1. Digital Scotland Superfast Broadband
The Foundation for a World Class Digital Nation
Introductions – include Toby Sandison from CBS
Thanks for invite to event
Intention is to bring the community up to speed in terms of the various Digital Scotland programmes and how they might impact the local area
May not give the community the answers they want to hear, but will very much share the process, including a look at the future
Sara Budge
Programme Director
Digital Scotland Superfast Broadband

2. Scotland’s Digital Vision
“For Scotland to become a world class digital nation requires that people living, working and visiting Scotland can communicate and connect instantly using any device, anywhere, anytime.”
Access, skills & confidence
Inward investment
Encouraging digital innovation
Economic & social benefits
Adoption of new technologies
Online public services
Policy context setting – World Class Digital Nation
People – ensuring our citizens have the necessary skills and confidence to use/engage with digital technology – goes well beyond just getting online or using a browser
Public Services – working across the public sector to ensure all areas use digital by default to maximise available resource for front line services. This isn’t just about putting forms online, it is about the back office utilising digital technology across all partners and the front office taking advantage of multiple digital channels and technologies to provide improved services. This includes ensuring we manage data effectively and efficiently right across the public sector.
Private Industry – working with the private sector to ensure that business has the necessary support to fully engage with digital technologies, in particular the SME market with a real focus on the ‘S’ and micro-businesses. We also want to see Scotland as a real market leader in developing the technologies themselves – Scotland already a market leader in terms of telehealth/telecare and gaming.
Connectivity – this is the fundamental enabler that allows the rest of the vision to happen. This includes fixed broadband, mobile and other technologies in order to ultimately achieve the 100% commitment by 2021.
Take up of service – there’s no point in investing in infrastructure if nobody uses it. Driving the take up of services over the infrastructure is what drives the economic and social benefits for the country as a whole.
Underpinned by a future proofed digital infrastructure supporting
any device, anywhere, anytime connectivity across Scotland

3. Where are we? Digital Scotland Superfast Broadband
Increase fibre broadband to around 95% of homes and businesses across Scotland by end 2017
Community Broadband Scotland
Support community led solutions in remote and rural areas where the market or DSSB won’t go
R100 Commitment
Extend superfast broadband towards 100% of homes and businesses
DSSB - £410 million project targeted at areas of market failure. Builds on areas of commercial coverage from Openreach (a division of BT) and Virgin Media. Policy target of 85% coverage met 6 months early in June Fibre deployment due to complete by end of 2017, taking fibre coverage to around 95%. Note that coverage means connected to enabled infrastructure, but does not equal 24Mbps+.
CBS working with communities across Scotland and including Aberdeenshire – further detail from Toby later.
R100 is at the very early planning stage and is looking to deliver the SG 100% commitment – based on SNP manifesto commitment with further announcements expected by the end of the year
Mobile connectivity is a very important part of Scotland’s digital infrastructure – SG is working very closely with all mobile network operators to ensure that 4G coverage is supported beyond commercial limits and that future requirements for 5G are addressed early in terms of backhaul and mast requirements. Note 5G services not expected before 2023.
Improving mobile connectivity
Extend 4G mobile coverage beyond commercial plans while supporting 5G infrastructure requirements

4. Digital Connectivity Path
Commercial 66%
DSSB 95% by 2017
R100 ~100% by 2021
Better Broadband 2 Mbps+ USC
CBS 30 Mbps+
Private Funding Limitless
The path to digital connectivity.
The red path is the “do nothing” route i.e. will you be covered commercially? If not, will you be covered by DSSB? If not, we have R100 to take us towards 100% superfast.
The purple path is the “I want to do something” route i.e. I just want a basic level of service now – better broadband. I want a superfast solution for my community – CBS. I want the best money can buy – go down the privately funded route.

5. Infrastructure Constraints
Intervention Project to address Market Failure
Gap Funded
Few providers at infrastructure layer
Commercial coverage in Scotland at 66%
Aberdeenshire 25%
No Universal Service Obligation (USO)
Compliant with State Aid
Costs shared with Supplier
Technology Neutral
Open Access
Promotes reuse of Existing Infrastructure
Quick summary of constraints that SG operates in terms of improving broadband.
Gap funded model – in simple terms, we have a legally defined intervention area identifying areas of market failure and we have a sum of money – through procurement, we look to get the best return (with a number of caveats of course).
UK infrastructure market is poor – only two providers in Scotland – Openreach (part of BT) and Virgin Media.
Commercially, the market told us (via OMR in 2012) that it would deliver to 66% of premises in Scotland (premises, not geographically). For Aberdeenshire, commercial coverage is at 25% - the lowest coverage for any LA in the Rest of Scotland contract area.
Reminder that telecommunications is a reserved matter to Westminster and is regulated by OFCOM
Under current UK regulation, there is no USO for broadband of any speed i.e. neither BT or any other provider is actually obligated to deliver broadband services to anyone. The UK Government has intimated that it wishes to introduce a USO, but this isn’t expected before 2020 and is likely to have a minimum speed of 10Mbps. It isn’t clear at this stage how the USO will be delivered or who will pay for it.
State Aid compliant procurement/contract – this is a good thing for us as. Costs are shared (BT investing around £126m), we leave technology to the experts, open access solution (i.e. consumers can buy from a large number of suppliers, not just BT).

6. Commercial NGB Coverage
State Aid intervention area shown in white. So the grey areas are where we cannot legally intervene – these are the areas that account for 25% of premises.

7. Commercial NGB Coverage
Intervention area for Alvah and Forglen. Note that commercial coverage is based around the Turriff exchange area.
May get questions from those in the grey area not getting speeds. We don’t have information on BT’s commercial deployment, so they may not be finished yet. For now, we can only offer Better Broadband scheme for premises under 2Mbps i.e. commercial long lines. In the future, a new OMR will determine a revised intervention area for possible public investment.

8. One of the biggest programmes in Europe
DSSB Highlights
One of the biggest programmes in Europe
Fastest deploying network in UK last year ~ 7,000 premises/week
Reached over 600,000 premises
One of the biggest UK sub-sea cabling projects in a lifetime, completed ahead of schedule
Aberdeenshire Indicative Coverage at end of programme – 89% with ~ 80% >24Mbps
Exchange Only solutions being widely deployed
Extensive demand stimulation now rolling out across the country
Don’t dwell on this as it is a back-slapping slide and is of no consolation to the hard to reach areas.
Run rate – yes we were at 7,000 per week, but as we are getting into more difficult areas, we have more structures serving fewer premises and they are further apart. So the work increases, but the output at premise level will decrease.
Coverage v Speed for Aberdeenshire is currently predicted to be 89% coverage and 80% at 24Mbps+
Note inclusion of Aberdeenshire’s £16M prioritised for sub-2Mbps areas of Aberdeenshire
Exchange only – deployed solutions to around 200,000 premises throughout Scotland so far i.e. one third of all deployment

9. Ofcom Scotland Coverage
63%
85%
2014
2015
61%
73%
Coverage of superfast and NGA networks, Scottish premises
Coverage of superfast networks, urban premises
Coverage of superfast networks, rural premises
288%
Coverage
35% 6%
External sources of data
OFCOM report at a national level and are seen as the ultimate source of accurate data as it all comes directly from suppliers
HOWEVER the data is old – this is the most up to date and is dated June The next report is scheduled for December and that will include data from June 2016.
Slide articulates coverage v speed as 85% coverage and 73% at superfast – this confirms that coverage hit our policy target 6 months ahead of schedule
Bottom part of slide articulates the improvement in rural areas.
Source: Ofcom’s Connected Nations Report December 2015 (June 2015 Data)

10. Thinkbroadband.com Area % fibre based % superfast 24 Mbps or faster
% Ultrafast 100 Mbps or faster
% < 2 Mbps
% < 10 Mbps USO
Rest Of Scotland
90.7%
87.4%
86.8%
43.5%
1.5%
6.5%
Highlands and Islands
74.1%
62.6%
60.7%
0.02%
5.6%
30.3%
Scotland
89.2%
85.2%
84.5%
39.7%
1.3%
8.1%
Thinkbroadband.com provides broadband coverage statistics, availability checker, maps and additionally speeds as recorded by the public and is produced by thinkbroadband.com
Some data looks erroneous, such as the <2Mbps figures, however the site does provide an up to date view that includes commercial as well as intervention coverage
Source: Thinkbroadband.com Coverage Update 6 June 2016

11. Aberdeenshire Coverage and Speed
Fibre Coverage ~ 84.5%
Thinkbroadband.com also offers a view by local authority as well as UK Government constituencies
Source: Thinkbroadband.com Coverage Update 20 July 2016

12. Coverage at 31st March 2016
Note that we have a full quarter of deployment since this latest map.
For a postcode to be included, it needs at least one fibre enabled premises – not a guarantee of speed.

13. Interactive Map From DSSB website interactive map
Green signifies availability within an exchange area, but it does not mean every premises can connect
Various purples mean we’ve still to get there
Grey in this context means that at this time, we have no fibre planned at all to the exchange area

14. Interactive Map
Same map, zoomed in to community area

15. Digital Scotland Website
Full phone number or address to get latest position – example is Kirktown of Alvah connected to the Eden exchange
Issue in that if not yet connected, there is no further information available beyond exchange level.
We intend to introduce the “cabinet fibre journey” in the near future to provide more granular information on where individual premises are in the process – this has been delayed slightly as we wish to provide accurate information in particular for those on EO lines

16. Alvah & Forglen Area Exchange Update
Current deployment plan, subject to change
Exchange
Live Structures
Built Structures (not yet live)
Planned Structures
Aberchirder 3 1
Banff 6
Eden 2
King Edward
Turriff
Current view of exchanges in the area
Includes all planned or deployed cabinets – no info on FTTP
Note: DSSB Structures only i.e. doesn’t include commercial

17. Increased coverage for DSSB Combination of
Gainshare
Increased coverage for DSSB
Combination of
Early gainshare settlement
Reallocation of internal funds
Aberdeenshire priority area
Public Consultation near conclusion
Modelling outcome expected late 2016
Gainshare or clawback is a contractual mechanism and State Aid requirement where we effectively monitor performance of the infrastructure we subsidise. In simple terms, assumptions were made at contract signature around how well the infrastructure would perform – a requirement is to continue to monitor performance for seven years post infrastructure build completion. If the network performs beyond expectations, we effectively claw back some of the original subsidy as it is evidence of over-subsidy. We can reinvest that clawback/gainshare into further coverage.
Approximately £27 million in total available for this. A huge sum of money, however we are now into the really expensive parts of the country. One of the guiding factors in the modelling work is to ensure value for money across the contract.
Main thing to emphasise is that Aberdeenshire has been identified as one of our priority areas.
For questions around where we aren’t going, the best starting point is the public consultation postcode list available from the SG website (or we can forward). This ties in with CBS work.

18. Minimum 2 Mbps Commitment
Avanti Next Generation Satellite Pilot
Currently runs until October 2016
Better Broadband Scheme
Available now
Technology neutral solutions from over 50 suppliers
Eligibility Tests
Sub 2Mbps
Not fibre enabled
Not part of CBS project
For premises experiencing speeds of below 2 Mbps – the EU definition of basic broadband – we can use alternatives to deliver a service where fibre won’t reach.
ALL of these are OPTIONAL
Avanti Pilot – heavily subsidised next generation satellite service with a choice of packages
Better Broadband Scheme – offers subsidised connection via a large list of suppliers using a range of technologies including fixed wireless, satellite and FTTP

19. Indicative funding in place
Phase II
Indicative funding in place
£21 million from UK Government
£21 million from Scottish Government
Looking to reach 100% coverage of ‘superfast’ across Scotland by 2021
At the early planning stage
In parallel with UKG 10Mbps USO by 2020
R100 programme looking to understand the remaining gap to get to 100% superfast
Very early planning stage, but will include a fresh OMR late this year to effectively reset the intervention area

20. DSSB Deployment ahead of schedule
Summary
DSSB Deployment ahead of schedule
Will take coverage to around 95% of premises
Further work in plan to extend coverage
Mobile coverage likely to be key
CBS well placed to deliver community solutions
Support required from LA’s for new build
Take up of services drives socio-economic development
Protects existing and creates new jobs
Increase GVA
Potential to increase gain share therefore coverage
Summary is that we are doing well, but still lots to do
R100 critical to get coverage at superfast, Better Broadband should ensure all have access to at least 2Mbps
SG heavily involved with the mobile network operators in terms of 4G coverage and ensuring core infrastructure in place ahead of 5G deployment
New build out of scope, but thanks to updates in the National Planning Framework and Scottish Planning Policy, LA’s can insist on digital infrastructure as part of the planning process. Most big operators (including BT and Virgin Media) also have relationships with house builders.
No point building it if nobody uses it, hence while take up is vital in terms of driving socio-economic development. Also scope to generate additional gainshare

21. Digital Connectivity Path
Commercial 66%
DSSB 95% by 2017
R100 ~100% by 2021
Better Broadband 2 Mbps+ USC
CBS 30 Mbps+
Private Funding Limitless
Part of summary – a reminder of the “choice” for communities.
The path to digital connectivity.
The red path is the “do nothing” route i.e. will you be covered commercially? If not, will you be covered by DSSB? If not, we have R100 to take us towards 100% superfast.
The purple path is the “I want to do something” route i.e. I just want a basic level of service now – better broadband. I want a superfast solution for my community – CBS. I want the best money can buy – go down the privately funded route.

22. Discussion
Most likely question will be “Will I be connected and if so when?”
Point to interactive map in first instance, but also the postcode list from public consultation as these are no build.