Broadband Delivery UK

Transform Digital Conference

Matt Agar – Commercial Lead, Broadband Delivery UK

Department for Culture, Media & Sport

Govt financing models

• £1.2bn committed through gap-fund arrangement that transfers risk to private sector

• But… Government can follow alternative funding models• PF2 contracting (PFI replacement)• UK Guarantees scheme• BIS Shareholder Executive

• £10m Market Testing Pilot procurement explicitly sought out alternative funding models to test

Department for Culture, Media & Sport

Private investors

• If there are long-term investors looking for opportunities, what is their risk appetite?

• Are there investors willing to take the short-term risk while revenues are still unproven?

• How different is fibre from other infrastructure asset classes?

Department for Culture, Media & Sport

Rural broadband value chain

• Leveraged models in rural broadband: not just about being profitable, but also being able to provide a return to investors too

• Rightmove: “Slow Broadband speeds could drop house price by 20%”

• Uswitch: “Fibre optic broadband – from just £4 – compare deals”

• Is there currently enough value at the infrastructure layer?• How can infrastructure operators increase their share?