Super Connected Cities Connection Voucher Scheme Super Connected Cities Programme

Transcription

1 Super Connected Cities Connection Voucher Scheme Super Connected Cities Programme 11 th Sept 2013 Broadband Delivery UK

2 Introduction - Connection Voucher Scheme The Super Connected Cities Programme - 150m across 22 cities to support economic growth by providing high speed, high quality broadband - to be delivered by March The Connection Voucher Scheme aims to put the connectivity decision into the hands of the consumer/sme by providing support for one-off installation charges Currently estimate the scheme will spend approx. 100m across 22 cities a scheme of this scale and ambition in the telecoms sector is breaking new ground. BDUK has been conducting a Supplier Consultation and we are also mid-way through a short Market Test (more later) The main challenges include: State aid understanding the impacts on the market through this consultation and market test phase SME take-up need for cities to market and promote the scheme early and effectively Administration and value for money - learning from other voucher schemes and testing over the summer 2

3 Connection Voucher Scheme Scope and Design The scheme has been designed in accordance with a number of key design principles: SMEs are the primary focus of the scheme (includes SOHO workers) One overarching national scheme but delivered locally and with allowance for local customisation within defined parameters (e.g. voucher value up to 3,000) Focus on support for one-off installation charges no support for on-going revenue charges which remain the responsibility of the SME. Works within existing market not favouring or discriminating by design against any particular supplier provided they can meet the SME s connectivity requirements Must deliver a step change in connectivity usually to over 30 Mbits/s but also taking into account other business requirements such as reliability and/or upload speeds. The scheme is technology agnostic and includes wired or wireless services (or combination). SME are free to spend their vouchers as they wish they may redeem on an individual basis or may cooperate with other voucher recipients to acquire the relevant connectivity 3

4 Operation of the Scheme Demand Driven SMEs apply to their local City for Vouchers (cities may also choose to market vouchers and local suppliers may also wish to conduct marketing to promote their own services) Suppliers can participate in the scheme by applying to be registered this is light touch and designed primarily to mitigate fraud (e.g. trade body membership is one of the checks conducted by BDUK) Successful applicants will be notified of registered suppliers who may be able to meet their connectivity needs but no opinion, advice, or guidance will be provided by Cities or BDUK on the merits of supplier choices. SMEs will make their own choices, as now. BDUK has provided an on-line information site ( to promote the scheme and act as signpost to the relevant city scheme. The web site will also provide a repository for Cities to provide details of which postcodes are eligible for vouchers. SMEs will engage with suppliers to arrange individual offers. Local cities will transfer funds to suppliers upon proof of installation and provision of a copy invoice. Invoices will be subject to anti-fraud provisions. 4

5 Connection Voucher Scheme Consultation & Market Test As part of the State Aid approach, we have agreed with Commission that we carry out a Consultation and Market Test to assess operation of scheme and supplier appetite Our approach is that the Scheme does not give rise to notifiable aid because: Aid to SME s is below the De Minimis threshold Vouchers are broad-based and technology neutral No indirect aid to ISP s/broadband providers since they are paid the normal commercial rate for services Supply chain supporting vouchers is either competitive or regulated or which prevents distortions to competition Consultation ran from 25 th June until 24 th July (included Supplier Day on 10 th July) 2 month Market Test launched in early August across 5 cities Belfast, Cardiff, Edinburgh, Manchester/Salford and runs to end September Those cities have been allocated up to 10% of their overall voucher allocation over this 2 month period 5

6 Questions..? Broadband Delivery UK