broadway partners @ inca superfast wireless workshop
DESCRIPTION
Broadway Partners was invited to present at INCA's workshop on Superfast Wireless Broadband. The topic was how the EU's State Aid framework interplays with the roll out of superfast wireless broadband in the UK.TRANSCRIPT
Superfast WirelessADRIAN WOOSTER'S PERSONAL VIEW OF STATE AID
Agenda
You have infrastructure?◦ OMR
◦ Public Consultation
You need help delivering infrastructure?◦ Thoughts on State Aid
◦ Especially wireless
Me? ◦ Adrian Wooster
◦ Strategy Director @ Broadway Partners
These are my personal observations◦ BDUK website has plenty of official
guidance:
◦ https://www.gov.uk/broadband-delivery-uk#state-aid
OpenMarketReview
OMR
See: BDUK template OMR @ http://bit.ly/1lL3Rhs
PURPOSE OF THE OMR
An OMR is a precursor to a formal public consultation
It is not itself a formal requirement
The aim is to understand what broadband infrastructure
• is already in place, and
• where there are plans for investment within the coming three years
PublicConsultationPC
See: BDUK template Public Consultation @ http://bit.ly/1lL4lnF
What is a public consultation?
It’s a formal & mandatory step in the State Aid process
It allows interested stakeholders an opportunity to comment on the areas the broadband aid is targeting
Anyone with an interest can reply
If you have infrastructure in the area you should reply
PublicConsultationPC
See: BDUK template Public Consultation @ http://bit.ly/1lL4lnF
• Is the aid is being targeted at the right areas?
• Is it being done for the right reasons?
• Are there are credible investment plans for similar infrastructure projects now or in the next three years
You may be asked for more evidence to confirm whether your plans are credible:
• business plans, detailed deployment plans, proof of adequate financing , retail and wholesale pricing, etc.
What to send
DON’T
• Make it up
• Present your wildest dreams
DO
• Submit what you have already delivered
• Submit your credible plans for the coming three years
• The ones you believe and can defend
• If the only thing stopping you is proof of sufficient demand say so, and show what you’re doing to secure that
• Ask for a breathing space with an interim ruling
See: BDUK template Public Consultation @ http://bit.ly/1lL4lnF
It is entirely at the local body’s discretion to take into account any investment plans announced following the start of their tender process
So you want a grant?
BDUK NGA Technology Guidelines http://bit.ly/1lL74xy
Wireless & State Aid
Fixed wireless can be classed as an NGA technology
Satellite & mobile wireless are not, currently
It must offer significant new capability where a basic broadband infrastructure already exists
General requirements
Capable of access speeds > 30Mbps◦ And able to provide > 15Mbps for 90% of your peak times◦ Not just in theory!
You must deliver a “step change” in performance◦ Provide at least a doubling of average access speeds◦ Characteristics that enable advanced services like HD streaming
◦ E.g. low latency, jitter
Show how you will maintain the capability ◦ Increased take-up & demand◦ Capacity planning for the next 7 years
Things wireless operators may be askedPlanning consents◦ Masts in rural areas?
Radio plans & interference analysis◦ Is the spectrum appropriate?
Proposed product offerings ◦ Wholesale pricing and open access
Network dimensioning calculations◦ Contention of masts, backhaul, etc.
Evidence that your technology has a future◦ International standards, etc.
Not FttP?
Where FttP is not economically viable today, any alternative subsidised NGA solution shall have a commitment to upgrade to fibre components at a later stage if it becomes economically viable◦ When revenues increase or deployment costs decrease sufficiently
You will need to demonstrate your willingness to transition to fibre solutions
Clawback
“Clawback” is the repayment of any excess subsidy◦ or, to use Commission terminology, a “reverse payment”
Any aid must be the minimum necessary for your project◦ Not just during the build but for 7 years after!
The mechanism will adjust the amount of aid you ultimately get ◦ For example, if your take-up levels mean you no longer needed the full aid
Clawback
Clawback will require the repayment of excess subsidy at the end of your contract
BUT you may also be asked to invest further during the life of your contract ◦ Within the subsidised footprint &
not beyond
◦ Its likely to mean capital only
The obvious capital project for wireless operators is to increase the fibre footprint
If you are in a consortium, take care!
Investing further in fibre may reduce one partner’s role at the expense of the other
Summary
If you want to protect your plans◦ Engage with OMR if possible◦ Engage with Public Consultation at all costs!
If you want public subsidy◦ Wireless can qualify◦ Answer the exam question!◦ Understand the implications
Don’t just take my word for it◦ BDUK website has plenty of guidance: ◦ https://www.gov.uk/broadband-delivery-uk#state-aid
Superfast WirelessADRIAN WOOSTER'S PERSONAL VIEW OF STATE AID