nextgen 2011 workshop clive downing nynet

Broadband Transformation for North Yorkshire

NextGen Conference Workshop Session 16th November 2011

NYnet

Alternative Models for Broadband Delivery

The Rules! u Connecting North Yorkshire is a live procurement.

u This presentation is not a status report for that procurement

u I cannot answer questions with respect to specific solutions, technologies or organisations

www.nynet.co.uk NYnet Limited

CNY Project Scope u Project owned by NYCC u Delivered by NYnet (owned by NYCC) u NYnet established 2007, aggregated demand from

public sector, use margin to provide low cost backhaul.

u 14 staff, £7m turnover, EBITDA positive (just) u NYCC provide working capital u 30+ Market Towns, 700+ parishes

u NGA to cover as much as possible u Rest must be no worse than USC


So, what’s it all about then? u The emergence of BDUK funding has sparked a rash

of public sector led broadband interventions.

u There is a general assumption that this will be used in a certain way

u This brief presentation is intended to offer alternative models which can be considered against your delivery objectives


And isn’t all about objectives?

u Local Authorities have wide ranging priorities.

n  A duty of care for citizens n  Economic Growth and inward investment n  Delivery of public services n  Best use of public money


SO HOW DO THESE FIT WITH DIFFERING BUSINESS MODELS?

www.nynet.co.uk

NYnet Limited

What are these models?

u “Gap Funding” u Design Build Operate u Digital Community Hubs u Public Sector Networks


Pros

u Reduced risk for public sector

u Reduced Management Overhead

u Potential greater day-‐one coverage

Cons

u Potentially one shot u Possible lack of control

post implementation u Public Sector will pay the

same for services it has commissioned

u Difficult to create future products e.g. BackHual for Community Hubs

Gap Funding

www.nynet.co.uk

NYnet Limited

Pros

u Opportunity to re-‐invest margin to increase coverage

u Easier to innovate with products and projects

u Flexibility to respond if geography and demographics mitigate against one size fit all

Cons

u Potentially less day-‐one coverage

u Increased risk for public sector

u Increased Management Overhead

Design Build Operate

www.nynet.co.uk

NYnet Limited

Hubs and PSN

u These can fit into both models n  Either as part of the procurement n  Or as products on the delivered infrastructure

u What you need is the contractual arrangements to allow them to happen i.e to procure them fairly and operate them legally.


The million dollar question(s)....

u In a single procurement.... n How can you compare business models fairly ?

n How can you procure elements that are outside the remit of some of the funding partners objectives?


Can you compare business models?

u Find an element that sits across all models n With NGA infrastructure, Coverage is the common currency.


Can you buy a PSN at the same time?

u Yes n As long as the parties funding the elements only purchase elements thay are happy to purchase.


THANK YOU

www.nynet.co.uk

NYnet Limited

nextgen 2011 workshop clive downing nynet

Business