Presentation to INCA Rural EventMaidstone Kent 29 October 2014

David Cullen, Non Executive Director ITS Technology Group

Investing With the Community-Rural Wireless and Fibre

Who Are ITS Technology Group?

Our Footprint Delivering Value and Customer Excellence

BackgroundPrivately owned

company with a heritage

spanning 17 years

Coverage

Activities spread across

2 countries with 7 offices

ITS Technology Group Limited

City Serve Limited

ITS Hammersmith & Fulham Limited

ITS Telecoms Solutions Limited

Glasgow

London

HQ Runcorn Nottingh

am

Redcar

Manchester

Canadian Entity Focused on

FTTH

ITS Canada Inc

ITS CanadaInc

Includes Group acquisition of Networks by Wireless (Sept)

Networks

Telecoms

IT Man-aged

Services

• Audit, Design, Consultancy, Build & Operate

• Maintenance & Support• Fixed / Wireless LAN /

WAN Fibre Optical Licenced / Un-

licenced Ethernet Guest Wi-Fi

• Rural and Urban • Public / Guest Wi-Fi• P2P and P2MP • Addresses Digital

Inclusion• Wholesale Telco Access• CCTV (Fixed and

Wireless)• Security Monitoring

• Audit & IT Health Checks• IT Service Desk

Desktop, Server, WAN/LAN Support

• Enterprise Cloud Solutions; Hosted Exchange Office 365 Share Point Dynamics CRM Lync

• Hardware Config & Delivery

• Data Backup & Recovery• Enterprise grade Security• Partner Delivery• Systems Integration

• Unified Comms• VoIP & Hosted Telephony• Non Geographic Numbers and Calls• ADSL/SDSL/Fibre/EFM/Leased Lines• Line Rentals & Call Saving Packages• Mobile Office Solutions & Lync • Mobile Communications across all

Networks

ITS Technology Group Service Offerings

One vendor, one point of contact which mitigates

operational & commercial risk

Variety of models, we can prime, sub contract, design, build, consult or just support

Rapid deployment with our in house design , delivery &

support team

Project based finance – up to 100% of the project costs

available

We design, build & support your complete ICT estate

One Solutio

n

Impressive Client

List

Funding

Models

Agility &

Creativity

Engagement Models

Network & IT Estate

Our client list is impressive & our partners list is solid which all testifies to our credibility &

customer excellence mantra

.

.

.

.

Why Choose ITS Technology Group?

Design Build Finance and Operate (DBFO)Fibre and Wireless Networks

in partnership with local authorities and communities

Why are ITS Interested?

• Next Generation Networks using Fibre and Wireless ARE affordable AND sustainable, using innovative commercial approaches– Putting private capital alongside community investment; we invest for

long- term returns– Demonstrably higher take-up rates in ‘digitally excluded’ communities;

we can project more secure revenue returns

• We establish ‘Bridgeheads’ in Urban and Rural areas that prove this– Qualified by the passion, commitment and engagement of the local

communities/ authorities– Sustainable business cases through use of infrastructure, other assets

and anchor tenancy– Capability to expand

Three Key Criteria that indicate a sustainable bridgehead:

Active Engagement

• A community or local authority actively involved and passionate about creating social and economic benefit from broadband

• Clearly defined and respected Champion(s) leading the inititiative

(Re-)use of Assets

• Available infrastructure (e.g. ducts, land, buildings, power) to reduce the capital cost of civil construction

• Available funds as investment where assets are needed

• Available resources to reduce labour costs

Demonstrable Anchor Tenancy

• Community commitment to take service (contracts/ shareholding, subscriptions)

• Adoption by local services (school, GP surgery etc)

• Transit links for mobile operators etc

What do we look for?

The FibreGarDen ‘Bridgehead’

Intended network hub (PoP)

540 premises connected over a 71km FTTP network

Rollout from October 2014 to November 2015

Roles and responsibilities

Network provider- Fibre GarDen with ITS

ISP Interconnect- Fluidata

wwwFibre GarDen coverage area

Fibre GarDen PoP- ITS

Internet Service Provider (ISP)- Fibre GarDen and others

ISP ‘A’- Fibre GarDenISP ‘B’

ISP ‘C’

Network Termination Equipment

WiFi Router

Network Rail

Initial and Future Services

Initial Services from Fibre GarDen• Full high speed worldwide

web (www) downloads and uploads

• Network independent email accounts (webmail provider of your choice)

• Video streaming from content providers

Additional Services via ITS• Voice over IP telephony

Future Services under consideration (through FG or other ISPs)• IP TV; free-to-view and

premium channels

• Well-being services; Telecare, Telehealth, remote health monitoring, etc

• Remote home management; home security, farm security, land and environment monitoring and programming, etc

Pricing

BT Equivalent

Infinity 1 Infinity 2

Download Speed

Up to38Mb/s

Up to76Mb/s

Upload Speed

Up to9.5Mb/s

Up to19Mb/s

Usage Limit 20 GB Unlimited

Contention 20:1? 20:1?

Monthly Line Rental

£17 £17

Monthly Service Cost

£15 £26

Total Monthly Cost

Inc VAT

£32 £43

Fibre GarDen

Basic Enhanced

Download Speed

30Mb/s 100Mb/s

Upload Speed

30Mb/s 100Mb/s

Usage Limit 40 GB Unlimited

Contention 1:1 1:1

Monthly Network

Rental

£25 £42

Monthly Service Cost

£0 £0

Total Monthly

Cost Inc VAT

£30 £50

Funding Mix and ValueTotal Build and working capital: c.£1m

Typical Market Value of built and operating network: c.£3m

The Challenge The Solution The Results

Teesdale- a wireless example

The challenge in any of the similar projects to Teesdale i.e. Rural Broadband, is how to make the network sustainable.

An existing wireless network had been deployed using WiMax. However, this did not provide sufficient capability for NGA or expansion .

Risk of under–use and over-build

• Comprehensive and cost-effective coverage of the rural area currently available, utilising licenced and unlicenced spectrum

• End to end upgrades to 4G by Q2 2015

• Covers all of Teesdale (c. 1,100SqKm or 264,000 acres)

• Network owned, maintained and operated by ITS at a wholesale level with partner ISP’s delivering retail service.

• Public internet access to over 100,000 visitors per annum through Wi-Fi zones in Barnard Castle and Middleton-in-Teesdale

• Coverage of 12,000 domestic residences and 1000 commercial premises.

• At the end of September 2014, there were 155 Customer contracts with over 60% of those being remote farms.

Delivering Faster Broadband to Rural Teesdale

ITS in partnership were contracted to provide a high capacity wireless IP communications

infrastructure for South Wales Fire & Rescue Service (SWF&R), connecting up 51 SWF&R locations to the Headquarters in Pontyclun

The Challenge • Ability to carry IP voice, IP data and video traffic between existing premises.• Solution readily upgradeable, allowing for future growth.• Provide a minimum 10Mbps bandwidth to all full time and day crewed stations and 2Mbps to retained

stations at a contention ratio of not more than 3:1• Reduce existing revenue (leased line, Metro VPN and ISDN) costs• Deliver solution in line with SWF&R strategic objective: “providing our people with the information, systems and technology they require to undertake their jobs”

“We had to overcome several obstacles during the establishment of our new network infrastructure and ITS have delivered these with no downtime or

loss of email connectivity which was key to us at the time. We would highly

recommend ITS”.

Oliver Lightowlers, Chief Financial Officer

Wireless in Wales

The SolutionThe network was designed using a mix of licensed and light-licensed wireless technology; and used Cisco layer 3 devices to provide the routing. In order to keep deployment costs to a minimum and facilitate public sector resource sharing and revenue savings moving forward, the final solution included ‘aggregation’ over both ITS’s own infrastructure in Rhondda Cynon Taf and in the Vale of Glamorgan.

The network spans 10 Unitary Authority areas, reaching from Bridgend in the West to Monmouthshire and the Severn Estuary in the East and has been built utilising 32 third party tower sites owned by 7 different site providers. The wireless layer comprises licensed radio links operating at 10Mbps, 100Mbps and 155Mbps and light-licensed radio links operating at 24Mbps.

The Commercial Community Opportunity• Upgrade the transit links to LTE/ 4G, to provide high capacity transit• Utilise the infrastucture to deliver ‘local backhaul’ into communities around the fire stations (‘Village

Pumps’)• Deliver next generation access to premises through local WiFi or LTE

Thank You

Email: info@itstechnologygroup.com

Thank You

ITS’ Offices:

Head Office: The Heath Business & Technical Park, Runcorn, Cheshire WA7 4QXLondon Office: 2 Bloomsbury Street, London, WC1B 3STNorth East Office: The Wilton Centre, Wilton, Redcar, Cleveland, TS10 4RFScotland Office: Standard Buildings, 82 Gordon Street, 94/102 Hope Street, Glasgow, G2 6PHMidlands Office: Heritage House, Soloman Road, Cossall Industrial Estate, Ilkeston, Derbyshire, DE7 5UDCanada Office: 12966 Carluke Cres, Surrey, British Columbia, V3V 6R4, Canada

Visit: www.itstechnologygroup.com

Tel: 0844 856 9966