Achieving Broadband Britain - a Partnership model for enabling a Digital Networked Economy
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1 Achieving Broadband Britain - a Partnership model for enabling a Digital Networked Economy Trish Jones GM Regional Broadband Partnerships OECD Workshop 25th October 2004
2 Agenda Coverage and reach: where we are, where we are going Addressing the challenge - BT s contribution to Regional Partnerships and Route map model Beyond the footprint to stimulate demand and create a digital networked economy BT working in partnership with regional and local key players to release the power of Broadband
3 Broadband at the Heart of BT 94% UK coverage 3584 exchanges enabled 1644 from pre-registration scheme launched in July 2002 advanced 1m footprint through Partnerships 99.6 % by July commitment given by BT in June exchanges in systematic build 565 exchanges without a trigger Take-up 13.6% with 3.7m connections and growing - with regional variation from 9.2% in NE to 19.1% London
4 Since September - extended reach to remove the distance limits Trials in Milton Keynes, Dingwall and Fort William delivering ADSL services beyond the previous 60dB (6km) limit Distance limit for its 512kb/sec ADSL broadband services now removed. Increased range for 1Mb premium services More than 1million additional homes and businesses now able to get ADSL service. Raising the average percentage of households on an enabled exchange that can get broadband from approx 96% to 99.8%. By July 2005, as many people will be able to get ADSL broadband services as can currently get good analogue TV reception for ITV1, Channel 4, BBC1 and BBC2
5 Community Engagement - Making it happen faster April 2000 our first 400 exchanges - 26% Move from push to pull Demand led approach to supply - launch of pioneering Actnow partnership in rural Cornwall Coverage was only 66% when BB registration scheme was launched in July 2002 Registration campaigns - 470,000 Worked actively with over 600 campaign groups Get on and get it ; Campaign in a box launched 16th June 2003 Nov %, May % June announced systematic build Insufficient demand to enable every exchange Trigger Levels breaking the vicious circle Need to enable exchange to generate demand
6 Cornwall Launch April our pioneer for a demand led approach Originally 1 exchange, no trigger levels and low demand Formal intervention to raise competitiveness of Businesses : partnership structure, management and formal project approach needed. EU Regional aid contributions supported capital investment, advisory services and Small Business adoption actnow in Cornwall: enabled 12 exchanges 1100 new ADSL lines in first 12 weeks 29% of SMEs have taken up broadband SME sign ups, 5100 lines Businesses now moving to Cornwall due to Broadband service availability 32K ADSL connections 16.5% take-up Extended by 7 more exchanges without capital intervention and fast tracked another 15 ecommerce Skills Development Experience centre & portal Business Support Awareness & marketing Access/Hardware Technology
7 Actnow Results - economic benefits Employment: 25% of those see economic benefits - had increased staff numbers since getting Broadband Turnover: 36% actnow sample v 35% others -had increased turnover in the last year. Average increase for sample 34% v 14% for others Productivity: 48% actnow sample & 32% others had increased productivity. Half as many sampled businesses had increased their productivity in shorter time period of 7/8 months against 12 Average GVA for actnow sample was 249,000 v 148,000 Broadband contribution - grossed across Cornish businesses equates to circa 7m Profitability: 40% actnow increased since connecting to BB v 33% others. But 28% increase v 15% others
8 Route map - the need for a partnership approach To maximise broadband coverage and create demand Increasing take-up in areas where it is low Create demand in areas where not yet available Increasing complexity Partnership activity: Average cost of intervention per household Localised marketing User incentive Localised support Partial supply side Supply side model Reduced market demand Increased cost of provision Partnership models Connected cities e.g. Leeds, Newcastle Caerphilly, South Yorkshire, Leicestershire Wiltshire, West Sussex, Merseyside Actnow, H&I NE & NI
9 The Value of Partnerships Scottish Islands Lowlands (16) Merseysid e Wrexha m Cheshir e Gwyned d Shropshir Caerphilly e (2) West Mids REDI South Wales (3) Wiltshire Cornwall (2) Devon Hampshire Highland s (2) West Sussex One North East W. Yorks N. Yorks S. Yorks Since November 2002 BT has established 56 areas of public private technology neutral partnerships Yorks Southbank Manchester, Burnley Leicester Kent Partnerships to continue to: Brentwood East Sussex and Hastings finish the job for 100% community engagement create growth and demand for on-line services nurture usage for social & economic benefit.our job has only just begun Derbyshire
10 Beyond ADSL - Developments in July 04 Extended Reach Extend 512kbps Reach to 99.8% within an enabled exchange Extend 1MB Reach to 97% 2MB Reach remains at 82% Satellite & Exchange activate Infill at the extremes and for small exchanges where triggers have not been set BT Openzone & Internet kiosks SDSL roll-out to over 150 exchanges Radio Opportunity Infill market significantly reduced for 512kb and 1Mb asymmetric Opportunity - higher speeds & 2 mg symetric beyond current SDSL coverage & to all exchanges incl business parks & rural - Commercially viable without funding - Demand based roll-out - Announcements in November
11 Broadband Britain - a BT perspective Significant societal and economic benefit will flow from widespread coverage and adoption of Broadband in the UK Technology evolution is inevitable Broadband facilitates multiple connections, applications and services to be consumed simultaneously: People people People device Device device Broadband transforming the way we live
12 The changing landscape The 21 st Century is a World with Broadband Everywhere Customers want more choice, flexibility and control Convergence is gaining momentum and needs an underlying infrastructure to deliver and support it 21CN is a radical transformation for BT - supporting new converged services Simplicity is key
13 21CN - A single, fully integrated multi-service network supporting multiple converged services (voice, data, video) Broadband dialtone available to most customers key milestones 2007 Mass PSTN migration reaches more than 50% of customers 2006 Large scale non PSTN service migration begins 2005 Mass PSTN migration begins 17 new product launches/enhancements based on re-usable capabilities New operations & service management capability in place 2004 Broadband available to 99.6% Strategic vendors announced Broadband growth on MSAN/combo cards First new service launches based on re-usable capabilities PSTN transformation trial Deep fibre trial Converged network Service creation Experience development centre
14 Success is beyond networks and coverage and lies in people making maximum use of new services Marketing investment to stimulate demand local and multi-channel Improve broadband services providing business solutions Getting citizens to use services to access government and local government services Education to improve skills Local stakeholders to work together to nurture the development of new services and benefits enjoyed
15 What we have learnt about SMEs from working in partnership Small business are increasingly net savvy and want; ( Actnow data) Fast response to their enquiry Easy access 24/7 Supplier with knowledge and ICT savvy Good fulfilment and support Competitive pricing Local delivery
16 An innovative first for small business Hosted Exchange Subscription Office Broadband Products & Services Sales & Support All the benefits of Microsoft Exchange Server 2003 including personalised , calendar, contacts and folders Available from your PC or via your mobile. A managed service Microsoft Office Small Business Edition inc. Microsoft Word, Excel, PowerPoint, Publisher and Business Contact Manager Upgrades to latest releases Easy monthly payment terms Additional licenses as required Access Support Security Web Hosting Local partnership resellers One point of contact, One bill BT Broadband Office Complete featuring Microsoft technology
17 BT is shaping the BB sector for consumer citizens too BT Rich Media BT Rich Media is a joint venture between BT Retail and BT Wholesale. BTRM have been formed to help content owners exploit their assets, by ingesting them from any source, encoding, editing and distributing to any device. BTRM also provide billing and subscriber management services where required by the content owner.
18 Scaleable, powerful and flexible We can take content of any kind, in any form, and distribute it rapidly and securely to any audience on any device in any country
19 Our platform is placed at the heart of the new opportunity, uniting. Communities through: Providing creative and technical training Shared experiences Video (TV, VoD, self generated) / Audio (radio) Internal and external inputs Securely (password / pay-mechanics) Neighbourhood watch for: Policing (web cam security offering ) Facilitating control and involvement for citizens in all aspects of their environment (social, health, sports etc.)
20 Working in Partnership to release the power of Broadband The last 0.4% Champion policy on the last 565 exchanges Champion take-up with business and citizens 3.7m to 5m during 2006 Create a true digital networked economy Set output improvement targets on BB driver projects Develop BB driven applications & content (local); Industry sectors, Education & on-line learning, Health & tele-medicine, Rural economic growth, tele-working, social & community networking, access to public services and training.
21 Creating a connected Region Community wins Access to latest technology Fast, constant, quality service Tailored services Market growth for local companies Community ICT literate UK Plc and Region Wins Innovative supply & demand growth models EU best practice and positioning Stimulate and nurture demand Content and service providers win Better business opportunities Helps smaller content providers reach a broader customer base Local stakeholders win Sustainable investment New services Increased profile for Region/Nation Partnership body for other activity Innovation All telecom companies win Advertising helps everyone Demand led & visible Creates Competitive retail and wholesale markets Conducive to encourage more investment
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