Lancashire Local Broadband Plan

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Feb 21, 2014 (3 years and 3 months ago)

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BDUK Broadband Delivery Project



Lancashire Local Broadband Plan

FINAL VERSION DATED 30
th

NOVEMBER 2011

Vision:


The widespread take
-
up and use of superfast
broadband by all, to enable social and economic
prosperi
ty
























































Applicant Information


Project name:


Lancashire Superfast broadband


Lead organisation


Lancashire County Council

PO Box 78

County Hall

Fishergate

Preston

Lancashire

PR1 8XJ


Lead contact details and position held:


Eddie Sutton

Assistant Chief Exec
utive


Contact telephone number:


01772 535171


Email address:


eddie.sutton@lancashire.gov.uk


Postal address


Eddie Sutton

Lancashire County Council

PO Box 78

County Hall

Fishergate

Preston

Lancashire

PR1 8XJ


If the bid is a joint proposal, please ent
er the names of all participating bodies
and specify the coordinating authority:




Lancashire County Council (coordinating authority)



Blackpool Council



Blackburn with Darwen Council


Start date of project:


30
th

January 2012


End date of project:


30
th

Jul
y 2014 to 30
th

January 2015

Contents



SECTION A


PROJECT OVERVIEW


A1.

Vision and strategic context

A2.

Background

A3.

Local Broadband Context Evidence of Need / Gap Analysis

A4.

Scope of Project


SECTION B


CUSTOMER AND COMMUNITY ENGAGEMENT


B1.

Demand stimulation

B2.

Demand registration

B3.

Stakeholders


SECTION C


FINANCIAL INFORMATION


C1.

Funding Requirements

C2.

Funding Structure


SECTION D


COMMERCIAL INFORMATION


D1
.

Commercial Case

D2.

Market engagement

D3.

Procurement Strategy


SECTION E


DELIVERABILITY


E1.

Project management, resourcing and funding

E2.

Timetable

E3.

Expected Strategic Benefits

E4.

Risk management


Chief Executive sign off


Annexes'
Foreword

For

Lancashire, superfast broadband represents a truly unique opportunity to rebalance the
inequalities evident within Lancashire's socio
-
economic make up. Superfast broadband is
one of the key building blocks in the recovery and growth of our economy.


Lanca
shire wants to be at the forefront of achieving Britain's Superfast broadband vision of
having 'the best superfast broadband network in Europe by 2015'. We believe Lancashire
is in a prime position to be a significant contributor towards achieving this vi
sion through the
wide spread take up and use of superfast broadband across Lancashire.


Importantly, this Local Broadband Plan gives us the opportunity to prevent a "digital divide"
emerging in Lancashire. Our rural and hard to reach areas will not be lef
t behind. Where
you choose to live and work in Lancashire should not be determined by the quality of the
available broadband.


BDUK funding in the region of £10.8 million will enable more than 222,000 premises to be
provided with superfast broadband. Thi
s represents an average contribution of BDUK
funding of less than £60 per premises providing an average of 50Mbps. In addition, the
aggregation of this funding with both European and other potential public sector funding
and private sector investment will

result in ubiquitous superfast broadband for the whole of
Lancashire with the associated wider economic and social benefits that this entails.


Use will be the key word for measuring success in Lancashire. The provision of a
ubiquitous high speed broadba
nd network will be the catalyst to enabling our citizens,
businesses and public sector partners to adopt new ways of working and new ways of
thinking. This will be underpinned by innovative applications, content and services
supported by a fully developed

and funded strategy continually driving demand stimulation
activities.


Economic development, social inclusion, the rebalancing of health inequalities, the
reduction of detrimental climate change factors and the progression of shared services
across the p
ublic sector are all prizes that will be secured through the efficient and effective
use of superfast broadband in Lancashire.


Working in partnership, our three Councils will ensure ubiquity in infrastructure roll out and
the removal of informational asym
metries, and other market failures, that are preventing the
high levels of take we wish to see for all Lancashire residents. The production of this Local
Broadband Plan is a first and significant step in the right direction that will see the first new
cus
tomers in the final quarter of this financial year.


As the Chief Executives of Blackburn with Darwen Council, Blackpool Council and
Lancashire County Council, we are personally committed to ensuring that Lancashire
secures the best possible superfast broa
dband network it can, and that this network is
exploited to the fullest to benefit the people of Lancashire.



Phil Halsall






Steve Weaver

Chief Executive Lancashire County Council

Chief Executive Blackpool Council


Graham Burgess

Chief Executive B
lackburn with Darwen Borough Council
1


SECTION A


PROJECT OVERVIEW
2



A1.

Vision and strategic context


Vision


In keeping with the
NW superfast broadband Strategic Framework
1
, the overall vision for
superfast broadband in Lancashire is '
The widespread take
-
up and use of superfast
broadband by all, to enable economic and social prosperity'.


Achievement of this vision will lead to the numerous economic and transformational
benefits that are associated with superfast broadband. This will put Lancashire in th
e
strongest possible position to exploit the full benefits that superfast broadband brings.


Our vision is supported by the following four strategic objectives:


1.

Universal availability of superfast broadband;

2.

Range of competitive suppliers;

3.

Networks that

can sustain world
-
class applications; and

4.

Promotion of innovative services and applications.


This vision and its interdependency with the above four strategic objectives is highlighted in
Figure one.




Figure on
e


The concept is simple and straightfor
ward. We intend to transform the economic landscape
of Lancashire through the provision of 100% broadband coverage predominately through a
fibre rich solution: fibre to the cabinet and fibre to the premises.




1


http://www.nwda.co.uk/docs/Making%20NG
A%20a%20reality%20in%20the%20North%20West%20
-
%20Final%20Strategic%20Frameworkfeb2011.doc

3


We have the full support of a wide range of st
akeholders across Lancashire including all
sixteen MP's in the County
2
, Lancashire's three Chambers of Commerce, the Federation of
Small Businesses and intelligence gathered from open forum consultations with various
residential market groupings across Lan
cashire. Alongside Lancashire's recent submission
for an Enterprise Zone, the Lancashire Superfast Broadband Programme has been has
been agreed by the Lancashire Enterprise Partnership (LEP) as the most important activity
that can help stimulate the Lanca
shire economy over the next 2


3 years.


The £10.8m BDUK Funding identified in this Local Broadband Plan forms an integral part of
a wider £63.5m superfast broadband rollout programme in Lancashire ("The Lancashire
Superfast broadband Programme"). The s
trategic aims of this programme are completely
consistent with BDUK's minimum expectations of not less than 90%coverage of superfast
broadband coverage. Linked to this, responses to our competitive dialogue process have
confirmed industry is willing to de
liver the following metrics in Lancashire:



Guaranteeing that 85% of businesses in Lancashire will receive speeds in excess of
50Mbps;



Guaranteeing that 85% of residents in Lancashire will receive speeds in excess of
50Mbps;



Guaranteeing a minimum 2Mbps and

access to a range of alternative /innovative
access technologies to the" final 10%";



Ensuring that over the lifetime of the Lancashire Superfast broadband Programme
all premises receive superfast broadband; and



From Day One (and maintain throughout th
e duration of the Lancashire Superfast
Broadband Programme) put in place a series of measures to drive the wide scale
take up of superfast broadband. This will include a dedicated support team of
business and community advisers with a strong focus on prom
oting adoption and
use in the business sector. Further details on how this will be funded are outlined in

Section B Customer and Community Engagement
.


Lancashire specific priorities (corporate plans and economic drivers) have identified that by
addressin
g economic growth principles, the underlying social issues in Lancashire will be
addressed by the spill over benefits that are associated with strong economic performance.
The largest measure of public sector funding available in Lancashire to support the
widespread roll out of superfast broadband is European Regional Development Funds
(ERDF) which is business focused.


However this will not be to the detriment of delivering the highest levels of connectivity to
citizens as adoption by citizens (or consum
ers in an economic sense) form an integral part
of the fabric of a strong economy. Furthermore, the difference between a home and a
place of work is becoming increasingly blurred and Lancashire has a desire to embrace
home working principles (both working

from home and working at home) on a large scale in
the public and private sectors.





2


Blackburn (Jack Straw Labour MP), Blackpool North and Cleevleys (Paul Maynard Conservative MP), Blackpool South
(Gordon Marsden Labour MP), Burnley (Gordon Birtwist
le Liberal Democrat), Chorley (Lindsay Hoyle Labour MP), Fylde (Mark
Menzies Conservative MP), Hyndburn (Graham Jones Labour MP), Lancaster and Fleetwood (Eric Ollerenshaw Conservative
MP), Morecambe and Lunesdale (David Morris Conservative MP), Pendle (An
drew Stephenson Conservative MP), Preston (Mark
Hendrick Labour MP), Ribble Valley (Nigel Evans Conservative MP), Rossendale and Darwen (Jake Berry Conservative MP),
South Ribble (Lorraine Fullbrook Conservative MP), West Lancashire (Rosie Cooper Labour MP
), Wyre and Preston North CC
(Ben Wallace Conservative MP)

4


The outcomes sought from Lancashire's Superfast Broadband Programme fall into two
distinct areas:

Economic Performance
: By providing businesses and business areas in Lanc
ashire with a
fibre rich broadband solution we expect to see the following outcomes:



Significantly higher levels of foreign direct investment (FDI) attracted to Lancashire
(See
Annexe one

for current FDI levels);



Increased levels of new jobs created in Lan
cashire;



Improved R&D collaboration between businesses and institutions, including
academia;



Increased levels of new businesses formed in Lancashire;



Measurable reductions in overheads experienced by businesses operating in
Lancashire;



Measurable increases

in productivity for businesses operating in Lancashire;



Enhanced survival rates for newly formed businesses starting up in Lancashire;



Easier, more attainable access to new markets for businesses operating in
Lancashire; and



Easier achievement of enacting

greener practices including flexible travel plans
(remote / home working) that impact positively on triple bottom line measures.


Social Equity
: By ensuring 100% broadband coverage in Lancashire providing all citizens
in Lancashire with access to superfas
t broadband, we expect to see the following
outcomes:



Enhanced job, social and other opportunities for all residents including direct
employment opportunities resulting from the spill over benefits from the higher levels
of economic performance associated
with providing superfast broadband to business
markets;



Over time, a significant reduction in the cost of delivering services (including health,
housing and other non
-
descript advice services) to citizens;



Enhanced participation in the democratic process b
y providing open information and
a platform for discussion;



Reduction in the challenges associated with low population density in terms of
delivering efficient, cost effective services;



More efficient/ increased access to public services such as healthcare

and
education;



Bundled services (voice, video, data) at lower prices; and



Greater sense of inclusion and self worth for the most disadvantaged members of
society.


Post the rollout out of the Lancashire Superfast Broadband Programme, Lancashire
businesse
s will be able to benefit from improved superfast broadband connectivity which
will have the primary outcome of significantly increasing the economic performance of the
County which will have the multiplier effect of enhancing the social prosperity of
Lanc
ashire's citizens. This will be achieved through better job opportunities as a result of
greater economic performance in the County, the protection and advancement of front line
services though enhanced tax receipts as a result of higher business profits
and a cross
transferable skill set brought about by the up skilling that will need to be put in place to
support the economic up turn that is to be expected from superfast broadband provision.


Linked to this, it is envisaged that public services will be

provided with greater value for
money. Whomever Lancashire County Council appoints to work with it in partnership to
5


deliver the Lancashire Superfast Broadband Programme (i.e. the chosen industry partner
selected through the OJEU process) will be able to

achieve a return on their investment.
This latter point is a key principle to the long term sustainability of our approach.


Under our proposals, we are seeking to develop a partnership which addresses significantly
more than the initial infrastructure
rollout, which we expect to be completed within three
years from commencement. We intend to form a long term partnership with an industry
partner (10 to 15 years). The partnership will be responsible for the long term strategic
direction of superfast broa
dband in Lancashire. Through this long term partnership
revenues generated above and beyond what is deemed as needed to provide the industry
partner with a reasonable return will be reinvested back into the programme to continue to
grow and develop the te
chnical solutions and promote demand stimulation as part of a
sustainable and future proof deployment.


Linked to our intention to drive forward economic growth through the wide scale deployment
of superfast broadband, the following business support prog
rammes that are already in
place in Lancashire have been identified as possessing the potential to contribute to the
success of the Lancashire Superfast Broadband Programme:


ISIS
(
http://www.i
nfolab21.lancs.ac.uk/business/isis/
)


ISIS aims to raise levels of ICT investment across the region by providing objective advice,
guidance and appropriate ICT solutions to SMEs (Small & Medium Enterprises) throughout
the Northwest, supporting business ch
anges to minimise cost and maximise the benefits
from ICT, both now and in the future.


ISIS is the first project of its kind in the UK and is delivered under the Transformational ICT
product, part of the previous Government’s Solutions for Business portfo
lio, a highly
targeted, publically funded suit of products and services offering solutions to real business
needs.


Lancaster University acts as a
technology translator
, providing impartial advice from ICT
specialists and transferring knowledge and underst
anding of ICT. ISIS seeks to help
businesses overcome barriers identified by Government in relation to ICT adoption and to
act as a significant demonstrator of the benefits ICT offers to small businesses. This is
achieved in a number of ways that have al
ready been tested through previous delivery and
has been proven to be highly successful. All of this is undertaken with the key objective of
taking businesses to a position where they are confident and able to invest in ICTs.


ISTEP
(
http://www.infolab21.lancs.ac.uk/business/istep/
)


ISTEP is a project designed to indentify and support interactions between the North West’s
Digital and Creative industries and InfoLab21’s Departments of Computi
ng and
Communication Systems, directly helping businesses to collaborate with the 270+ strong
research community at InfoLab21.


ISTEP is delivered under the “Innovation, Advice and Guidance” product, part of the
previous Government’s Solutions for Business

portfolio, a highly targeted, publically funded
suit of products and services offering solutions to real business needs.


LEAD
(
http://www.lums.lancs.ac.uk/departments/Entrep/Pro
jects/lead/
)


6


LEAD is a ten month programme which has been specifically designed by Lancaster
University Management School for owner
-
managers of small to medium sized businesses.
The programme concentrates on two areas of the business: the business itself

and the
personal development of the owner
-
manager, providing a framework to increase
profitability, diversify and grow the business.


To date, the LEAD programme has worked with over 200 companies and 90% of them
have seen an increase in sales turnover, e
mployment, productivity and profits. On average
LEAD participants increase their turnover by £200,000.


Rosebud
(
http://www.lancashire.gov.uk/corporate/lcdl/finance/index.asp
)


Rosebud Business Solutions is a unique offer to Lancashire business combining flexible
finance with customised support and advice. It is managed by Lancashire County
Developments Ltd, the County Council's economic development company. Rosebud
provides an

innovative two fold solution designed to help business grow with business
finance available from £2,000 to over £1 million and a comprehensive package of business
development services.


Rosebud funding is available to businesses located, or thinking of re
locating, to Lancashire
as part of our efforts to generate higher value businesses and jobs for the future economy.


Lancashire Innovation Network
(
http://www.burnley.gov.u
k/site/scripts/download_info.php?fileID=3847
)


This scheme helps Lancashire businesses through enhanced innovation and more effective
use of technology. A team of independent advisers work directly alongside businesses to
develop new ideas. This scheme
provides:



one
-
to
-
one advice and financial support;



access to experts within local universities and colleges;



business learning events; and



networking opportunities.


As well as these existing projects, to help illustrate the real benefits that superfast
b
roadband will bring to Lancashire,
Annexe eight

contains seven pen portraits that have
been commissioned. These pen portraits are of fictional people and companies in the
region, but are based on real
-
life examples of the impact of superfast broadband (wh
ich are
cited within the document) that are envisaged to take place in Lancashire as a result of the
BDUK investment.


Economic context

Lancashire has a population of almost 1.5million people, of which over 850,000 are of
working age. Within Lancashire th
ere are 45,730 PAYE/ VAT
-
registered businesses and
just short of 600,000 employee jobs. Over 80% of local residents live and work in
Lancashire. The economy is worth over £23.4bn
3

meaning that Lancashire is the second
largest economy in the North West an
d is a vital contributor to the success of UK PLC.
However, since the mid
-
1990s, whilst the Lancashire economy has grown consistently it
has done so at a slower rate than both the national and regional economy.
4

The main
reasons for this has been the lac
k of a high
-
value knowledge economy, by comparison to



3


Data for 2008 (Lancashire Profile
www.lancashire.gov.uk
)

4


In 1995 the Lancashire economy was worth 89% of the UK, in 2008 this was 79%.

7


other areas such as Manchester and Leeds, as well as entrenched and deepening
deprivation, in particular in Blackpool and parts of urban east Lancashire.


Sectorally Lancashire's strong track record an
d legacy is seen today through its
international prominence in the aerospace and defence industries. However this prowess
can also be seen in other forms of economic development including advanced
manufacturing, low carbon technologies, digital & creative

industries, business and
professional services and bio
-
medical functions.


Lancashire has a nationally significant role to play in energy generation through the nuclear
industry and has great potential in renewable technologies; in both nuclear and renewa
bles
the county's universities
5

have great strengths and Lancaster University is held up as a
telecommunications centre of excellence through its world renowned Infolab21 institute.


The challenge for Lancashire is to maximise these strengths and opportuni
ties to get the
most from them and a key enabler to achieving this is through the widespread take up and
use of superfast broadband. Lancashire County Council's Economic Strategy
6

is structured
around five strategic priorities which are critical to Lancas
hire's economic success:
-



Economic Growth, Knowledge and Innovation;



Spatial;



Skill and Employment;



Infrastructure; and



Partnership Development.


The ambition of the Economic Strategy is to deliver the following key outcomes over the
next 10 years:



New ec
onomic activity (GVA) valued at £3 billion, underpinned by private investment
plans worth around £4 billion;



The creation of nearly 40,000 new jobs, with more than 15,000 new jobs in higher
-
value
sectors;



A rate of GVA per head that matches or out
-
performs

the national average;



Employment gaps in our communities in greatest need reduces to the national average;
and



Improvements in the quality of our collective strategic leadership that enable Lancashire,
as a whole, to become recognised as a destination of

choice for businesses, investors,
visitors, students and residents alike.


Underpinning and enabling Lancashire's long term strategic direction is superfast
broadband. Without the accelerated deployment of superfast broadband, Lancashire will
be unable t
o meet the strategic priorities contained within its Economic Strategy and the
Lancashire economy will be far less competitive than the economies of its regional
neighbours. If this scenario was to become reality, Lancashire would get left behind.


Improv
ed connectivity will benefit a number of industries


especially those that are
information intensive


by improving links between businesses in Lancashire, and links from
Lancashire to companies in the UK and around the world. This will increase producti
vity,
stimulate activity in rural areas, and attract inward investment from UK
-
based and
international companies.




5


The Un
iversity of Central Lancashire and Lancaster University

6


http://www3.lancashire.gov.uk/council/meetings/displayFile.asp?FTYPE=A&FILEID=41399

8



The benefits of superfast broadband will be felt particularly strongly across information
-
intensive sectors prioritised in

Lancashire such
as Digital and Creative Industries,
Advanced Engineering and Manufacturing, Biochemicals and Business and Professional
Services, which regularly transfer large media files and require high levels of network
resilience and security. This will be of particu
lar significance to Lancashire’s desire to
attract increased levels of overseas investment.


The following nine points highlight how the Economic Strategy can be supported through
the deployment and adoption of superfast broadband:


1

Providing Lancashire’s
citizens with a host of new services and applications that
would assist in raising overall quality of life;

2

A strong economy for people in the region that offers better employment, education
and training opportunities;

3

Improved connectivity public sector p
artners, between businesses in Lancashire and
companies around the world;

4

Improved R&D collaboration with other firms and institutions;

5

Improve broadband networks by exploiting the public sector infrastructure already in
place;

6

Linking with broadband initi
atives; and developing new partnering arrangements with
private telcos to reduce rural not
-
spots

7

Work with regional partners to develop coherent superfast broadband proposals for
the North West;

8

Ensure economic growth priorities embed positive action on m
itigating the impacts of
climate change; create a carbon neutral economy; and

9

Need to make the region more attractive to private investors and high value
economic activities


The above strategic objectives of our Economic Strategy have been aligned with t
he aims
of the Lancashire Superfast Broadband Programme to outline how the strategic objectives
can be supported/ met by superfast broadband. This alignment is set out below:




Through an open, non
-
discriminatory and competitive process to select a private

sector partner who will, in partnership with Lancashire County Council develop and
deliver superfast broadband, and in doing so attract private sector investment to
build a superfast broadband network.
[Points 7 and 9]
;



Provide gap funding for attracting
and supplementing private sector investment in
areas that are currently perceived as commercially and technically challenging for
the roll out of superfast broadband.
[Points 6 and 9]
;



Ensure a network that provides the optimum achievable end to end servic
e levels
that support current and future applications and services, resilience, quality of
customer experience and affordability at the end user level.
[Points 1, and 2]
;



Provision of a network that delivers optimum coverage for the available investment
fu
nding, aiming for close to 100% coverage in Lancashire, including rural, remote
and sparsely populated areas.
[Points 1, 2, 5, 6, and 9]
;



Ensure the network is demonstrably sustainable and future proof in the long term
without recourse to further public fu
nding. [
Points 8 and 9
]



Provide a network open to all service and communications providers.
[Points 1, 3, 5,
6, and 9]
;

9




Invest in and drive demand stimulation and business support, to include developing
broadband and ICT skills and capabilities of the work
force in Lancashire; addressing
digital exclusion and promoting use of broadband and ICT in communities.
[Points
1, 2 and 6]
;



Provide a network that will support the delivery of innovative, future public sector
services.
[Points 1,2, 3 and 5]
;



Deployment m
ust take steps to reduce any impact on the environment and in doing
so maximise the positive impact of ICT on the environment and use of sustainable
energy. This will include reduction in car use and travel by commuters, businesses
and people accessing se
rvices; the more efficient use of workplaces and reducing
energy consumption.
[Point 8]
.



A copy of the Economic Strategy is attached at
Annexe 2.


Corporate context

Lancashire County Council's Corporate Strategy 2011/13
7

sets out the key priorities over
the next two years which are driven by the following simple but fundamental philosophy:


"Lancashire County Council exists for one purpose and one purpose only


to serve
the people of Lancashire".


The Corporate Strategy boils our priorities down into fo
ur themes: our citizens, our
communities, our county and our organisation and contains the following four high level
priorities:



Support
Citizens

to prosper economically and socially;



Strengthen the role of
Communities

and enhance the opportunities present
ed to
Lancashire through big society initiatives;



Promote the attractiveness of, and economic growth across the
County
; and



Empower people and partners with our
Organisation

to support the people of
Lancashire.


Superfast broadband will fundamentally assis
t in achieving these priorities.
For Lancashire,
superfast broadband is not "the latest fad". The promotion of the widespread take up and
use of superfast broadband by all in Lancashire is one of the most significant things we can
do to serve the people
of Lancashire.


Lancashire County Council's Cabinet has approved the vision for superfast broadband
across Lancashire. The County Council is acting as lead authority. Blackburn with Darwen
Council and Blackpool Council have agreed to participate to ensur
e a coordinated pan
Lancashire approach.


Transformation of Public Services

There are many definitions of service transformation, but two themes consistently reoccur
within Lancashire during discussions with our customers about how to make fundamental
impr
ovements to the public services that we deliver.


First, our customers tell us that public services in Lancashire are most effective when they
are delivered together with other public sector bodies, in an integrated fashion across all
aspects of the public

sector. Second, although our public services operate across
Lancashire, most are ‘consumed’ locally


in particular locations and within particular



7


http://www.lancashire.gov.uk/corporate/web/?siteid=5743&pageid=32175

10


communities. Each of these communities has their own demography and geography,
physical and social infrast
ructure and needs and preferences. The design of the services
needs to reflect this.


The provision of superfast broadband is vital to deliver numerous transformations within the
public sector as well as being essential in delivering future opportunities f
or the residents of
Lancashire. Transformation of public services will target three key groups:



The citizens of Lancashire



The communities of Lancashire



Lancashire as a county itself.


Delivery of ubiquitous superfast broadband will enable the transformat
ion of public services
by providing a low cost platform for public sector networks and connectivity available to all
our citizens will support innovation in the delivery of these services.


Agile Working.
Superfast broadband will enable changes in the way
people work in terms
of the flexibility they can have in a work location, in particular the growing trend across the
UK for people to" work at home", not just for the occasional day but permanently to work at
home. This shift in working practices has seve
ral potential benefits for any organisation
including easing recruitment problems especially for short or unsocial working hours;
increased efficiencies and less travel time; more environmentally friendly working practices
and assisting in developing a mor
e diverse workforce (e.g. older people, people with
disabilities or working restrictions).


As can be seen from the following table, the wide scale deployment of superfast broadband
is an essential component in all the electronic tools that any organisati
on needs to allow:




Working at Home’.



Working from Home’;



Smart Office;



Mobile working.



Workflow.


Document handling.


Case management.


Business Broadband at




Home.


Thin Client.



E
-
f
ax.



Business Continuity.


Second ‘data centre’.


Booking Systems.


E
-
printing solutions.



Voice over IP



Lone work.


Learning Management
System.



Rooms

on Line.



Manager Self Service.


Employee Self Service.


Encryption.



Appropriate Applications.


Mobile devices.



24 x 7 x 365 Contact Ce
ntre.



E
-
expenses.



E
-
communications.

Table 1

The benefits to public sector and private sector organisations embracing agile working are
not exclusivity environmental or social. There are real cost savings. If done

properly agile
working results in organisations:




Spending less on accommodation and all associated costs ( as they need less);



Spending less on transport.

11


In the public sector these savings are crucial. We classify them as back office savings; they
all
ow front line services to be maintained. Lancashire County Council is already on with
this work.

In anticipation of the commencement of the Lancashire Superfast Broadband Programme
we are developing a "technology roadmap" for the following three key servi
ce areas: Adult
and Community services; Children and Young Peoples services and Environmental (e.g.
highways) services. Each roadmap will include a fundamental "root and branch" review of
all applications and an identification of the needs and aspirations

of each service area. We
are adopting the same process for all our corporate platforms.


Our demand stimulation programme applies to the whole of Lancashire and not just are
white areas. Part of this approach is to enable our broadband partnership to a
ssist
businesses who already have broadband to get the maximum benefits and in doing so
identify any potential capital and revenue savings.


Telecare and Telehealth.
The joining up of NHS and social care services will offer
significant savings and the dupl
icate infrastructure could be removed to transform the way
services are delivered to the citizens of Lancashire e.g. an integrated approach to
Telehealth and Telecare.


There have been a number of health and social care pilots across the UK to assess the
p
otential impact of increasing patients’ ability to monitor their conditions and access
services from their homes. Telecare/telehealth initiatives range from social care systems
whereby patients’ movements are monitored remotely using alarms strategically
placed in
the home, to health systems using a range of devices to monitor and upload test results to
a central clinical team. These pilots have indicated that such systems are popular with
patients and clinicians alike, and are likely to deliver benefits
in reduced hospital
admissions and service users being able to remain in their own homes for longer.


Telehealth systems have recently been tested on a small scale in Lancashire, including the
use of self
-
monitoring systems for patients with heart diseas
e, long
-
term conditions or
COPD.


At the specialist end of the spectrum, telemedicine services have been developed through
the regional Cardiac and Stroke network to support clinical decision
-
making using high
-
quality images accessed remotely, including f
rom clinicians’ homes when on
-
call for
hospitals in other areas.


In order to deliver truly patient
-
centred care in the home, it is essential to understand why
the widespread pilot tele
-
service projects have not made the transition into mainstream
services
. The real key to successful telecare/ telehealth services is in the development of
efficient and effective support for patients and service users. Without robust 24/7 support
with appropriate access to patients’ homes when needed, tele
-
services cannot p
rovide
adequate care and replace traditional delivery methods. It can also be the case that health
and social care staff do not consider telecare/ telehealth services as their first choice to
support daily living, preferring traditional models of care wit
h which they are more familiar.


As well as equipment to monitor clinical indicators, some tele
-
services benefit from video
links allowing patients to see and talk to clinicians, providing support for the patients but
also meaning that clinicians can asses
s their patients’ well
-
being by observing them during
a consultation. These video links require broadband access in the home, which is not
widely available for patients with conditions considered to be most suitable for tele
-
services,
12


e.g. COPD, Heart Fai
lure. Currently, in the absence of superfast broadband in Lancashire,
the seemingly high set
-
up cost of broadband internet installation and access is seen to be a
barrier to adoption when added into the cost of the monitoring equipment and the
monitoring
service control centre. Furthermore, telehealth services currently suffer from a
time delay whilst equipment (including connection to broadband) is installed in patients’
homes, meaning that discharge from hospital may be delayed.


In addition to enabling

the development of new models of care, the presence of a
broadband connection offers potential for mobile professionals to complete a variety of
tasks whilst away from the workplace, eliminating time spent travelling between their work
base and clients’ p
remises. Ultimately, this can lead to much more efficient use of work
environments with considerable savings in estate costs through flexible working. To take
full advantage of the opportunities afforded by total broadband coverage, staff would be
able t
o use digital technology in a variety of ways, including managing care records in
people’s homes, or dictating letters and notes using handheld devices that would relay the
dictation back to base (and, using voice recognition software, even turn it directl
y into text in
the care record).


Traditional boundaries between care settings can also form less of a barrier by taking
advantage of the opportunities offered by tele
-
services. There are already a number of
GPs in Lancashire using electronic communicatio
ns and sharing records with patients, and
secure networks offer new ways to distribute clinical correspondence quickly and
effectively, meaning that all parties involved in caring for a patient are better informed and
therefore better able to provide appro
priate support. For those patients needing social and
health care, electronic communications and record
-
sharing ensure a multi
-
disciplinary
approach to supporting the person, not just a set of conditions.


The development of tele
-
services across Lancashir
e would enable patients and service
users to both self
-
care and be managed remotely by health and social care professionals.
The availability of broadband access anywhere would allow patients’ test results to be
uploaded to a central monitoring service, w
hilst professional staff on home visits could
access patients’ notes and input details from the contact episode into patient records.
Broadband access also allows video
-
conferencing systems to be used so that advice can
be sought from experts without thei
r having to be physically present. This enables
healthcare and social care staff to make holistic, informed judgements on a person’s
circumstances instead of depending purely on data from monitoring equipment.


On the 16
th

July, Health and social care pro
fessionals from across Lancashire joined with
technical experts to start developing a shared vision for the delivery of tele
-
services across
Lancashire and to work out how to turn this vision into reality. Building on initiatives already
in place the inte
ntion is to enable a range of innovative services to be delivered across
health and social care that focus on an individual’s needs whilst sharing costs and making
best use of available resources.



We are producing a Telecare Service Design for Lancashir
e County Council services. It is
being modelled on the UK's regulatory body, Telecare Services Authority referral to
response model. The purpose of this is to assist in allowing our service users to live safely
in their own homes despite having a range o
f conditions. It is recognised nationally that the
residential care is significantly more expensive in comparison with providing care in the
home.


13


In relation to social care more online services will be available with increased frequency and
accessibil
ity. These service improvements and changes will extend to all age groups: from
child, to working adults, to retired adults. For children and young people, we see the
potential for children services and education to be offered as a logical extension to t
he
classroom. Superfast broadband will offer live video and audio streaming of educational
content and increased interaction.


The rollout of superfast broadband across Lancashire will have a positive impact on the
environment and tourism. Increased conn
ectivity will assist in the management of road
networks, CCTV and traffic control through a consolidated high performance infrastructure.
Increasing efficiencies will be made through the provision of superfast broadband to rural
areas of Lancashire that p
reviously had no broadband. Public sector organisations will be
able to deliver solutions that cater for all, with an assumption that network connectivity is
available wherever you live in Lancashire. Today that is not the case and adds cost and
complicat
ions to all solutions and services that are offered. These are just out initial ideas
on how superfast broadband will assist in the transformation of what we do and how we do
it. We have many more creative ideas that include online libraries, local commu
nity help
hubs, increased monitoring safety services and delivery of public broadcast services.


What is clear is that public services will continue to evolve and superfast broadband will
ensure that Lancashire County Council and other public sector organi
sations can continue
to work more smartly and deliver the best value for money services to Lancashire's
residents and businesses.


Existing Broadband Initiatives

Previous investment in ADSL broadband in Lancashire was driven in the main through a
£4m inv
estment by the Northwest Regional Development Agency from 2005


2008 into the
establishment of the Lancashire Digital Development Agency. This three year investment
allowed for the enabling of all exchanges in Lancashire and saw awareness raising
initiat
ives drive ADSL take up rates.


There has been significant public sector investment, principally through the Department for
Education's Harnessing Technology Grant, in developing and operating a broadband
network serving schools in Cumbria and Lancashire.
Cumbria and Lancashire Education
Online (CLEO) is one of ten English Regional Broadband consortia and is made up of
Cumbria County Council and Lancashire County Council.


CLEO provides high quality broadband connections to all primary and secondary schools

across Cumbria and Lancashire, delivering a wide range of curriculum based projects and
services to support the use of broadband technology in the classroom. Lancashire County
Council owns the CLEO network. Lancashire County Council will ensure that the

CLEO
infrastructure is fully exploited, to the extent that the arrangements with third party providers
permit, in achieving the outcomes of this Local Broadband Plan. Cumbria and Lancashire
schools are connected at bandwidth targets of 10Mbps uncontended
for primary schools
and 100Mbps uncontended for secondary schools. A number of rural and hard to reach
communities have accessed CLEO to provide bandwidth to domestic and limited numbers
of commercial users, building the case for further exploiting this as
set in Cumbria and
Lancashire.


In relation to community based interventions, in the past various cases for the provision of
high speed broadband into deeply rural areas in Lancaster have been put forward; none of
which to date have attracted the support o
f funders. With the full agreement and co
14


operation of, the project sponsor, Lancaster City Council, the Lancaster rural communities
project has been selected to be at the vanguard project for rural deployment in Lancashire.


The priority of the Lancashir
e Superfast Broadband Programme is to offer businesses
within Lancashire access to, and support in utilising superfast broadband; offering speeds
in excess of 50Mbps as a minimum.


Within Lancashire, there are 45,730 businesses trading in the County. O
f this total, a
rationalisation exercise has prioritised 30,464 as being appropriate to receive revenue
support to encourage the adoption and exploitation of superfast broadband.


Further to this, 11,968 businesses have been deemed as a priority to recei
ve capital
investment to ensure that they can receive superfast broadband.


At a headline level, this rationalisation exercise utilised established ERDF prioritisation
measures to help remove lifestyle and other low / no growth potential industries.


The
re are a number of factors which will determine the prioritisation of businesses in
Lancashire:


1.

The physical location of the business determines the level of market failure. Work has
already been undertaken to map the market failure which is defined by b
lack, white or
grey geographical areas. The black areas illustrate where there are two or more
providers of superfast broadband, while grey illustrates where there is one and white
where there are none. All businesses within these areas are eligible for re
venue
support, and businesses within the white areas (facing the greatest market failure) are
also eligible for capital support;

2.


The European Commission's definition of SMEs , which is a business employing up to
250 employees and a turnover of less than
50 million Euros;

3.

Under Action Area 2.2 of the Northwest Operational Programme (NWOP), businesses
must operate in one of the six Higher Value Priority Sectors specified in the NWOP
(Biomedical, Energy and Environmental Technologies, Advanced Engineering an
d
Materials, Food and Drink, Digital and Creative and Business and Professional
Services) and/or be classified as a growth firm;

4.

Businesses classified ERDF eligible.

Using these four measures (alongside the additional measure of 'high growth', firms
measu
red as increasing growth of 5% or more per annum), the following two tables identify
the numbers of businesses who will be assisted within the Lancashire Superfast Broadband
Programme.

Table 2

Numbers of Businesses prioritised for Superfast Broadband (Rev
enue)


Number

%

Priority Sectors

15,479

51%

Other ERDF Eligible
Businesses*

14,985

49%

Total

30,464

100%

Source: ekosgen based on IDBR, 2010 and Analysis of FAME. *includes other
growth firms.


15


The total number of businesses in white areas in Lanc
ashire who will receive capital
investment to provide superfast broadband connections to them where they currently
cannot access:


Table 3

Numbers of Businesses prioritised for Superfast Broadband (Capital)


Number

%

Priority Sectors

5,997

50%

Other ERD
F Eligible
Businesses*

5,971

50%

Total

11,968

100%

Source: ekosgen based on IDBR, 2010 and Analysis of FAME. * includes
other growth firms.


In terms of coverage, initial responses to the Lancashire County Council's procurement
process have establish
ed that the Lancashire Superfast Broadband Programme will be able
to meet/ exceed BDUK's expectations of providing 90% of premises with superfast
broadband (measured at >24Mbps) and 10% of premises with a stable 2Mbps connection.
Coverage ambitions in Lan
cashire are to ensure that the whole of the County can access
superfast broadband and will not be confirmed until the competitive dialogue process has
been closed and best and final offers (BAFO) have been received. This is scheduled to
take place in Dece
mber 2011.


A secondary but equally important measure for the Lancashire Superfast Broadband
Programme is to provide high speed broadband to residential consumers. This ambition is
similar in scope to our business related priorities. All residential pre
mises who suffer from
market failure of capital provision (i.e. white areas) will be eligible for support.


Success will be measured by access to speeds in excess of 50Mbps for >90% of residential
consumers and the solutions offered to the remaining 10%
will be determined by the final
responses to our procurement process. Discussions taking place as part of the competitive
dialogue phase lead us to believe that speeds offered to the remaining 10% will be in
excess of the 2Mbps minimum suggested by BDUK.


A2

Background

At present, Lancashire's telecoms infrastructure can be broken down into two parts; the
core network and the access network. The core network consists of a resilient optical fibre
network architecture that provides secure, very high bandwidt
h connectivity. The access
network however, is still largely constructed from copper cables whose inherent limitations
are a barrier to the delivery of high bandwidth broadband services to end users. In
Lancashire, the access network is seen as a bottlen
eck to the delivery of these services.


Current broadband provision in Lancashire through ADSL technologies provides near
ubiquitous broadband coverage across the sub
-
region with more than 98% of Lancashire
premises able to access some form of broadband
connectivity.


The majority of the land in Lancashire is rural, with a large element of coastal facing land
mass, magnifying the issues of users suffering from a degrading ADSL signal delivered
16


over extended copper lines.
Diagram two

attached at
Annexe
Three
provides an analysis
of the current ADSL broadband speeds available in Lancashire.


Today Lancashire has 85,000 not spots below 2mb/s, 15,000 of these premises have little
or no broadband (e.g. less than 500kb/s). There are an estimated 35,000 broad
band lines
that would not be suitable for standard superfast broadband (FTTC) as these are E/O lines
and another 10,000 broadband lines that would be beyond FTTC reach in rural areas.


Looking forward, Lancashire faces a number of pronounced challenges,
most pertinently of
which relates to the availability of superfast broadband in Lancashire extending
incrementally due to market forces, with fibre to the cabinet coverage increasing at national
levels to around 66% by 2015 from private investment by compa
nies such as Virgin Media
and BT. However, this level of coverage is subject to these companies committing to this
level of investment at a future date and therefore is not guaranteed.


Diagram three
8

attached at
Annexe Four

highlights the predicted leve
ls of superfast
broadband coverage in Lancashire, up to 2015, in a format prescribed by the European
Commission
9
. All white areas in this map are in scope and this includes potential white
areas within announced exchanges and areas where full coverage is
not provided in urban
areas.


A3.

Local Broadband Context Evidence of Need/ Gap Analysis

The geographically specific requirement for investment in superfast broadband in
Lancashire is evidenced through a number of factors. We know that c.40% of premises
ac
ross Lancashire will not have superfast broadband by 2015, the impact of which will be
felt most acutely in Lancashire’s rural and harder to reach communities. This means that a
significant proportion of Lancashire residents and businesses that live and
work in rural
areas will be unable to exploit the transformational benefits of superfast broadband as
current private sector investment stands.


We also know that the vast majority of private sector funded superfast broadband
deployment is expected to be
fibre to the cabinet, because deploying fibre to premises is
generally recognised as being more expensive. This will lead to the requirements of
information intensive sectors in Lancashire such as advanced manufacturing, digital,
creative, business and pr
ofessional services and inward investors not being met in the short
or medium term. This provision will not meet the strategic requirement for superfast
broadband evidenced in Section A.1. To be able to compete in a diversifying global
economy, Lancashir
e needs to be able to say to potential investors, and to indigenous
companies, that we have the best superfast broadband network available anywhere. For
the purposes of Lancashire's Superfast Broadband Programme, this is held to be fibre,
buried deep in t
he ground, as close to the users premises as possible.


This requirement has been reviewed with prominent Lancashire business organisations,
i.e. our LEP, the Chambers of Commerce and Federation of Small Businesses who have
all confirmed that for Lanc
ashire to continue to show dominance within the advanced
manufacturing sector (accounting for 20% of all UK turnover) and to grow into emerging
sectors such as digital & creative industries, business and professional services and energy



8


Please note: This map was produced in
Summer 2010 and represents a snap shot of a point in time. This analysis will require
updating prior to State aid submission.

9


Community Guidelines for the application of State aid rules in relation to rapid deployment of broadband networks

17


& renewable technol
ogies; Lancashire businesses must have the best possible fibre rich
solutions, anything else will simply not suffice and will lead to a loss of competitive
advantage.


Specifically in relation to digital & creative industries, Lancashire has identified a
significant
opportunity for businesses/ high net worth individuals to be based in Lancashire whilst
employed in work associated with Media City: UK at Salford Quays. The prospect of living
in one of the most naturally diverse regions of the UK with Media
City: UK a 50 minute drive
away is an attractive prospect, but is dependent on having the best possible superfast
broadband network in Lancashire.


Linked to the FDI opportunities and the gap between what superfast broadband coverage
has/ is predicted to
have and Lancashire's ability to attract FDI, a recent report by Ernst &
Young as part of a ten year programme of survey data has laid clear the link between FDI
and NGA. This Report highlights the most important factors for FDI executives and they
rank t
echnology infrastructure as the number one most important factor above skills, quality
of life and transport. See
Annexe One for

comparative graph in FDI determinants.

0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0%
20%
40%
60%
80%
100%
Cumulative coverage (% of premises)
Cost per premises connected
for FTTC (GBP)

In the absence of public sector intervention, the roll out of superfast broadband acr
oss the
UK is largely determined by the telecommunications companies. Within their proposed
national allocations, all UK regions are competing for investment in geographically specific
areas and also to exploit first mover advantage resulting from early i
nvestment.


When investing in superfast broadband networks, it is essential that any intervention is
designed to be consistent with European Commission guidelines for State aid. These
guidelines focus specifically on market failures (or in this sense ga
ps) and lay out a number
of conditions to ensure that interventions limit market distortion, achieve value for money,
are open and competitive and do not pre
-
empt the market.


A key feature of these guidelines to avoid pre
-
empting the market is that interv
entions
should be focussed on areas with no planned superfast broadband supply (defined as
‘white areas’ and known to be suffering from market failure(s).


The main market failure (or gap in provision) that has brought about the issue of limited
supply of
superfast broadband in Lancashire is cost. Industry cannot afford to roll out
18


superfast broadband to the final third of premises in the UK. The total cost of superfast
broadband rollout in the UK is between £5bn (for a FTTC solution) to £30bn (for a FTTP

solution). The following graph

highlights how the costs of superfast broadband rise
exponentially when looking to invest in the final third of premises.

This steep rise in costs is
particularly felt in Lancashire rural communities.


It is also worth not
ing that other market failures (or gaps) exist in Lancashire aside from
cost including unclear demand and uncertain return on investment.


The Lancashire Superfast Broadband Programme will tackle all three of these market
failures. First, we will gap fundi
ng the private sector to roll out superfast broadband where
they cannot afford to do so. Second, we will work with community groups to generate
sufficient demand were this is not already evident, or to capture existing demand and
present it to industry in

a form they can understand (correcting informational asymmetries
market failures). Third, we will work with industry and end users to ensure a sufficient ROI
can be generated for industry so that they continue to grow and develop the original
investment.




Table 4 , provides a very high level summary of:



how the Lancashire Superfast broadband Programme will seek to close the
identified gaps in the provision of superfast broadband in Lancashire by combining
ERDF funding , Lancashire County Council fu
nding and BDUK funding to gap
fund the private sector;



how it will impact on the amount of funding this Local Broadband Plan is requesting
from BDUK ;and



what return on investment BDUK will see from this investment
10
.

T
able 4

The development of basic
broadband in the Lancashire sub
-
region has been broadly in line
with other similar counties in the UK. Previous investment in ADSL broadband in
Lancashire was driven in the main through a £4m investment by the Northwest Regional
Development Agency from 20
05

2008 into the establishment of the Lancashire Digital
Development Agency.


This three
-
year investment allowed for the enabling of all exchanges in Lancashire and saw
awareness
-
raising initiatives drive ADSL take
-
up rates.


Current broadband provision
in Lancashire through ADSL (at least 2Mbit/s) technologies
provides near ubiquitous broadband coverage across the sub
-
region with more than 98% of
Lancashire premises able to access some form of broadband connectivity. The majority of
the land in Lancashir
e is rural, with a large element of coastal facing land mass, magnifying



10


Please n
ote, these metrics represent a micro example of what will be achieved from the over Local Broadband Plan. Further
socio
-
economic factors will be sought

Total no.
Lancashire
premises

EC definition

BDUK
funding
rq'd

Other funding

Private
sector
leverage

Jobs
created/
safeguarded

Inward
Investment
attracted

Black/
Grey

White

ERDF

Other

673,600

451,307

222,
285

£10.8m

£16.5m

5 m

£32.5m

12,000

£25m



19


the issues of users suffering from a degrading ADSL signal delivered over extended copper
lines.


Figure A.1 on the following page illustrates the current ADSL broadband speeds avail
able
in the Lancashire sub
-
region. Exchanges in Blackpool and Blackburn with Darwen are now
fully capable of providing up to 8Mbit/s speeds. All ten telephone exchanges within these
unitary authorities have already been upgraded to BT Wholesale’s ADSL MAX
service
11
.



Figure A.1



Number of
premises

Number of
telephone
exchanges
12


Statistics of current
ADSL service, by
telephone exchange
[Source: LCC, BDUK,
Analysys Mason]

No ADSL
connection

66

2


0
-
2Mbit/s

42

392

104


2
-
8Mbit/s

419

561

107


8
-
20Mbit
/s

110

673

25


More than 20Mbit/s

93

260

22






11


Source: SamKnows.com


broadband availability reports of the two unitary authorities. Accessible via
:
http://www.samknows.com/broadband/statistics/local_authority

12



Note that a single telephone exchange may offer varied speeds to different premises as a result of a
number of f
actors including DSL technology being utilised, quality of the telephone line (which is primarily driven by its
length).

20


With 58 unbundled telephone exchanges across the Lancashire sub
-
region, ADSL based
broadband services are provided by a total of 7 LLU providers
13
. Together with BT Retail
which separately offers up to
8Mbit
/s
broadband services across the whole region,
broadband speeds currently offered by LLU operators fall short of the universal availability
of superfast broadband objective of the Lancashire Superfast Broadband Programme.


The Basic broadband coverage in t
he Lancashire sub
-
region in terms of Black, White and
Grey areas is shown in table 5 and the map below:


Table 5

Basic broadband coverage forecast

BGW
indication

Percentage of
premised covered


Summary of Basic
broadband
coverage based
on current LLU
oper
ators Source:
SamKnows,
Analysys Mason]

More than one operator (BT +LLU
operators)

Black

36%


One operator (BT only)

Grey

31%


No operator

White

0%




Current Basic
Broadband
coverage in the
Lancashire sub
-
region [Source:
SamKnows,
Analysys Mason



The breakdown of the LLU based Basic broadband coverage in the Lancashire sub
-
region
into Black, White and Grey areas is shown in table 6 below:

Table 6




13



Source: SamKnows.com as at 05 October 2011

21


Area

Total no.
of
premises

Black area

Grey area

White area

Lancashire

540

722

94%

6%

0%

Blackburn
with
Darwen

62

805

97%

3%

0%

Blackpool

70

065

100%

0%

0%

Total

673

592





There has been significant public
-
sector investment in other public
-
sector broadband
initiatives, principally through the Department of Education's former Harnessing Technology
G
rant, in developing and operating a broadband network serving schools in Cumbria and
Lancashire. Cumbria and Lancashire Education Online (CLEO) is one of ten English
Regional Broadband consortia supported by Cumbria County Council and Lancashire
County Cou
ncil. We will ensure that the CLEO infrastructure is utilised in achieving the
outcomes of this project where this provides overall value for money.


In relation to community based interventions, in the past various cases for the provision of
high
-
speed
broadband into deeply rural areas in Lancashire sub
-
region have been put
forward; none of which to date have attracted the support of funders.


Rural Lancashire

The majority of land in Lancashire is classified as rural and includes two Areas of
Outstandi
ng Natural Beauty (Arnside and Silverdale; the Forest of Bowland). Many
important Lancashire assets are located in rural locations, including aerospace at
Samlesbury and nuclear at Springfields. Agriculture represents Lancashire's largest single
land use
, with in excess of 7500 farm
-
holdings employing over 12,000 people. This offer is
diverse, from the intensive horticulture on the Lancashire plain to dairy and sheep farming
on the lowlands and uplands. Approximately 15% of the Lancashire population liv
e in what
can be classed as rural locations.


According to the last census around 80,000 people live in rural villages and over 50,000 live
in "dispersed" communities, including hamlets. The census also showed, when compared
against the rest of Lancashire
, a greater proportion of people aged 30
-
60 living in rural
locations as distinct to people aged under 30; this would be expected given house prices
and access to employment opportunities.


Diagram four

attached at
Annexe five
highlights the large areas of

rurality in Lancashire
by splitting urban and non
-
urban (Town and Frings or Hamlet & isolated dwelling) areas of
Lancashire. This map further articulates the requirement to utilise public money to pump
prime the market into responding to the challenges o
f Lancashire.


Having such a rural land mass presents many challenges to deploying superfast broadband
in Lancashire, none more so than the distance of properties from exchange / peering
points. We will address all geotypes including the final 10% in orde
r to achieve 100%
coverage of Lancashire.


We realise that an innovative approach is required for remote, rural and sparsely populated
areas. Together with potential partners we will work with these communities to meet the
22


challenges in addressing the hig
h cost (in comparison with urban areas) of reaching remote
locations. This will include:



Identifying a range of alternative technologies;



Community access points or ‘hubs’ which facilitate community action to complete the
final connection to the home or
business;



Self dig and fibre to the farm initiatives;



Demand aggregation to improve the business case and attract further investment; and



Demand stimulation and demand triggers to enable community action to drive take
-
up in
order to attract further invest
ment in coverage.

We have identified a number of specific rural communities in the Lancaster area as the
vanguard rural communities' project for early rollout. As part of our competitive dialogue
process, potential partners will be required to design a su
stainable solution.


Regional Assets

The core road and rail infrastructure is central to Lancashire's economic performance. This
infrastructure in the medium term can open up new business and trading opportunities and,
when linked to Lancashire's quality
of life offer and other economic assets, strengthen the
competitiveness of Lancashire as a whole.


Within Lancashire, road use dominates Lancashire's travel patterns. This is in part due to a
good network of motorways and roads that are largely free from
inhibitive congestion. The
recently announced Heysham


M6 link will ease congestion to the north of Lancaster and
support better connectivity for Heysham and Morecambe. Fleetwood is difficult to access
due to its location at the tip of the Wyre peninsul
a, and Colne also suffers from congestion
being as it is at the end of the M65. Lancashire's manufacturing sector in particular relies
on the road network for the transport of supplies and goods. As a result the broader
transport network is also importan
t, in particular the M6 south of Cheshire and the M62
across the Pennines.


Public transport currently constrains Lancashire's labour market. Rail only plays a minor
role in catering for travel demand, whilst bus accessibility is poor beyond the boundari
es of
urban areas. However recent improvements to the West Coast Railway line have reduced
travel times to London to around two hours from Preston. Electrification of the line between
Blackpool (North) and Manchester through Preston by 2016 will bring si
gnificant benefit to
rail travel in terms of speed, capacity, reliability and quality. In the longer
-
term High
-
Speed
2 provides the potential to reduce journey times to London (and on to Europe) even further.
Improving rail access to Manchester from a num
ber of different points in Lancashire is also
important, in particular from places in east Lancashire where a number of solutions are
required.


Port access to the Irish Sea is available at Heysham, with Liverpool Superport within easy
reach of key centres
. A range of European destinations can also be accessed from
Blackpool Airport, with nearby Manchester and Liverpool Airports providing access to a
wider range of international destinations.


Complimenting the strategic relevance of the transport infrastr
ucture, Lancashire’s
economic future is becoming increasingly reliant on access to, high speed connectivity and
synchronous superfast broadband services as a basic requirement for economic
development.
Diagram 5 at Annexe 6

highlights the key regional asse
ts available in
Lancashire.

23



Please refer to the section titled "Existing Broadband Initiatives" for an overview of the
CLEO Network as the pre
-
eminent regional digital asset. This infrastructure is wholly
owned by Lancashire County Council and will be ma
de available to any potential partner to
form part of their roll out plans.



Digital Exclusion

Digital exclusion refers to the gap between those people with effective access to digital and
information technology and those with very limited or no access at

all. This includes the
imbalance both in physical access to technology and the skills required to participate as a
digital citizen. If superfast broadband is not widely adopted, the overall benefits will be
diluted. Lancashire currently has pronounced
aspects of digital exclusion and it is pivotal to
reverse this for the transformational benefits of superfast broadband to be fully felt.


1 in 7 communities in Lancashire are deeply digitally excluded. This is above the national
average and reflects the

fact that 1 in 5 communities in Lancashire are both deeply and
broadly socially excluded and are ranked in the top 20% in the country based on an index
of social exclusion measures.


Diagram 6 attached at Annexe 7

illustrates digital and social exclusion
across Lancashire.
Areas of digital exclusion are visible in the west, north west and east of Lancashire, with
communities in wards such as Skerton West, Bare & Torrisholme in Lancaster, Cabus,
Garstang, Preesall in Wyre, Park & Cleveley's Park in Blackpo
ol & Littlemoor in Ribble
Valley as the most digitally excluded.


There are a range of indicative factors which also reflect the rurality of Lancashire: many of
the areas highlighted are generally affected by broadband consistency & appear limited to
only
one broadband technology. Where DSL is the only option there are a growing number
of people without fixed lines who do not have access to broadband. Some communities
such as those highlighted in parts of Blackpool & Wyre have a visibly higher % of 65+ liv
ing
in the area. Lack of internet take
-
up by older people tends to be linked to motivation but it
can also be affected by income levels. Where there is such limited take
-
up this can also
limit (& make more expensive) the range of channels available to ser
vice providers to meet
individual needs. There is also a strong correlation with areas of social housing. The
Lancashire Superfast Broadband Programme allows the opportunity to support Registered
Social Landlords to aggregate demand for broadband service
s & negotiate bulk purchases
with suppliers.


A4.1

Scope of Project

The scope of the Lancashire Superfast Broadband Programme is to provide 100%
broadband coverage across the whole of Lancashire with a strong emphasis on providing
FTTP to as many Lancashir
e businesses as possible.


The vast majority of the funding for the Lancashire Superfast broadband Programme will
focus on securing physical infrastructure through capital investment in white areas. £3.5m
will be spent of demand stimulation activities ac
ross the whole of Lancashire in order to
drive take up. Please note that none of the BDUK funds will be used for any revenue
elements of the Lancashire Superfast Broadband Programme


They key objectives of the Programme are:

24



Objective 1)
By 2015:



as clo
se as possible to 100% of businesses in Lancashire ( with a minimum of 85%)
will receive speeds in excess of 50Mbps:



as close as possible to 100% of residents in Lancashire (with a minimum of 85%)
will receive speeds in excess of 50Mbps:



as a minimum th
ere will be no part of Lancashire which does not receive a minimum
of 2Mbps and areas receiving low speeds will be supported by an upgrade road
map.


Objective 2)
Stimulate market demand for throughout the lifetime of the Programme (> ten
years) by targeti
ng SMEs and residents who have the most to gain from adopting superfast
broadband .This will be supported by an initial demand stimulation fund of £3m.


Objective 3)
Reduce the cost and time taken to deploy superfast broadband by working
in partnership
with industry to address the barriers they face in terms of planning and
highway processes. Also within scope of this is investigating opportunities around
innovation around access to street works, power supplies, notice procedures and co
-
ordination of st
reet works.


Objective 4)
Identify opportunities to drive superfast broadband adoption into businesses
and residential areas as a result of public sector activities. This will involve stipulating
through planning conditions the future proofing of new / r
efurbishment regeneration projects
to ensure the need to retrofit superfast broadband is mitigated.


The reach and ultimate scope of this Local Broadband Plan is across all of Lancashire. At
its most basic, this covers all white areas and over 220,000 prem
ises.


Technology options / Business model

The Lancashire Superfast Broadband Programme is clear in its choice of technologies to be
deployed and how the magnitude of funding available can support this aspiration. We
intend to deploy a fibre rich solution
representing a combination of FTTC and FTTP. The
BDUK Funding, which based on 220,000 premises, represents an allocation of less than
£60 per premises will contribute to achieving overall geographical coverage. We intend to
concentrate FTTP in to busines
ses and will use ERDF money to fund the "last mile"
connection to businesses/ business areas in Lancashire.


One of the principles behind the partnership we propose to establish is the reinvestment of
monies resulting from the growth of the network that

are deemed as being additional to the
initial risk of private sector investment. The partnership will establish a baseline of take
-
up
for the network and any monies generated over and above this baseline will be subject to
reinvestment back into the netw
ork.


Our current Competitive Dialogue process confirms that industry has an appetite to form
such a partnership and sees the long term benefits of reinvesting additional revenues back
into a network. The innovative approach of this model has not been te
sted before and we
hope to set a precedent in the UK that will showcase how public and private partnerships
can work in a fully sustainable fashion that allows the private sector to generate sufficient
rate of return and the public sector to accrue additio
nal benefits that are outside the scope
of economic interest to industry.

25



The applications and services that will be enabled/ supported by
the Lancashire Superfast
Broadband Programme will include those set out in Table 7:


Technical

Services

High Defi
nition
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26


A4.4

Coverage

The project will be designed to achieve the maximum possible superfast broadband
coverage across all of Lancashire

whilst at the same time delivering objectives within
economic, funding and technology constraints.


We recognise the need to balance economic value and coverage requirements and the
need to find the optimal point at which the best possible value is achi
eved and are
aware of
the complexities behind the "speed versus coverage" debate. To ensure that Lancashire
receives the maximum possible speed and coverage in a sustainable manner, we have
purposely designed the following two key mechanisms into our appr
oach.


First, as part of our competitive dialogue with industry providers we are currently stress

testing various coverage / speed scenarios. As a minimum we will require potential
partners to address all geotypes in Lancashire (i.e. both the residential
market and
business user) and demonstrate expected coverage and speeds in each,
ensuring that we
can leverage the maximum possible outcomes from industry prior to closing our competitive
dialogue.


Second, as part of this process we will require bidders to

disclose their financial cases and
in doing so identify their required financial return and how this relates to take up rates.
Having agreed this, surplus revenues from increased take up will be reinvested back into
the network to allow it to continue to

grow and develop as an enabling technology.


It is our view that these two simple but significant approaches will ameliorate any potential
shortcomings in either speed or coverage that may occur.


Assisting with the Competitive Dialogue process, we ha
ve commissioned an economic
analysis of the black, white and grey maps we have in place that will support our State aid
application. This analysis shows where within the white areas the differing strategic needs
underpinning the Lancashire Superfast Broa