SCC’s contract with BT includes a clawback mechanism which generates additional funding that flows into a joint investment fund over the term of the contract when take-up of fibre broadband services by homes and businesses in the main phase of the programme is higher than originally modelled.
Due to the County’s very successful demand stimulation campaigns, take-up of fibre broadband services by residents and businesses in the 2012 Intervention Area is significantly higher than projected in the contract finance model. BT have offered SCC an advance of £3.9 million on the clawback funding which is known as ‘Gainshare’.
Following County Council Cabinet approval in December 2016 to use this Gainshare for further fibre infrastructure deployment, SCC requested BT to model solutions to connect as many of the 15,300 premises to fibre broadband as possible.
The name reflects the funding that is being used for the deployment. This phrase is being used to avoid confusion with the various delivery phases of the Gainshare deployment that have been indicated on the Superfast Surrey website.
BT have identified solutions for nearly 6,000 premises that are anticipated to benefit as part of the Gainshare deployment. The list of postcodes that will benefit from Gainshare deployment is below. It includes the anticipated timeframes for any deployment and whether some or all of the eligible premises in a postcode are likely to be upgraded.
List of Gainshare Deployment postcodes
Superfast Surrey Gainshare Deployment Map
The Gainshare deployment is divided into two phases. The timeframes below indicate when postcodes can expect to be able to order a fibre service.
– Phase 1 (between January and end of September 2018)
– Phase 2 (Between January and end of March 2019)
It MUST be noted that the status of any Gainshare deployment postcode in this list may change after BT have undertaken detailed design.
It should also be noted that due to contractual arrangements involving coverage and speed targets for the Gainshare deployment, information relating to individual postcodes is limited to whether some or all eligible premises in a postcode are anticipated to benefit from the Gainshare deployment. Neither SCC nor BT will confirm how many premises or which specific premises in each postcode will benefit until after the Gainshare deployment has taken place.
Each postcode in the Gainshare deployment list has been assigned one of the following categorires:
– Phase 1 – It is anticipated that there will be Gainshare deployment to all eligible premises in this postcode by the end of September 2018
– Phase 2 – It is anticipated that there will be Gainshare deployment to all eligible premises in this postcode by the end of March 2019
– Phase 1, No Build – it is anticipated that there will be some Gainshare deployment to premises in this postcode by the end of September 2018 but not all eligible premises in this postcode will be upgraded
– Phase 2, No Build – it is anticipated that there will be some Gainshare deployment to premises in this postcode by the end of March 2019 but not all eligible premises in this postcode will be upgraded
– Phase 1, Phase 2, No Build – it is anticipated that there will be some Gainshare deployment to premises in this postcode by the end of September 2018 and some additional deployment by the end of March 2019 but not all eligible premises in this postcode will be upgraded.
‘No Build’ means that none of the eligible premises in a postcode are anticipated to be upgraded to download speeds of 24mbps or more. However, when the term ‘No Build’ is used in conjunction with ‘Phase 1’ or ‘Phase 2’, it indicates that the installation of infrastructure in the Gainshare deployment area will result in some, but not all, eligible premises in that postcode being able to access speeds of 24mbps or more in either phase 1, phase 2 or both.
This may be due to one of the following reasons:
- Your postcode was identified as eligible for State funding, however, not all State aid eligible postcodes could be included in the Gainshare deployment solution that BT developed using the available funding.
- Your postcode was identified as being in current or future commercial rollout plans by service providers during the 2015/2016 Open Market Review (OMR) and State aid public consultation. Your postcode has therefore not been targetted for any infrastructure deployment as part of the Superfast Surrey Gainshare deployment.
To clarify the status of your individual postcode, please email the Superfast Surrey team (email@example.com)
When modelling deployment solutions, BT have considered how best to deploy the infrastructure to maximise the number of Surrey premises that will benefit from the available funding. Therefore even if a solution has been identified for an area, some of the premises in a postcode may be upgraded, but others may be too far away or too costly to benefit.
The Gainshare deployment list is the outcome of a significant number of legal, contractual and modelling processes. The Gainshare deployment list has now been agreed by SCC and BT and it is therefore not possible for you to request that your postcode be added to the Gainshare deployment plan.
The list of Gainshare deployment postcodes that was published at the end of February is the solution identified by BT. However, it is subject to detailed design, development and implementation over the next two years so the status of some postcodes may change.
Modelling the Gainshare deployment at a minimum download speed of 24Mbps brings SCC in line with national download speed targets and helps to ensure that SCC is achieving the value for money criteria that is a requirement of State Aid.
Once the Gainshare deployment has been completed, it is anticipated that the Superfast Surrey programme office will close and the programme hibernated until 2022 when the BT contract ends.
SCC submitted all NGA Target White postcodes to BT and requested that BT/Openreach identify and model possible options within the constraints of available funding. SCC has received assurance from BT that all NGA Target White postcodes have been considered by their planners.
There are a number of reasons why this situation may occur:
1. A service provider may have contacted Surrey County Council and advised that their commercial rollout plans now include a postcode. Due to State aid regulations around the use of public subsidy, the postcode may then have to be de-scoped from the Gainshare deployment.
2. The programme team have been made aware that a community have entered into a commercial partnership to supply infrastructure to their homes that cover a number of postcodes. At the point at which the community signs the contract, if the postcodes are included in the Gainshare partnership, they may be de-scoped from the Gainshare deployment.
3. If it becomes clear during the planning and detailed design that due to technical complexity, the cost of deploying fibre infrastructure to a postcode is significantly higher than originally estimated, the programme team may decide to remove the postcode from the Gainshare deployment.
These premises will be connected to the fibre network using a combination of different technologies; Fibre to the Cabinet (FTTC – either new cabinets or by connecting to an existing nearby fibre enabled cabinet) or Fibre to the Premise (FTTP) technology. SCC will not be able to confirm which technology (FTTC or FTTP) is being used to upgrade a postcode until deployment has taken place.
The Gainshare deployment solution has been developed by BT to maximise the number of premises that will benefit from limited public funding. It is not therefore possible for residents or businesses to request what technology is used as part of the Gainshare deployment.
Following assurance of SCC’s new Intervention Area by BDUK, SCC highlighted all NGA Target White postcodes to BT and asked them to model the best value (lowest cost per premise) options for them within the constraints of the available funding.
In addition to BDUK assessing the Value for Money (VFM) of BT’s proposal in relation to other Local Authority areas, the programme team has also scrutinised the response to ensure that the funding has been targeted on the NGA Target White postcodes in the Intervention Area.
The intention of SCC Gainshare deployment is to maximise the impact of the remaining available programme funds to connect the largest number of NGA Target White premises to fast fibre speeds as possible. As a result, a number of premises on very slow speeds may find that that they will be included in SCC’s deployment plan. However, if all premises on the slowest speeds had been prioritised, the cost per premise would very likely have been extremely high, resulting in a lower number of premises that would have benefitted from the available public subsidy.
Residents and businesses that are unable to download speeds of 2mbps where no modelling solutions are found can apply for a subsidy voucher from BDUK as part of the Better Broadband Scheme which they can use for broadband provision.
For those residents and businesses where no funded solution is found as part of the Superfast Surrey programme, there are various options that they can consider to improve broadband speeds. They can investigate satellite, 4G and wireless services which may provide improved speeds; self-fund a private leased line; register interest in a fibre connection with Virgin Media’s ‘cable-my-street’, a mechanism for assessing where there is sufficient demand to justify private investment – https://www.virginmedia.com/cablemystreet/ or coordinate and help self-fund a community initiative such as BT’s Community Fibre Partnership (www.communityfibre.bt.com/).
In the past four years, the Government has intervened to try and improve broadband provision.
The Universal Service Commitment (USC) is being delivered by BDUK’s Better Broadband Scheme which will finish at the end of 2017. Residents and businesses in Surrey that are currently unable to access download speeds of 2mbps or above can apply for a voucher from BDUK which can be used towards the cost of broadband infrastructure. More details can be found
Beyond that a broadband Universal Service Obligation (USO) is currently being finalised that will give people the legal right to request a connection to broadband with a minimum download speed of 10 Mbps by 2020. Once the Superfast Surrey programme receives more details about the USO, information will be uploaded to our website.
The Better Broadband Subsidy Scheme has been developed by the UK government to provide access to a subsidised broadband installation to homes and businesses that are unable to access a broadband service with a download speed of at least 2 Mbps. This scheme, which is being funded and managed directly by BDUK, provides support towards the cost of equipment and installation. The scheme ends at the end of December 2017. For more information, please see the Better Broadband Scheme page.