Foreword - Lancashire County Council

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Foreword - Lancashire County Council Powered By Docstoc
					 BDUK Broadband Delivery Project

Lancashire Local Broadband Plan
  FINAL VERSION DATED 30th NOVEMBER 2011
                  Vision:

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

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 enter 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:

30th January 2012

End date of project:

30th July 2014 to 30th 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.

Lancashire 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 vision 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 left 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. This 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 broadband 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 public 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 asymmetries, 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
customers 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 broadband 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 Blackburn with Darwen Borough Council
SECTION A – PROJECT OVERVIEW

A1.      Vision and strategic context

Vision
In keeping with the NW superfast broadband Strategic Framework1, 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 the
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 one

The concept is simple and straightforward. 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%20NGA%20a%20reality%20in%20the%20North%20West%20-
%20Final%20Strategic%20Frameworkfeb2011.doc

                                                       1
We have the full support of a wide range of stakeholders across Lancashire including all
sixteen MP's in the County2, Lancashire's three Chambers of Commerce, the Federation of
Small Businesses and intelligence gathered from open forum consultations with various
residential market groupings across Lancashire. 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 Lancashire 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 strategic 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 deliver 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 the 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 promoting 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
addressing 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 consumers 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.

The outcomes sought from Lancashire's Superfast Broadband Programme fall into two
distinct areas:
2
 Blackburn (Jack Straw Labour MP), Blackpool North and Cleevleys (Paul Maynard Conservative MP), Blackpool South (Gordon
Marsden Labour MP), Burnley (Gordon Birtwistle 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 (Andrew 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)


                                                           2
Economic Performance: By providing businesses and business areas in Lancashire 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 Lancashire;
     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 superfast 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 by 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
businesses 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
Lancashire'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
deliver the Lancashire Superfast Broadband Programme (i.e. the chosen industry partner


                                             3
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 broadband 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 technical 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 programmes 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.infolab21.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 changes 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 portfolio, 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 understanding 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 already 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 Computing 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/Projects/lead/)
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.

                                              4
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, employment, 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 relocating, 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.uk/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
broadband 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 (which 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 there 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 £23.4bn3 meaning that Lancashire is the second
largest economy in the North West and 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 lack of a high-value knowledge economy, by comparison to
other areas such as Manchester and Leeds, as well as entrenched and deepening
deprivation, in particular in Blackpool and parts of urban east Lancashire.


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%.

                                                                  5
Sectorally Lancashire's strong track record and 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 renewables
the county's universities5 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 opportunities 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 Strategy6 is structured
around five strategic priorities which are critical to Lancashire'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 economic 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 to 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.

Improved 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 productivity,
stimulate activity in rural areas, and attract inward investment from UK-based and
international companies.

The benefits of superfast broadband will be felt particularly strongly across information-
intensive sectors prioritised in Lancashire such as Digital and Creative Industries,

5
    The University of Central Lancashire and Lancaster University
6
    http://www3.lancashire.gov.uk/council/meetings/displayFile.asp?FTYPE=A&FILEID=41399

                                                                 6
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 particular 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 partners, 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 initiatives; 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 mitigating 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 the 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 service 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
       funding, 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 funding. [Points 8 and 9]
      Provide a network open to all service and communications providers. [Points 1, 3, 5,
       6, and 9];
      Invest in and drive demand stimulation and business support, to include developing
       broadband and ICT skills and capabilities of the workforce in Lancashire; addressing


                                             7
            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 must 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 services; 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 2011/137 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 four 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 presented 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 assist 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 ensure 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
improvements 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
communities. Each of these communities has their own demography and geography,


7
    http://www.lancashire.gov.uk/corporate/web/?siteid=5743&pageid=32175

                                                                 8
physical and social infrastructure 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 for 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 transformation 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 several 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 more 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 organisation needs to allow:
     ‘Working at Home’.
     Working from Home’;
     Smart Office;
     Mobile working.
         Workflow.                                     Lone work.
        Document handling.                             Learning Management
        Case management.                               System.
        Business Broadband at                          Rooms on Line.
        Home.                                          Manager Self Service.
        Thin Client.                                   Employee Self Service.
        E-fax.                                         Encryption.
        Business Continuity.                           Appropriate Applications.
        Second ‘data centre’.                          Mobile devices.
        Booking Systems.                               24 x 7 x 365 Contact Centre.
        E-printing solutions.                          E-expenses.
        Voice over IP                                  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.
In the public sector these savings are crucial. We classify them as back office savings; they
allow front line services to be maintained. Lancashire County Council is already on with
this work.

                                               9
In anticipation of the commencement of the Lancashire Superfast Broadband Programme
we are developing a "technology roadmap" for the following three key service 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 assist
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 duplicate 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
potential 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 disease, 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 from 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 provide
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 with 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 assess 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,
e.g. COPD, Heart Failure. 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

                                              10
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’ premises. 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 to 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 directly 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 communications 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 appropriate 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 Lancashire 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, whilst 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 their 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 16th July, Health and social care professionals 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 intention 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 Lancashire 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 of conditions. It is recognised nationally that the
residential care is significantly more expensive in comparison with providing care in the
home.

In relation to social care more online services will be available with increased frequency and
accessibility. 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


                                               11
potential for children services and education to be offered as a logical extension to the
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 connectivity 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 previously 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
complications 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 community 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 organisations 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 investment 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
initiatives 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 asset 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 of funders. With the full agreement and co
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.


                                               12
The priority of the Lancashire 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. Of 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 receive 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.

There 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 black, 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 revenue
   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 and
   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
measured 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 (Revenue)
                                 Number                  %
      Priority Sectors           15,479                  51%
      Other ERDF Eligible        14,985                  49%
      Businesses*
      Total                      30,464                  100%
      Source: ekosgen based on IDBR, 2010 and Analysis of FAME. *includes
      other growth firms.

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

                                            13
Table 3
      Numbers of Businesses prioritised for Superfast Broadband (Capital)
                                 Number                  %
      Priority Sectors           5,997                   50%
      Other ERDF Eligible        5,971                   50%
      Businesses*
      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 established 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 Lancashire 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 December 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 premises 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 bandwidth 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 bottleneck 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
over extended copper lines. Diagram two attached at Annexe Three provides an analysis
of the current ADSL broadband speeds available in Lancashire.




                                             14
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 broadband 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 companies 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 three8 attached at Annexe Four highlights the predicted levels of superfast
broadband coverage in Lancashire, up to 2015, in a format prescribed by the European
Commission9. 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
across 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 professional 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, Lancashire 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 the 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 Lancashire 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
& renewable technologies; 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.

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

                                                                 15
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 technology infrastructure as the number one most important factor above skills, quality
of life and transport. See Annexe One for comparative graph in FDI determinants.
                                                      2,000
                                                      1,800
                        Cost per premises connected




                                                      1,600
                                                      1,400
                              for FTTC (GBP)




                                                      1,200
                                                      1,000
                                                       800
                                                       600
                                                       400
                                                       200
                                                         0
                                                              0%    20%      40%       60%      80%      100%
                                                                   Cumulative coverage (% of premises)


In the absence of public sector intervention, the roll out of superfast broadband across 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 investment.

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 gaps) 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 interventions
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
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

                                                                             16
  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 noting 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 funding 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 funding 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 investment10.
Total no.         EC definition               BDUK          Other funding            Private         Jobs                 Inward
Lancashire                                    funding                                sector          created/             Investment
premises                                      rq'd                                   leverage        safeguarded          attracted
                  Black/        White                       ERDF          Other
                  Grey
673,600           451,307       222,          £10.8m        £16.5m 5 m               £32.5m          12,000               £25m
                                285
  Table 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 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 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 Lancashire is rural, with a large element of coastal facing land mass, magnifying
  the issues of users suffering from a degrading ADSL signal delivered over extended copper
  lines.

  10
    Please note, these metrics represent a micro example of what will be achieved from the over Local Broadband Plan. Further socio-
  economic factors will be sought

                                                                   17
Figure A.1 on the following page illustrates the current ADSL broadband speeds available
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 service11.




Figure A.1

                              Number of                   Number of                         Statistics of current
                              premises                    telephone                         ADSL service, by
                                                          exchanges12                       telephone exchange
No ADSL                                                                                     [Source: LCC, BDUK,
connection                                          66                            2         Analysys Mason]
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

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,


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
factors including DSL technology being utilised, quality of the telephone line (which is primarily driven by its length).
13
          Source: SamKnows.com as at 05 October 2011

                                                            18
  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 the 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             Percentage of        Summary of Basic
                                       indication   premised covered        broadband
More than one operator (BT +LLU        Black                    36%         coverage based
operators)                                                                  on current LLU
One operator (BT only)                 Grey                      31%        operators Source:
                                                                            SamKnows,
No operator                            White                      0%        Analysys Mason]

                                                                       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
                            Total no.
           Area                    of       Black area        Grey area     White area
                           premises
  Lancashire                540 722                94%              6%              0%
  Blackburn with              62 805
  Darwen                                           97%              3%              0%
  Blackpool                   70 065             100%               0%              0%
  Total                     673 592


                                               19
There has been significant public-sector investment in other public-sector broadband
initiatives, principally through the Department of Education's former 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 supported by Cumbria County Council and Lancashire
County Council. 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
Outstanding 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 live 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 of 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 order 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
challenges in addressing the high cost (in comparison with urban areas) of reaching remote
locations. This will include:
1. Identifying a range of alternative technologies;
2. Community access points or ‘hubs’ which facilitate community action to complete the
   final connection to the home or business;
3. Self dig and fibre to the farm initiatives;
4. Demand aggregation to improve the business case and attract further investment; and
5. Demand stimulation and demand triggers to enable community action to drive take-up in
   order to attract further investment in coverage.


                                             20
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 sustainable 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 peninsula, 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 important, 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 boundaries 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 significant 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 number 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 infrastructure, 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 assets available in
Lancashire.

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 made 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

                                              21
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 Blackpool & 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+ living
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 service 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 services & 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 Lancashire 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 across 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:

Objective 1) By 2015:
     as close 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 there 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.

                                             22
Objective 2) Stimulate market demand for throughout the lifetime of the Programme (> ten
years) by targeting 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 street 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 / refurbishment 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 premises.

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 businesses 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 network.

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 tested 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 additional benefits that are outside the scope
of economic interest to industry.




                                              23
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 Definition        Home-shoring of remote call centre agents, with
 Conferencing &            full video both directions (for CRM applications,
 Collaboration             management and training of individuals).
                        Self Serve and assisted Business Support Service
                           providing access and guidance on business
                           matters i.e. Legal, ICT, Finance etc.
 HDTV                   HDTV, IPTV
                        Community TV linked in with Public Services.
 Software as a Service  SME in a Box i.e. an integrated HR, Payroll,
 (SaaS)                    Finance, Procurement and CRM application
                           delivered on a subscription basis.
                        ELearning platform delivered as a service with a
                           Library of adult and children education material,
                           especially video and learning by interactive
                           gaming.
 CCTV Managed           Live feed into a central command centre(s)
 Services                  providing proactive monitoring and response
                           services.
 Business Continuity    Remote and real-time back-up of local data and
                           failover of business applications
 On demand or Cloud  Thin client computing model charged using a
 Computing                 monthly fee which reduces cost, opportunity for
                           improving security, better performance, better
                           control of access and energy efficiency. A core
                           service including centrally managed file storage,
                           internet access, emails and office automation
                           products.
 Remote eCare           Telecare i.e. virtual wards and remote health
                           monitoring.
                        High Definition video surgeries & health checks
                           i.e. virtual bed check.
                        Secure uploads/storage of large files i.e. X-rays for
                           remote diagnostics.
 Remote ICT             Realtime monitoring and remote control of PC's
 Managed Services          and services.
 Document Output        Upload to a central print service(s) large and
 Managed Services          specialist i.e. A0 colour documents for printing and
                           dispatch.
 Hosted VoIP+           Higher QoS and number of lines supported than
                           the current BT Hosted VoIP service.
 Intelligent Building   Remote monitoring and pro-active maintenance of
 Management                buildings i.e. lights, heating, air conditioning etc.
Table 7


                                            24
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 achieved 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 approach.

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 have 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 Broadband Programme reside. We can determine
how many businesses are in white areas, how many are outside, what sectors they are in,
turnover levels, employment rates etc. Linked to this, we can also map other socio-
economic drivers over these maps and whilst in Competitive Dialogue with industry, we will
use this data to prioritise and determine where investment will go first. This enables us to
have an informed conversation with industry about where, why and how we will deploy
superfast broadband.

Partners
Lancashire County Council is the lead body with responsibility for this Local Broadband
Plan and is fully supported by Blackpool Council and Blackburn with Darwen Council, who
are the other two Lancashire Tier One Authorities.

All twelve tier two authorities and the two unitary authorities in Lancashire support the
Lancashire Local Broadband Plan and have spoken with one voice on matters pertaining to
superfast broadband. The list of supporting local authority partners and their corresponding
geographical presence can be ascertained in the list below and through diagram seven.




                                             25
1. West Lancashire
2. Chorley
3. South Ribble
4. Fylde
5. Preston
6. Wyre
7. Lancaster
8. Ribble Valley
9. Pendle
10. Burnley
11. Rossendale
12. Hyndburn
13. Blackpool (Unitary)
14. Blackburn with Darwen (Unitary)

                                                                          Diagram seven

Furthermore, the LEP in Lancashire fully supports the Lancashire Superfast Broadband
Programme and holds it as its number one priority over the next two – three years.

Additionally, discussions are underway with wider public sector bodies including the NHS
and emergency services in order to build a coalition of support across a wide range of
stakeholders.
As outlined earlier, the County Council's overall approach to superfast broadband in
Lancashire has been approved by its cabinet and the Lancashire Enterprise Partnership.

A4.7 Project Phasing
The delivery of this Local Broadband Plan will be phased across five interdependent and
complimentary workstreams of procurement, funding, state aid, implementation and usage.
    Procurement. As a priority, the County Council began the EU procurement process
      to select a private sector partner. The procurement process will be concluded in the
      autumn;
    Funding. In parallel to developing this Local Broadband Plan, the County Council
      has submitted a proposal to the North West Development Agency for ERDF funding.
      Following a recent meeting with the Chief Executive of the NWDA, weekly meetings



                                           26
       are being arranged with the NWDA in order to progress Lancashire's ERDF bid.
       Private sector funding will be confirmed through the competitive dialogue process ;
      State Aid. Bringing these two pivotal workstreams together will be State aid
       approval. The European Commission has stated that public sector investment in
       broadband networks constitutes State aid and therefore requires notification to the
       European Commission for State aid approval. Assisting with this sizeable work
       stream, we have appointed Analsys Mason to take forward our state aid application
       and have a detailed work programme in place that will ensure we will have secured
       State aid approval by December 2012.
           o August – work with BIS State aid Policy Unit to complete pre-notification
               paper and submit to European Commission
           o August – conduct in-depth market consultation with 33 industry suppliers
           o September – meet with European Commission to discuss detail of
               submission and submit formal notification paper at the end of September
           o December – receive State aid compliance approval
       Throughout the State aid process, we will work with BDUK on utilising best practice
       and available guidance and will share our findings where they can provide benefit to
       national programmes.
      Implementation. The Lancashire Project offers BDUK the opportunity for fast
       mobilisation and early benefits with the first live customers connecting as early as
       March 2012. The selection of a partner and contract sign is programmed to allow
       the project implementation to commence in January 2011. This will be immediately
       followed by a three month detailed design and planning phase resulting in early
       deployment in March 2012 and the first end users being connected to and using
       superfast broadband by end of March 2012. The implementation is between 2.5
       years to 3 years build including contingency, with completion of the Lancashire
       project scheduled for 2014 and final drawdown of funding in early spring 2015. As
       highlighted earlier, we have already identified our first rural vanguard project which
       will be implemented early in the build programme providing an exemplar remote rural
       deployment and test bed for innovative solutions; and.
      Usage. Acting as a catalyst for the benefits that are to be accrued from investment in
       superfast broadband , the usage workstream relates to the role of the County
       Council and its associated partners (including the preferred partner) in encouraging
       individuals and organisations to adopt and exploit superfast broadband
       technologies. This workstream will begin immediately with registration activities and
       allocation of resourcing to this approach will escalate.

In relation to the roll out of the physical infrastructure, it is not known at this stage exactly
where the network will roll out to. Lancashire County Council is currently engaged in a
Competitive Dialogue process with industry in order to select a partner to deliver the
Lancashire Superfast Broadband Programme. Part of this Competitive Dialogue will be to
determine the direction of travel of network roll out within the identified white areas in
Lancashire. If Lancashire County Council was to be too prescriptive as to where roll out
should happen, in what order and when, this would almost certainly have a negative impact
on the value for money solution industry could come back with. By the same token, we
accept that we would like to steer the roll out of the network to address identified priorities in
a manner that doesn’t affect the cost envelope we are operating within.

   To this end, Lancashire County Council has stipulated the following conditions during
   the Competitive Dialogue process:

                                               27
      The following rural areas are all to be deployed to first and are to act as the rural
       vanguard of the Lancashire Superfast Broadband Programme
          o Over Wyresdale
          o Caton
          o Wray
          o Arkholme and/or Tathom
          o Melling
          o Wennington
          o Quernmore.

      That identified businesses within the white areas of Lancashire are to be prioritised
       in any roll out programme.

      That identified business areas within the white areas of Lancashire are to be
       prioritised in any roll out programme.

      That any and all roll out programmes will be agreed in advance of deployment by the
       Partnership Board.

If cost limitations or value for money where not issues, Lancashire County Council would
select the order and direction of network roll out. However, we feel this is best approached
in a collaborative manner with industry so as to take advantage of their knowledge of
network assets / build out costs. We are currently undertaking this exercise as part of the
Competitive Dialogue process by setting the high level agenda and working through this in
a joint fashion with industry - i.e. we define the white areas, we define our strategic drivers
and in collaboration we ascertain we can be delivered within certain cost envelopes.




                                              28
SECTION B – CUSTOMER AND COMMUNITY ENGAGEMENT

B1     Demand stimulation
Marketing, promotion and end user support activities will be fundamental in order to achieve
the objectives and outcomes of this Local Broadband Plan. This will be required on two
levels: first, attracting service providers by communicating the benefits of the superfast
broadband network to industry; and second, in marketing and demand stimulation
measures to end users. High levels of take up will accelerate the benefits to Lancashire in
achieving its objectives, particularly as this will unlock further investment in the form of
surplus revenues. A joint programme of demand stimulation and business support will be a
key feature of the partnership14 we are looking to establish.

The ambition is to accelerate the take up of superfast broadband. We will define and agree
targets with industry during the competitive dialogue. Our aspiration is to achieve 10% take
within the first year growing to 50% take up by the end of the third year following
deployment.

Delivering superfast broadband in itself offers no benefit without the applications and
services to enable businesses and citizens to access and exploit the technology.
Wholesale and retail services will be an essential requirement of the project. As part of our
competitive dialogue, potential partners are being required to demonstrate how service
providers will be attracted to use the infrastructure and what applications and services will
be delivered. In addition to providing open access to the network, potential partners are
being required to evidence their programme for recruiting service providers and to
demonstrate how these service providers will be supported in terms of billing, provision,
repair, change (house mover) and service processes.

Running alongside the capital elements of the Lancashire Superfast Broadband
Programme, a £3.5 m revenue budget will be utilised for demand stimulation activities. The
exact nature of these activities is currently under review and examination and is one of the
areas industry has been asked to respond to as part of our Competitive Dialogue process.

At this stage of the procurement process, we know that Marketing, Digital Inclusion and
Business Support are the three key areas pertaining to demand stimulation that we feel will
make a difference in Lancashire and are areas we wish to focus in on.

As part of our Competitive Dialogue process, we are stress testing with industry the role of
the following mechanisms in assisting to drive take up and adoption of superfast
broadband:

         Face to Face
         TV
         Radio
         Workshops
         Internet
         Other


14
  LCC are in the process of procuring a private sector partner who will be invited to form a public / private sector partnership (PPP) to
enact the Vision of Lancashire’s broadband plan.

                                                                     29
It is envisaged that demand stimulation in Lancashire will be substantiate based on the long
term partnership we are seeking to enter into with industry. Over the lifetime of the
partnership (> 10 years) any surplus profit generated by the network will be reinvested
through the partnership back into the growth of the network or on further demand
stimulation activities. In respect of the industry partner owning the network, this
reinvestment model creates an added incentive for them as the more successful the
demand stimulation works is, the more money they receive both directly in the form of
profits and indirectly in the form of extending the reach of the network.

Structuring the partnership in this manner ensures that industry is incentivised to create the
most compelling demand stimulation messages possible.

Lancashire County Council recognises that demand stimulation activity is fundamental to
the Lancashire Superfast Broadband Programme. Activities that have worked under
previous broadband deployments will be considered (and have been listed above) but
Lancashire County Council is keen to allow industry to detail how they will bring the full
weight of their industry experience to bare on the conversation,

Sitting alongside this, Lancashire County Council is currently in the process of ensuring that
any marketing/ general communication it undertakes is mindful of the opportunity to
promote the broadband message through diverse and differing mechanisms.

Areas currently under investigation include through the Councils extensive property portfolio
(in reception areas/ info TV screens etc.), through the Councils Corporate website and
other associated web presences, through schools, County wide communications and
location specific information opportunities.

We have identified a dedicated resource from within our Communications Team to develop
our requirements.

Since the feedback we received from BDUK in relation to our first Local Broadband Plan we
have undertaken the following activities:
     Briefings for all Lancashire MPs ;
     Briefings for all Lancashire local authority Leaders and Chief Executives ;
     Briefing for all Lancashire Parish Councils ;
     Briefings for the LEP ;
     Briefings for Chambers of Commerce ;
     Presentations for residents and businesses within the Lancashire Rural Project ;
     "Bite size" briefing for all Lancashire County Council politicians;
     Presentations to business use groups ; and
     Work commenced on the creation of a dedicated Lancashire superfast broadband
       website.

Demand stimulation - funding
The financial structuring of the customer demand elements of the Lancashire Superfast
Broadband Programme are to be addressed through a range of funding mechanisms, some
direct, others through the actions of wider programmes of support currently under
investigation.



                                             30
The anticipated cost overall of rolling out a pan-Lancashire superfast broadband solution
will be in the magnitude of £63.5M, both Capital and Revenue.

This will be structured through the following funding mechanisms:
Capital
       Broadband Delivery UK                            £10.8m
       ERDF                                             £15m
       Lancashire County Council Contribution           £5.m
       Private sector match                             £30.8.m
       Total                                            £60.8m

Revenue (for demand stimulation activities)
     Contribution from ERDF funds                      £1.5m
     Private sector contribution                       £1.5m
     Total                                             £3.m

Demand stimulation activities will not be funded from any BDUK resources.

The Lancashire Superfast Broadband Programme is a cross cutting approach that
underpins the majority of themes in Lancashire and as such, the non-direct investment in
demand stimulation activities will be of an order of magnitude far in excess of the £3m of
overall project costs.

An overarching strategic approach will be taken where-by all economic development
functions delivered in Lancashire, all aspects of engagement with the County Council and
its partners, all environmental initiatives that seek to reduce CO2 emissions and large parts
of our education responsibilities, learning & skills offering and appropriate health / well
being initiatives will be delivered with the notion of exploiting the economies of scale
presented by superfast broadband.

B2. Demand registration
A Communications Strategy is currently being developed that will be adopted to better
engender and aggregate demand from superfast broadband users in Lancashire. To
increase demand and take up we intend to work with a range of external partners including
the BBC and Race Online 2012 to deliver a series of activities aimed at removing
informational asymmetries, and other market failures, that prevent the wide spread adoption
of superfast broadband in Lancashire

In the Northwest region, the former NWDA consulted extensively with Industry and
Stakeholders as part of the process resulting in the publication of the Strategic Framework
titled "Making NGA a reality in the Northwest ".

Lancashire County Council held a stakeholder day in summer 2010 for approx 100
delegates to understand whether there was an appetite for pursuing superfast broadband in
Lancashire. The response back from all respondents was loud and clear that high speed
broadband is a priority for Lancashire; both for businesses and private consumers
alongside other public bodies.

Building on this, a second stakeholder day was held earlier this year to consider different
business models for delivering superfast broadband, to ascertain what success would look

                                             31
like and to understand the dynamics relating to speed vs coverage in relation to fiscal
constraints.

Moving forward, a series of workshops are planned throughout 2011 to continue to deliver
timely information to all stakeholders in a transparent and engaging manner.

The County Council intends to make full use of existing ‘white label’ aggregation tools that
are available and discussions with BDUK indicate that these tools will be available
imminently for use within the region. These tools will be used, alongside offerings from
industry to begin capturing the demand that is clearly evident in Lancashire.

An initial analysis of the gross disposable household income (GDHI) in Lancashire
compared to the rest of the UK and the Northwest breaks down as follows:
 England: £15,090
 Northwest: £13,386
 Lancashire: £12,846

This data will form part of the measurements used to design appropriate demand
stimulation / registration mechanisms.

B3.1 Stakeholders
The amount and diversity of stakeholders impacted by the Lancashire Superfast Broadband
Programme warrants the development of a separate stakeholder Communications Plan
which is currently under development by a working group led by the Director of Corporate
Communications within Lancashire County Council.

As an indication of the number of stakeholders who will be covered by this Communications
Plan, diagram eight below provides a snap shot of the minimum number of stakeholder
groupings who will be referenced and discussed within this Plan.

To directly address the residential stakeholder market, Lancashire County Council has
utilised the "Living in Lancashire" forum which comprises a panel of people who live and
work in Lancashire and who have agreed to be approached on a regular basis to seek their
views on a range of topics and themes. Panel members are voluntary participants and
represent a cross section of Lancashire's population. We asked panel members for their
opinions on broadband provision in Lancashire that have been fed into the Lancashire
Superfast Broadband Programme.

To directly address the business stakeholder market, Lancashire County Council has
undertaken a series of focus groups with the Federation of Small Businesses who have c.3,
000 members in Lancashire. The purpose of this series of focus groups is to ensure that
local SMEs wants and aspirations relating to superfast broadband         are appropriately
captured and fed in to the thinking of the Lancashire Superfast Broadband Programme.
Further to this, the three Chambers of Commerce in Lancashire alongside the North West
Aerospace Alliance have all been consulted with in the development of this Local
Broadband Plan. Their future input into the roll out will be included           within the
Communication Plan.




                                            32
                                                                            Diagram eight
As the Lancashire Superfast Broadband Programme begins delivery in Q1 2012, the scale
of engagement will stakeholders will ramp up considerably; linked to a detailed and costed
marketing and communications plan.
To date, Lancashire County Council has:
  engaged with and solicited the support of all MPs in the County;
  held a business forum with the Federation of Small Businesses on 12 th September at
     County Hall (to which BDUK were invited);
  met with a discussed superfast broadband rollout priorities with the Chamber of
     Commerce in Lancashire;
  has begun to develop a web presence that ultimately will be overtaken by a dedicated
     external web offering
     (http://www.lancashire.gov.uk/corporate/web/?siteid=6369&pageid=3; 7728); and
  held a bidders day in Lancaster in August, to enable members of the business
     community alongside residential users interested in our rural pilot project the
     opportunity to meet with and hear ideas from the participants who were bidding in the
     procurement process.
B3.2 Coordination
 One of the key roles of Lancashire County Council is to reduce the cost and time to deploy
superfast broadband, in order to make Lancashire attractive for public and private sector
investment. This will be achieved by taking an innovative approach to planning and
highways processes and developing existing communications channels to create a shared
objective around efficient deployment of infrastructure. The potential outcomes will be:
   Reduce the number or separate notices by an agreed %;
   Reduce response times by the County Council ( as the highway authority) by an
     agreed %;
   Reduce response times by the County Council ( as the highway authority in respect of
     conservation areas ) by an agreed%
   Simplify and standardise planning processes across the Lancashire Local Authorities;
   Standardise approach to reinstatement requirements.

                                            33
We intend to nominate champions in highways and planning teams who will be responsible
within the County Council and other local authorities to ensure that we work in partnership
on these issues.

SECTION C – FINANCIAL INFORMATION

C1. Funding requirements
This Local Broadband Plan represents a long term, programme based approach to the
financing of a ubiquitous superfast broadband network. A blended funding pot will see
funding drawn down from multiple sources, across a range of output based indicators to
finance the Vision of this plan.

In February 2011, the County Council's cabinet agreed a three year capital strategy which
includes £9 million pounds investment in economic development initiatives over this three
year period.

Superfast broadband has been identified as one of the projects to be supported through this
investment and currently we have identified a contribution of £3m representing £2m capital
and £1m to support demand stimulation.

Our current assumptions exclude the additional funding from the recycling of revenues into
the project as a result of higher customer take up.

The total costs of delivering this Local Broadband Plan are outlined below.

Total funding required      2011-      2012-        2013-        2014-     2015-      2016-
(GBP)                       2012        2013         2014        2015       2016      2017
           £               millions    millions     millions    millions   millions   millions
Private sector            1           13           13          4
(Telecom Company)
investment
Sub Total                                                      31
BDUK funding              .8          5            5
Other funding (Local      1           2            2
Authority)
Sub Total                                                      16
Other funding                         5            6           5.5
(European/ERDF)
Sub total                                                      16.5
TOTAL                                                          63.5
Number of
postcodes covered by
the funding 222,285
Number of premises
(residential and non-
residential) covered by
the funding
222,285


                                              34
C2.1 Technical solutions
We are committed to ensuring the provision of a world-class, future-proof superfast
broadband infrastructure across Lancashire. An analysis of existing global deployments of
superfast indicates that the best way to provide this will be through fibre optics, buried deep
in the ground, as close to the users premises as possible.

The intended aim of the Lancashire Superfast Broadband Programme is to deploy a fibre
rich solution across the whole of Lancashire .ERDF will be used to fund the "last mile"
connection to businesses / key business areas in Lancashire. This is our preferred
approach and one that we will test the parameters of during Competitive Dialogue process.
Whilst we have approached the procurement process in a technology neutral fashion,
greater emphasis will be placed on the ability of proposed solutions to meet or exceed the
capabilities of the best in class superfast broadband solutions which are commonly held to
be fibre buried deep in the ground, as close to the users premises as possible.

C2.2 Ownership
We understand and have undertaken a thorough review of the main three established
business models15 for deploying superfast broadband and have considered each one
against its ability to support the Vision of this Local Broadband Plan.

We believe that risk and ownership within the private sector, supported by public sector gap
funding, will provide the best overall value money solution for Lancashire This approach:
    Minimises risk to the public sector;
    Will attract greater private sector contribution;
    Through competition delivery the optimum solution within the available funding
       envelope;
    Enables the County Council to focus on achieving outcomes;
    Is sustainable and future proof in the long term.

One of the key outcomes of our procurement is to select a "partner" who is as equally
committed as ourselves to achieve the objectives and not a "contractor". The ownership of
the infrastructure will remain with industry; we will only seek to gap fund their investment.
By working in partnership we will retain the ability to:
     play a significant part in ensuring that project objectives are achieved;
     ensure value for money;
     ensure that any additional revenues generated are re-invested back into the network
        to allow it to continue to grow and develop; ensuring sustainability and future
        proofing.

We will ensure that governance is properly addressed at all levels and in doing so that the
County Council will be fully involved in all decisions regarding rollout, technology mix and
deployment address economic development, social inclusion and transformation of
services.

Lancashire County Council intends to adopt the grant funded model. Lancashire County
Council has no intention of becoming a network owner nor do we intend to develop a new
special purpose vehicle through which to deliver this project. Our view of a long term

15
     Industry owned, public sector owned, hybrid model

                                                         35
partnership is one that extends above and beyond the lifetime of the initial capital
investment of this project to capture how wider benefits can be accrued from exploiting the
network as a result of other non-associated activities and also as a result of potential further
investment into broadband in Lancashire (i.e. by private sector partner(s) or further public
purse such as future ERDF funding streams).

SECTION D – COMMERCIAL INFORMATION

D1. Commercial case
Our strategy is to ensure that we are able to demonstrate that the Lancashire Superfast
Broadband Programme objectives meet the overarching principles of:
    BDUK: address digital inclusion and rural development by bring superfast broadband
       to the final third; and
    ERDF: increase GVA, secure and grow jobs from connections for all businesses
       across Lancashire.

This Local Broadband Plan will be delivered through a public sector gap funding made
available to a partner selected using a competitive dialogue process under the EU
procurement rules.

Gap funding will be provided through a grant award only for areas that are not commercially
viable and have been designated as ‘superfast broadband White’ in accordance with EU
Broadband guidelines on state aid (see Diagram Three attached at Annexe four).

As part of our competitive dialogue, potential partners will be required to identify profitable
and unprofitable areas and provide full analysis including costs and revenues in order to
calculate the minimum gap funding contribution required. The grant award will be provided
as an incentive to a partner to roll out superfast broadband where otherwise this would not
have been deployed by any operator in the next 3 years.

Investment by potential partners in areas not included in the superfast broadband white
area designation will be encouraged but would be entirely at the partners' own cost and will
not form part of or benefit from any public sector funding secured for this project.

A key objective of our project will be to minimise the public funding required and maximise
the private sector investment contribution.

The County Council will not be prescriptive about the exact gap funding model. This is one
of the issues that we will explore with potential partners through the competitive dialogue.

The partner will own the superfast broadband network and in doing so will have
responsibility for maintaining and upgrading the network, ensuring a sustainable solution.
The partner will be required to ensure open, equitable and transparent access to the
network. The partner will be expected to own and manage the risks associated with
delivering and operating the network including any risks from take up and demand
forecasts.

As part of the competitive process, we will encourage potential partners to identify the
extent to which existing broadband networks in Lancashire, e.g. the CLEO network, can be


                                              36
utilised in order to avoid unnecessary and wasteful duplication of resources, without
impacting on the services the existing networks currently provide.

Marketing, promotion and end user support activities will be fundamental in order to
achieving the overall objectives and outcomes. This will be needed on two levels; firstly, in
attracting service providers by communicating the benefits of the superfast broadband
network to the industry; and secondly, marketing and demand stimulation activities to end
users, in particular the business community. High levels of take up will accelerate the
benefits to Lancashire in achieving its objectives. A joint programme of demand stimulation
and business support will be a key feature of the partnership.

In order for the project to be a success, over the forthcoming months we will continue to
engage with a range of partners and stakeholders across all of Lancashire's communities to
ensure that we secure the best possible outcomes. Potential partners will be required to
propose technologies that are most suitable to achieving the overall project objectivities,
including cost effective solutions to isolated rural and hard to reach areas with limited
infrastructure capacity.

D2. Market engagement
Prior to publishing an OJEU Notice in March, soft market testing was undertaken to
ascertain industries perspective and propensity to respond to any OJEU notice.
A series of 1-2-1 meetings, discussions, and formal / informal conversations were held with
the following industry specialists:
     BT
     Virgin Media
     Alcatel Lucent
     Vitesse
     Geo
     H2O
     Avanti Communications
     Synetrix Ltd

D3.1 Procurement strategy
Having reviewed all of the different procurement routes, Lancashire County Council has
elected to use the Competitive Dialogue process. The use of the Competitive Dialogue
process for complex procurements is advocated by the Office of Governance Commerce.

We will use this process in order to select a private sector partner who will be willing to work
in partnership with the County Council. We have not prescribed the form of this
arrangement save to say that we are adopting the gap funding model. We want to ensure
that we do not create any unnecessary new structures or organisations which result in
resources which should be spent on delivering the project instead being diverted to fund the
running of such structures. We intend to procure one delivery partner which can be a single
existing company or a consortium. However this will not result in local providers being
excluded. As part of the dialogue process, we will actively encourage bidders to engage
with local organisations which we have identified through the work we have carried out over
the preceding months.

The aim of the partnership will be to develop and deliver a future proof, fully sustainable
superfast broadband network with access to end user applications and services to the rural,

                                              37
business communities, public sector organisations and citizens of Lancashire. Although
Lancashire was not chosen as a BDUK pilot area, we have shared our initial procurement
documentation with BDUK and are happy to continue to continue doing so.

In order to commence the procurement process, an OJEU Notice was published on 8th
March 2011. This was supported by a PQQ and Descriptive Document, (Information
Memorandum). The following thirteen organisations subsequently expressed an interest in
receiving further information about the project.
       1.    Magdalene Ltd
       2.    Telent Technology Services Limited
       3.    Broadband Wherever
       4.    Lancaster University Network Services Ltd
       5.    Commendium Ltd
       6.    Alcatel-Lucent
       7.    Kcom
       8.    NucleusVP
       9.    Synetrix Ltd
       10. Flexicomms
       11. BT Wholesale
       12. Fujitsu
       13. Avanti Communications Group PLC

Of these, three organisations returned completed PQQs by the closing date of 5 th April
2011:
      1.    British Telecommunications PLC
      2.    Fujitsu Telecommunications Europe Limited
      3.    A consortium consisting of Commendium Ltd, T-Systems Ltd, Gridline Holdings
            Inc.

Following the evaluation of the PQQs all three organisations were selected for the
competitive dialogue phase. Unfortunately, Fujitsu when asked to confirm that they were
fully committed to the Lancashire project withdrew from the process.

D3.2 Evaluation
The County Council used the following evaluation categories in order to evaluate the pre
qualification questionnaires: economic and financial standing, quality, health and safety,
environmental protection, employee matters and technical and professional ability.

We have produced an Invitation to Participate in Dialogue and Statement of Requirements
in order to support our procurement process. The contract will be awarded under the
competitive dialogue procedure of the Public Contracts Regulations 2006, and the County
Council, in accordance with those Regulations, intends to award the contract to the
Participant offering the most economically advantageous tender.

 The County Council has set scoring thresholds for a number of its evaluation criteria. This
enables the County Council at its discretion, to exclude a bidder who fails to achieve an
overall score of 50%.Our evaluation criteria is set out in Table 8 . The detailed sub criteria
are set out in Annexe 9.



                                             38
                                                                           Overall
Criteria                                                                  Weighting
Partnership                                                                           10
Broadband Strategy for Lancashire                                                      5
Technology                                                                            10
End User Service Requirements                                                          5
End User Applications                                                                  5
Open Access                                                                            5
Benchmarking Pricing Exercise                                                          5
Customer Service and Support                                                           5
Coverage                                                                              10
Remote and Rural Coverage-Innovation                                                   5
Ownership, Implementation and Operation                                               10
Demand Stimulation                                                                     5
Funding , Monitoring and Claw back Mechanism                                          10
Service Levels                                                                         5
Environmental Sustainability                                                           5
TOTAL                                                                                100
   Table 8
   In responding to the Statement of Requirements bidders are required to explain    (where
   appropriate) how the following have been genuinely and demonstrably addressed:-
        Consistence of approach ;
        Cultural fit with the County Council ;
        Innovation; and
        Transformation, (together the "Pervasive Requirements").

  It will only by explaining how they have genuinely addressed the Pervasive Requirements
          within their responses to the Statement of Requirements that they will be able to
          achieve the highest scores
  Value for money will form part of our overall evaluation strategy and will involve:
       A clear demonstration of the resources required to deliver the project objectives ,
           including the full cost of the resources required ;
       Clear approach as to how surplus revenues and other benefits will be re invested in
           the project;
       Clear and robust approach to the identification, assessment and delivery of
           significant improvements, with improvement being demonstrated on an ongoing and
           increasing basis throughout the duration of the partnership; and
       Robust open and transparent financial arrangements including extent to which this
           represents complete open book accounting.




                                             39
SECTION E – DELIVERABILITY

E1.1 Project management
Lancashire County Council has significant experience in delivering major complex projects
and partnerships for example:
    Waste Management PFI Project (capital value £250M);
    Building Schools for the Future (establishing a local education partnership and
      building nine new secondary schools in Burnley and Pendle through a combination
      of PFI and conventional capital funding, capital value £230M)
    A ten year strategic partnership with BT plc relating initially to customer access
      services (face to face, telephone and web based), ICT, Human Resources and
      Payroll and Procurement, but other services may be added. The annual value is
      circa £45m.The County Council has established a joint venture company with BT plc,
      One Connect Limited.

The strategic partnership is the most recent of the complex projects to be concluded. The
County Council conducted the procurement of this project using the competitive dialogue
process. The OJEU Notice for this project was published in December 2009 and the
competitive dialogue was concluded by September 2010.Contracts were signed on the 28th
April 2011. Attached at Annexe 10 is a copy of the report considered by the County
Council's Cabinet in relation to the creation of this strategic partnership. The Chief
Executive (at that time in his former role as Executive Director of Resources) was the
Project Sponsor with the Director of Special Projects acting as Project Director.

The following overall approach to project management reflects the overall importance to
Lancashire of this project:

      The County Council's Chief Executive will act as the Project Sponsor.

      Eddie Sutton, the County Council's Assistant Chief Executive has been appointed as
       the Project Director. Andrew Halliwell has been appointed by the County Council in
       the role of Assistant Project Director.

      The County Council's senior management team comprising the Chief Executive, the
       Executive Directors for Adult and Social Care, Children and Young People and the
       Environment (highways), the County Secretary and Solicitor and the County
       Treasurer will act as the Strategic Steering Group. This will ensure that the County
       Council will have an integrated approach to the project at the highest levels and will
       ensure that the necessary resources are allocated to the project. The Terms of
       Reference for the Strategic Steering Group are set out at Annexe 11. The Project
       Director will attend meetings of the Strategic Steering Group.

      The County Council has established a Project Board which sits underneath the
       Strategic Steering Group. The Project Board has the day to day responsibility for the
       project. The Terms of Reference for the Project Board are set out at Annexe 12.
       The Project Board is chaired by the Project Director and comprises several Directors
       drawn from across the County Council based on their experience in being involved in
       the delivery of complex projects.


                                             40
      Quality assurance will be the responsibility for the Council's Internal Head of Audit.
       The County Council has considerable experience acting as accountable body for
       ERDF programmes, the Government's Housing Market Restructuring Programme
       and the Future Jobs Fund programme in Lancashire


                               Strategic Steering Group



                                            Project Board

                                                                    Project Assurance

                                            Project Director


                                       Assistant Project Director



          HR and           Technical               Financial          Legal        Procurement
       Communication



The HR and Communication work stream is lead by Tim Seamans, the County Council
Head of Communications. The Technical work stream is led by the Assistant Project
Director. The Financial work stream is lead by Malcolm Evans, the County Council's Head
of Specialist Finance. The legal work stream is lead by Laura Sales, the County Council's
Assistant County Solicitor with responsibility for commercial and contracts. Procurement
support will be provided by the Director of Procurement.

Strategic Steering Group membership:
    Phil Halsall (Lancashire County Council Chief Executive)
    Helen Denton - Executive Director for Children & Young People
    Ian Fisher - County Secretary and Solicitor
    Richard Jones - Executive Director for Adult and Community Services
    Jo Turton - Executive Director for Environment
    Gill Kilpatrick - County Treasurer

Project Board membership:
    Mike Hart (Director for Resources Children and Young People )
    Martin Kelly (Director Economic Development)
    Eddie Sutton (Assistant Chief Executive)
    Andrew Halliwell (Assistant Project Director)
    Julie Hughes (Business Improvement Manager)

Finally, the County Council has created and funded the new post of Assistant Project
Director. The County Council has recruited Andrew Halliwell from the North West
Development Agency. Whilst at the NWDA, Andrew has led on the development of the
Northwest's Superfast Broadband Strategy. The full resource of the County Council



                                                    41
(Procurement, Finance, legal, technical Marketing etc) will be made available to ensure the
successful delivery of this Local Broadband Plan.

The County Council confirms that sufficient resources and a quantifiable budget are in
place to procure the proposed broadband investment. This is outlined in Table 9

             Project    Team 2011-     2012-     2013-     2014-2015
             and             2012      2013      2014
             Programme
             Resources funds
             (Revenue)
             £                     000       000       000       000
             Budget
             Advisors
             Demand           200,000   800,000   600,000    200,000
             Stimulation
             Project Team     300,000   300,000   300,000    300,000
             TOTAL            500,000 1,100,00    900,000    500,000
                                               0

Table 9
We are using PRINCE2.

Supporting Lancashire County Councils broadband ambitions, the following additional work
streams pertaining to State aid and ERDF eligibility have been undertaken. Taken
collectively, they highlight a seriousness of intent to progress a first class broadband roll out
across Lancashire within a time limited scenario.

State aid: in seeking approval from the European Commission to intervene in the telecoms
market, Lancashire County Council has appointed Analysys Mason to support with State
aid compliance issues. The work to date has encapsulated the following areas:

1) Full public consultation with the telecoms industry (34 companies).
2) Production of black, white and grey mapping data.
3) Completion of pre-notification paper work; subsequently signed off by BIS State aid
Policy Unit.
4) Submission of pre-notification paper work to European Commission (EC).
5) Responses submitted to EC questions on pre-notification paper.

Lancashire County Council's pre-notification paper was submitted in August and we now
fully expect to move to formal notification by early November.

Our expectation following this is to have State aid compliance achieved by end of
December/ January.

ERDF eligibility: Lancashire County Council has employed the services of EKOS consulting
to build on the black, white and grey mapping data mentioned above under point 2. The
analysis of this data has shown that there are 45,730 businesses in Lancashire of which
11,687 are ERDF eligible in white areas and 30,469 are ERDF eligible in black, white and
grey areas. Taken together, these two figures provide the capital and revenue elements of
Lancashire County Council's £16.5m ERDF application.
                                               42
Additional to this analysis of the black, white and grey mapping in Lancashire, EKOS
Consulting have been tasked with undertaking an economic analysis of the economic
impact of investments in superfast broadband in Lancashire (see E3).

As a final piece of work, EKOS Consulting will also be tasked with undertaking a full Green
Book appraisal of Lancashire County Council's ERDF application.

E2       Timetable
Table 10 sets out our key milestones.
           Key milestone*                               Expected date
  Project definition approved by Complete
  local bodies
  Initial EU Structural Fund        Complete
  approval
  Issue of PIN (if used)            n/a
  Issue of OJEU Notice              Complete
  Prequalification complete         Complete
  Final tenders submitted           16/12/11
  Preferred bidder selected         26/01/12
  State Aid approval confirmed January / February 2012
  EU Structural Funding             January 2012
  approval confirmed
  Contract award                    24/02/12
  Commencement of                   February 2012
  implementation
  Implementation complete           November 2014
Table 10
E3.1 Expected Strategic Benefits
Broadband investment will lead to quantifiable and non-quantifiable benefits. As part of the
competitive dialogue process, bidders will be required to describe how they propose to
measure and monitor the delivery of those benefits which can be quantified.
Notwithstanding this, a series of pen portraits have been commissioned that detail the
expected strategic benefits to be accrued (see Annexe eight). As indicated above, the
strategic benefits will be underpinned by our prime objective that by 2015:
       as close 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 there 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.

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 premises.

Improved connectivity will benefit a number of industries prevalent in Lancashire –
especially those that are information intensive – by improving links between businesses in
Lancashire, and links from Lancashire to companies around the world. These links will


                                            43
serve to increase productivity, stimulate activity in rural areas, and attract inward investment
from UK-based and international companies.
Beyond the business benefits, improved Internet access will provide Lancashire’s citizens
with a host of new services and applications that will assist in raising overall quality of life.

Lancashire businesses will benefit from improved supply chain linkages, improved R&D
collaboration with other firms and institutions and reduced costs of using productivity
boosting ICT applications such as video conferencing and cloud computing. Superfast
broadband will enable public and private sector organisations to explore new business
models and adopt new ways of working by enabling flexibility in aspects such as home
working.

The benefits of superfast broadband in Lancashire will be felt particularly strongly across
information-intensive sectors prioritised by the Lancashire Economic Partnership, 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 particular significance
to Lancashire’s desire to attract increased levels of overseas investment.

As has been mentioned under addendum point E1 Project Management, EKOS Consulting
have been tasked as part of a wider project team to develop various economic impact
scenarios that highlight the strategic benefit of large scale investment(s) in broadband and
also superfast broadband.

This work will entail an examination of previous deployments of standard broadband and
superfast broadband to understand the economic benefits associated with this type of
regenerative work.

Furthermore, EKOS will be creating a dedicated superfast broadband financial modelling
tool that will take given macro economic conditions, financial inputs and use them to predict
long term strategic benefits.

This work is currently underway and will be ready by the end of November.

E3.2 Measurement
A number of measurements will be put in place to ascertain the success of the delivery of
this Local Broadband Plan. Adoption of a scorecard for the analysis metrics in speed,
coverage and price will be a key theme of measurement. As a minimum we will include the
following specific scorecard measures:
     Premises passed by Geo type;
     End user affordability;
     Number of competing service providers;
     Number of premises connected;
     Cost per premises passed; and
     Cost of premises connected.

The County Council consider that the following represent critical success factors for this
Local Broadband Plan:
    Local and regional leaders are vocal, committed and actively supportive of the policy
      and local / regional broadband projects;

                                               44
        Local bodies are willing to prioritise the development of projects and resource project
         teams that support the Vision of this Local Broadband Plan;
        Local bodies are willing and able to work together to increase the scale of
         intervention where this would be more efficient, without resulting in slower
         development and procurement times;
        Local communities are able to usefully channel their interest and enthusiasm into
         activities which add to and enhance the outputs of local bodies in terms of achieving
         the delivery of this local broadband plan;
        BDUK investment funding is enhanced to by funding from EU structural funds and
         other sources, including local partners;
        Suppliers and service providers are willing to participate in local projects, such that a
         competitive marketplace is ensured which provides for value for money and has the
         capability to meet the flow of projects;
        Demand registration and stimulation measures increase the commercial viability of
         private sector investment;
        Solutions delivered are commercially sustainable and future proofed ; and
        Business and residential consumers addressed by this Local Broadband Plan are
         satisfied that their basics need for broadband access has been delivered.

E4.      Risk management/log

Risk                                         Risk Assessment            Threat to Project /
                                             (Low, Medium, High)        Mitigation
                                                                        (L,M, H)
No.          Description                     Likelihoo     Severity
                                             d
1.           Failure to secure               L to          H            H
             ERDF funding                    M                           We will look for
                                                                        other funds
                                                                        Will scale down
                                                                        minimum
                                                                        requirements.
                                                                        Creating a long term
                                                                        partnership with
                                                                        industry creates a
                                                                        vehicle to identify
                                                                        alternative funding
                                                                        streams.
2.           Cost Overruns                   M             H            M
                                                                        Will contract on fixed
                                                                        prices contract
                                                                        against highly
                                                                        specified outputs.
                                                                        The intention would
                                                                        be for the private
                                                                        sector partner to
                                                                        retain and manage
                                                                        this risk.
3.           Failure to secure ISP           L             L            M

                                                 45
                                        Procurement
                                        requirements
                                        explicitly require
                                        demonstration of
                                        how content and
                                        applications will be
                                        delivered
                                        Procurement
                                        specifically requires
                                        evidence that ISPs
                                        are secured.
4.   Inability to secure   L        H   M
     corporate sign off                 Cabinet, Chief
                                        Executive and
                                        Leader all signed off
5.   Delay risks (State    M        H   M
     aid, CPRG,                         Weekly project
     Procurement)                       meeting discussing
                                        timetable / critical
                                        path issues.
                                        Down to one bidder
                                        in the procurement
                                        process
                                        State aid advice has
                                        been procured
                                        externally to mitigate
                                        delays
6.   Technological risk    L        H   M
     (1) (sub-optimal                   Competitive dialogue
     solution)                          used as a
                                        mechanism to
                                        ensure appropriate
                                        solutions suggested
                                        Remain agnostic to
                                        technology but firm
                                        on performance
                                        characteristics
7.   Construction risks    L        M   L
     (weather, planning,                Lancashire County
     topography,                        Council planning and
     engineering)                       highways
                                        department providing
                                        high level support.
                                        The County Council's
                                        Environment Director
                                        is a member of the
                                        Strategic Steering
                                        Group.
                                        Permit a degree of
                                        late delivery for

                               46
                                            unforeseen
                                            circumstances
8.    Procurement (market      M        M   M
      interest, vfm, choice)                Stakeholder and in-
                                            depth consultations
                                            held with industry
                                            providers prior to
                                            OJUE notice to
                                            ensure appropriate
                                            levels of support for
                                            the project.
                                            Procurement
                                            process has
                                            generated a
                                            completion , The
                                            County Council has
                                            retained option to
                                            procure through the
                                            BDUK framework if
                                            bids not satisfactory

9.    Inability to secure      L        H   M
      resource & expertise                  Lancashire County
      to deliver                            Council internal
                                            budget aligned to
                                            support superfast
                                            broadband team
                                            and expertise
                                            resource in place to
                                            support delivery No
                                            longer a risk
10.   Take-up (low             M        H   M
      demand, limited                       Private sector
      exploitation)                         partner will work with
                                            the County Council
                                            to ensure high levels
                                            of take up through
                                            the effective use of
                                            NGA
                                            Demand stimulation
                                            is a key element of
                                            the procurement
                                            process
                                            High importance
                                            placed on proven
                                            track record in
                                            demand stimulation
                                            Funding will be
                                            provided to fund
                                            demand stimulation

                                   47
                                              programme
11.   Failure to secure          L        H   H
      BDUK Funding or                         Will look for other
      funds lower than                        funds
      expectation                             Will scale down
                                              minimum
                                              requirements
                                              Will require to focus
                                              on the most remote
                                              communities first
                                              thus ensuring the
                                              most difficult areas
                                              are addressed
                                              making it more
                                              attractive for the
                                              private sector to fill
                                              the holes
12.   Political change           L        M   L
      within LCCC cabinet                     Demonstrate cross-
                                              party consent
13.   Change of                  L        H   H
      Government and                          Will look for other
      reallocation of funds                   funds
                                              Will scale down
                                              minimum
                                              requirements
14.   Loss of key staff          L        M   L
                                              Cabinet level
                                              commitment will lead
                                              to timely
                                              replacement. The
                                              County Council has
                                              recruited Assistant
                                              Project Director to
                                              support existing
                                              resources.
15.   Suppliers get into         L        H   M
      difficulty                              Select robust
                                              suppliers with
                                              financial backing
16.   Suppliers                  M        L   L
      uncomfortable with                      We have isolated our
      current relationship                    current involvement
      with BT                                 with BT into a
                                              separate SPV. All
                                              potential suppliers
                                              were informed.
17.   Sustainability: Will the   M        M   M
      superfast broadband                     Innovative


                                     48
      deployment sustain itself in                reinvestment
      the long term and be able to                business model
      fund the ongoing                            utilised to ensure
      maintenance, uplift,                        sustainability of
      technology refresh and                      network
      process improvement
      needed without recourse to
      further public funding

18.   Technology Risk: Will new      M        M   M
      technologies emerge that                    Competitive dialogue
      take away end users and/or                  process used to
      change the commercial                       stress test differing
      viability of the project.                   technological
                                                  options. Analysis of
                                                  global deployments
                                                  suggests that fibre
                                                  optic cables, buried
                                                  deep in the ground
                                                  as close to the users
                                                  premises as possible
                                                  is the ultimate
                                                  solution with regards
                                                  future proofing.
19.   Audit (funding): compliance    M        L   L
      with audit requirements risk                Lancashire County
      of funding clawback or                      Council has
      withholding                                 significant
                                                  experience of major
                                                  ERDF / centrally
                                                  government funded
                                                  initiatives and will
                                                  utilise internal
                                                  expertise
20.   Regulation compliance:         L        M   L
      changes to EU or NRA                        EC State aid rules
      regulatory regime impacting                 likely to be redrafted.
      project                                     Lancashire County
                                                  Council application
                                                  will be ahead of any
                                                  redrafting and will be
                                                  based on existing
                                                  guidance
21.   Industry capacity: high        H        H   H
      number of projects, supplier                Lancashire County
      resources. Leading to no                    Council secured
      interest in the Lancashire                  relative first mover
      Project                                     advantage and
                                                  began OJEU
                                                  process. in March

                                         49
                                                2011

                                                Fall back option is
                                                BDUK l Framework
22.   Failure to attract private   L        H   Continuous dialogue.
      sector partner
                                                Ability to stop project at
                                                procurement stage if
                                                no strong partner is
                                                fund.

                                                Possible partners
                                                have already
                                                indicated willingness
                                                through soft market
                                                testing
23.   Danger of not obtaining      L        H   Need       to      make
      State aid approval                        compelling case to
                                                European
                                                Commission.

                                                Expert    State    aid
                                                advisors      Analysys
                                                Mason appointed to
                                                own State aid works.

                                                Meetings held with BIS
                                                State aid Policy Unit to
                                                establish   permissive
                                                environment.

                                                Meetings arranged
                                                with the European
                                                Commission to
                                                establish a clear
                                                context for pre-
                                                notification and
                                                formal-notification
                                                paper(s).
24.   Competitive action from      L        L   If industry change
      telecoms operators                        their roll out plans,
                                                ensure Lancashire
                                                County Council roll
                                                out plan is
                                                sufficiently flexible to
                                                avoid duplication
25.   Roll out delays              L        M   Co-ordinate and brief
                                                all internal
                                                departments
                                                including highways,

                                       50
                                                planning and legal
26.   Apportionment issues         M        H   Lancashire County
      (ERDF)                                    Council working with
                                                Cheshire and
                                                Cumbria authorities
                                                to determine a
                                                mutually supportive
                                                apportionment
                                                approach to take
                                                with regards to
                                                apportionment.
27.   Highways / planning issues   L        M   Ensure preferred
                                                private sector partner
                                                has experience in
                                                working with
                                                planning and
                                                highway processes
                                                including in
                                                Lancashire. This
                                                project is a huge
                                                engineering
                                                challenge and will
                                                have the full support
                                                of the County
                                                Council including a
                                                supportive and
                                                flexible approach
                                                from planning and
                                                highway functions.
28.   Disaster recovery (adverse   L        H   Ensure preferred
      weather and other events                  private sector partner
      impacting business                        has a track record of
      continuity)                               effective response to
                                                incidents in
                                                Lancashire. BT can
                                                call upon 14000 field
                                                engineers from
                                                across the UK and
                                                have a tried and
                                                tested emergency
                                                response team and
                                                business continuity
                                                capability.
29.   Audit and funding            L        M   Ensure preferred
      requirements                              private sector partner
                                                has developed
                                                robust audit and
                                                funding drawn down
                                                processes to satisfy
                                                ERDF audit

                                       51
                                                                       requirements in
                                                                       Northern Ireland and
                                                                       Cornwall
 30.          Civil engineering (problems L               L            Ensure preferred
              with access to and condition                             private sector partner
              of underground and over                                  has developed
              ground plant)                                            appropriate methods
                                                                       for ameliorating
                                                                       potential civils issues
 31.          Technology (Changes in           L          M            Ensure that the
              technology, standards,                                   project includes the
              spectrum availability,                                   flexibility to adapt to
              regulatory policy or                                     change and a
              emergence of new or                                      roadmap of future
              improved technologies can                                technologies which
              impact the viability and                                 will be reviewed and
              sustainability of the project)                           new technologies will
                                                                       be deployed as they
                                                                       become available
                                                                       and where
                                                                       appropriate.

 CEO      sign off

a) Submission:

In submitting Local Broadband Plan, I verify that the proposal fits with corporate policy




Signed:
Name: Phil Halsall

Job Title: Chief Executive                     Date: 30TH November 2011




                                                   52
                      Annexe one

                      FDI levels in Lancashire 05/06 – 09/10



                     25


                     20
Number of projects




                     15
                               8
                                               10                                                     M&A
                                                                10                        4           Expansion
                                                                                                      New
                     10                                                     4
                                                                                          5
                              11                5
                     5                                           6          5
                                                                                          6
                                                4                           3
                     0         1                                 2
                            2005/06          2006/07           2007/08    2008/09       2009/10

                                                                                              Source - UKTI
                      Annexe two

                      Please see separate PDF document entitled Lancashire County Council Economic Strategy
                      2010




                                                                     53
Annexe Three




                    Diagram two


               54
Annexe four




              Based on the EC guidelines and analysis of
              available information, the White, Black, and Grey
              areas in the Lancashire sub-region by the end of
              2015 are estimated to be as shown in Diagram three




                                                 Diagram Three




                    55
Annexe five




                   Diagram Four




              56
Annexe six




                  Diagram five




             57
Annexe seven




                    Diagram six



               58
Annexe Eight

Pen portraits for the impact of superfast broadband
To help illustrate the real benefits that superfast broadband will deliver to Lancashire, this
annex 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 (which are cited within the document) that are envisaged to
take place in Lancashire. These are the scenarios that will play out across the network.

Engineering company in Lancaster using superfast broadband work more efficiently
An engineering company based in Lancaster, which specialises in the manufacture of metal
components, recently received an FTTP connection to its building. The company already
had a simple website which it used to advertise to, and attract, customers, but the new
connection enabled it to significantly increase its functionality.

Potential clients are now able to submit detailed computer-aided design (CAD) drawings
and specifications to the website so that the company can provide them with accurate
costings for the work rather than an indicative quote. It is also far easier to update the
website by quickly uploading new case studies and information. The improvements to the
website have given a new emphasis to online sales, which has improved the reach of the
company to wider international markets. Supplier relationships are also now managed
online, which has saved staff time and the automated ordering of materials has reduced
inventory levels and made more efficient use of storage space.

The company needs to use specialist engineering software for certain jobs and it has saved
on licence fees through the use of cloud computing to access the software remotely on an
ad-hoc basis. It also now stores its documents and functions such as its contacts database
remotely, which has saved on hardware costs and improved disaster recovery capabilities.
The fast transfer of company data has enabled it to outsource its finance function and
online methods are being increasingly used for paying bills and invoicing, all of which has
reduced staff time required and has improved efficiency.

Older person living in Burnley
Mrs Smith lives alone in Burnley, and at the age of 78, was finding that her deteriorating
health and limited mobility made it difficult to continue living independently. Her children
now live outside the UK, and she was therefore considering moving to a care home where
she could receive the assistance she needed, but was reluctant to leave the house where
she had lived for 50 years.

Rather than place Mrs Smith in an expensive care home, the council was able to install
technology in her existing home, which used the superfast broadband network to provide
the services and facilities she required. By installing a video phone through her television,
surveillance cameras, safety alarm systems and emergency assistance systems, Mrs
Smith’s house was turned into a virtual care environment where she can now live safely
and independently in the comfort of her own home.

Mrs Smith was provided with training on how to use the new equipment and can now use
the Internet to arrange home delivery for her weekly food shopping as well as to make
video calls to keep in touch with her relatives abroad. She also benefits from the flexibility of
e-healthcare whereby she can easily contact a health professional over the video phone to

                                               59
discuss any concerns. As Mrs Smith suffers from diabetes, equipment has also been put in
place so that her doctor can monitor her blood sugar, weight and blood pressure remotely.

     The Viedome project16 in Neunen, the Netherlands, uses the OnsNet superfast
     Broadband network to provide virtual care home environments to elderly residents. The
     project is based on a partnership between a semi-public care organisation and a private
     technology company.
     The Just Checking system17 in the UK allows people with dementia or memory loss, to
     continue to live independently. It monitors a person in their home, and provides a chart of
     activity via the Internet. The system provides family carers with reassurance that
     someone is following their usual pattern of life, without intruding on them or undermining
     their independence. It helps relatives to plan social (rather than ‘checking’) visits and
     manage their care to best effect.

A farming family in Quernmore
The Brown family owns a farm in a small village in the Lancashire and, until recently, was
only able to receive broadband over a very slow connection that was little faster than dial-
up. The village is now served by a superfast broadband network and this has transformed
the Browns’ business and personal lives.

They were surprised at the impact of Internet connectivity on their farming business. They now
use the Internet to purchase livestock and machinery at more competitive prices, or to check
prices before buying locally. They have found a wealth of useful information on farming-related
websites and forums, and are achieving better prices for their produce by checking market
prices and by selling produce through online auction sites. They have also found that the price
of third-party services, such as accounting, has been reduced given that these services can
now be performed remotely.

The new connection has also dramatically improved the range of entertainment to which the
family has access. There was previously interference to their television signal in bad
weather, but the Brown family can now receive HD video-on-demand services at a
consistently high quality. They also enjoy being able to download films quickly as they are a
long drive from the nearest cinema, and enjoy the ability to easily download music tracks.
The Brown’s eldest son now lives in the USA and, while the previous dial-up connection
would not support Skype voice services, the new connection means they can stay in touch
using webcams. He is also able to share high-resolution photo albums with them, which
they can download in seconds.

An injured worker, retraining in ICT from home
Mohammed is a 26-year old living in Blackpool. He is a qualified plumber, but due to a
serious back injury he is unable to continue working and has been claiming incapacity
benefit. Mohammed can no longer drive and initially felt isolated, but he now keeps in
regular contact with friends through social networking sites. He has also become involved in
his local community and regularly contributes to online webcast debates. Mohammed is a


16

http://ec.europa.eu/regional_policy/projects/practices/details.cfm?pay=NL&the=84&sto=1474&region=ALL&lan=7&obj=AL
L&per=ALL&defL=EN.
17
   See http://www.justchecking.co.uk/.

                                                       60
member of an online support group where he can chat with people in similar situations and
receive advice on treatments and physiotherapy.

Mohammed uses the Internet as an educational tool and feels more informed now he has
access to online news and review sites. Mohammed has enrolled on a Council-funded
online course in ICT. His superfast broadband Internet connection enables him to use
videoconferencing with course tutors and attend webinars where he can watch real-time
demonstrations of processes and techniques on his home computer. In addition, he is able
to use cloud computing to access some specialist computer programmes and information
hosted by the college, without having to pay for an individual software licence. After
completing his course, Mohammed hopes to set up a home business providing online IT
support.

     The University of Highlands & Islands18 in Scotland offers a range of remote learning
     options to its students. 80 learning centres provide a physical presence at the heart of
     many rural communities and are served by high-speed Internet links. This enables
     students to connect with tutors and other learners across the region via the Internet,
     email and videoconferencing, and those with sufficient Internet speeds at home can
     work in a virtual learning environment.

A professional family using broadband for flexible working
The Khan family lives in Skelmersdale and recently upgraded its broadband connection to a
50Mbit/s service. Mrs Jones works for an accounting firm in Manchester and although she
had the option to work from home, she previously found it impractical due to the long time it
took to download necessary files and access company resources. The superfast broadband
connection now enables her to use the company network at the same speed as if she were
in the office, and large spreadsheets can be downloaded in seconds rather than minutes.
This means that she can work from home and does not need to put her three-year-old
daughter into child care, saving the family a lot of money. The flexible working also allows
her to collect her other child from school rather than leave her in after-school clubs.

The Khan family do a lot of shopping online as they find it gives increased choice and is
often cheaper than high-street shops. They also regularly download movies, music and
recipes. Mr Khan had bought an HD television two years previously, but had been
disappointed with the range of HD programming available. The high-bandwidth connection
now enables him to access a wide range of on demand HD content from television
networks around the world.

Single mother in Pennine Lancashire who has access to new employment opportunities
Mary is a single mother living in Pennine Lancashire who works part time as a cleaner
when her children are at school. The household income is not sufficient to buy a computer
and Mary had never seen a great need for an Internet service. Through a government
grant, however, she was provided with a computer and an Internet connection.

Mary has found the Internet connection to be useful in a number of ways. She is able to
save money on her shopping as it is now easier to search for the best deal at online stores.
She is also able to stay in touch with her friends and family more regularly by using Skype
video calls and not having to worry about the phone bill. In addition, Mary has been able to
18
         See http://www.uhi.ac.uk/home/uhi-campuses/learning-near-you.

                                                        61
supplement her income by working as a web-based customer service agent in the evenings
without having to leave her children at home alone.

Mary’s children use the Internet regularly for their school work by logging on to their
school’s virtual learning environment to access resources and retrieve homework
assignments. They were also able to use the computer to watch their favourite television
programmes on demand, meaning Mary could watch her choice of programmes on the
television.

Law firm in Preston using superfast broadband to increase productivity
A small ten-person law firm, which has its offices in Preston city centre, upgraded its ADSL
broadband to a 100Mbit/s FTTP connection. The improved bandwidth has improved
productivity in a number of areas and enabled several cost efficiencies for the business.
Travel costs, for example, have reduced significantly as it uses videoconferencing to
communicate with many of its corporate clients.

The firm previously dealt with a great deal of paperwork due to the many evidence
documents needed for its cases. Limited office space meant that warehouse facilities were
required to file the documentation and a large amount of money was also spent on
photocopying and postage. The firm is now able to receive most of the files it needs by
email – even large picture and video files which were received on DVDs before. All paper
documents that are received are scanned and stored electronically, avoiding the need for
paper back-ups, and archives are now securely stored remotely, which greatly reduces the
warehouse space required. The fact that all of the firm’s resources are now available online
has enabled the introduction of flexible home working for its employees, which has had a
positive impact on employee satisfaction and retention.

The business now uses web-based applications for a number of its core functions such as
salesforce.com for its customer relationship management, and clearbooks.co.uk for its
accounting. Both of these applications have automated what were previously time-
consuming processes and have significantly reduced time spent on administration. The
higher speed of the Internet connection has also reduced the time taken to perform day-to-
day tasks such as file sharing and accessing online resources. Combined with the savings
in time spent on administration, this has enabled the firm to increase its billable time per
staff member by 5%.




                                            62
Annexe Nine Evaluation Sub Criteria.
Sub Criteria                                                     Weighting     Percentage of
                                                                 within sub-      Overall
                                                                 criteria       Weighting
Partnership Outcomes
1.   Convincing demonstration, supported by clearly defined           10            1
     benefits, of how working in partnership with the
     Participant will provide the Authority with the best
     opportunity to maximise the economic and social
     benefits from achieving the vision and objectives of the
     Lancashire Superfast Broadband Project.
2.   Convincing demonstration, supported by clearly defined           10            1
     benefits, of how the Lancashire Superfast Broadband
     Partnership, particularly through the involvement of the
     Participant, can be used as a catalyst for improvement,
     innovation and transformation
Roles and Commitments of the Partner
1.   Clear demonstration of the Participant's willingness to           5            0.5
     manage and share the risks of achieving the Authority's
     key objectives and outcomes.
2.   Clear demonstration of the capability and capacity               10            1
     which the Participant will bring to the Lancashire
     Superfast Broadband Partnership in terms of resources
     to deliver the change and knowledge and expertise
     developed through proven experience of delivering
     similar outcomes through working in partnership with
     public sector organisations. .
3.   Clear demonstration of the Participant's ability to lead         10            1
     the changes necessary to achieve the vision and
     objectives of the Lancashire Superfast Broadband
     Project and in particular how the Participant will
     actively drive forward and champion work in key areas.
4.   Clear demonstration of the Participant's approach to              5            0.5
     bringing new ways of working, new ways of thinking.
5.   Clear demonstration of the Participant's approach to             20            2
     integrate with and support the economic regeneration of
     Lancashire.
Relationships and Partnership Structure
1.   Clear demonstration of the Participant's approach and            10            1
     commitment to creating a long term strategic
     partnership with the Authority
2.   Robust model and structure for the Partnership which             20            2
     fully embraces the principles described in Paragraph 7
     of the Statement of Requirements with the
     relationships contractual or otherwise required to be put
     in place to support the Partnership clearly identified.
Broadband Strategy for Lancashire
1.   Clear demonstration of how the Broadband Strategy will           25            2
     represent the roadmap for the economic and social
     benefits of the Lancashire Superfast Broadband Project
     being realised.
2.   Robust methodology for the prioritisation of                     25            2

                                                63
Sub Criteria                                                      Weighting     Percentage of
                                                                  within sub-      Overall
                                                                  criteria       Weighting
    infrastructure investment alongside demand stimulation
    /generation activities.
3.    Clear evidence of the resources required to deliver the          25            2
    Broadband Strategy which are aligned to achieving the
    strategy's outcomes and objectives
4.  Robust methodology for measuring outcomes and                      20            1
    achievements against agreed performance targets.
5   Robust methodology for annual review and action plan.               5            0.5
    .
Technology
1.  Clear explanation of the proposed range of technologies            15            1.5
    that are most suitable to achieve the vision and
    objectives, of the Lancashire Superfast Broadband
    Project including a cost effective solution to isolated
    rural areas with limited infrastructure capacity.
2.  Clear explanation that the mix of access network                   15            1.5
    technologies offers the maximum speed / throughput to
    the greatest number of end users i.e. businesses and
    residents.
3.  Clear explanation of the proposed access technologies              10            1
    intended to be used in the Access Network. And
    whether the access technologies referenced to above
    are susceptible to any form of competition with other
    end users for resources in the Access Network.

4    Clear explanation the proposed Backhaul and core                  10            1
     technologies they intend to use which addresses
     Network Capacity, Resilience, Reliability, Latency and
     Contention.

5    Detailed Network diagram or diagrams identifying the               5            0.5
     technologies proposed above, and identifies the parts of
     the Network considered to be Access, Backhaul and
     Core Network.

6    Clear explanation of network architecture, listing all ITU         5            0.5
     and IETF standards appropriate to achieving a world
     class data transport infrastructure.

7    Where fixed and wimax solutions are being proposed,                5            0.5
     bidders are required to confirm and explain that the
     proposed technologies are compatible with NICC ALA
     standards

8                                                                       5            0.5
     Where non fixed ethernet solutions are being proposed
     clear demonstration of the standards framework being
     used –e.g. 3GPP.

9    Clear explanation of the capabilities of the Participant's        10            1
     proposed Access, Backhaul and Core Network, and

                                                  64
Sub Criteria                                                      Weighting     Percentage of
                                                                  within sub-      Overall
                                                                  criteria       Weighting
     how they specifically relate to the delivery of the
     Lancashire Superfast Broadband Project. This may
     include proof of suitability and / or reference examples
     of past deployments, addressing:
              Why particular technologies were used or
                are suggested to be used.
              Benefits arising from the use of particular
                technologies.
              Problems associated with the use of
                particular technologies.
              How well the capacity needs at peak usage
                times were met / are suggested to be met for
                particular technologies.

10   Clear explanation of how the Network could be                     10            1
     upgraded to achieve this performance in relation to:
                the Access Network.
                the Backhaul and Core Network.
                any other key relevant elements of the
             Network
11   Clear view of the predicted evolution of their Network            10            1
     during, and beyond the life of the Lancashire Superfast
     Broadband Project with an explanation of how the
     Participant's approach to Lancashire fits in with this
     predicted evolution.

End User Service Requirements
1    Clear demonstration in relation to the technologies               30            1.5
     proposed of:

           the ability to upload, as well as download, at high
            speed;
           the ability to handle peaks in traffic without
            leading to a noticeable loss in speed and quality
            of service – contention ratios or other
            appropriate methods;
           reliability and resilience;
           quality of service to ensure maximum
            performance of end user applications and
            enhance the customer experience; and
           end to end performance in delivering
            applications and services including:

                High Definition video download and
                 streaming in a consumer environment;
                Video Conferencing (presence) applications
                 in a business context; and
                The transfer of high volume business critical
                 data salient to priority business clusters in
                 Lancashire.


                                                65
Sub Criteria                                                       Weighting     Percentage of
                                                                   within sub-      Overall
                                                                   criteria       Weighting
2.    Clear explanation of how wholesale data backhaul                    10          0.5
      services to industry agreed handover points will be
      provided.

3.   Clear demonstration of how the Participant will provide            10            0.5
     improved network performance and throughput,
     throughout the life of the Lancashire Superfast
     Broadband Project. For fixed network solutions, how
     the Participant will release the additional throughput for
     the duration of the Lancashire Superfast Broadband
     Partnership
4.   For fixed solutions, clear explanation of the planned              10            0.5
     bandwidth profiles, including the committed rate and
     how this will improve during the duration of the
     Lancashire Superfast Broadband Partnership.
5    Clear demonstration that the bandwidth supporting the              10            0.5
     committed rate will support the appropriate loss, delay
     and jitter characteristics to support real time voice and
     video services.
6    Using the table at Figure 1.1 of the Statement of                  10            0.5
     Requirements, full details of the speeds that will be
     available at the Wholesale level for end-to-end
     connectivity for each Access Network technology
     proposed.
7     Full details on indicative 2015 and 2020 future speed             10            0.5
     predictions for each of the proposed Access Network
     technologies.
8    Identification of the maximum number of points of                  10            0.5
     presence as possible across Lancashire within
     economic constraints.
End User Applications
1    Robust demonstration of how Service Providers will be              40            2
     attracted to use the infrastructure and what applications
     and services will be delivered. Evidence of the
     programme for recruiting and enabling Service
     Providers and how these Service Providers will be
     supported in terms of billing, provision, repair, change
     (house mover) and service processes
2     Robust demonstration of the applications and services             40            2
     that will be enabled / supported by the Network and
     those that will be made available in Lancashire. In
     demonstrating this, Participants must have addressed
     Table 1 and Table 2 in Paragraph 11 of the Statement
     of Requirements
3    Clear explanation of the effect of:                                20            1
                  multiple users on different connections, e.g.
              in the same street.
                  multiple users on the same connection, e.g.
              in the same household.

Open Access

                                                  66
Sub Criteria                                                      Weighting     Percentage of
                                                                  within sub-      Overall
                                                                  criteria       Weighting
1.   Clear explanation of network access and data transport              10         0.25
     components to end user premises.
2.   Clear explanation of network access and data transport            10           0.25
     components to identified community hub locations if
     required
3    Clear explanation of network access and data                      10           0.25
     transport components to handover points suitable for
     other communication resources
4    Clear explanation of wholesale data backhaul services             10           0.25
     to industry agreed handover points.
5    For fixed solutions clear explanation of the planned              10           0.25
     bandwidth profiles, including the committed rate and
     how this will improve during the duration of the
     Lancashire Superfast Broadband Partnership.
     For non fixed solutions clear explanation of the
     planning rules, and bandwidth profiles assumptions per
     user made in the proposal
6    Clear evidence that the regulatory authorities (Ofcom)            30           0.75
     requirement for open access will be met.
7     Clear demonstration of :                                         20            0.5

                  How the proposed superfast broadband
                   Network     will   integrate    with   other
                   telecommunications infrastructures in, and
                   connected to Lancashire;
               The number and location of handover
                   points and how this has been determined
                   through consultation; and
                 Services to be provided at the wholesale
                     layer to enable Service Providers without
                     a network to compete for end users
Benchmarking Pricing Exercise
1.  Complete Table 3, providing proposed indicative                    20            1
    monthly prices and total cost of ownership (TCO) for
    Wholesale products for each of the proposed
    technologies. The product details include contention
    ratios, data caps and any other features considered
    relevant. A budget and high-end product for both a
    business and resident users must be included
2.  Robust demonstration of how the TCO has been                       20            1
    derived, and how this is linked to indicative monthly
    cost. This must include an explanation of any one-off
    costs.
3.  Clear explanation of what the overall Wholesale pricing            20            1
    strategy will be over, and beyond, the life of the project
    and how this will assist in achieving the vision and
    objectives of the Lancashire Superfast Broadband
    Project.

4    Provision of indicative prices of end user Applications in        20            1
     relation to the Wholesale prices stated in table 3. This

                                                 67
Sub Criteria                                                      Weighting     Percentage of
                                                                  within sub-      Overall
                                                                  criteria       Weighting
     must include single access connection products, and
     may include bundled end user Applications.
5    Robust justification of the affordability of the End User         20            1
     Applications, or the Service Providers end user
     Applications, and how this will assist in reaching the
     proposed take-up levels.
Customer Service and Support
1.   At wholesale level and end user level, robust                     10            0.5
     demonstration of how customers will be resourced /
     delivered. This will as a minimum include billing, repair,
     provision, changes and customer support.
2.   Level of commitment to quarterly availability targets; as         10            0.5
     agreed with its Service Providers for residential and
     business broadband packages. Wholesale components
     when configured together must support the current
     range of service levels offered by Service Providers
3.   Clear demonstration of an automated retail online                 10            0.5
     platform B2B interface / portal for volume transactions
     for moves, adds, changes, ceases and billing.
4.    Clear explanation of the customer support that will be           10            0.5
     made available for end users through the proposed
     Service Provider(s).
5.   Robust illustration of the ‘customer journey’ using a             15           0.75
     flowchart for both a business and citizen end user,
     showing how a new end user would sign up to a
     superfast broadband product. The flowchart must
     extend from initial customer contact to provision of the
     final product. Any hardware installation required, and
     after-sales service, must also be included.

6.   Clear explanation of how a Service Provider will                  15           0.75
     integrate with the systems required to provision
     Wholesale products, including the openness of systems,
     interface technologies, any costs associated with the
     systems integration and costs to connect the end user.

7.    Clear explanation of the full suite of maintenance               10            0.5
     services to be provided to Service Providers.

8.   Clear explanation of installation processes and                   10            0.5
     procedures to be implemented with Service Providers.
9                                                                      10            0.5
     Clear explanation of the fault management processes
    and procedures implemented with its Retail Providers
Coverage
1   Completed Table 4 showing what percentage of end                   50            5
    user premises in each of the classification types
    specified in paragraph 15 of the Statement of
    Requirements will be covered, commencing from the
    contract start date.


                                                 68
Sub Criteria                                                   Weighting     Percentage of
                                                               within sub-      Overall
                                                               criteria       Weighting
2    Completed Table 5 showing what percentage of end                 25          2.5
     user premises in each of the classification types will
     have access to each Access Network technology
     proposed in response. This must include the maximum,
     Median and Assured download and upload speeds


3   Completed Table 6 showing the projected total number            25            2.5
    of superfast broadband connections, including business
    and citizen End Users. Information provided as a
    lower and upper limit of projected connections and
    justify their data
Remote and Rural Coverage -Innovation
1.  Clear demonstration of how the Participant will work            50            2.5
    with remote rural and sparsely populated communities
    to meet the challenges in addressing the high cost (in
    comparison with urban areas) of reaching remote
    locations
2.  Clear demonstration of how the Participant will develop         50            2.5
    and deliver a Network covering the areas of Lancaster
    listed in paragraph 16 of the Statement of Requirements
    as a first rural community's project of the Lancashire
    Superfast Broadband Project


Ownership, Implementation and Operation
1.  Detailed coverage map and modelling criteria                    10            1
    explaining the deployment of the superfast broadband
    Network for the scheduled post code areas
2.  Detailed topology map explaining the points of presence          5            0.5
    and hand over points.
3.  Clear explanation of the risks and other challenges              5            0.5
    associated with rollout and the mitigation plans.
4.  Thorough explanation of how the rollout plans will react        15            1.5
    to areas of higher demand stimulated by the proposed
    strategy for demand stimulation and marketing.
5.   Detailed Project plan for the Lancashire Superfast             25            2.5
    Broadband Project which demonstrates :
                    the key milestones on the delivery of
                       the Access and Core Network;
                    the rationale behind the deployment
                       timescales, making reference to the
                       start, finish and duration of all
                       important aspects of the Lancashire
                       Superfast Broadband Project; and
                    full details of any assumptions or
                       dependencies.
6.  Clear explanation of project management processes.               5            0.5
    This may be from the Participant's own in-house
    process or any other project management methodology
    the Participant employs such as PRINCE2 or PMBOK.

                                              69
Sub Criteria                                                        Weighting     Percentage of
                                                                    within sub-      Overall
                                                                    criteria       Weighting
7.      Clear explanation of how the Participant will produce              10          1
        monthly updates, which will detail the Rollout in
        relation to:
                  actual progress of the rollout;
                  planned availability of Applications to end
               users;
                  any other relevant matters, including any
               alterations, additions or updates.
8.      Clear explanation of the change management process                5            0.5
        for any amendments to the Lancashire Superfast
        Broadband Project
9     Clear explanation of the specific resources that will be            2            0.2
      made available to the Lancashire Superfast Broadband
      Project. This must include an organogram of key
      personnel that will be assigned to the Lancashire
      Superfast Broadband Project, showing:
                  positions
                  reporting lines
                  the organisation personnel work for
         and whether they are assigned to the Lancashire
        Superfast Broadband Project on a full or part-time
        basis
10.   Clear explanation of the indicative number of the                   2            0.2
      personnel required to meet the achievement of the
      vision and objectives of the Lancashire Superfast
      Broadband Project, with a full explanation of how these
      will be provided.
11    Clear explanation of the skills and training of all project         2            0.2
      roles. This should include reference to roles which
      include:
                customer contact personnel
                technical roles.
12.   Clear explanation of how the Participant plans to                   7            0.7
      manage and maintain the Network over and beyond the
      duration of the Lancashire Superfast Broadband
      Project.
13.   Clear explanation of the degree to which the proposed               7            0.7
      solution will integrate with other telecommunications
      Infrastructure.
      Demand Stimulation
1.     Robust marketing plan for the marketing of end user               30           2.25
      connections to be undertaken in a Service Provider
      neutral way. This should include, but not be limited to:
                market analysis and target markets, including
                    businesses and citizens;
                proposed marketing activities; and
                marketing strategy.
2.    Completed Table 7, showing the marketing budget                    10           0.75
      allocated for end user demand stimulation activity to be
      undertaken in a Service Provider neutral way
3.    Confirmation of the maximum number of businesses the               20            1.5

                                                  70
Sub Criteria                                                      Weighting     Percentage of
                                                                  within sub-      Overall
                                                                  criteria       Weighting
     Participant is willing to connect and the maximum
     number of residential customers they are willing to
     connect supported by a thought out strategy to achieve
     both.
4.   Robust marketing plan for Wholesale products,                     20            1.5
     including, but not limited to:
                 market analysis, including target market
                 proposed activities
               marketing strategy
5.   Completed Table 8 showing the target number of                    20            1.5
     Service Providers that will access Wholesale products
     on the Network.
Funding, Monitoring and Clawback Mechanism
1    Robust demonstration of the financial viability of the            15            1.5
     Participant's business plan. The financial projections
     and supporting information to be readily reconcilable
     with the other information provided in response to this
     Statement of Requirements , e.g. rollout programme,
     coverage, technology, products, financial amounts shall
     be in GB Pound Sterling and exclude VAT.
2     Robust demonstration of the financial amount of                  15            1.5
     guaranteed private sector investment that will be
     provided for the Lancashire Superfast Broadband
     Project.
3.    Full details of special conditions, if any, that will be          5            0.5
     attached to the private sector investment, and the
     impact these could have on the delivery of the
     Lancashire Superfast Broadband Project
4.   Full details of the financial amount of gap funding the           15            1.5
     Participant believe is required to meet the requirements
     of the Statement of Requirements
5.    Financial projections for the overall proposals using a           5            0.5
     clear and concise financial template as a means to
     explain the business plan and derivation of the required
     gap funding.
6.   Clear explanation of quarterly projections for milestone           5            0.5
     payments of the gap funding
7.   Clear explanation of any assumptions made in response             15            1.5
     to paragraph 19 of the Statement of Requirements.
8.   Clear explanation of how the Participant will operate an           5            0.5
     Open Book Accounting policy and co-operate with the
     Authority to comply with the audit requirements of
     BDUK and ERDF
9.                                                                     10            1.0
     Full details of the percentage value for the internal rate
     of return.
     Degree of acceptance of the principle of allowing
     agreed surpluses to be returned to the Authority for
     reinvesting in the Lancashire Superfast Broadband
     Project;
     Agreement to provide annual returns to enable the

                                                  71
Sub Criteria                                                    Weighting     Percentage of
                                                                within sub-      Overall
                                                                criteria       Weighting
     calculation of any surpluses to be monitored, and to
     provide a final return at the end of the Lancashire
     Superfast Broadband Project.
10    Clear and reasonable mechanism for calculating any             10            1.0
     surpluses supported by formulae and worked examples
Service Levels
1.    Robust and clear service levels for the Lancashire             100           5
     Superfast Broadband Project which include any one of
     more of the possible service levels referred to in
     Paragraph 21 of the Statement of Requirements.
     Environmental Sustainability
1.   Clear explanation of                                            20            0.5
          any anticipated negative environmental impacts
              of the Lancashire Superfast Broadband Project,
              their severity and likelihood, and the ways in
              which the Participant proposes to mitigate
              and/or compensate against these impacts; and
          any anticipated positive environmental impacts
              and opportunities of the Lancashire Superfast
              Broadband Project. This should consider the
              strategic impacts of the Lancashire Superfast
              Broadband Project in relation to businesses and
              citizens using Applications.
4.           For both negative and positive environmental            20            0.5
             impacts of the Lancashire Superfast Broadband
             Project, full details as to how such impact can
             be monitored and reported .Consideration
             should be given to both qualitative and
             quantitative analysis. Participants should give
             clear consideration of how the carbon impacts
             and opportunities of the Lancashire Superfast
             Broadband Project can be monitored and
             managed, and ways in which the parties may
             work together to further understand impact in
             this field.

3     Clear explanation of any methods that have been used           20            0.5
      in relation to the above responses for example an
      environmental impact analysis, and demonstrate
      compliance with relevant environmental legislation

4     Clear explanation of how the Participant's own                 20            0.5
      corporate environmental policy will apply to the
      Lancashire Superfast Broadband Project
5     Clear explanation of any ways in which the Lancashire          20            0.5
      Superfast Broadband Project can become an exemplar
      around environmental sustainability.

       Scoring Methodology
    Score        Criteria for Awarding Score.

                                                72
         0        Proposal absent.
        1-2       Proposal exists but contains significant shortcomings.
        3-4       Proposal falls short of achieving expected standard in a number of
                  identifiable respects.
        5-6       Proposal meets the required standard in most material respects       but lacks
                  real demonstration of the Pervasive Requirements.
        7-8       Proposal meets the required standard in all material respects with good
                  demonstration of the Pervasive Requirements.
       9-10       Proposal meets the required standard in all material respects with excellent
                  demonstration of the Pervasive Requirements.

Annexe Ten
Please see separate PDF document entitled One Connect Limited report

Annexe Eleven
Terms of Reference for Strategic Steering Group

Lancashire Superfast Broadband Project
Strategic Steering Group: Terms of Reference

1. Overview of the Project

Lancashire is seeking an innovative private sector partner to work with us in a new public
private partnership. This could be one organisation or a number of organisations who come
together as a consortium. The principal purpose of this partnership will be to enable
economic growth and social benefits from new technology, through the development of a
future proof, fully sustainable superfast broadband network with access to end user
applications and services to all Lancashire's communities ("the Project").

The key objectives of the Project are:

1.      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;

2.      To secure public sector funding in order to provide gap funding required to attract
        and supplement private sector investment in areas that are currently perceived as
        commercially and technically challenging for the roll out of superfast broadband;

3.      A superfast broadband network which provides the optimum achievable end to end
        service levels that support current and future applications and services, resilience,
        quality of customer experience and affordability at the end user level;
4.      Deployment of a superfast broadband network that delivers optimum coverage for
        the available investment funding, aiming for close to 100% coverage in Lancashire,
        including rural, remote and sparsely populated areas;
5.      A superfast broadband network which is demonstrably sustainable and future proof
        in the long term without recourse to further public funding;


                                                73
6.        A superfast broadband network open to all service and communications providers;

7.        The completion of the superfast broadband network within 2.5 to 3 years from the
          commencement of deployment;

8.        A partner who will invest in and support a Lancashire programme of demand
          stimulation and business support, to include:

           developing broadband and ICT skills and capabilities of the workforce in
            Lancashire;
           addressing digital exclusion and promoting use of broadband and ICT in
            communities;
9.        A superfast broadband network that will support the delivery of innovative future
          public sector services; and
10.       The superfast broadband deployment must 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.
2. Role of the Strategic Steering Group
The Strategic Steering Group will be responsible for overseeing the development and
implementation of the Project through the following work streams:
           Procurement - The procurement of a partner using the competitive dialogue
            process. A high level procurement plan is attached at Appendix 1;
           Funding - The development of a portfolio of inter-related funding applications to
            national, sub-national and other funding bodies who have financial support
            aligned to superfast broadband;
           State Aid - The progression of State aid approval for the Project designed to be
            consistent with European Commission guidelines;
           Maximising the benefits - The role of the County Council in:
                   developing an integrated approach to supporting the Project across all
                    our services and activities; and
                   championing the opportunities the Project will bring in supporting the
                    transformation and delivery of services across the public sector.
The above work streams will form the basis of an overarching Lancashire Broadband Plan.
The Strategic Steering Group will be the key body to oversee the Project, will represent the
interests of the County Council, its partners & stakeholders and provide strategic direction
to the Project.
Following the appointment of a private sector partner, the terms of reference for the
Strategic Steering Group will be reviewed with the private sector partner to ensure that
robust governance arrangements are retained, ongoing work streams are fully supported
and maximum value for money is achieved following the appointment of the private sector
partner.




                                              74
Terms of Reference
a)   To ensure sufficient resources are allocated to the Project throughout its development,
     procurement implementation and delivery.
b)   To monitor the management of programme budget, risks and quality.
c)   To monitor the progression and achievement of key milestones within work streams.
d)   To promote opportunities for integrated working between the County Council and
     other organisations.
e)   To promote the delivery of more effective and efficient services across the public
     sector.
f)   To promote the economic benefits resulting from the wider access to and improved
     availability of broadband to businesses and homes in Lancashire.
g)   To promote and support the Project among relevant partners, stakeholders and user
     groups
h)   To resolve disputes where these cannot be resolved satisfactorily through other
     means.
i)   To prioritise proposed developments within the Project.
j)   To agree and sign off key Project documents
k)   To make recommendations to Leader / Cabinet as necessary and achieve relevant
     ‘sign off’.
3. Membership of the Strategic Steering Group:

     Project Board Member                              Role
     Phil Halsall              Chief Executive
     Deborah Ashton            Executive Director of Policy
     Helen Denton              Executive Director for Children and Young People
     Ian Fisher                County Secretary and Solicitor
     Richard Jones             Executive Director for Adult and Community
                               Services
     Gill Kilpatrick           County Treasurer
     Eddie Sutton              Project Director
     Jo Turton                 Executive Director for the Environment

4. Administration:
         Administration:
         Chair                            Chief Executive
         Frequency of Meetings            Monthly
         Duration of Meetings             1 – 1.5 hours
         Meeting Organisation              Except in extreme urgency,
                                              meetings will be arranged with 5
                                              working days notice;
                                           The dates of meetings should be
                                              agreed twelve months in advance;
                                           Every meeting will be minuted and
                                              minutes will be distributed within 5
                                              working days of meetings
         Papers                           All papers will be distributed 5 clear
                                          working days prior to meetings

                                            75
Annexe twelve

Terms of Reference for Project Board

Lancashire Superfast Broadband Project Board ("the Project Board") – Procurement of a
partnership with a private sector partner - Terms of Reference
   1. Aims/Purpose
      Management of the procurement and implementation of a partnership with a private sector
      partner to provide superfast broadband throughout Lancashire (" the Project"). The primary
      purpose of this partnership will be to enable economic growth and social benefits from new
      technology, through the development of a future proof, fully sustainable superfast broadband
      network with access to end user applications and services to all Lancashire's communities

      The Strategic Steering Group will be the key body to oversee the Project, and to represent
      the interests of the County Council and its stakeholders. The Strategic Steering Group will
      also be responsible for monitoring project progress, resource allocation, and project
      evaluation. The Project Board will be responsible for delivering and maintaining the aims
      and objectives relating to the Project.

      During the procurement phase, the Project Board will carry out the following functions:

      a) The evaluation of Pre Qualification Questionnaires and recommendation of a short-list of
         bidders to the Strategic Steering Group
      b) Finalise the procurement and contractual documentation required to enable the
         procurement of a private sector partner to be conducted through the competitive
         dialogue procedure
      c) The evaluation of Initial Proposals and If appropriate recommend the deselection of one
         or more short listed bidders to the Strategic Steering Group
      d) Recommend to the Strategic Steering Group the closure of the competitive dialogue and
         the issue of invitations to submit final tenders to the remaining bidders
      e) Recommend to the Strategic Steering Group the appointment of a preferred private
         sector partner

      Following the appointment of preferred private sector partner, to review the composition and
      terms of reference of the Project Board and make any appropriate recommendations to the
      Strategic Steering Group

      2.    Terms
      l) To finalise the procurement plan
      m) To fulfil the objectives and maintain the scope of the Project as detailed in the
         Descriptive Document.
      n) To manage the allocation of human, physical and financial resources to the Project
         throughout procurement selection, implementation and delivery
      o) To manage the procurement budget, risks and quality.
      p) To promote the wider economic benefits of the project
      q) To promote and support the Project among relevant stakeholders and user groups
      r)   To refer disputes to the Strategic Steering Group where these cannot be resolved
           satisfactorily through other means.
      s)   To manage the prioritisation of proposed developments within the Project
      t)   To ensure that the Project delivers maximum value for money for the public sector
      u)   To finalise arrangements for quality assurance and risk management


                                                76
      As the procurement progresses, to:

      a) Review the project status against the procurement plan
      b) Monitor the management of procurement budget, risks and quality
      c) Recommend to the Strategic Steering Group progression through key stages (e.g. PQQ
         evaluation, shortlist, competitive dialogue, appointment of preferred private sector
         partner) and obtain all associated ‘sign-offs’
      d) Finalise draft procurement documents
      e) Finalise the process for evaluating proposals and the detailed evaluation criteria and
         scoring

      At the end of the procurement, to:

      a) Ensure that the expected outcomes have been delivered satisfactorily
      b) Complete a pre contract risk review
      c) Recommend the award of contract to the Strategic Steering Group.

3.    Membership of the Project Board:

         Eddie Sutton          Director of Special Projects and Project Director
         Andrew Halliwell      Programme Manager and Assistant Project Director
         Gill Kilpatrick       County Treasurer
         Martin Kelly          Director of Economic Development
         Mike Hart             Director of Capital Investment and Resources

4.    Administration:

     Administration:
     Chair                                      Director of Special Projects
     Frequency of Meetings                      Monthly
     Duration of Meetings                       1 hour
     Meeting Organisation                       Agenda and minutes will be prepared as a
                                                minimum
     Papers                                     All papers will be distributed prior to each
                                                meeting




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