Agenda item

6.1

The Committee received a presentation from Edward Highfield, Director of Creative Sheffield, and David Oliver, Solutions Architect, Resources, on proposed plans for the provision of broadband in the City, together with the economic benefits.  The presentation focused on the importance of broadband, what had been done previously in terms of the installation of broadband in the City, what was being done at the present time and what the plans were for the future.

6.2

David Oliver reported on the importance and benefits of broadband, referring specifically to social and digital inclusion, the creation of new jobs, its ability to improve people’s skills, enable existing businesses to grow and to attract new businesses to the City, and the reduction of local energy consumption. He made reference to the Council’s Corporate Plan 2015-18, which indicated that Sheffield would become ‘a superfast, digitally connected City’ by being ‘amongst the most connected cities in the UK, where businesses could access the technology to grow, making the City Region an attractive location to run a business and work in’.

6.3

Edward Highfield reported on the work undertaken in the past in terms of the installation of broadband, referring specifically to the Digital Region.  He stated that Digital Region Ltd had initiated a programme in terms of the installation of broadband in 2005/06, having a target of 98% coverage across South Yorkshire but, unfortunately, the execution of the programme was not found to be financially viable, and was closed in 2013, with the Company going into liquidation in 2015.  Mr Highfield reported on the impact of the closure of the broadband programme, indicating that it had resulted in major financial and reputational damage.  It had affected attitudes to broadband across South Yorkshire, coverage had been reduced to 80%, there were no further plans to invest before 2017, whereas all other regions were investing in broadband, resulting in the region being left behind nationally.

6.4

In terms of current developments, David Oliver reported on the Rural Broadband Programme/Superfast Extension, a Government programme funded by the Department for Culture, Media and Sport (DCMS), Sheffield City Region and British Telecom, and subsidised the extension of the current BT network with no risk to Sheffield City Council.  The Programme would enable access to superfast broadband for 97.9% of premises, and access to basic broadband for the remaining 2.1%.  There would also be access to superfast broadband for 79% of enterprise zones and business parks, and the roll out was ahead of schedule, with around 10,000 homes planned to have access by Christmas.  Mr Oliver stated that the Programme excluded Sheffield City Centre.  In terms of the future of the Programme, it was stated that plans were at an advanced stage to increase overall coverage beyond 97.9% and to provide even faster broadband speeds - ultrafast - to enterprise zones and key business parks so that they become some of the best connected in the country.  Mr Oliver stressed that the rationale for this aspect of the Programme was local economic growth and inward investment.

6.5

Members of the Committee raised questions and the following responses were provided:-

·                The guidelines in terms of what areas should be decided as rural were set by the European Commission and based on these guidelines, Sheffield City Centre (the area within the inner ring road) was not included in the Rural Broadband Programme.  The fact that the definition of Sheffield City Centre was not as big as the definition used for city centres of other major cities, had proved to be beneficial. 

·         The difference in the price between superfast and ultrafast broadband would mainly depend on the market. BT and other national Internet Service Providers (ISPs) would organise their own national advertising campaigns, which would include TV advertising. The Superfast South Yorkshire Project Team was planning to implement a local “demand stimulation” programme, including, for example, the organisation of various awareness events and visiting businesses in person to explain the benefits of superfast/ultrafast broadband.

·                Regarding the roll out plan, the area defined as “commercial” on the Superfast South Yorkshire Roll Out Map was referring to where there was an existing superfast broadband service, provided by BT, Virgin or any other major communication companies, and which included the majority of Sheffield. 

·                The Superfast South Yorkshire Team was planning to increase overall coverage beyond 97.9% to provide even faster broadband speeds to enterprise zones and key business parks, such as the Advanced Manufacturing Park (where this was permissible in the scheme), so that they become the best connected in the country. 

·                Broadband was on offer as part of the Digital Region Programme, but the take-up was not sufficient to make it financially viable.  One of the issues with Digital Region was that it was a stand-alone network, separate to BT. The Rural Broadband Programme would use BT’s existing network, which would be expanded.  In addition, any financial risks, particularly relating to the level of take-up, would be faced by BT.

·                There was a good working relationship between the Sheffield City Council Streets Ahead Team, Amey and BT, which included a joint working protocol between the two parties.  The Rural Broadband Programme was currently three to five months ahead of the planned schedule.

·                At the start of the Programme, an exercise was undertaken in terms of the identification of the intervention area on the basis that public money could not be spent on providing coverage in those areas where BT or Virgin had existing broadband coverage.   

·                In terms of future plans for the City Centre, the Council would not be able to fund the installation of broadband as using public money would contravene current state aid rules.  However, a number of new companies, including Sheffield-based companies, had recently increased its wireless broadband coverage in the City Centre.  It was envisaged that there would be a private sector solution for most of the businesses and major residential developments in the City Centre. However, the Council was considering a range of options for residents and businesses further to increase choice.

·                There was a list of postcodes that define the City Centre areain terms of those addresses not included in the Programme. 

·                Discussions were taking place with colleagues in the Planning Service in order to see if it was possible to include the provision of broadband to new developments and major renovations in planning policy in some way.

6.6

RESOLVED: That the Committee:-

(a)       notes the information reported as part of the presentation, and the responses to the questions raised;

(b)       thanks Edward Highfield and David Oliver for the presentation;

(c)        welcomes the progress made in connection with the Rural Broadband Programme and recognises the need for the City Centre to be at the heart of the plans in terms of attracting businesses and trade to the City; and

(d)       requests an update report in respect of the Programme, together with details of the contract change request, to be considered at a future meeting or circulated to Members for information.