Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what work his Department has done with each of the phase 2 broadband projects to identify, in relation to the broadband rollout, (a) alternative solutions, (b) joint working and fair capital contributions from suppliers and (c) other opportunities to promote competition and value for money.
Before the procurement process for the phase 2 broadband projects, Broadband Delivery UK (BDUK) undertook extensive market engagement with suppliers. This revealed that no suppliers other than BT had the capacity, capability and interest to deliver at a national scale. BDUK therefore continued with a locally led delivery model as this allows Local Bodies to determine their preferred procurement route and to engage with local suppliers where prospect of local capacity and interest is available, as well as to explore alternative solutions that may better suit their particular localities. Their decisions are based on their own market research and supplier engagement. Over 20 Local Bodies considered an OJEU procurement for their phase 2 contracts. BDUK provides advice, guidance and support in this process.
BDUK is also looking at ways to provide superfast broadband to the remaining 5% of the UK through investment in eight pilot projects to test new technologies and new delivery models.
Regarding supplier funding, as the National Audit Office noted in its memorandum on the broadband programme, BDUK has reached agreement with BT on a new and improved reference finance model for phase 2, which will require 13% less public funding than the original model. BDUK undertakes robust analysis of all project proposals to determine if proposed solutions are offering value for money.