Monthly Archive for June, 2011

BDUK Framework update


Since I wrote about the impending BDUK procurement framework, there seems to have been a little movement which I think it right to acknowledge.

I wrote that a source told me that the framework would require revenues of at least £40m in each of the last two years – in the “final draft” I understand is due for publication tomorrow (Thursday 30th June) this has been reduced to £20m, and it includes the following paragraph:

“In line with the Coalition Government’s policy on supplier diversity, DCMS is designing the framework agreement to maximise opportunities for Small and Medium Enterprises (SMEs) to form part of framework suppliers’ supply chains for projects where appropriate”

Does that mean SME’s and the bulk of the industry currently building and operating NGA networks will be able to join? Almost certainly not!

There is just a four week window proposed in which companies can form partnerships and consortia, leaving the smaller, specialist companies that are already busy building networks very little time to negotiate the terms any sub-contracting agreement – most probably with a much larger company that has far less experience of building networks than they do.

In theory, excluded companies could club together to form a consortium of fantastic expertise BUT if the consortium isn’t formally incorporated then each member has to demonstrate the same requirements as if they has applied individually. Which in addition to requiring at least £20m in revenues, I understand may also require that you have delivered services to at least 30,000 premises excluding back-haul (so that’s major names like Geo and Vtesse probably disqualified).

So unless something radical happens in the next 24 hours, assume that the Government won’t be supporting the nascent NGA industry:

“The framework agreement is expected to be the procurement vehicle for the majority of local broadband projects once they have been allocated BDUK funding. There may be a small number oflocal broadband projects that do not use the framework agreement and this will be agreed with BDUK.”

It would seem that the best we can hope is that the contracts BDUK let won’t simply roll over the much more creative, ambitious and forward thinking projects that are already under-way from the bulk of the industry this process appears to be excluding.

Yesterday I wrote about the hopes and ambitions of Chipping Norton in David Cameron’s constituency. This framework may well turn out to be a significant threat to actions like theirs. The gap between policy and action is now becoming a chasm.

(I’ll let others tell you how “superfast” appears to redefined, making it easier to achieve)

Let’s hope the next coming hours see a serious re-think!

NGA closer to home


Over the past six months or so I’ve been sitting on Oxfordshire’s Broadband Working Group considering how we might make the best of our broadband landscape. Oxfordshire is the most rural county in the South East, making it challenging for broadband, yet it also generates many more high-technology start-ups than most – not an easy balance to achieve, especially when you realise that, unlike Cambridge with its science parks, many of these small business that will lead the UK out of our economic woes are as likely to appear in converted barns in Cotswold villages as they are in the  dreaming spires.

The process, similar to many up and down the country, has taken the County Council into new territory and has required much scratching of heads, but it now feels like the group is close to a strategy which is ambitious both for the public sector and our economy,  making the most of the county’s resources; not the least of which is smart people. Hopefully the draft strategy will soon be published and you can judge for yourself but at the moment I’d have to say that if the council leadership approve the last draft I saw then they will be one of the council’s to watch.

While this was going on at a county level, communities were beginning to come together to work out what they wanted to do – when broadband was being deployed the first time around the county spawned more than its fair share of broadband programmes and networks. Blewbury, a village with long standing broadband problems, was one of the first to put its head above the parapet this time, winning the “Race to Infinity “, shortly followed by Chipping Norton and its hinterland.

At Oxfordshire’s recent Digital Summit, the County Council’s Deputy Leader David Robertson gave his support to projects that build on the government’s ‘’ ideals, and the Chipping Norton ambition certainly embodies that. “Chippy” has looked at its options and decided, for economic and social reasons, that while FttC  may fix the town’s problems for the time being, it won’t help many of the villages that rely on the town, and that ploughing ahead on its own would make a marginal business case for investing in the surrounding area impossible.

Take the small village of Chadlington in the Wychwood Forest and just outside Chippy – it has its own small telephone exchange but all the homes and businesses (including the Prime Minister’s) are connected straight to the exchange – there are no cabinets in Chadlington so FttC is not really an option. And rather than condemn villages like Chadlington to a broadband wilderness, the group is looking to install fibre optic network all the way to every home and business across the entire hinterland.

The group are also being both innovative and realistic when it comes to investment. This is a major project in a hard to reach area, and any funding from BDUK is like to amount to no more than perhaps 5% of the sum needed. They recognise that a venture such as this needs all the stakeholders to help in anyway they can, not just the telecoms industry and the public sector, but also local people and businesses. So the group is looking at how their plans for  a wholesale open access network can be owned and financed in part by the local community.

The group has already attracted financial support from the INCA’s Big Society Broadband Fund to carry out the initial feasibility study – some of their findings will soon appear in the Knowledgebase. They are now looking to gain wider public support and, in partnership with the City, raise community investment for the project.

Led by an old friend of mine who lives in the town, Neil Homer is a social entrepreneur with an urban and rural planning strategy background, the contributors to the project draw on the wide range of sage expertise you find in villages in this part of the world, including my old colleagues from Oxfordshire Rural Broadband  who delivered the first generation of broadband to west Oxfordshire (the group cut his broadband teeth on when he was an MP-in-waiting).

This is the big society writ large, and very different from the pioneering projects in Alston and Wray – this isn’t a community that would find it easy to dig trenches but they bring a whole lot of other things to the party which make next generation broadband possible.

With a County Council preparing what I hope will be an ambitious strategy for the county and the likes of Chipping Norton taking a lead, it feels like Oxfordshire may be something of a waking broadband giant. Fingers crossed!

Transition Chipping Norton is hosting a public meeting on 6th July at 7:30 in the Town Hall to explain to the communities in and around the town just how they can benefit and how they can get involved.

Localism, innovation – and national frameworks?


I think it was Cisco’s John Chambers that once said that big companies can’t innovate, as he refocussed a large part of their R&D budget to nurturing and developing partnerships with small companies that could. Today we are seeing a similar trend in the pharmaceutical industry, where large internal research labs are being replaced by smaller external research companies.

And it is smaller, more nimble companies that are developing innovative business approaches, technologies, and service delivery models in broadband; not just in the UK but across Europe. Heavy Reading predicted that around 60% of European fibre connections would be delivered by non-incumbents, with the largest sector being local municipal networks led by smart, small-scale innovators.

While the pattern in the UK is a little different, we too are seeing innovation growing just as it has across the continent, but these companies need space and support to develop in order that their impact can be felt, their promise can be assessed, and for the main industry players to construct partnerships or acquire the best of them. So with this in mind, the Government’s policies for supporting SMEs in public procurement exercises and the wider agenda are both smart and well timed if the UK is to genuinely deliver “Europe’s best superfast broadband market by 2015″.

Few sensible people would argue with the policy – but there appears to be growing concern over the implementation.

The announcement of BDUK’s intention to procure a national framework seems to have simultaneously divided the industry and undermined the Government’s policy objective. Having spoken to industry players that say they’ve seen drafts of the procurement plan, they tell me that it will require revenues of at least £40m generated in at least the last two consecutive years, excluding not just SME’s but many of the established players in the industry as well.

Nobody doubts that delivering such an ambitious plan will be very hard, but side-lining the most nimble, innovative players won’t make it any easier.

Let’s hope the rumours and grumblings are ill-founded!



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