18/00024(a): Kent Broadband Voucher Scheme
Kent County Council has been working with the Government’s broadband agency, Broadband Delivery (UK) to improve access to superfast broadband services. To date this work, through the delivery of the Phase 1 and Phase 2 projects, has already brought superfast broadband to over 135,000 homes and businesses and has meant that 95% of properties across Kent can now access a superfast broadband service.
The Council is keen to pilot a voucher scheme to benefit those properties in hard-to-reach locations which are outside the scope of the current BDUK Phase 2 project. The Kent Broadband Voucher Scheme will offer up to £1,700 per property for the provision of a superfast or ultrafast broadband connection in these areas.
18/00024(b): Investment of additional gainshare funding to increase superfast broadband coverage (BDUK Phase 2 Project Extension)
Under Key Decision 14/00114 the Phase 2 contract to extend the reach of superfast broadband to at least 95% of properties in Kent was awarded. This contract built upon the BDUK Phase 1 project which increased the level of superfast broadband coverage to 91% by connecting properties that were outside the scope of market-led upgrade programmes.
These contracts were co-funded by the Government’s broadband delivery agency, Broadband Delivery UK (BDUK) and procured under the Government’s broadband procurement framework. Under this framework, all contracts contain a clause preventing the supplier being over subsidised. This means that if take-up exceeds 20% after seven years following the completion of the infrastructure build, money (referred to as gainshare) will be returned to an investment fund held by the supplier. The intention is that this funding should be recycled into additional coverage by extending current contracts.
The BDUK Phase 1 infrastructure build was completed in March 2016 and take-up is currently at 51%. This means that KCC now has up to £4.545 million of gainshare funding which can be reinvested by extending the Phase 2 contract. BT is in the process of modelling the potential additional superfast coverage that this funding could deliver.
Decision type: Key
Reason Key: Expenditure or savings of more than £1m;
Decision status: Recommendations Approved
Division affected: (All Division);
Notice of proposed decision first published: 25/05/2018
Decision due: Not before 25th Jun 2018 by Cabinet Member for Economic Development
Reason: In order that the proposed decision can be published for a minimum of 28 days, in accordance with statutory requirements
Lead member: Cabinet Member for Economic Development
Lead director: David Smith
Department: Growth, Environment & Transport
Contact: Elizabeth Harrison, Economic Development Manager Email: Liz.Harrison@kent.gov.uk Telephone: 03000417090 Liz.Harrison@kent.gov.uk.
Consultees
18/00024(a): Kent Broadband Voucher Scheme
The proposed decision was considered and endorsed at the Growth, Economic Development and Communities Cabinet Committee on 9th May 2018.
18/00024(b): Investment of additional gainshare funding to increase superfast broadband coverage (BDUK Phase 2 Project Extension)
The proposed decision was considered and endorsed at the Growth, Economic Development and Communities Cabinet Committee on 9th May 2018.
Financial implications: 18/00024(a): This project will be funded from existing budget allocations for the KCC broadband programme. £1 million has been allocated to pilot the scheme and £1.8 million for a second funding round. 18/00024(b): The value of the County Council's current contract with BT is £11.8 million. This comprises £5.9 million of KCC funding and £5.9 million of Government (BDUK) funding. The £4.545 million available gainshare funding would be reinvested by extending the contract.
Legal implications: 18/00024(a): The launch of this scheme is dependent on securing state aid approval from BDUK. Given that the scheme's design has been based on previously BDUK run voucher schemes, this is not anticipated to be an issue. 18/00024(b): There is provision within the terms of the BDUK Phase 2 contract for gainshare funding to be reinvested. All contract extensions are subject to BDUK state aid approval. BDUK have advised KCC that the £4.545 million of gainshare funding can be reinvested through the UK’s Government current state aid agreements, subject to state aid assurance of BT’s final proposal.
Equalities implications: 18/00024(a): By improving broadband access this project will have a positive impact for all communities including those with protected characteristics. The Equality Impact Assessment undertaken for the project has identified no high or medium non-favourable impacts for protected groups. 18/00024(b): This project is outside the scope of EQIA because we are providing infrastructure. However, through improving broadband access this project will have a positive impact for all communities including those with protected characteristics.