Cotswolds Broadband

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