Working with Alternative Suppliers Chris Townsend, CEO Broadband Delivery UK WISPA Meeting 18 January 2017

BDUK Impact on Superfast Coverage in the UK 2016 2017 Proportion of UK premises able to receive superfast speeds 9% 45% 75% 76% 90% 95% 99% 100% Virgin only BT and Virgin premises BT superfast coverage only (incl. commercial & non-BDUK) BDUK Phases 1 & 2 £1.7bn public funds Alt Providers BDUK is delivering from 76% to 95% and now moving focus to next level of 97% plus Anticipate more suppliers operating in this space; many of whom are already delivering services and will do more Premises Mixture of coverage beyond 95% achieved through Phase 2, BDUK gainshare, commercial rollout and USO. Final c1% likely to require wifi and high-speed satellite

Superfast Delivery Trajectory – January 2017 BDUK has delivered over 4m Superfast premises to date and will deliver over another 1 million premises via existing contracts, change requests and new procurements. No of premises 5m Dec ‘17 4.0m June ‘16 4.2 Dec ‘16 Illustration of the remaining timeline and rate of delivery of the 5 million BDUK premises Further delivery will take place beyond this, and once the additional premises are procured we will know exactly how many and when they will be delivered and of course by whom

BDUK Superfast Workstreams To 97% To 95% Expected Pre 2017 Delivery (5M) 45 Phase 1 Projects 5m Premises 45 Phase 2 Projects 42 Change Requests 20 New Procurements 7 In Delivery 38 Completed 6 To Start 39 16 Modelling 4 BDUK Review 25 Signed Procurements in early stage 5 Consultation 10 In Tender Further BDUK change requests and new Procurements Additional 100-200,000 Premises Post 2017 Delivery Gigaclear, City Fibre Holdings, Call Flow, Truespeed, BT Hyperoptic, KCOM Virgin Media BDUK 100-200,000 premises Commercial Delivery c300k premises 2 Agreed Reflects the volume of work to date and still ongoing and Highlights the opportunity for suppliers to participate in future The premises delivered by the BDUK programme will roll into the post 2017 period and will add to those premises targeted by the new procurements

Indicative Procurement Pipeline* PROJECT TIMETABLES ARE ILLUSTRATIVE AND SUBJECT TO CHANGE *Please note the above chart and incorporated details are an indicative representation of project timetables as at 9 January 2017. Individual project timescales may vary as a result of other local circumstances that may arise. Best available project timetables will be available from each individual Local Body

Indicative Procurement Pipeline* *Please note the above chart and incorporated details are an indicative representation of project timetables as at 9 January 2017. Individual project timescales may vary as a result of other local circumstances that may arise. Best available project timetables will be available from each individual Local Body

BDUK Support for Suppliers The “BDUK New Procurement Pipeline” webpage is a central reference point for BDUK procurements and associated supporting guidance such as: Code of Conduct for bidders to share existing infrastructure State Aid guidance Terms and Conditions template documents Invitation to Tender template documents Timetables of upcoming and live procurements BDUK facilitate one to one sessions with suppliers to assist with queries relating to specific supplier circumstances BDUK welcomes further ongoing engagement with suppliers that would like to consult with BDUK on their upcoming commercial rollout plans and intentions to participate in BDUK procurements

BDUK Support for Suppliers BDUK will manage requests discussions in one to one sessions individually, but expects that suppliers may require support with the following: Creating reference supplier solutions Preparing for a NGA technical assessment Wholesale products and pricing Project financial models Implementation plan and milestone payments Contract terms and conditions Supplier capacity to bid for multiple contracts Suppliers interested in booking a one to one session with BDUK should email stateaidforbroadband@culture.gov.uk stating suitable times to meet and the topics they would like to discuss.

BDUK Support for Suppliers ion BDUK templates and guidance to support the new procurements can be found on the “BDUK New Procurement Pipeline” page: https://www.gov.uk/government/publications/bduk-new- procurement-pipeline BDUK’s State Aid guidance to support the 2016 National Broadband Scheme can be accessed here: https://www.gov.uk/government/publications/state-aid-advice Before using any of the templates or guidance, please check back on the website to ensure you have the latest versions.

Autumn Statement Government announced over £1 billion of new funding to boost to the UK’s digital infrastructure in the Autumn Statement 2016 £400 million for a new Digital Infrastructure Investment Fund to boost commercial finance for emerging fibre broadband providers to scale up their business The remainder will support further rollout of fibre broadband networks and the pilot projects for 5G mobile. We launched a Call for Evidence from suppliers, local bodies and other interested parties on 29 December 2016 onto help inform options for the deployment of full fibre connectivity: https://www.gov.uk/government/consultations/call-for-evidence- extending-local-full-fibre-broadband-networks.  

Better Broadband Scheme The Basics Support for those with poorest broadband (sub 2Mbps) Technology neutral offering customer choice Any supplier providing they can demonstrate existence of a live service can apply to be an approved supplier on the scheme Customers can apply online at their relevant Superfast project website. Paper applications are also available where required Applications can be pooled to offer targeted area solutions The Benefits Encouraging more suppliers to offer BDUK backed service Offer download speeds in excess of 10Mbps Providing a min of 10GB of inclusive monthly data At a cost to the customer of less than £400 per 12 months (excluding subsidy)* Able to be installed to a customer in less than 28 days from order * Inclusive of VAT

Better Broadband Scheme Working with alternative Suppliers Top Ten Better Broadband Scheme Suppliers Avonline Satellite 572 Quickline Fixed Wireless 395 Europasat 292 Secure Web Services 266 Rural Broadband Satellite and 4G 219 Bentley Walker 209 Wessex Internet 191 Satellite Internet 183 WiSpire Fixed Wireless/Satellite 132 Broadband Wherever 114 Over 90 alternative suppliers Over 70 wireless suppliers registered on Better Broadband Scheme 4 of top 10 are wireless suppliers Over 11,500 codes issued Over 3,500 claimed to deliver a service