Broadband Transformation for North Yorkshire Creating Sustainability for Rural Broadband Andy Lister, Commercial Director, NYnet Ltd NYnet

The Problem for North Yorkshire Limited There is little evidence to support the notion of Telecom Operators rolling out NGA in NY Little or no business case exists for private sector investment Clear policy recognition that broadband is an enabler of economic and social gain

Other Issues for Public Sector Policy in North Yorkshire Limited The cost per capita of providing services to schools, NHS, emergency services is up 4x that of urban areas Increasing demand to deliver public services using the kind of capability only supported by NGA Nervousness about role of Public Sector in telecoms, particularly in creating sustainability

Rural is an interesting descriptor Limited Bulk of population live in Market Towns Rest live in small communities One size fits all will not work

Market Towns Limited Should be possible to create business case that supports opex with capital grant for open access NGA Should be possible to create competitive end user service provision Will need EMP and innovation from smaller ISPs

Rurality is relative

Rural Communities Limited Even with capital grant, may be difficult to create business case that supports opex in some small communities Very difficult to create competitive end user service provision How do you create ‘sustainable’ subsidy for Opex?

Sustainability in Rural Communities Limited Public Sector demand aggregation can create an open access platform Schools and other public sector sites can provide points of presence in proximity to rural communities A Public Sector owned vehicle (NYnet) supplies affordable backhaul The relationship between community and service provider matters

The NYnet model in North Yorkshire Limited 1. Demand Aggregation * Aggregation of Public Sector spend on separate networks represents £8m per year * Sharing a common infrastructure costs £4m on like for like basis * Sales to Public Sector create a sustainable business model for operating the network over 10 years

The NYnet model in North Yorkshire Limited 2. Building the Infrastructure (Supply Aggregation) * The infrastructure needed to be able to supply future proof services to the Public sector and: * Provide a carrier class platform for backhaul to rural areas open to service providers

NYnet so far Limited Network went live in November 2007, now aggregated nearly all Public Sector customers and over 700 sites NYnet seen as sustainable, EBITDA positive next year Focus currently on NGA to Business Parks and rural communities

What next? Limited State aid approval to extend NYnet to provide open access NGA to market towns Using backhaul from public sector sites to reach not spots Use backhaul from public sector sites to provide NGA to business parks

Advantages of Integrated Aggregation Limited Demand Aggregation creates a sustainable business case Represents strong value for money for public sector and taxpayer Business case not dependant on grants Grants can serve to improve business case, or extend reach Public sector sites can reach some very rural areas Small/community ISPs can take advantage of attractive price points

Broadband Transformation for North Yorkshire Thank you.