London Regional Aggregation Body

1
London Regional Aggregation Body
Graham J. Dupree Account Director-London
26th February 2004
2
The governments response was to set an ambitious
target underpinned by the Broadband Aggregation
Project (BAP)
3
The project has received strong assurances from
our stakeholders that they endorse and are
committed to the RAB model

• The Ministerial Steering Group including
  ministers from all key stakeholders, owners and
  customers endorsed the RAB business model
• Charles Clark (Secretary of State for Education
  and Skills) agreed to use the RABs He
  commended the DTI and his department for all
  their work on a difficult project.
• Kevin Caldwell (Health/NHS) confirmed that John
  Hutton (Minister of State for Health) had given
  Ministerial endorsement to his departments use
  of the RABs.
• He also stated that it was important that the BAP
  and N3 teams continued to work closely together
  because of their interdependency and the fact
  that they were likely to have some bidders in
  common.
• RDA Chief Execs have formally agreed the
  principles of the Broadband Aggregation
  Programme, given the commitment in principle to
  the programme by the NHS and DFES as the two key
  customers
• Alun Michael (Rural Affairs Minister) BAP
  offers real opportunities for extending broadband
  availability in rural areas and opening up
  opportunity to rural communities.  The Government
  is determined that the public sector's buying
  power will be used to further its aim that every
  community in the UK, irrespective of location,
  should have the opportunity to gain access to
  affordable broadband from a competitive market.

Source Minutes of the Broadband Aggregation
Project Ministerial Steering Group on July 21st,
2003 RDA Support Letter (SEEDA) issued on July
30th, 2003 Press Notice announcing RAB creation,
from Minister Stephen Timms Office. Issued on
July 31st, 2003
4
How can public sector aggregation lead to
increased broadband availability?

• Current broadband availability
• Current statistics for broadband availability in
  the UK published by OFTEL show that 66 of
  consumers and business have access to ADSL at a
  minimum speed of 256kb
• However, these statistics focus on domestic and
  consumer market who are the typical ADSL users,
  not on the business community that requires a
  wider range of broadband services
• Drivers of broadband availability
• In order to deliver wider broadband services,
  infrastructure providers need to upgrade the
  capacity on their core infrastructure to cover
  new communities
• The main cost component to upgrade the networks
  are civil works to lay new cable into the new
  communities
• The business case for justifying these costs can
  only be developed if there is certainty on the
  level of revenues that the supplier will achieve
  from serving the new communities
• The impact of public sector demand
• Public sector organisations such as DfES, NHS and
  Local Government, have significant presence in
  sub-urban and rural communities
• If individual departments procure their own
  broadband demand independently, they may not be
  able to justify the upgrade of the core
  infrastructure and telcos may chose to develop
  one-off solutions for specific sites
• If demand is aggregated across these large
  departments and taken to telcos at the same time,
  the telcos would have certainty of a large demand
  that could justify upgrading the core
  infrastructure
• The RABs will ensure through its procurement that
  telcos install sufficient capacity to serve to
  the private sector

5
RAB Logical Integration Map
Customers

• Role Champion the Value for Money agenda
• Agenda Foster maximum cost reductions and
  quality of service

Other National Customers
Other Regional Customers
Regional Stakeholders
Government
National Health Services
Department of Education and Skills
Local Authorities
Regional Broadband Consortium
Project Lead

• Role Provide local stakeholder networks and
  expertise
• Agenda Integrate aggregation model into own
  operating model

• Role Initially drive design and implementation
  of regional aggregation bodies
• Agenda Ensure national success of project

Regional AggregationBodies
Metropolitan Area Networks
Department of Trade and Industry
Regional Development Agencies
Office of Government Commerce
Supplier B
Supplier A
Supplier C

• Role Provide seed capital for regional
  aggregation bodies
• Agenda Promote availability at minimal cost

• Role Provide guidelines and expertise for
  procurement processes
• Agenda Ensure fairness of procurement activities

Suppliers

• Role Develop infrastructure
• Agenda Work with government to devise viable
  financial and technical solution

6
RAB will play three roles RAB the Aggregator,
Solution developer and Procurement vehicle
RAB Role
Aggregates Public Sector Demand
Role 1 RAB the Aggregator
Public Sector Customer A
Public Sector Customer B
Public Sector Customer C
Ensures best technical solution and provides best
broadband procurement solution
Role 2 Solution Developer
Suppliers
Customers
Role 3 RAB the Procurer
Procures broadband for public sector customers
7
RAB strategic objectives

• The aim of the RABs is to provide a mechanism for
  aggregating and procuring public service
  broadband demand with two key objectives
• Increasing value for money for public service
  spend on procurement of broadband through demand
• Increasing broadband availability for the public
  and private sectors by aggregating demand
• When choosing solutions and telecommunications
  providers, the RABs will base their decision
  firstly on.
• Value for money combination of whole life cost
  and quality to meet user requirement
• Maximisation of broadband availability
•  This definition has been jointly developed and
  agreed by the BAP and Her Majestys Treasury
•  In achieving these objectives RABs will be
  required to
• Comply with European and UK legal frameworks
  including state aids rules, telecommunications
  regulations and competition law
• Comply with other UK government regulations,
  including government accounting rules
• Remain transparent in practice and choice of
  suppliers

8
RAB will aggregate public sector demand to move
availability from current 68 to 94
East Midlands Example

• Impact of Public Sector Aggregation on
  Availability

X
Number of Exchanges
Public Sector Role
Minor Role for Public Sector aggregation
100
98
94
100
Other
83
Private and public sector demand aggregation
Public sector demand aggregation
Public sector demand aggregation
76
Public sector demand aggregation
68
Impact on Broadband Availability, of Households
31
34
128
101
5
34 mbps
21 33 mbps
5 20 mbps
0 4 mbps
NA
Aggregated Public Sector Demand by Bandwidth Group
- Detailed data not available/cannot be
reconciled Source A.T. Kearney analysis,
Marconi database
9
RAB playing a role in ICT within London..
10
Close working with LDA and agencies.

• Coherent and close working relationship between
  the new Regional Aggregation Body for Broadband
  (an organisation to be fundamentally concerned
  with basic infrastructure provision) and
  LondonConnects, whose role is to develop the
  systems and public sector services that will make
  use of such infrastructure.

11
For the project to work, anchor customers were
needed to provide the initial purchasing power
necessary to negotiate significant discounts and
ensure pull through

• The 2002 Spending Review allocated 1 billion of
  new money to departments to spend on broadband
  infrastructure.
• Among the largest recipients of this were
• The Department for Education and Skills (DfES)
  to provide broadband to schools 8MBps for
  secondary and 2Mbps for primary
• The NHS to provide broadband to all hospitals
  and GP surgeries
•  DfES had always seen aggregation as a way of
  achieving their aim
• Regional Broadband Consortia have been set up to
  aggregate the requirements of LEAs
• Frequently including the requirements of other
  parts of local government in their procurements
• The NHS, with its New NHS Network (N3) is seen
  as an essential customer
• The NHS has agreed to sign-up to the Project for
  connectivity ongoing discussions and initial
  procurement requirements expected Friday 27th
  February
• Other public sector bodies, particularly local
  authorities, encouraged to become customers as
  soon as possible

12
Delivery of the N3 service and applications
involves multiple stakeholders across all levels
and requires highly co-ordinated interfaces
Value chain for N3 delivery
Contact Lines
Overview of N3 Delivery
DoH

• The N3 Program is the overall unit in charge of
  delivering the service and applications
• The N3SP acts as the national infrastructure
  service provider to deliver the N3 applications
• The NAB serves as the single point of contact for
  the N3SP regarding matters of connectivity
  procurement
• The LSPs deliver the regional hardware, software
  and support required to run the 3 national
  applications
• The N3 Program is funded centrally through the
  NHS, however, the N3SP will still need to sell
  the concept into the 28 CIOs of the SHAs across
  the country
• A management committee in involving the Regional
  Implementation Director, LSP, N3SP and N3 Program
  is in place to avoid any conflicts of interest

AD
NHS
National
NHSIA
Committee
N3 Prog (1)
RID, LSP, N3SP, N3 Prog
LSP (5)
NASP (3)
RID(1)
N3SP (1)
NAB (1)
RAB (9)
Regional
Telco (n)
PD
TD
CEO
Source Interviews with N3, NAB, RAB, A.T. Kearney
(1) Acronyms RIDRegional Implementation
Director PDProcurement Director TDTechnical
Director ADAccount Director
13
We have been invited to interface with the NHS by
sitting on 3 working boards, which increases our
exposure to the N3 Management Board
Overview of working board structure within N3
Management Board
National Service / Project Boards
Suggested Approach

• Access to the working groups will provide the
  RABs/NAB improved exposure to the N3 Management
  Board
• It is currently suggested that the RABs take a
  seat on the development and service work groups
  and the NAB sits on the contract workgroup
• The NAB will also interface with the N3
  management board

NAB
N3 Management Board

Working Boards
Development
Service
Contract
RAB
RAB
NAB
Source N3, NAB
14
London expected procurement bundles
Timing of circuit procurement (London)
Other regional
Public a
20
50
30
20
30
40
30
30
Public b
60
20
Public c
10
5
15
25
Public d
10
20
20
40
50
Public e
50
40
50
80
Local Education
50
600
332
6
5
2
2
17
NHS
18
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
Source Interviews with CEOs, Account Directors
15
My request to Socitm London..

• Allow us to engage in dialogue with you-we are on
  your side!
• Respond to request relating to Broadband
  usage/forecast requirements per Rays mail (10th
  February)
• London RAB will keep you up to date with
  developments in infrastructure/new build
  opportunities as investment decisions are made by
  providers
• Let us work with your teams

16
Q A
17
LGfL RAB ORGANISATIONAL STRUCTURE
LGfL
RAB
Member LEAs
LGfL Trust
RAB Board
Executive Board
RAB LLP
RAB Members
CEO Brian Durrant
PA Julia Rolph
ICTis Project Manager Keith Holder
Content Manager David Mason
Development Manager Tim Stirrup
On Line, On Track Project Manager Edwina Dunn
Operations Manager Ian Lehmann
Account Director Graham Dupree
Finance Director (0.4) Sunil Amar
Procurement Director Gordon Ballantyne
Technical Director (0.4) (Tripleplay Pool)
Intelligent Data Analyst TBA
Project Officers and reference group
Project Officers and Project Board
Technical Manager Stewart Duncan
Finance Manager Shamaila Ahmedi
Editorial Board
Regional Advisory Group
Technical Steering Group
Receptionist/ Secretarial Support Ann-Marie
OBrien
Four Sector Groups LEA ICT Managers/Officers