Agenda item

The Cabinet considered supporting the opportunity for capital investment, clawed back early from BT as part of the broadband contract for re-investment to extend superfast broadband even further across the county.  The details were set out in the report and its Appendices.

In the ensuing discussion, the following main points were made:

(a)        The Cabinet Member with Responsibility for Economy, Skills and Infrastructure introduced the report and commented that the approach taken to Superfast Worcestershire was unique in the country in its targeted approach to businesses as well as local communities and had been successful. The take-up of 20% in the county had enabled the Council to take advantage of an opportunity from BT to re-coup capital investment up to £3.25m to further extend the fibre coverage in the county rather than wait to recoup the money in 2025. The aim was to eventually achieve at least 95% superfast coverage of the county to include hard-to-reach communities/business premises but this could only be achievable if it represented value for money. It was important to get the infrastructure in place and promote the scheme to allow local businesses to compete nationally and internationally  

(b)        The take-up rate by local communities/businesses proved that the Superfast Worcestershire contracts were working effectively and would be welcomed in areas of the county which were currently not included in the planned deployment

(c)       A Member from outside the Cabinet supported the proposal but asked who was responsible for deciding where the funding was invested, the County Council, BT or a combination of both? BT appeared to be unwilling to commit to precise locations which meant residents remained uncertain. Given the constant technological changes, BT should be pressed to ensure that the Council had the best deal possible. The Cabinet Member with Responsibility for Economy, Skills and Infrastructure responded that a commercial approach had been taken to the contract to ensure that the maximum coverage was achieved but that council taxpayers received value for money. An assessment of the importance of business premises had been undertaken to prioritise the programme of work. There would be some remote communities/business sites that would not receive Superfast Broadband. The Programme Manager added that the deal with BT would need to demonstrate value for money, ensure a continued focus for businesses and residents and take account of demand. Demand was a key focus of the contract and to ensure that there was a strong evidence base to provide to BT, people were encouraged to come forward to request the service            

(d)      The remote rural nature of some communities meant that there would be no certainty that Superfast Broadband would be delivered in every locality. Engineering projects could be unpredictable in nature and therefore it was not surprising that BT were unwilling to commit to service provision in specific locations.

RESOLVED:  that

(a)        it be noted that the Superfast Worcestershire programme is recognised nationally for consistently remaining ahead of schedule, having ensured 86% of the county now has access to fibre, and on track to deliver to over 55,000 premises by June 2016;

(b)       further capital re-investment up to a total value of up to £3.25m, released early by BT, subject to value for money, be supported to extend superfast broadband even further across the county;

(c)        the Director of Commercial and Change, in consultation with the Cabinet Member with Responsibility for Economy, Skills and Infrastructure, be authorised to negotiate with BT to achieve the best deal for the county with regard to the capital to be released by BT and to take the final decision on specific re-investment to achieve the purpose set out in (b) and subject to (d); and

(d)       subject to the negotiations in (c), the Cabinet Member with Responsibility, in consultation with the Director of Commercial and Change and the Chief Financial Officer, be authorised to recommend to Council that £3.25m is added to the Capital Programme for the purposes of such re-investment to be funded by capital released by BT if the commercial negotiations are successful.