achieving broadband britain a partnership model for ... · • create a true digital networked...
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Achieving Broadband Britain- a Partnership model for enabling a Digital Networked Economy
Trish JonesGM Regional Broadband Partnerships
OECD Workshop 25th October 2004
Agenda
• Coverage and reach:where we are, where we are going
• Addressing the challenge - BT’s contribution to Regional Partnerships and Route map model
• Beyond the footprint to stimulate demand and create a digital networked economy
• BT working in partnership with regional and local key players to release the power of Broadband
Broadband at the Heart of BT
• 94% UK coverage – 3584 exchanges enabled
• 1644 from pre-registration scheme launched in July 2002
• advanced 1m footprint through Partnerships
• 99.6 % by July 2005 - commitment given by BT in June 2004
– 1447 exchanges in systematic build
– 565 exchanges without a trigger
• Take-up 13.6% with 3.7m connections and growing - with regional variation from 9.2% in NE to 19.1% London
Since September - extended reach to remove the distance limits
• Trials in Milton Keynes, Dingwall and Fort William delivering ADSL services beyond the previous 60dB (6km) limit
• Distance limit for its 512kb/sec ADSL broadband services now removed.
• Increased range for 1Mb premium services
• More than 1million additional homes and businesses now able to get ADSL service.
• Raising the average percentage of households on an enabled exchange that can get broadband from approx 96% to 99.8%.
• By July 2005, as many people will be able to get ADSL broadband services as can currently get good analogue TV reception for ITV1, Channel 4, BBC1 and BBC2
Insufficient demand to enable
every exchange
“Trigger Levels”breaking the vicious circle
Need to enable exchange
to generate demand
Community Engagement- Making it happen faster
• April 2000 our first 400 exchanges - 26%
•Move from push to pull
•Demand led approach to supply - launch of pioneering “Actnow” partnership in rural Cornwall
• Coverage was only 66% when BB registration scheme was launched in July 2002
•Registration campaigns - 470,000
•Worked actively with over 600 campaign groups
•“Get on and get it”; Campaign in a box launched 16th June 2003
•Nov 2003 - 80% , May 2004 - 90%•June 2004 - announced systematic build
Cornwall Launch April 2002 - our pioneer for a demand led approach
Originally 1 exchange, no trigger levels and low demand
Formal intervention to raise competitiveness of Businesses : partnership structure, management and formal project approach needed. EU Regional aid contributions supported capital investment, advisory services and Small Business adoption
actnow in Cornwall: enabled 12 exchanges 1100 new ADSL lines in first 12 weeks
29% of SMEs have taken up broadband
- 4500 SME sign ups, 5100 lines
Businesses now moving to Cornwall due to Broadband service availability
32K ADSL connections 16.5% take-up
Extended by 7 more exchanges without capital intervention and fast tracked another 15
eCommerceSkills DevelopmentExperience centre & portalBusiness SupportAwareness & marketingAccess/HardwareTechnology
Actnow Results - economic benefits
• Employment: 25% of those see economic benefits- had increased staff numbers since getting Broadband
• Turnover: 36% actnow sample v 35% others -had increased turnover in the last year. – Average increase for sample 34% v 14% for others
• Productivity: 48% actnow sample & 32% others had increased productivity.– Half as many sampled businesses had increased their productivity in shorter time
period of 7/8 months against 12
• Average GVA for actnow sample was £249,000 v £148,000
• Broadband contribution - grossed across Cornish businesses equates to circa £7m
• Profitability: 40% actnow increased since connecting to BB v 33% others. But…28% increase v 15% others
Route map - the need for a partnership approach
To maximise broadband coverage and create demandIncreasing take-up in areas where it is lowCreate demand in areas where not yet available
Incr
easi
ng c
ompl
exity
Reduced market demand
Increased cost of provision
Actnow,H&I
Wiltshire, West Sussex, Merseyside
NE & NICaerphilly,South
Yorkshire,Leicestershire
Partnership models
Localised marketing
User incentive
Localised support
Partial supply side
Supply side model
1 2 3 4 5£1 £70 £90 £110 £150+Average cost of
interventionper household
Partnership activity:
Connected cities
e.g. Leeds, Newcastle
The Value of Partnerships
– Since November 2002 BT has established 56 areas of public private technology neutral partnerships
Partnerships to continue to:
– finish the job for 100% community engagement
– create growth and demand for on-line services
– nurture usage for social & economic benefit
….our job has onlyjust begun
Wiltshire
YorksSouthbank
W. Yorks
S. Yorks
N. Yorks
Highlands (2)Scottish
Islands
Cornwall (2)
Devon
Kent
Merseyside
Brentwood
Lowlands (16)
Leicester
East Sussex and Hastings
South Wales (3)
Shropshire
One North East
Caerphilly (2)
Wrexham
Gwynedd
Cheshire
Manchester , Burnley
Hampshire West Sussex
Derbyshire
West Mids REDI
Beyond ADSL - Developments in July 04
Extended Reach
• Extend 512kbps Reach to 99.8% within an enabled exchange
• Extend 1MB Reach to 97%
• 2MB Reach remains at 82%
Satellite & Exchange activate
• Infill at the extremes and for small exchanges where triggers have not been set
BT Openzone & Internet kiosks
SDSL roll-out to over 150 exchanges
Radio Opportunity – Infill market significantly reduced for 512kb and 1Mb asymmetric
– Opportunity - higher speeds & 2 mg symetric beyond current SDSL coverage & to all exchanges incl business parks & rural
- Commercially viable without funding
- Demand based roll-out
- Announcements in November
Broadband transforming the way we live
Broadband Britain - a BT perspective• Significant societal and economic benefit will flow from
widespread coverage and adoption of Broadband in the UK
• Technology evolution is inevitable
• Broadband facilitates multiple connections, applications and services to be consumed simultaneously:
People | people
People | device
Device | device
The changing landscape
• The 21st Century is a World with Broadband Everywhere
• Customers want more choice, flexibility and control
• Convergence is gaining momentum and needs an underlying infrastructure to deliver and support it
• 21CN is a radical transformation for BT - supporting new converged services
• Simplicity is key
21CN - A single, fully integratedmulti-service network supporting multiple converged services(voice, data, video)
2004
2005
2006
2007
2008
Broadband available to 99.6%Strategic vendors announcedBroadband growth on MSAN/combo cardsFirst new service launches based on re-usable capabilities
Mass PSTN migration begins17 new product launches/enhancements based on re-usable capabilitiesNew operations & service management capability in place
Broadband dialtoneavailable tomost customers
Large scale non PSTN service migration begins
2009
Mass PSTN migration reaches more than 50% of customers
PSTN transformation trialDeep fibre trialConverged networkService creationExperience development centre
key milestones
Success is beyond networks and coverage and lies in people making maximum use of new services
• Marketing investment to stimulate demand – local and multi-channel
• Improve broadband services providing business solutions
• Getting citizens to use services to accessgovernment and local government services
• Education to improve skills
Local stakeholders to work together to nurturethe development of new services and benefitsenjoyed
What we have learnt about SMEs from working in partnership
Small business are increasingly net savvy and want;( Actnow data)
• Fast response to their enquiry
• Easy access 24/7
• Supplier with knowledgeand ICT savvy
• Good fulfilment and support
• Competitive pricing
• Local delivery
An innovative first for small business
‘BT Broadband Office Complete featuring Microsoft technology
Hosted Exchange
All the benefits of Microsoft Exchange Server 2003
including personalised email, calendar, contacts and
folders Available from your PC or
via your mobile. A managed service
Subscription Office
Microsoft Office Small Business Edition
inc. Microsoft Word, Excel, PowerPoint, Publisher and
BusinessContact Manager
Upgrades to latest releasesEasy monthly payment terms
Additional licenses as required
BroadbandProducts& Services
AccessSupportSecurity
Web Hosting
Sales & Support
Local partnershipresellers
One point of contact, One bill
BT is shaping the BB sector for consumer citizens too
•BT Rich Media is a joint venture between BT Retail and BT Wholesale.
• BTRM have been formed to help content owners exploit their assets, by ingesting them from any source, encoding,
editing and distributing to any device.
• BTRM also provide billing and subscriber management services where required by the content owner.
BT Rich Media
Scaleable, powerful and flexibleWe can take content of any kind, in any form, and distribute it rapidly and securely to any audience on any device in any country…
Our platform is placed at the heartof the new opportunity, uniting….
Communities through:• Providing creative and technical training
• Shared experiences
• Video (TV, VoD, self generated) / Audio (radio)
• Internal and external inputs
• Securely (password / pay-mechanics)
• Neighbourhood watch for:
• Policing (web cam security offering )
• Facilitating control and involvement for citizens in all aspects of their environment (social, health, sports etc.)
Working in Partnership to releasethe power of Broadband
• The last 0.4%– Champion policy on the last 565 exchanges
• Champion take-up with business and citizens– 3.7m to 5m during 2006
• Create a true digital networked economy– Set “output” improvement targets on BB driver projects
– Develop BB driven applications & content (local);
• Industry sectors, Education & on-line learning, Health & tele-medicine,
– Rural economic growth, tele-working, social & community networking, access to public services and training.
Creating a connected Region
Content and service providers win•Better business opportunities•Helps smaller content providers reach a broader customer base
All telecom companies win•Advertising helps everyone•Demand led & visible•Creates Competitive retail and wholesale markets•Conducive to encourage more investment
Local stakeholders winSustainable
investmentNew services
Increased profile for Region/Nation
Partnership body for other activity
Innovation
Community wins•Access to latest technology•Fast, constant, quality service•Tailored services•Market growth for local companies •Community ICT literate
UK Plc and Region Wins
• Innovative supply & demand growth models
• EU best practice and positioning
Stimulate and nurture demand