Updated: Added updated version of State aid guidance technology guidelines.
Overview
This guidance covers plans to continue to improve the UK’s broadband network, with particular emphasis on making high-speed broadband available in rural communities. For more information on broadband in the UK, read our broadband policy.
This guide contains information on funding for local authorities, including links to factsheets on raising finance, and details of the delivery and procurement framework set up by the lead organisation, Broadband Delivery UK (BDUK), a team within the Department for Culture, Media and Sport. It also explains state aid clearance requirements under the umbrella clearance scheme, and provides contact details for the scheme.
Rural programme
As part of our ambition to to achieve a transformation in broadband in the UK by 2015, government has allocated £530 million during the current spending review period to stimulate commercial investment to roll out high-speed broadband in rural communities.
BDUK is responsible for managing the rural programme, whereas local authorities and the devolved administrations are responsible for individual projects, as set out in BDUK’s delivery model. Our ambition is to provide superfast broadband to at least 90% of premises in the UK and to provide universal access to standard broadband with a speed of at least 2Mbps.
To help local authorities find suppliers, BDUK has put in place a framework delivery contract. Local authorities can run mini-competitions from the framework to select a specific supplier to deliver broadband services for a local project.
Rural Community Broadband Fund
Part of the our ambition to have the best superfast broadband network in Europe by 2015, is to ensure that rural, as well as urban areas, are provided with good online access with a minimum of 2Mbps
The Rural Community Broadband Fund, jointly funded by Defra and BDUK, is aimed at the 10% hardest-to-reach areas which risk only receiving standard 2Mbps broadband.
The fund will have up to £20 million for small community projects to implement enhanced or superfast broadband solutions beyond the standard connection. BDUK is currently undertaking a significant amount of work in Cumbria, alongside local communities, as it develops its proposals to bring superfast broadband to the county. The
Rural community broadband fund toolkit
[PDF, 94.2KB, 5 pages]
has been developed for local projects and support communities who also want to play their part in bringing superfast broadband to their areas.
About the fund and how to apply.
Raising private finance factsheets
Defra and BDUK commissioned Genecon Consulting to produce factsheets on raising private finance and legal structures to support work under the Rural Community Broadband Fund. These are available to download as follows:
Organisational and legal structures factsheet
Community financing sources factsheet
Local broadband projects
Local authorities at county and unitary level in England have the responsibility for taking forward projects to deliver improved broadband in their areas under the government’s rural broadband programme, with each area’s programme set out in a local broadband plan. The devolved administrations are taking the lead in Scotland, Wales and Northern Ireland.
Over 50% of projects have signed contracts or are in procurement.
See your local area’s status on our shared spreadsheet (Googledoc) and map.
Procurement framework
BDUK has developed a broadband delivery framework for use by the local authorities. The framework contract was signed by DCMS and the suppliers BT and Fujitsu on 29 June 2012.
It is anticipated that most projects entering into procurement in 2012 will use the framework. As part of the broadband framework agreement, local authorities must take account of the European Commission’s state aid and competition regulations. BDUK received approval for its umbrella state aid notification for all call-off contracts from the commission on 20 November 2012, which should significantly reduce the risk of extended timescales for achieving clearance on individual projects.
Broadband delivery framework
The rural broadband programme will be delivered through numerous separate local projects with complex procurements. The lead local authorities will have responsibility for managing the procurement process (the devolved administrations will be responsible for the process in Scotland, Wales and Northern Ireland).
To help speed up the procurement process, BDUK has put in place a framework agreement, with input from a number of the pilot local authorities. Local authorities and other local bodies can run a mini-competition from the framework to select a specific supplier to deliver broadband services for a local project. The framework agreement will be between BDUK, as part of DCMS, and BT and Fujitsu, while each call-off contract will be between the relevant local bodies and a specific contractor. The framework will be suitable for the majority of local broadband projects – ie those looking for an investment gap-funded model.
The benefits of framework contracts are that:
suppliers will need to only bid once to be selected for the framework agreement rather than face multiple procurements
the process will ensure more uniform private sector solutions while still enabling local requirements to be met through the individual call-off contracts
BDUK will seek state aid clearance from the European Commission for all call-off contracts which will avoid local bodies having to manage separate state aid clearance processes
Funding
Allocations
The indicative funding allocations for all local broadband areas in England and the devolved administrations allow local authorities to gauge the scale of broadband infrastructure support and the investment gap required to support the upgrade of infrastructure in their areas.
Allocations by country
Modelled number of premises in white areas (locations eligible for public subsidy under EU state aid guidelines
England total: £294.8 million
6,603,443
Scotland: £100.8 million
1,392,322
Wales: £56.9 million
899,867
Northern Ireland: £4.4 million
99,340
Data model
Funding allocations for each local authority depend on the specific circumstances at the time that contracts are agreed, including market announcements on the deployment of broadband infrastructure.
Allocations are based on an assessment of the number of premises in each area without a reasonable broadband service and the costs of a suitable solution. BDUK does not use a per-household figure because costs vary to reach each household.
BDUK has also taken into account existing levels of public and private sector investment. Government funding will need to be matched by local funding, to make investment attractive to the private sector. Funding could come from local authorities’ own resources, European or other sources and will only be available for projects where a local authority commences a procurement that is approved by BDUK.
State aid
Local authorities must take account of the European Commission’s state aid and competition regulations. As part of the framework agreement process, BDUK has state aid clearance from the commission for all call-off contracts which should significantly reduce the risk of extended timescales for achieving clearance on individual projects.
All of the local broadband projects under the rural broadband programme will be subsidised to varying extents by funding from DCMS, as well as other UK and potentially EU public sources. In almost all cases the funding for these local broadband projects will give rise to state aid. Before these projects can be implemented and broadband rolled out state aid clearance must be obtained from the European Commission.
We decided, with encouragement from the European Commission, to put in place an umbrella scheme for the benefit of all local broadband projects and have received state aid clearance.
Local bodies can apply to BDUK directly for confirmation that their local broadband projects comply with the terms of the umbrella scheme and are therefore state aid compliant. BDUK has prepared guidance on this process for local bodies which can be found below. Should local bodies wish to apply for state aid approval under the National Broadband Scheme they should use the State Aid email link, also below. A timetable of this process, including the work to be undertaken by local bodies prior to seeking approval from BDUK, is also available.
An important part of the operation of the umbrella scheme will be transparency of the scheme itself, projects funded under it, and the rules to which local bodies and successful suppliers will be subject.
BDUK intends to publish relevant information for local bodies and suppliers via this website, to help those bidding to deliver local broadband projects and those looking to access the new infrastructure once rolled out.
If you have any questions about the umbrella aid scheme, which is known as the National Broadband Scheme for the UK, please contact us: stateaidforbroadband@culture.gsi.gov.uk.
Related documents
Local Broadband Plans (Google doc) showing progress across the UK
State aid guidance on wholesale access conditions for part-state funded broadband networks
State aid guidance technology guidelines
[PDF, 310KB, 4 pages]
Rural Community Broadband Fund toolkit
[PDF, 94.2KB, 5 pages]
Rural community broadband fund databook
[MS Excel Spreadsheet, 25.1KB]
State aid guidance technology guidelines
[PDF, 310KB, 4 pages]
Rural community broadband fund toolkit
[PDF, 94.2KB, 5 pages]
State aid decision: National Broadband scheme for the UK
[PDF, 150KB, 29 pages]
Organisational and Legal Structures factsheet
[PDF, 501KB, 15 pages]
Community financing sources factsheet
[PDF, 425KB, 26 pages]
State aid: overview of the scheme
[PDF, 139KB, 4 pages]
State aid: benchmarking guidance
[PDF, 189KB, 13 pages]
State aid: guidance on mapping
[PDF, 438KB, 7 pages]
State aid guidance: public consultation
[PDF, 94.8KB, 5 pages]
State aid guidance : open market review (OMR) template
[PDF, 59.1KB, 4 pages]
State aid guidance: Clawback
[PDF, 53.2KB, 6 pages]