Funding Models

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Funding Models public/privateconundrum

• Annette Murphy, Sales Business Development
  Director

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Introduction

• 530M of public funds by 2015
• requires private sector investment to complete
  the task
• Two Forms
• Inorganic Investment public/private
  collaboration to fund initial roll outs and run
  ventures
• Organic Investment the right levels of
  public/private intervention to drive additional
  organic Private Sector Investment

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Hurdles to be overcome

• Inorganic Public/Private Intervention
• Different views of market attractiveness
• Different planning horizons
• Different business objectives
  vertical/horizontal integration
• Organic Private Sector Investment
• Remove barriers to entry sufficient to attract
  ongoing private sector investment

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• Critical to successful funding models are
• Taking a long term view of investment
• Establishing risk/reward profiles that recognise
  different drivers
• Get the business model right horizontal
  separation of wholesale and retail
• Understand your barriers to entry

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Fibrespeed Removing the barriers to private
investment

• Geo won a tender to build and operate a 270km
  open access network from Manchester to Anglesey
• Funded jointly by European Regional Development
  Fund, WAG Geo
• Initial cost 30m over 15 years
• Build completed in 15 months now live
• An essential infrastructure for new broadband
  services

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FibreSpeedThe Business Model

• Brings infrastructure competition to
• North Wales
• Pricing benchmarked to SE England
• Sells exclusively to service providers
• who engage the retail market
• Open access
• Includes passive network
• components
• Ideal model for FTTH development by
• the public sector
• Consistent with state aid regulations

End-User
End-User
End-User
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FibreSpeed Driving organic private sector
investment in Wales

• VDSL 2 solution offered to Welsh Rural Village
  of Erbistock
• Microwave link to FibreSpeed and then FTTC
  solution
• Utilises BT sub-loop unbundling product
• Providing up to 40Mbps downlink
• 100 Mbps Backhaul from FibreSpeed
• Privately Funded Roll Out

• Next generation WiFi, WiMAX, Point to Point
  carrier class infrastructure
• High speed broadband service to rural areas
• Access to an existing cost effective backhaul
• solution was crucial to the business case
• Highly repeatable model
• Privately Funded Roll Out

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Geo solution
Thank You