1.

Summary

The following decisions are sought:-

(i.)

The Economic Development Office (EDO) continues to work closely with IT Services on business and community development opportunities.

(ii.)

That £50000 cash (£30K capital/£20K revenue) be made available from the approved 04/05 capital and revenue budgets for Broadband initiatives, to include continuing research and development together with contributions to work in support of business and community development in the context of the proposed Hampshire Broadband Private Public Partnership.

(iii.)

Further consideration be given as to how the value of "in-kind" contributions (particularly by the EDO and IT Services) can be assessed as part of the "funding bid" to SEEDA.

(iv.)

Further work be undertaken to assess how a specific Broadband Development Team, to develop the programme, could be funded (jointly with IT Services and other relevant services/sources of finance such as Implementing Electronic Government (IEG), Community Development, Government Agencies etc.)

2.

Reason

It is considered essential that the County Council plays an active role in the development of availability and usage of broadband infrastructure in Hampshire for economic and social reasons, as agreed by Cabinet on

24 November 2003. This meets the objectives of Aim 3 of the Corporate Strategy - "achieving economic prosperity".

3.

Other Options considered and rejected

No intervention would lead to a slower development of the technology and the opportunities it offers, leading to a loss of economic competitiveness and increased social disparities.

4.

Conflicts of Interest declared by the decision maker or a member or officer consulted

None.

5.

Dispensation granted by the Standards Committee

N/A.

6.

Reason(s) for the matter being dealt with if urgent

Not applicable.

Approved by:- Date:-

Councillor M J Woodhall

Summary

This report updates the Executive Member for Economic Development on latest developments in Hampshire's "Broadband Infrastructure"; recommends active participation in the Private Public Partnership being developed by the Hampshire Broadband Forum, as reported to and agreed by Cabinet (recommendation 5, page 9) on 24 November 2003.

It analyses the role of the Economic Development Office and recommends an allocation of £50000 from the approved 04/05 capital and revenue budgets for Broadband initiatives.

Some abbreviations are used in this report for the sake of brevity! A glossary is included as Appendix 2.

1.

Background

1.1

A detailed report on "Building Broadband Infrastructure and Usage in Hampshire "was adopted by Cabinet on 24 November. This set out the current position on provision and "take-up", together with a detailed analysis of the significance of broadband both to the economic competitiveness of Hampshire and to the County Council's own services. It is not the intention of this report to rehearse the arguments again! Suffice it to say that broadband networks and usage are internationally regarded as essential components in economic and business development. It has recently been described by the Centre for Economics & Business Research as likely to have "the same impact as the introduction of mains electricity". Broadband provision will be a key component in the County Council's corporate aim of "achieving economic prosperity.

In the light of recent Office of National Statistics (ONS) figures on Hampshire's performance in GDP (gross value added - see Appendix 1), it is more than ever vital that the County Council continues to support the development of a modern infrastructure which meets economic and community needs!

1.2

Availability

¬ The main component of current provision is BT's network of enabled "ADSL" telephone exchanges. In November 2003, BT announced a significant extension of the number of exchanges with "trigger levels", leaving only 4 exchanges in Hampshire without a trigger level. The move has to be seen in the context of the national target of 100% coverage by 2005. BT now claim that 92% of "premises" in the South East will be covered by ADSL exchanges. However, there is some doubt as to the number of premises truly covered in the light of:-

· the "reach" from the telephone exchange being limited to just under 6km (e.g. Hatch Warren in Basingstoke is not covered)

· the likelihood of certain exchanges not reaching their "trigger level" in the foreseeable future

· the delays in implementation, once "the trigger level" has been reached.

¬ In more urban areas, NTL is a significant supplier, but in Hampshire its network only reaches about 5% of premises. There is also some provision through pilots being run by Scottish Southern Energy (SSE) and "wireless" companies.

1.3

Take-up

For a variety of reasons, even where "broadband" is available, there has been relatively low "take-up". Despite rapid trend increases, "take-up" still stands at less than 10% of premises where broadband is available. There is a need to work with the private sector to stimulate demand.

The model being used by many is that of Act Now in Cornwall where an integrated approach (albeit heavily supported by European money) has produced business take-up rates of 24% as against the estimated level of 9% in Hampshire.

1.4

Impacts

"Broadband can change your life" was the theme of a recent BT/SEEDA Conference, designed to draw attention to the benefits of broadband. These can be summarised as:-

· business - e-commerce, growth, improved market research and communications, e-learning, productivity

· homeworkers, teleworkers and micro-businesses (HTMs) - improved organisational efficiency (recent studies indicate 30% cost reductions and30% increase in productivity, together with reduced pressures on traditional forms of transport)

· communities - increased sense of identity and cohesion, though there is a need, particularly in disadvantaged communities, to combat the "digital divide" with public sector intervention.

2.

Current Economic Development Office initiatives

2.1

Wired Wessex

The Economic Development Office has supported the activities of Wired Wessex in two areas. Firstly, core funding grant has helped provide advice, information and development activity to many businesses in the broadband supply chain. The "not for profit" company now has over 700 registered businesses on its website.

The EDO has also recognised the company as a "strategic partner" (see Cabinet report, recommendation 4) in developing broadband consultancy expertise, and helped in availability mapping and aggregation studies.

2.2

Hampshire Broadband Forum

The EDO has taken forward the work of Winchester City Council and has now expanded the original partnership group to include:-

· Local Authorities in Hampshire

· Hampshire Association of Parish and Town Councils (HAPTC)

· Country Business and Landowners' Association (CBLA)

· South East England Development Agency (SEEDA)

· Hampshire Economic Partnership

· Business Link Wessex

· Learning and Skills Council

· Hampshire Economic Partnership

· Private sector suppliers such as BT/NTL/Scottish and Southern Energy (SSE)/Internet Service Providers (ISPs).

The Forum is supported with "in-kind" help from the EDO and with "Secretariat" services from Wired Wessex. Under the auspices of the Forum and funded partly by the "Implementing e-government Partnership" (IEG), a website has been set up (www.HampshireBroadband.org) to assist both businesses and communities to get objective advice and information on Broadband availability in Hampshire. No provision has as yet been made for the continued management and development of this site. In this context, the Chief Executive has recently written to all the Local Authorities (including the Cities) in Hampshire requesting support for the initiative. The cost implication for the EDO's contribution would be £10000, from the Revenue Budget in 04/05.

2.3

The Hampshire Broadband Private Public Partnership

As agreed by Cabinet on the 24 November, a funding bid to SEEDA has been prepared, to support the development of a far-reaching Broadband Strategy for Hampshire. Based on a private/public partnership of all the relevant agencies and suppliers operating in the field of business and community development in Hampshire, the preparation of the "bid" has been jointly financed by the EDO and BT with the aim of promoting SEEDA support for:-

· Competititive Businesses

· Vibrant Communities

· Successful People

· Effective Infrastructure

The programme envisages a "Project Value" of over £2m, with partner contributions (either "in-kind" or in cash) of over £1m. Hampshire County Council is the lead partner in the bid and will be expected to make a significant in-kind/cash contribution (of the order of £0.5m). The EDO role will be to work alongside IT Services to support further development of HPSN and other service/employee initiatives, but with a particular focus on demand/support initiatives in the areas of business and community development. It is proposed that a cash contribution of £40K (capital and revenue) be made in financial year 04/05 to the bid, which would achieve EDO leverage of over 50:1. The Executive Member may wish also to consider other ways in which the Council can support its lead role in Broadband development, either in cash or in-kind.

3.

Conclusions

3.1

Broadband infrastructure and usage are essential both to economic and community development in Hampshire. The EDO, working closely with IT Services, has taken a lead role on this issue through the development of close working relationships with suppliers, other Local Authorities, and its strategic partners.

3.2

There is both a significant need and opportunity to take this work forward in 04/05 through the further development of:-

· the Website www.HampshireBroadband.org

· the Hampshire Broadband Forum

· the county-based Private/Public Partnership for Hampshire Broadband

Investment, now, will be repaid many times over in terms of:-

· economic benefit

· partner participation

· community involvement

· additional funding leverage

4.

Recommendations

The Executive Member is recommended to agree:-

4.1

That the Economic Development Office continues to work closely with IT Services on business and community development opportunities.

4.2

That £50000 (£30K capital/£20K revenue) be made available from the approved 04/05 budget for Broadband initiatives. These will include continuing research and development together with contributions to work in support of business and community development in the context of the proposed Private Public Partnership. Capital expenditure will be allocated to capital projects in the form of new technology etc.

4.3

Further consideration be given as to how the value of "in-kind" contributions (both by the Economic Development Office and IT Services) can be assessed as part of the "funding bid" to SEEDA.

4.4

Further work be undertaken on how a specific Broadband Development Team could be funded (jointly with IT Services and other relevant services/sources of finance such as IEG, Community Development/Government Agencies etc.)

ADSL

Asynchronous digital subscriber line (basic broadband service)

Bandwidth

A measure of the amount of electronic data that can be transmitted, either down a telephone line or through an individual radio channel.

Broadband

A network connection which allows large amounts of data to be transferred at high speed. Broadband is delivered in a variety of ways, most common being by leased lines, cable modem access or ADSL. Other solutions are becoming more widely used in rural areas using wireless communications and satellite.

Cable Modem

Device used for delivering Broadband over a television cable network.

DSL

Digital Subscriber Loop. A technology that enables higher bandwidth communications to be passed through conventional telephone lines.

DSL

Digital Subscriber Line

DSLAM

Digital Subscriber Line Access Multiplexer

HPSN

Hampshire Public Services Network - Broadband for public services, e.g. local authority to local authority and County

GDP

Gross Domestic Product ("value added")

HTMs

Homeworkers, teleworkers and microbusinesses

IEG

Implementing e- government

ICT

Information & Communication Technologies (same as `IT')

IP

Internet Protocol

ISDN

Integrated Services Digital Network. An international communications standard for sending voice, video and data over digital telephone lines or normal telephone wires.

ISP

Internet Service Provider

Leased Line

A point to point connection which can deliver guaranteed bandwidth.

ONS

Office for National Statistics

PoP

Point of Presence - a physical location in a telecommunications network from where services to end users or to a subsidiary network can be provided.

PSTN

Public Switched Telephone Network

RAB

Regional Aggregation Body - A body set up by the dti to look at ways of co-ordinating public sector broadband demand.

SDSL

Synchronous digital subscriber line (`full scale' broadband service)

SEEDA

South East England Development Agency

VoIP

Voice-over Internet Protocol

VPN

Virtual Private Network, (e.g. HPSN).

WLANs

Wireless Local Area Networks