Broadband Aggregation Project

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Broadband Aggregation Project
Yorkshire and Humber Increasing the availability
of technology neutral broadband access
October 2003
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Table of Contents

• Introduction to the Broadband Aggregation Project
• The Benefits of Regional Aggregation
• The process going forward

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Introduction to the Broadband Aggregation Project
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To meet the eEurope 2005 mandate, the UK
government has set an aggressive target of
increasing broadband availability by 28 in three
years
Broadband Availability Current vs. Target
95.0
67.0
Current Availability (2002)
Target Availability
(2005)
Source UKI Online The Broadband Future DTI
(February 2001) eEurope Benchmarking Report
Commission of the European Communities (June-July
2002)
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In the UK, market pressures alone will not
provide the range of network capabilities and
broadband pervasiveness required - especially in
rural areas - leading to the need for Government
intervention
Expected UK Broadband Availability Without
Intervention 2005
BTs Broadband - Not For 20 Years! BTs chairman
told the parliamentary select committee for
Culture, Media and Sport on Tuesday that rural
areas could be forced to wait between 10 and 20
years before they are offered high-speed Internet
services, unless the UK government makes a
significant financial contribution. Sir
Christopher Bland insisted that it simply is not
economically viable for BT to roll out ADSL to
parts of Britain that are sparsely populated --
both today and in the next few years.
Barriers to Nationwide deployment Low Economies
of Density High Equipment and Infrastructure
Cost Current Risk-Averse Financial Climate
Source UKI Online The Broadband Future DTI
(February 2001) Broadband in Rural Areas
Broadband Stakeholder Group Submission to EFRA
Committee (2003) Source Rural Areas Face
20-year Wait for Broadband ZDNet UK February 2002
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The Broadband Aggregation Programme (BAP) Vision
Mission was formulated to ensure delivery of
increased availability and value for money for
the public sector in the UK
Vision

• To create an intelligent client procurement
  organisation, which brings various government
  departments together in executing broadband
  strategy and getting benefits of value for money

Mission
Facilitate achievement of the government target
to make the UK the most extensive and competitive
broadband market in G7 by 2005
Ensure value for money for individual government
departments expressed as the optimum combination
of whole-life cost and quality (or fitness for
purpose) to meet the users requirements
Enable the extension of broadband networks to
increase the availability to the public sector,
and to the wider community (as a result of public
sector aggregation)
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The Broadband Aggregation Project has the highest
levels of support within Central Government and
is the only major project in the UK tasked with
increasing Broadband availability and securing
better value for money

• The government is committed to a vigorous
  programme of modernisation of public services and
  the development of the national broadband
  infrastructure
• The Prime Minister has made a commitment to
  ensure that the UK has the most competitive and
  extensive broadband service in the G7
• Broadband Aggregation Project is a new
  Government programme aimed at securing better
  value for money for public sector broadband
  customers and at leveraging public expenditure on
  broadband in order to achieve greater
  availability of this service for the citizen and
  Small and Medium sized Enterprises (SME's)
  whether they live or are based in urban or rural
  areas

Minister for Energy, e-commerce and postal
services
Parliamentary Under Secretary of State
24 September, 2003
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UK government broadband approach is an indirect
strategy which will aim to aggregate public
sector demand for broadband connectivity
regionally, and uses this as a force to drive
increases in availability
Overview of UK Government Approach
e-Government Targets Migrating Public Sector to
Broadband Platform
Aggregation of Public-Sector Broadband Demand
IntelligentProcurement
Extent of UK Government Approach
Key Aspects of Approach

• E-government agenda is a driver of uptake in
  public sector and fosters citizen and business
  uptake
• Creates instant demand for broadband
  infrastructure nation-wide

• Aggregation of demand allows for broadband price
  reductions/increase in service value, acting as
  an added incentive for Government Bodies to join
  scheme and move to broadband

• Leverage of bargaining power to shift the burden
  of national infrastructure upgrade to
  telecommunications companies and influence
  broadband deployment
• Widespread access to modern broadband
  infrastructure facilitates universal uptake

Source A.T. Kearney
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The government aims to achieve its objectives
through 9 Regional Aggregation Bodies (RABs)
supported by a National Aggregation Body (NAB)
reporting through a Central Policy Unit (CPU) to
Government

• Broadband policy
• Performance review
• Issue escalation

Ministerial Board

• Strategy development
• Regional procurement
• Customer and supplier management

Central Policy Unit
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
NAB

• National procurement
• Operational consistency
• National reporting
• Shared services

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The regional aggregation bodies have 3 main roles
as the Intelligent Client Aggregator, Solution
Developer, and Procurer

• Aggregate public service broadband demand
• Work with public service bodies to coordinate
  demand aggregation
• Manage relationships with key stakeholders

Aggregator

• Organise demand such that there is a maximisation
  of value for money and availability
• Use in-house expertise for network design and
  operations to select solutions that maximise both
  RAB objectives

RAB (Intelligent Client)
Network Solution Developer

• Execute procurement process for tenders using
  several ways to market-mainly the OGC framework
  contracts
• Manage relationships with suppliers
• Monitor SLA performance and compliance

Procurer
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The RABs will have a broad spectrum of
relationships
Customers
Other National Customers
Other Regional Customers
National Health Services
Department of Education and Skills
Local Authorities
Other Govt. Departments
Regional Broadband Consortium
Regional Stakeholders
Regional AggregationBodies
Policy Lead
Metropolitan Area Networks
Department of Trade and Industry
Regional Development Agencies
Office of Government Commerce
Supplier B
Supplier A
Supplier C
Suppliers
SourceA.T. Kearney
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The Benefits of Regional Aggregation
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Regional focus on aggregation is the best model
to deliver both value for money and availability

• Connectivity is best sourced on a regional basis
• Allows more active participation of smaller
  players and alternative technologies
• Increasing availability requires intimate
  knowledge of local issues
• Major customers are either regional organisations
  or procure their broadband at the regional level
• Regional Customers Local Authorities
• Education Broadband through Regional Broadband
  Consortia (RBCs)
• Health A national integrator, but rolled out
  regionally
• Capturing demand requires strong local
  relationships
• Understand customer requirements and demand at
  the local levels
• Enlist additional local demand because they have
  the local relationships
• Efficiently match potential demand and broadband
  supply
• Political imperative to increase availability is
  organised regionally
• Regional Development Agencies (RDA's)

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An in-depth study of the East Midlands regions
indicated that the aggregation of public sector
demand can increase availability from 68 today
to 94
Minor Role for Public Sector aggregation
Source A.T. Kearney analysis, Marconi database
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What is Aggregation on the ground?
School
Health Centre
Community Centre
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What is Aggregation on the ground?
School

• Not necessarily ADSL
• The backhaul is delivered
• Broadband availability
• More business for telcos
• Reduced costs

Health Centre
Community Centre
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Although the RABs are not yet operational, an
example from Tees Valley illustrates a simple
example of the benefits of local aggregation that
a RAB will provide
In progress
Tees Valley Example
Situation
Strategy/Tactics
Results

• Tees Valley County Council and local Health
  Services separately wanted additional capacity
  for their IT plans
• Existing infrastructure needed upgrades to
  provide the desired capacity
• Initial offers from BT were expensive, beyond
  budgetary limits of the LA and Hospital
• No competitive threat

• Shared cost calculated to be affordable
• CC and Hospital seeking to use the RAB to execute
  aggregation approach ASAP

• Cooperation between the County Council and Health
  Services
• Aggregate commitment
• Approach supply base with aggregated demand

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The Process Going Forward
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The process going forwards is dependent on
understanding and gathering regional requirements
for broadband connectivity
Process Next Steps
Operational Phase
Aggregated Demand Procurement
Identify and Liase with Key Regional
Stakeholders
Gather Demand Data for Aggregation
Develop Procurement Strategy

• Understand supplier dynamics
• Develop and agree aggregating demand into
  lots/bundles across public sector

• Start dialogue with key stakeholders in each
  region, e.g. working with RBCs
• Develop understanding of regional situation and
  issues

• Gather information on existing networks and
  contracts
• Demand profile
• Marconi Data
• Regional plans
• Gather supplier intelligence

Source A.T. Kearney
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The current Telco Ltd contract covers a full
connectivity service offering to a Regional
Broadband Consortium (RBC) of LEAs
Contract

• Backhaul
• 155 mbs
• 24x7 Managed Service
• Full backup and recovery service
• Free server hosting
• N2H2 educational filtering licenses for all
  users
• Internet Transit

• Checkpoint Firewall
• 24x7 managed service
• Rule requests
• Maintenance

• Metro VPN
• Individual sites
• 2, 8, 34mbs

• LA and LES Circuits
• 100 mbs connection of LEAs to firewalls
• Range of LES at 2, 10 and 100 mbs for individual
  sites

• Content, Web Space Applications
• BECTa spec cache with 120 gb storage
• Local filtering
• Remote e-mail
• Storage for teachers and pupils

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The RAB would like to take on connectivity
procurement and billing while other service
offerings are likely to be catered for directly
by the RBC
Contract

• Backhaul
• 155 mbs
• 24x7 Managed Service
• Full backup and recovery service
• Free server hosting
• N2H2 educational filtering licenses for all
  users
• Internet Transit

• Checkpoint Firewall
• 24x7 managed service
• Rule requests
• Maintenance

• Metro VPN
• Individual sites
• 2, 8, 34mbs

• LA and LES Circuits
• 100 mbs connection of LEAs to firewalls
• Range of LES at 2, 10 and 100 mbs for individual
  sites

• Content, Web Space Applications
• BECTa spec cache with 120 gb storage
• Local filtering
• Remote e-mail
• Storage for teachers and pupils

Taken on by the RAB
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Using the customer and exchange data obtained
through this process, the RAB team is more able
to develop attractive market baskets that could
attract positive ROI for infrastructure providers
ILLUSTRATIVE
Preparing a bundle that has high and low demand
areas together provides incentives to increase
availability
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The YH RAB CEO will be in place before the end
of October 03. Please contact us if you have
any queries regarding broadband aggregation or
would like to engage in further direct discussion
with the RAB CEO

• YH Regional Aggregation Body Interim Contact
• Joe Dewhurst
• Email joe.dewhurst_at_atkearney.com
• Ph 0796 716 8129