Dear

The Future is Fibre & 5G
In his first major speech the new digital minister Matt Hancock, MP went further than many commentators expected, declaring support for "pure fibre" and 5G networks.  Speaking at the Broadband World Forum and INCA Conference in October Mr Hancock set out a clear ambition for the UK to develop new FTTP and 5G digital networks. Referring to INCA’s recent report Building Gigabit Britain he said, “I agree: fibre is the future.” He went on to say "Alongside fibre, comes the other F, five G.”

Signalling his backing for a competitive market in digital infrastructure Mr Hancock said, "I will be on the side of the challenger: helping in every way I can to deliver fair competition and a level playing field."

"Government can support that by ensuring the right incentives are in place and any barriers are removed. When I meet the altnets, INCA’s recommendations will top of my list of things to discuss. I want to know from you what we can do to reduce the cost of full fibre roll out, so that in reality as well as rhetoric, fibre is the future."

What this Means for the Altnets
Matt Hancock’s speech and subsequent Q&A at the INCA Conference signals a clear shift in policy towards ‘pure fibre’ and high speed wireless networks. We anticipate that this will be reflected in the forthcoming Digital Strategy. We also expect that the new Digital Infrastructure Investment Fund will be launched, perhaps with the Autumn Statement. Ofcom is due to report on the future of Openreach during November.

Meetings are taking place with ministers and officials to address the recommendations in the INCA report. Understandably they want to know what the sector can deliver, both in terms of extending superfast/ultrafast coverage in rural and urban areas to provide the new networks of the future. INCA members have argued that competitive investment by BT, Virgin Media and the Altnets is capable of delivering 80% coverage with pure fibre connections over the next 10 years, complemented with wireless services. The message from government is that they want to help us succeed.

INCA’s Policy Proposals
INCA's report Building Gigabit Britain puts forward strong arguments in favour of government support for new digital infrastructure. We grouped our recommendations into six areas for Government, Ofcom and the Advertising Standard Authority. In summary:

• Government should set a target for FTTP coverage - we argue for 80% of premises to be reached by 2026; 
• Encourage investment by reforming the business rates regime and setting up the new Digital Infrastructure Investment Fund; 
• Remove some of the bureaucratic barriers particularly with street works and wayleaves; 
• Ensure that public funds are used efficiently by preventing overbuild using state aid and reviewing public sector assets that can help network build out;
• Ofcom should ensure that new arrangements for Openreach support competitive investment, particularly with Duct & Pole Access and consistency in regulation;
• The Advertising Standards Authority should review its guidelines to ensure that  future advertising of both FTTP and copper-fibre hybrid products gives consumers accurate information.

Some recommendations are already being addressed, others form part of a dialogue with officials in DCMS, Treasury, Ofcom and the ASA. INCA’s efforts will be led by our Policy & Regulatory Group which includes senior representatives of fibre and wireless operators. 

INCA AGM & Plans for 2017

INCA’s board has discussed ways in which co-operative activity between INCA members can help strengthen the whole Altnet sector to deliver our collective ambitions. We will put forward our plans for discussion at the INCA AGM and Strategy Workshop on 1st December. Participants will discuss the policy and regulatory landscape, investment, and joint projects that can help improve business performance for all members.

Can Vouchers Help Deliver the USO?

Scottish MP Callum Kerr has demanded “flexibility and ambition” from the government as it prepares for the introduction of a new Universal Service Obligation (USO) for broadband. Mr Kerr, who sits on the Public Bill Committee which is currently scrutinising the UK Government’s Digital Economy Bill, also pointed out that the UK Government’s proposed speed for the USO of 10 megabits per second could quickly become obsolete. “The Scottish Government have made a commitment to reach 30 megabits by 2021, and a flexible USO—particularly a voucher scheme, rather than a monetary or contractual agreement with providers —could help them to deliver.”

Mr Kerr’s position was echoed by David Cullen, Chair of INCA. Speaking at the INCA conference he said, "Government already has the BDUK Better Broadband Voucher Scheme, which is being used successfully by small and innovative broadband suppliers to transform communities; we should build upon that and promote it more, instead of putting undue focus to the principles of an Obligation.”

Ofcom is providing technical advice to the Government on the design of of the USO and is due to report by the end of the year.

BDUK News

BDUK has launched a community schemes website giving information on how communities can develop projects to enhance their local broadband. Alongside BT examples several case studies involve projects by some of the leading Altnets including B4RN, Cybermoor and Tove Valley. Not all are rural - one example is the Perseverance Works business park in London, just a stone’s throw from Silicon roundabout. 

Local Authority News

East Sussex will be holding an afternoon of informal discussions with suppliers on 8th November to help share the next round of intervention activity.  Further details can be found here. Email katy.thomas@eastsussex.gov.uk for more information.

West Sussex has launched a connection voucher scheme for small businesses. Supported by the Coast to Coast Local Enterprise Partnership the scheme offers a subsidy of £1000-£3000 for businesses unable to get a superfast broadband connection. The project runs until 1st February. INCA has assisted by setting up a directory of local suppliers. Also in West Sussex ISPreview reports the local authorities are setting up a Gigabit West Sussex framework to “bring ultrafast broadband to as many parts of the County as possible.” 

Bedford Borough, Central Bedfordshire, Luton Borough and Milton Keynes Councils are delivering superfast broadband infrastructure across the area. As a partnership they are working together on a Central Superfast broadband deployment project that seeks delivery of superfast broadband to as close to 100% of homes and business premises as possible, by 2020.

To deliver the vision, the local partners, working with Broadband Delivery UK (BDUK), are seeking to make further investment to extend superfast broadband infrastructure.

As part of this new procurement process, they are now commencing an Open Market Review (“OMR”) to establish existing and planned (next 3 years) commercial coverage of broadband services across the Central Superfast Area by all existing, and any prospective, NGA broadband infrastructure providers.

Once they have defined these Intervention Areas from the OMR, they will conduct a State aid public consultation and propose to launch the ITT in the financial year 2016/17.

Responses should be submitted by Friday 18th November 2016. A full response template incorporating a spreadsheet of our Intervention Area premises is available from the project team. 

For more information contact Trish Etheridge 

Altnet News

CityFibre York Project Set to Expand

CityFibre and TalkTalk have announced that the York FTTP pilot project will expand to cover the whole city, taking in a further 40,000 homes and businesses. CityFibre report that take up of services has been stronger than anticipated helping to propel the project expansion with a further £20m of investment. Sky, the third partner in the pilot project will continue to provide services over the FTTP network. Dido Harding, TalkTalk's Chief Executive, said that the work being carried out in York is a clear demonstration of its commitment to playing "our part in securing connectivity for everyone”. The news comes hard on the heels of CityFibre’s announcements that Bracknell, Sheffield, Doncaster and Rotherham are set to become Gigabit cities.

Business Parks Benefit from Altnet Investment

Business service provider Warwicknet has announced an expansion of its networks in Derbyshire to Ascot Business Park in Derby. Providing a mix of FTTP and FTTC service - and an active consumer of Openreach’s PIA (passive infrastructure) product, fast-expanding Warwicknet provides services to business parks across the Midlands.

ITS Investment Supports New Networks

In September ITS Technology Group announced that it had secured £2.4m in new investment to support the expansion of its urban and rural networks. ITS is one of a growing group of INCA members that deploy both fibre and wireless networks. One of the areas to benefit is Skylon Park in the Herefordshire Enterprise Zone. Businesses on Skylon Park will soon benefit from a 1Gbps capable FTTP network, helped by a concession agreement with the council allowing ITS to use some of its existing duct infrastructure. 

Churches InSpire Norfolk Rural Broadband

Rural wireless broadband provider Wispire has use the local church spire to expanded its network to include Barton Turf and nearby villages. Initially services are being offered at speeds of up to 10Mbps, which although not superfast are considerably better than the typical 1-3Mbps currently achieved through the BT network. 

Truespeed Expands in Somerset

Rural FTTP provider Truespeed has announced that its network will reach more villages in N.E. Somerset. Residents and businesses in the village of Priston can benefit from Truespeed's 150Mbps symmetric FTTP services, with Compton Dando, Stanton Drew and Stanton Wick coming on stream next. 

Metronet UK Buys M247

Business wireless provider Metronet UK has announced a £47.5m acquisition of hosting and service provider M247, providing a combined portfolio of connectivity, content and managed hosting services. Speaking at INCA’s conference Kate Rennicks of Metronet UK explained how the acquisition would create "a national telecommunications platform" across the UK, with high speed connectivity, resilience, new services and scalability.

INCA Conference Success

A big thank you to everyone who participated in the INCA Conference at Broadband World Forum. 160 people shared their expertise and debated new government policy, INCA’s Building Gigabit Britain report, rural and urban broadband needs, technologies, services, funding and investment - and of course great fibre and wireless projects being developed by INCA members. Participants said it was the best conference INCA has organised. We would like to offer many thanks again to our sponsors  - your support made the conference possible.

Join INCA

INCA's team is working hard to develop a competitive market for digital infrastructure. Working together means we make a difference. If your organisation is not yet a member of INCA we really want you on board and now is the time to join. If you have any questions please contact Gill.Williams@inca.coop or Malcolm.Corbett@inca.coop, we will be happy to help.

David Cullen, Chair and Malcolm Corbett, CEO

Independent Networks Co-operative Association
Tel: 0845 456 2433

info@inca.coop

www.inca.coop