Digital Bristol

Delivering World Class Communication

Technology

A Draft Report from Adit - 28th July 2009

Executive Summary:
In the absence of ubiquitous basic broadband
(0.52Mbps depending on your preferred definition)
before 2012 and with little prospect of next-
generation-access to broadband services before
2017*, Bristol like many UK cities faces a challenge
in terms of optimising economic growth and
improving citizen inclusivity of improving public
and social services.

Whereas, Bristol today has a reasonably well

served and competitive 1st generation broadband
market – it is not planned to be at the forefront of
BT’s 21CN/NGA deployments (benefiting chiefly
London, Manchester and Cardiff) and hence
without appropriate Public Sector support and
probable intervention may suffer a stagnation or
detrimental impact to its plans for growth and
• Case Studies from UK & Europe

• Initial ICT Analysis

• Initial Intervention Comments

• Process & Next Steps

 So what is Broadband NGA
(Next-Generation-Access)

0.5-8MB
typically

20-40MB
hybrids
(FTTC)

40-
1,000MB
full fibre
(FTTP/FTT
H)
Case Studies from UK & Europe:
Over 66 Case Studies from UK &
Europe exist on Broadband
Plus NewNGA/Next-Generation-Access
UK ‘NGA’ initiatives starting
2009 in

• Liverpool
• Manchester
• Gateshead (Town Centre)
• Newcastle
• Plymouth
• Southampton & District
• Lincoln (City Centre)
• Norwich
• Kings Lynn
• Cambridge
• Warrington (Town Centre)
• Telford (Town Centre)
• Nottingham (City Centre)
• Walsall (WRC)
• Swindon (Residential
Developments)
• Chester & West Cheshire
• York (City Centre)
• NyNET/North Yorkshire
Expansion
• Corby (Residential
Adit have reviewed most relevent examples
to Digital Birmingham (following pages) and
shall provide detailed analysis of top 5
comparable projects
UK Case Studies are newer
& fewer but include:-

• Titanic Quarter (Belfast)

• Digital Region (S-
Yorkshire)
• Gigaport (Walsall)
• Fibrespeed (Wales)
• Media City (Salford)
• BBQ (Gateshead)
• NYNET (North Yorkshire)
• NOL (Norwich & Norfolk)
• Fibrecity (Bournemouth)
• New Wembley
• Swindon
• NorthernNET (Digital
Media)
• Wirral (Phase-1)
Project Name: ‘Titanic Quarter’ [Spring 2009 – 2012]
Location: Belfast, Northern Ireland
Website: http://www.titanic-quarter.com/index.php
Public/Private: Public/State with Private Housing & Apartment Developments

Summary: Titanic Quarter is a high profile European waterfront development firmly rooted in the
history and character of Belfast, acting as a driver for high quality investment. This is Europe's
largest and most exciting waterfront development, aiming to transform the Lagan riverside 185-
acre site into a new mixed use maritime quarter with a mile of water frontage and a range of
investment opportunities including: over 5,000 apartments, 900,000 sq. m. of business,
education, office and research and development floor space together with hotels, restaurants,
cafes, bars and other leisure uses.

Titanic Quarter will bring new life to a part of the city that is rich in both history and potential.
The site is centred upon former shipbuilding land from which vessels such as the RMS Titanic,
Olympic and SS Canberra were launched - some of most innovative and complex engineering
projects ever undertaken. It will become a major social and business meeting place with
galleries, theatres, parklands and water sports all easily connected to Belfast's thriving city
centre. The Titanic Quarter development is co-promoted by the Port of Belfast and T-Quarter
Limited. The £5.5bn development hopes to create 25,000 new jobs over 25yrs.

ICT Partner: REDSTONE Communications

Infrastructure: Similar to Gateshead BBQ Project = A new municipal Open-Access-Network is
being created, based upon 10gigabit/sec capable fibre-optic cabling and advanced ICT service
switches. Service Providers (there are six already signed-up) will then connect to the Point of
Presence and offer their branded products to end user citizens and businesses.
Special Features: REDSTONE will offer the ‘last mile’of 100MB/sec high speed broadband
services to the home Summer 2009 onwards (in partnership with Scandinavian specialist
Packetfront)
Project Name: ‘On Lincolnshire’ [2006 – Present]
Location: Rural Lincolnshire, United Kingdom
Website: http://www.onlincolnshire.net
Public/Private: Public Sector SME Economic Regeneration Scheme

Summary: The Lincolnshire Broadband Initiative, led by the Lincolnshire County Council, is a
comprehensive strategy to bring about step change in the availability and use of ICT (Information
and Communications Technologies) in the County’s economy.
A simple on-line registration process allows SME’s to access the products – the whole process is e-
enabled so that businesses can track the progress of their applications on line. In effect a fully
web-based relationship management tool has been developed through the project to enable long
term relationships to be built with and between businesses, and support cluster interactions.
The Initiative has a number of European Funding (ERDF) targets to achieve by December 2006.
Interest and demand for the products is very high, with several targets being exceeded despite
the delays owing to the State Aid process for the infrastructure element of the project.
ICT Partner: BT (c.£4.5m contract 2006-2009)
Infrastructure: 2-4 megabits per second symmetric wireless broadband mesh solution
Special Features: The On-Lincolnshire Broadband Initiative offered the following products to
qualifying SME’s:-

• A £200 connection subsidy for business connecting to Broadband for the first time.
• FREE ICT diagnostic advice (consultancy) worth between £2000 - £3000
• ICT Project grants of up to £10,000 when matched 50:50 by the SME.
• Additional Broadband connection subsidies for 2Mbit (wireless) Business Class Broadband
• FREE on-line business training
Project Name: ‘Gigaport UK’ [2010-2015]
Location: Walsall, United Kingdom (Investment value £88 m)
Website: http://www.walsall.gov.uk/index/regeneration_walsall_gigaport.htm
Public/Private: Public Sector Business Park Regeneration

Summary: Part of the larger c.£500m Walsall City Region Re-Development (

see http://www.walsall-regeneration.co.uk/ ) to create over 5,500 jobs and remediate c.174
acres;
The Walsall Regeneration Company will oversee major projects, as set out below:

St Matthew’s Quarter Waterfront North Waterfront South

Walsall Gigaport Darlaston Area Canalside Communities
Bradford Street Station Street Walsall First
Walsall Manor Hospital Bridge Street Ablewell Street
Townscape Heritage Initiative
‘Gigaport’ is a new, commercially anchored, central business location - proposed for the
Littleton Street/ Blue Lane corridor with the creation of a series of high quality, sustainable
office developments designed to meet the evolving needs of business and enterprise in the
21st century.
ICT Partner: TBC – no tender issued yet
Infrastructure: The development will include a basic high-capacity Fibre Optics connectivity
network (10 gigabit capable) plus a Fibre Optics Hub/Equipment room to achieve international
connections and intra-regional links to ICT/Datacentres.
Special Features: A primary concern is to support the new Centre of Excellence for Research in
Photonics and a proposed Media Business Incubation facility.
Project Name: ‘Fibrespeed’ [Investment Fund c.£30m]
Location: Wales, United Kingdom [Nov 2007/15yr Project]
Website: http://www.fibrespeed.co.uk/
Public/Private: Public Sector Business Park Regeneration

Summary: The Welsh Assembly Government has launched the first phase of a project to
build a Wales-wide fibre optic network; work is underway towards delivering fibre-optics
based hi-speed fixed broadband services to 14 x Welsh business parks late 2008.FibreSpeed
will deliver an open access communications network initially serving six counties in N-Wales,
along the A55 corridor from Wrexham/Flintshire in the East to Anglesey/Gwynedd in West.

It will operate as a Wholesale provider and connect the region to the UK’s communications
highway and thus access the global community, giving businesses the opportunity to benefit
from similar advanced communications infrastructure. This investment is the first phase of a
long term Assembly Government programme to transform high bandwidth availability and
pricing across Wales and is claimed to be the first government supported network of its kind
in the UK funded by European Structural Funds.
ICT Partner: GEO UK Limited (formerly part of Hutchinson Whampoa) won c.£29m deal
Infrastructure: Basically lots & lots of dark fibre, which competing Service Providers activate
at their own cost/risk to deliver branded services to clients. Eg; Entry level internet access
services will start at 10mbit symmetric (10:1 contended). Speeds up to 100mbit will also be
available at contention ratios from 10:1 through to 1:1 depending on Service Provider deals.
Recently, localised WiFi extensions have been added.
Special Features: The list of Business Parks intended for connection are;-
Ty Mawr (Anglesey) Llandudno Junction (Conwy)
Parc Caer Seion (Conwy) St. Asaph Bus Park (Denbighshire)
N-Wales Bus Park (Denbighshire) Deeside Industrial Park (Flintshire)
Hawarden Bus Park (Flintshire) Warren Hall (Flintshire)
St Davids Park (Flintshire) Parc Menai (Gwynedd)
Victoria Dock/Caernarfon(Gwynedd) Parc Bryn Cegin (Gwynedd)
Wrexham Industrial Estate (Wrexham) Wrexham Tech. Park (Wrexham)
Project Name: ‘Baltic Business Quarter’ [2008-2013]
Location: Gateshead, United Kingdom
Website: http://www.terracehill.co.uk/projects/
Public/Private: Public Sector Business Park Regeneration

Summary:
BBQ is being developed into a high-density office development located in central Gateshead
close to the award winning developments of ‘The Baltic Centre for Contemporary Art’ and ‘The
Sage Gateshead’ music auditorium. New office developments are already under construction
for high profile occupiers at BBQ and the surrounding area is currently attracting significant
private sector investment and undergoing a renaissance.

The Council’s overall objective for investing in BBQ is to make the area more attractive for
“Digitally Rich” companies. These companies have a high demand for sophisticated ICT and
high- speed telecommunications services. BBQ will offer a Network infrastructure tailored to
meet the current and future needs of the Users. The Council wants to establish BBQ as a
“World Class” telecommunications site for sophisticated, modern businesses wishing to exploit
and use leading edge digital technologies.
ICT Partner: ALCATEL-LUCENT [appointed via Adit Aug 2008 for 5 Yrs £ TBC]
Infrastructure: A new municipal Open-Access-Network is being created, based upon
10gigabit/sec capable fibre-optic cabling and advanced ICT service switches. Service Providers
(ntl:Telewest/VIRGIN are 1st ISP to sign-on for this) will then connect to the nearest access
point and offer their branded products to end user business clients.
Essentially, the Council has procured a next generation, “Open Access” Network to transmit
data and voice communications at a speed of not less100Megabits per second for the benefit
of businesses and organisations operating within BBQ.
Special Features: Provision in tender and Authority Finances to deploy an overlay Wireless ICT
Solution 2010 onwards
Project Name: ‘NYNET’ [Spring 2007- Present]
Location: North Yorkshire, United Kingdom
Website: http://www.nynet.co.uk/
Public/Private: Public Sector Business Park Regeneration (Fibre-Ring)

Summary: Businesses in North Yorkshire suffer disadvantage in terms of using the knowledge
economy to compete. This is due to the difficulties with access to quality high speed
broadband and digital services.
To redress this problem, the NYNET initiative represents one of Europe’s largest public sector
led, open access, broadband infrastructure initiatives to overcome the issue of rural/coastal
disadvantage in terms of broadband and connectivity....
ICT Partner: British Telecommunications PLC.
Infrastructure: Essentially a high-capacity Fibre-Optic (dark-fibre) ring, interconnecting 12 x
Market Towns in North Yorkshire, (costing c.£9.5m)- currently
York Selby Ripon Harrogate Skipton
Catterick Richmond Thirsk Whitby Scarborough
Malton Northallerton
…. which they hope to expand to 40 Locations over next 10 years (costing c. £42.5m).
Special Features: Formed the blueprint for new UK Open Access Networks, currently being
duplicated in South Yorkshire (see Digital Region http://www.digitalregion.co.uk/ )
NOTE: To deliver the operational and sustainable business case for this project, BT are working
with a special-purpose-vehicle JV formed from RDA Yorkshire Forward + N. Yorks Council
Project Name: ‘Fibrecity’ [Sring 2009-2012]
Location: Bournemouth, United Kingdom
Website: http://www.fibrecity.eu/fibrecity-england.htm
Public/Private: Private (Venture Capital) Fibre Network in H2O/Sewer System

Summary: Announced April 2008, Bournemouth is the first city in the UK to become a fibrecity in
Late Spring 2009 via a large-scale pilot private investment. Being a Fibrecity means that
Bournemouth is moving into a new world, offering its residents, businesses and organisations
the opportunity to improve their communication facilities and ICT networks.

By installing a network of fibre optic cables across the city, using the waste water network,
Bournemouth will be able to access FTTH (Fibre to the home), the fastest way of sending and
receiving data. This means you can download faster, send and receive faster, and open your
home to a wealth of communication opportunities to improve your life and your environment.
ICT Partner: H2O Networks Limited (UK)
Infrastructure: An Open-Access Network via lots & lots of Fibre-Optics delivered as a utility.
Formed in 2002, H2O Networks is a pioneer of deploying dark fibre in the UK's waste water
network to enable connectivity to those that have limited access. Issues remain however, in
current financial climate over how many ISP/Service Providers will fund their own equipment &
last mile connection to end users
Special Features: The Focus System (Fibre Optical Cable Underground Sewer) from H2O
Networks is a fast and cost-effective way to lay cable and link up any location without the high
costs and disruption caused by traditional cabling methods = perfect for Historic & Grade I or II
listed town centres (York and Plymouth are in negotiations to be next)
 NGA Direct Intervention/Investment Models
DUCT ONLY PASSIVE SPV JOINT
Public Sector Public Sector or
facilitates and Community based
Public Sector builds
and manages its own
VENTURE
occasionally fund group deploy their Jointly designed,
NGA Network (owning
extension / owned fibre and/or owned and managed
and leasing assets)
improvement of high capacity wireless NGA infrastructure
operating a fully
ducting and street infrastructure then operating as
compliant wholsale
infrastructure allowing invite Service wholesale OPEN
OPEN ACCESS
Free Market investors Providers to ACCESS NETWORK
NETWORK
to deploy their own interconnect onto a enabling easier ISP
fibre and/or wireless wholesale OPEN management than
PRO: Public Sector
NGA solutions. ACCESS NETWORK Passive or SPV
can design and deploy
with ISPS funding the models. Typically
infrastructure to
Passive assets (e.g. active equipment. public sector would
benefit all users –
Fibre cabling) own long term passive
enabling economic
PRO: Public Sector assets (e.g. fibre
regeneration and
PRO’s: only owns long term cabling).
social inclusion.
limited/neglible strategic assets (dark
funding and fibre) and stimulates PRO: Reduces overall
CON: The SPV
liability/risj for public market competition public sector
responsible for
sector - State Aid Service Provider investment through
‘umpiring’ service
compliant if all investment remaining active in
providers and
investors treated economic
marketing the
equally. CON: Actual products regeneration.
network.
delivered to customers Support services re-
CONS: First investor at the discretion of the CON: Often complex
tendered.
gains upper hand service providers so and legally expensive
stifling investment so no guarantee of NGA to create and manage
NYNET (N Yorks)
may result in a ‘Closed services pre 2012 Private partners need
DurhamNET
Network’. to be procured and
Digital Region (S.
Limits ISP competition Cardenden (Scotland) support services re-
Yorks)
Support services re- Walsall Community tendered.
NortherNet (N
tendered Housing England)
Oxford Road Corridor Baltic Bus. Qtr
Ashford (SEEDA) (M’chester) (Gateshead)
Walsall Gigaport
 Other Indirect Investment Models
Public /Gvt Stimulus Public sector provide information
to encourage rapid investment
decision by market

Combined Utilities Single utility infrastructure planning

& provision by private or public
shared utility provider.

Private Development Private commercial

property developers installing
infrastructure into new builds

Digital Britain Pooling taxes and other budget excess

to
(Carter Report) new NGA investments via tender
Initial ICT Analysis of
Bristol City
 ADSL2/ADSL2+ Distance Coverage Facts

• ADSL2 Boosts performance

– 13 Mbps / 3 Mbps (DS/US)
Data Rate, Mbps • ADSL2 provides service over longer loop
lengths
28 – Approx. 500 m more compared with G992.1
– Annex L even more on long loop lengths
• ADSL2+ Boosts performance even more
– 28 Mbps / 3 Mbps (DS/US)
13 ADSL2+ • ADSL2+ relevant for loop lengths up to 2 km

Standardised
version of ADSL
ADSL2 Reach
8

Annex L is relevant
ADSL here

1 Km 2 Km 3 Km 4 Km 5 Km 6 Km 7 Km Length, Km
 Initial Intervention Comments

Source: BSG Report June 2008 – “Models for efficient and effective public
sector interventions..”
Level of Intervention
• Do Nothing/Leave to Existing Market Forces

• Market Stimulation encouraging Private Investment -

(‘pump priming’)

• Minimum Intervention – (procure dedicated service)

• Significant intervention to current UK Best Practice

standards
– Public-private partnerships

• Significant intervention to World Class standards

– Public-private partnerships
Overall NGA Infrastructure
Options
• Closed Networks
Owned and operated by single entity
Owner is the only service provider
Possible State Aid if public sector
funded

• Open Networks
Wholesale access for any service
provider
Increased competition and choice
State Aid compliance
 Technology and Services
Offered
A layered approach increases the value
level provided:

1. Duct access only (Passive infrastructure)

2. Dark Fibre (Passive infrastructure)

3. Lite Fibre (Active infrastructure)

4. Intelligent services (Ethernet and IP)

 NGA Infrastructure
Management and Ownership
• Funding Levels
• Decide on Solution
• Control and Governance
• Strategy
• Deployment
• Capability
• Price, Risk and Reward
all have to be
considered.
 Business Model
• Considerations
Breakeven & Yield/ROI
Pump Prime / Short term / Long
term
Sustainability

• Level of Acceptable Risk

Legal
Financial

• Revenue Streams
Anchor tenancy
Profit Share
 NGA Infrastructure Legal
• Considerations
Asset Ownership (taxation &
obligations)
• Risk (liabilities & contingency
planning)
• Branding and Marketability
• Funding/Budget Governance
• Credentials/Trading History (or lack of)
• Deployment Project Management
• Ongoing Service Management
• Regulation Compliance (ongoing)
• Wholesale Operation (depends on Bus
Model)
• Technical Approvals & Accreditations
 NGA Infrastructure
Procurement
Partners Approach
may be needed to
deliver;
• Business Development &
Marketing
• Design & Implementation
• Operations
• Service Providers
How will these be sought ?
 Current Process & Next Steps

NGA Infrastructure Project

Stakeholders and Anchor Tenants

Public Sector
Blue Light
Education
Health
Crime & Justice
Corporates (x3)
Local Wireless Provider
National & Local Developers
(St. Modwen, Terrace Hill, Turner &
Townsend)
Local Telco’s (Virgin, C&W, Sky, BT)
Next Deliverables:
Mapping: Adit and their specialist mapping partner
Intercai Mondiale Ltd. Are about to complete
broadband availability and capability mapping
30/07/2009-07/09/2009 on Bristol City Centre &
South Bristol areas.

Initial Costings: 2 Areas are being considered

initially (a) the inner city region as a potential
resilient fibre and WiMAX ring extending to (b) an
advanced broadband solution for new and existing
residential developments in the South Bristol region.
Indicative costings expected before 10/09/2009

further discussion welcomed....

Dr. David Parker ADIT North LLP

Tel: 0191 423 5611