Agenda item

Daniel Shamplin-Hall, Adviser on Policy and Finance, introduced the report on superfast broadband and the digital divide.

At the last meeting, members had highlighted frustration around the lack of progress on connectivity. Since then, a nationwide survey had been commissioned and the response rate from councils currently stood at 70%. According to the survey responses, he advised that super-fast broadband delivery was on track to achieve its target. 91% coverage across the country had been achieved and 95% coverage was set to be achieved by 2017. The survey also revealed councils were broadly satisfied with delivery. However, respondents reported that mobile infrastructure had failed and 70% were dissatisfied with the rate at which delivery partners were engaged. As a result of this, councils were looking to develop their own relationships with local networks. Since the board last met, the government had announced it was to consult on establishing a Universal Service Obligation that would give residents the right to request an internet connection of at least 10Mbits per second. He advised that the LGA would be responding to that consultation when it is released.

Chris Townsend, Chief Executive Officer of Broadband Delivery UK, updated the board on the BDUK project. The project had set objectives to achieve 90% coverage of the UK by May 2016 and 95% coverage by December 2017. 3.5 million premises had been delivered with broadband to date and 4.2 million premises were on track to be delivered with broadband by May.

BDUK had now started phase 2. In April 2014, the project had introduced seven market test pilots of different technologies and funding models and would publish their findings at the end of January and would share these with board members.

He advised the board that smaller suppliers demonstrated they could win open procurement plan networks and design and build networks, as well as providing service customers with value and that their market capability has been improving.

BT are now delivering 30,000 to 40,000 premises with super-fast broadband a week. Small suppliers had delivered 20,000 in three years and BDUK were working hard with them to increase this. In rural areas of Northumberland and Hampshire, small fibre networks issuing superfast speeds had been set up using telegraph poles, which avoided the need to build trenches and was very cost effective.

Whilst negotiations with the European Union on state aid clearance for the broadband scheme were still ongoing, BDUK were optimistic this would be secured by April. In addition, the Universal Service Obligation would provide a solution to households achieving less than 10Mbits per second and the board would be kept updated on its progress.

He advised the board that BDUK would ensure BT delivered against contractual commitments. BT had confirmed that they would pay a gain share of £129 million in 2016 if the take up of superfast broadband increased. If the take up increased again by 30%-40%, BT would pay another £129 million. In addition, the estimated underspend was currently £250 to £300 million. The underspend and gain share would be mapped out and put back into the project to enable the project to increase coverage. 

He welcomed council engagement thus far, highlighting it as critical to the success of the scheme and asked that local authorities continue working with them to provide premises with information.

Board members raised the following points in the discussion that followed:

·         Members asked about the criteria to qualify for the superfast broadband upgrade schemes and highlighted the importance of BDUK working with local authorities to ensure information was provided to the public. It was agreed the postcode checker on BDUK’s website would be sent to members.

·         The experience in households in rural areas did not equate with the claim that 90-95% coverage had been achieved. The board was informed that if a premise was far from a cabinet they would inevitably struggle to receive superfast speeds. It was suggested that a solution might be to put a secondary cabinet in remote areas. 

·         Members reported that, in some case, it was not clear which premises were due to receive help as BT would not release the postcodes. Members were advised that BT would release these soon. They were assured that the project was finding ways to cover the last 5% of premises (1.5million).

·         Members asked what the ability of smaller providers would be to deal with disasters (such as flooding). The board was reassured that BDUK had confidence in the resilience of smaller companies to act quickly in these situations.

·         With reference to a specific example on the Welsh boarders, there was a discussion on the issue of the challenges of cross-border collaboration. As many people in this area lived more than 1.2 kilometres from fibre cabinets, the resulting poor access presented problems when government departments required documents to be completed online, for example.

·         Members raised the opportunity for underspend from the Mobile Infrastructure Project (MIP) to be reallocated to further mobile connectivity projects in future and welcomed the opportunity to discuss MIP in more detail with BDUK officials going forward. Suggestions included, Group Leaders coordinating local intelligence form Board members and hosting a conference in the spring between council procurement officers, members and BDUK officials.

·         With reference to the misperception amongst local residents that a good broadband connection could only be obtained through fibre optic, members discussed the range of innovative solutions available and emphasised the need to address the information gap.  

Decisions

The People and Places Board:

1.    Noted the emerging results of the survey and the latest coverage data

2.    Noted the update Superfast Broadband Programme from BDUK; and

3.    Agreed the next steps in taking forward the LGA’s work on digital connectivity.

Actions

It was agreed that:

• A question and answer document would be developed and circulated to board members on key issues raised during the broadband delivery UK project item. This would include details on the Universal Service Commitment, satellite voucher scheme, a summary of assurances provided by BDUK officers at the meeting and a link to their online postcode checker on BDUK website to enable people to access the schemes.

• Member Services Officers would circulate the slides from the BDUK presentation to board members.

• LGA officers would liaise with BDUK to disseminate the government’s phase 3 pilots final report when it was published in late January.

• LGA officers would draft a formal letter from the Chair of the Board to BDUK to push for the reallocation of any underspend on the Mobile Infrastructure Project, organise a conference with lead broadband suppliers and LGA lead officers in the spring to discuss new procurement processes, hear from alternative network providers and share best practice, and to lobby BDUK and the government’s Digital Economy Unit to explore efforts to support councils to better stimulate demand in areas.

• LGA officers would engage the Mobile Network Operators to understand the mobile market and wider commercial development and explore ways both sectors could work together.

• BDUK would return and update the board in March 2016 if there was suitable availability