funding has been made available from the under spend in the Digital Switchover help scheme.

Can you say exactly what areas will be covered by each of the pilots?

It is important to remember that these pilots are primarily about learning and not scale, so it is not possible today to be precise about the geographic or promises covered. BDUK are working with the local teams to determine the optimal size and scale of each pilot.

What speeds will be available

That is the wrong question because this is about testing commercial viability of different models and will involve a range of technologies with varied capability.  What is important is the quality of service e.g. throughput capability and commercial sustainability of services and also that they have the potential to be upgraded in future.