The Scottish Government

Broadband Reach Project - Forward Strategy

25 April 2008

The Scottish Government is pleased to announce that its procurement is continuing to progress swiftly. We have completed our evaluation of the four bids which were received in response to our Request for Tender, and a preferred bidder has now been selected. We are now entering further discussions with this company and are aiming to conclude a contract by June.

At this stage we are unable to disclose the name of the preferred bidder, however this will be announced on award of the contract. Similarly, we are not yet able to specify a delivery timescale to any specific areas or regions - this will be clarified post-contract award. We can confirm that the preferred bidder will look to utilise a mix of technologies for delivery of broadband solutions.

......................................................................................................................................................................................

13th February 2008

The Scottish Government is pleased to announce that we are continuing to move smoothly through our procurement process and are now in the competitive dialogue phase of the project.

Several companies responded successfully to the Request for Proposals and we are now in detailed discussions with the following four to explore the appropriateness of the options on offer:

• Aerelink Ltd.
• Avanti Communications Group plc
• DSGi Business
• Remote Data Services Ltd.

The next stage will be to release a Request for Tenders at the end of February for response during March. It is intended that a preferred supplier will be selected in April with a contract awarded soon after.

We would also like to take this opportunity to thank the public for their excellent feedback following announcement of our project and our recent marketing campaign, which asked people to register their details with us by 18 January.

Your response has more than doubled our database of access problems - so that we now have registrations from around 3,000 eligible premises who we know cannot access broadband but have a demand for the service. The companies mentioned above have also been provided with information on these access problems, so they can consider details for solutions within their bids.

......................................................................................................................................................................................

05 December 2007

The Scottish Government is pleased to announce that we have moved to the next stage of our procurement process - the request for proposals phase.

After our advert on 5 October, 20 companies submitted responses to our Pre-Qualification Questionnaire. We fully evaluated these to determine which suppliers were best suited to participate. We have now short listed 8 companies who have just been asked to provide a comprehensive response to our Request for Proposal (RfP) document by 11 January 2008.

The short-listed companies that have been provided with our RfP are:

• Arqiva Ltd.
• Astrium SAS
• Avanti Communications Group plc
• DSGi Business
• Eutelsat S.A.
• Remote Data Services Ltd.
• TS Technology Services

There is one more company which has asked not to be named at this stage.

05 October 2007

The Scottish Government is pleased to announce that it will take forward a programme of work, where it will try to deliver an affordable, sustainable, broadband service to those households and businesses who are currently unable to access a Broadband service (Out of Reach), and who have notified us of their demand.

It is therefore very important that everyone who wishes to be included in this project register their demand with the Government or the Enterprise Networks by 18 January 2008 (please also see Q&A below).

This will be taken forward with a procurement - i.e. where the Government puts provision of the entire solution out to tender - and this work is already underway.

It is our aim to select a supplier by March 2008 and seek for a contract to be signed in April 2008, with delivery of broadband services to out of reach customers from then onwards to December 2008.

This approach has been decided following the findings of our industry and public consultations, as outlined below.

Further updates will be posted on this website as the project proceeds.

For additional useful information on the broadband market as well a section on broadband ordering, please see our Broadband Fact Sheet

Some common questions:

Q. What is the Government going to procure?

A. An affordable broadband service for everyone who has registered their demand with the Government by the closing date and who is eligible for inclusion in the project.

Q. What is "affordable"?

A. Although no guarantees can be given at this stage, we will endeavour to ensure that the price for end-users will not be significantly higher than the typical market price for broadband. However, given the small size of the target market, it is unlikely that the price will match the best prices offered by commercial providers.

Q. What is a "sustainable" service?

A. A service that will generate sufficient revenue to maintain its ongoing provision - i.e. one which will not cease once the Government's initial funding is used up.

Q. Who is eligible to register their demand with the Government?

A. Anyone who can't get a broadband service due to the reach issue. However, only verified cases of unfulfilled demand will be eligible for inclusion in the procurement.

Q. What is the Reach Issue?

A. At its simplest, a reach issue is when a house/business is physically too far away from the (broadband-enabled) exchange which serves it, to receive the broadband service. As a very rough indicator, any location greater than 9km (by road) from the telephone exchange may not be able to receive broadband. However it is not an exact science and broadband has been known to be available on longer lines and conversely, unavailable on shorter ones.

Q. What constitutes an "verified" case?

A. Anyone who has tried to order broadband and failed due to their distance from their telephone exchange and / or the quality of their line. This is the only way to know with certainty if you can't receive broadband. A verification process of all those who have notified us will be taking place over November and December. Further details on this work will be posted on this website by the end of October.

Q. Why is the Government only going to consider verified cases?

A. Because we are aware of over 100 people who originally notified us of a reach problem who now, in fact, have broadband. We wish to ensure that anyone who can actually get a basic broadband service from existing commercial providers does so, without having to wait for solutions delivered through our project. Over the coming weeks we will be providing information (including via this website) as well as support on how best to successfully obtain a broadband service.

Q. Can't the Government just get this information from BT?

A. No. The best information BT can provide are predictions of non-availability - and they are just that. As above, the only certain way to find out if you can't get broadband is to place an order and it fails.

Q. Why is the Government is taking a demand-led approach?

A. Because it is not possible for us to know where access problems exist until an order has been placed, it fails and we are notified. It is therefore logical for us to seek to provide broadband only to those who have a demand for broadband and have gone through this ordering process which confirms availability.

Q. Who will benefit - everyone or just clusters?

A. It is the Government's aim to try and bring broadband to everyone eligible who has notified us of their demand.

Q. I've been told by BT or an ISP that I cannot get broadband - do I still have to register with the Government?

A. Yes, you should notify the Government directly. Due to data protection issues, operators are unable to pass us details of broadband access problems.

Q. Why do people have to register with the Government by mid-January?

A. During the procurement, suppliers need to know about all the access problems that we expect them to solve - and we need to assess their ability to provide solutions. If you notify us after this date, we cannot guarantee your particular circumstances will be considered as the procurement process will either be concluding or complete.

Q. I already have a broadband service but I'm unhappy with the speed - am I eligible?

A. No. In this project we are not seeking to provide broadband to those who already have a broadband service from an ISP.

Q. How can I ensure that my demand is known to the Government?

A. Please register your demand here.

Q. I've already registered on this website or informed the Government/Executive directly. Do I need to re-register?

A. No. You do not need to register on the website if you've previously done so, or over 2005-2007, you have notified the Telecoms Policy Team in the Scottish Government (Scottish Executive) or Highlands & Islands Enterprise with your broadband demand. Similarly, if your details have been included on petitions/lists previously provided to the Scottish Government by a representative from your cluster, you also don't need to register.

Industry Consultation - Summary

The industry consultation was held in Glasgow on 8 May and was well-attended with over 50 participants, representing over 30 broadband suppliers and other interested industry bodies, present. At this meeting, the practicalities of delivering broadband solutions to out of reach areas, the options around this and appropriate funding models were explored.

The industry was overwhelmingly positive that a solution to the broadband reach problem could be found, and there was support for the view that the funding allocated (£3.5 million) was sufficient to achieve this.

Potential funding models were explored; community grants (i.e. grants to individual clusters to obtain their own solution) being the main alternative to a central procurement.

The industry was predominantly in favour of a procurement, which has distinct advantages for the Government in terms of simplicity, sustainability and consistency.

Public Consultation - Summary

The public consultations were held in Glasgow and Inverness on 18 May and 7 June respectively. These meetings were also well-attended, with over 70 (invited) participants, representing over 40 of the larger out of reach clusters known to the Government, present.

The options around the delivery of alternative broadband solutions (e.g. small wireless networks) were explored in detail, it now having been established that there will be no BT solutions to the reach problem.

There was divided support amongst participants for both funding models, with a slight preference for community grants.

Why was Procurement chosen?

The Scottish Government considers that a procurement approach represents the best mechanism available to try to achieve its objective of delivering an affordable and sustainable broadband solution, to all who have made us aware of their demand.

Unlike a community grant model, for example, there will be no requirement on individual clusters to own and manage their individual solutions. Furthermore, a community grant model is unlikely to be sustainable in clusters, where there are only a small number of customers - of which there are many in Scotland,

It was also essential for us to consider the wishes of the industry, who showed a strong preference to a procurement over community grants.

June 2007

Broadband Reach Problem

Work has commenced to increase broadband availability to the 1% of premises in Scotland that are currently out of reach. There is a £3.5 million budget ( see previous announcements) to seek other solutions as it has now been established that this need cannot be met by BT.

We have held a series of consultation events both with representatives from the industry, and with people affected by the broadband reach problem.

Industry Consultation

The industry event was held in Glasgow on 8 May and was well-attended. Its purpose was to discuss the practicalities of delivering broadband access to those currently out of reach. Over 30 companies/organisations were present at the meeting. These include potential suppliers and other interested bodies. Representation/interest was made from the following companies:

• Aerelink
• Atkins
• Avanti Communications
• Boston Networks
• Community Broadband Network
• CMS Broadband Ltd.
• Colloquium
• Coppersquare Ltd.
• Crimson Tide
• Digiweb Ltd.
• Entanet International
• Ericsson Services Ltd.
• Firefly Internet
• Garvald and Morham Broadband Committee
• Geodata Systems
• KeConnect Systems Ltd.
• Kijoma Solutions Ltd.
• LN Communications
• Locustworld
• Mango IT
• Mason Communications
• Micronet Broadband
• Neoeon Ltd.
• Nera Ltd.
• Networks By Wireless
• Newman Concepts
• Pennine Telecom
• Remote Data Services Ltd.
• Scotnet
• Shareband Ltd.
• Speednet Scotland
• Supanet Ltd.
• Thus
• T-Mobile
• UTStar
• Clusters Consultation

The Clusters events were held in Glasgow and Inverness on 18 May and7 June respectively. Representatives from over 40 of the larger clusters out of reach of broadband known to the Executive were invited to these events. The purpose of these events was to explore the different types of solutions which may be feasible (e.g. small wireless networks) and options by which these may be funded.

These meetings were also well-attended, with over 70 participants, and representation was made from the following clusters (if not stated, the cluster name refers to the associated BT exchange):

• Aird (Loch Ness)
• Alness (Ardross)
• Angus Glens
• Appin (Glen Creran)
• Balmaha (Rowerdennan)
• Bannockburn (Throsk)
• Beauly (Aigas)
• Bridge of Earn (Ardargie)
• Brora
• Calvine
• Cortachy
• Cumbernauld (Craigmarloch)
• Denny (Carron Valley)
• Dingwall (Kilcoy)
• Dingwall (Kinkell)
• Dingwall (Mulbuie)
• Dundonnell
• Ettrick Valley
• Glendaruel (Dunans)
• Glenelg (Arnisdale)
• Glenfarg
• Inverness Culloden (Nairnside)
• Kellas
• Kilchoan
• Killin (Ardeonaig)
• Kinross (Dalqueich)
• Kirriemuir (Kingoldrum)
• Lochailort (Glen Uig)
• Lochgilphead (Dunadd)
• Mid Calder (Harperrig)
• Morvern (Drimnin)
• Muckhart (Glendevon)
• Northwaterbridge (Craigo)
• Poolewe
• Portsoy (Boyndie)
• Salen (Glenmoidart)
• Sanday
• Scourie (Kylesku)
• Spean Bridge (Clunes)
• Spean Bridge (Invergloy)
• Strathdon (Corgarff)
• Strathyre (Balquhidder)
• The Way Forward

We are currently assimilating the feedback and outcomes from these consultations and will announce our way forward in the coming months. Further details will be posted on this website in due course.

Advance Notification of Broadband Suppliers' Forum - 8th May 2007 , Glasgow

Invitation to Broadband Service Providers

The Scottish Executive invites your organisation to a presentation and discussion of the issue of extending broadband reach to customers in Scotland who do not currently get a broadband service. Ministers have allocated up to £3.5 million to addressing this issue over the coming year.

Availability of broadband in Scotland is already in excess of 99% following the procurement of broadband coverage run by the Scottish Executive which was implemented over the course of 2005. However, there are at least 50 clusters of users which want broadband but still cannot get service despite having their telephone line connected to a broadband-enabled exchange. Extending broadband reach to these customers is a priority.

The event is to discuss with industry representatives the options available to the Scottish Executive to extend broadband reach, including procurement, community grants and any other mechanism that might be appropriate. It will consist of a presentation and opportunity for discussion at the meeting with scope for further feedback following the meeting.

Further information will be provided closer to the event to invitees expressing an interest in attending.

The event is being managed by Eddie Murphy, an external consultant working on behalf of the Scottish Executive. He will present at the event and will collate feedback.

We hope that this event will be of interest to your organisation and that you will be able to join us.

21 December 2006

A further £5 million is to be made available to extend the roll-out of broadband services to make access in Scotland as widespread as possible, it was announced today.

The additional funding follows delivery to every Scottish community last year through the largest broadband award of its kind in the UK with BT.

· Full story

· Broadband Reach Report

After working with independent consultants on the 'Out of Reach' issue, the Executive has published its report which gives valuable information on the extent and nature of the reach problem as well as the viability of potential solutions. This report is available online at the following link: http://www.scotland.gov.uk/161597.

The research also demonstrates what we have already delivered in Scotland. By implementing the largest UK broadband project of its kind with BT, we brought access to every Scottish community and at least 99% of households. This places us ahead of most of the world on broadband coverage.

Furthermore, we delivered that ambitious project on time and also approximately £1.5M within the total budget of £16.5M. We will therefore now use this scope within our BT contract to provide access to clusters which remain without coverage, where this is feasible. We will announce the first of these clusters by the end of March 2007.

Furthermore, we have also announced an additional £3.5 million for further activity to deliver broadband to those without coverage, giving a total further spend of £5 million. Delivery options are currently being developed and details will be announced in the new year. Implementation of solutions will follow during 2007/08. We will be taking into account issues such as the levels of unfulfilled demand, predictions for the areas with no coverage, business needs, cost and the value-for-money implications of providing solutions.

This activity should illustrate that we are committed to building on our excellent progress on broadband and taking the coverage footprint as far as possible in Scotland. Over next year, it will ensure many more Scottish households and businesses can enjoy the benefits of a high-speed internet connection.