Cotswolds Broadband

Report
November 2011
A local initiative to bring high speed fibre access to homes
and businesses in West Oxfordshire
 Independent from national operators, establishes new
competitive infrastructure at low cost
 Current plan - 7,000 premises passed within 18 months
 100 Mbps service available
 New jobs will be created in West Oxfordshire
 Combined Community, Central Gvmt & local funding
model
 Provides vanguard project for other parts of Oxfordshire
and UK
 The infrastructure challenge of the 21st Century
 Business needs:
 Cloud Computing
 Videoconferencing
 Dispersed networks
 Home needs:




Video on demand, HD, 3D
Live events, sport, concerts
Gaming
Changing media consumption patterns
 Community Needs
 E-learning, telemedicine, telecare
 Greater speed and capacity
required for networking,
browsing, video, HD
 Symmetrical service suffers
no bottlenecking
 Inadequate speed available
from other technologies;
ADSL, mobile, 4G
 FTTC deployment will not
reach all premises
 Longevity
 Future-proof
Source: Point Topic November 2011
 Current broadband
penetration good, but
average speed poor (24Mbps)*
 Customer speed
dissatisfaction
 No other FTTH provider
locally
 Many SoHo workers/small
businesses
 Rural business parks
 Severe limitations on future
high-bandwidth applications
* See findings from Oxfordshire Business Broadband Survey
 Started as a community project under
Transition Chipping Norton (TCN)
 Current plans derived from TCN sponsored
study:
 Sustainable community/economic values
 Fill in ‘not-spots’ of West Oxfordshire
 Assist local businesses/residential users

Chipping Norton Over Norton, Salford, Southcombe, Heythrop, Chalford

Charlbury
Spelsbury, Taston, Dean, Chadlington, Shorthampton, Chilson, Leafield

Wychwoods
Shipton, Milton, Ascott, Lyneham, Bruern, Foscot, Idbury, Fifield

Kingham
Churchill, Sarsden, Bledington, Daylesford, Oddington, Cornwell
Phase Two

Enstone

Witney Fringe Woodstock, Hanboroughs, Stonesfield, Finstock, North Leigh, Burford

Hook Norton
Rollright, Swerford, Whichford, Sibfords, Wiggington, Newington

South Warks
Brailes
Shipston, Long Compton, Barton, Wolfords, Toddenham, Cherington,

East Gloucs
Barringtons
Stow, Bourton, Moreton, Rissingtons, Slaughters, Westcotes,
Church Enstone, Cleveley, Lidstone, Fulwell, Radford,
Assume initial take-up of 35%, growing to 70% in year three
 Partnering with AFL (Swindon)
 Use existing power lines to deploy
fibre (long/short distance)
 Aerial or subterranean customer
drops
 Cost effective
 Proven technology, e.g. Rutland
 Finance terms available
 2 levels of service 40Mbps /
100Mbps
 Wholesale offering
 CB carries out install for ISP
 CB manages fibre infrastructure
 ISP provides CPE and manages
customer
 VAS available through CB and
ISP
 Marketing activity confined to awareness and
stimulation, not direct sales activity
 Local campaign: DM / parish meetings / door-todoor / local advertising
 Targets: residential / business / business parks
 Value Proposition: better, faster, ISP choice (or
retention), community benefits
 Wholesale proposition for ISPs
 Partnering with CityFibre Holdings
(provisioning/billing/customer care)
 Experience with similar projects:





York
Dundee
Newcastle
Bath
Essex
 Limited company (operating
co.) wholly owned by PLC
(investment vehicle and
franchisor)
 Local people providing local
services
 Emphasis on local recruitment
 Franchise model could benefit
community
• Venture Capital
• Private Equity
• Collateralised
obligations
• BDUK
• OCC Match
Funding
Equity
Public
Funding
Debt
Communit
y
• High Net Worth
Individuals
• Local
businesses
 Consistent ARPU derived from wholesale model
 Relatively low SAC & CPGA due to size of target
market
 Expected churn rates low due to ISP loyalty and
3rd party relationships
 Low cost of network build-out due to novel
technology
 CPE & Home Drop costs amortised, with menu
pricing for customer installs
 Potential to novate contracts currently relying on
OCN to CB and upgrade speed/capacity
 Assist in meeting OCC obligations & BDUK
funding allocation
 Opportunity to establish proof of concept to
extend to other parts of the county. e.g.:




Thame
Bicester
Henley
Didcot
 Improved infrastructure for local businesses
and community
 Direct investment into/by local community
rather than national operator
 Stimulation of demand through new
applications
 Help retain businesses locally
 Deliver public services locally
 World-class service
 Part ownership in local business
 Future-proof infrastructure
 Service ubiquitous
 Retention of existing service provider
BDUK
allocation
Partner
Contracts
Partner
Trials
Jul 2013
First
Customers
Jan 2013
First
‘Dig’
Jul 2012
Jan 2012
Demand Shareholder
Assessment Prospectus
Novate
OCC Contracts
 How this project could work within Oxfordshire’s
Broadband Strategy:
 Market Demand Assessment required
 Feeds into & informs Oxfordshire Broadband Strategy
 Supplements Broadband Survey (August 2011)
 Addresses residential & business customers
 Community engagement/demand stimulation
programme
 Investigate novation potential of OCC contracts
Thank You

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