Consultation outcome

Cornwall and Isles of Scilly (Lot 32) Public Review closure notice

Updated 8 July 2022

New procurement to extend coverage of gigabit-capable broadband across the Cornwall and Isles Of Scilly region.

1. Introduction

The government’s ambition is to deliver nationwide gigabit-capable broadband as soon as possible. We recognise that there is a need for government intervention in the parts of the country that are not commercially viable; this is why the government has committed £5bn for the hardest to reach parts of the country, ensuring that all areas of the UK can benefit. This will be spent through a package of coordinated and mutually supportive interventions, collectively known as Project Gigabit.

We wish to work collaboratively with industry to maximise efficiency, minimise market distortion and achieve our objectives within a tight time frame. To do this, we first identified the areas that were not commercially viable through the Open Market Review (OMR) and Public Review (PR) stages. This allowed us to understand from suppliers if there were any current or planned investments over the next three years in broadband infrastructure (Next Generation Access broadband, ultrafast and gigabit-capable) in the identified geography. For this Lot, the identified geography lay within Cornwall and the Isles of Scilly region.

The box below shows the order of processes, from OMR to procurement.

1. OMR

2. Pubic Review

3. Determine intervention areas for procurement

4. Procurement

Through these stages, BDUK classifies premises as eligible/ineligible for subsidy on the basis of their existing or planned qualifying broadband infrastructure. Details on the classification system of White, Grey, Black and Under Review and methodology can be found in section 5.2.

Premises categorised as White by BDUK during Open Market Reviews and Public Reviews (ie eligible for subsidy) are grouped into Intervention Areas (IAs). IAs list those premises that will be targeted for subsidy in any potential procurement to follow this PR. To be clear, not all eligible premises may have been targeted for subsidy. The finalised IA will be issued to the market at the ITT stage of procurement so that suppliers can bid for subsidy to support delivery to this Intervention Area. Further information on the OMR / PR process and how we reach our conclusions can be found in the Subsidy Control Guidance document.

2. Outcome of the preceding Open Market Review

Preceding the current Public Review stage, BDUK conducted an OMR for Cornwall and the Isles of Scilly (Lot 32) from 15 March 2021 - 22 April 2021. This OMR requested information from suppliers regarding current and planned broadband infrastructure within the next three years.

All meaningful responses to the OMR were considered and where necessary utilised to determine eligible premises. Suppliers who responded to the OMR were informed of the classifications applied to the existing and planned infrastructure relevant to their submission.

The key findings of the OMR are presented in the postcode-level map showing eligible premises identified through the OMR, and a list of eligible postcodes can be found on our website here.

3. Outcome of the Public Review

3.1 Background

The PR for Cornwall and the Isles of Scilly (Lot 32) ran from 15 July 2021 - 16 August 2021. During the PR, BDUK invited stakeholders (including broadband infrastructure operators, internet service providers, the public, and businesses) to provide feedback regarding which areas were made up of eligible premises.

Furthermore, BDUK carried out market engagement to seek feedback from suppliers about the design of the Intervention Area and Lot design, the Procurement Type (A - Local Supplier, B - Regional Supplier or C - Cross-regional Supplier) and also the capacity of the market to bid for a potential procurement.

The PR stage aimed to validate the outcome of the preceding OMR to ensure that it correctly represented the information provided by suppliers in the course of the OMR.

Suppliers who missed contributing to the preceding OMR, had no definitive plans and / or evidence base on which to substantiate claims at that earlier stage, or had subsequently updated their plans had a final opportunity to notify BDUK before final determinations were made on premises eligibility. All meaningful responses were carefully considered and where necessary utilised to determine eligible premises. BDUK also sought feedback from Cornwall Council. The finalised postcode-level map showing eligible premises is shown in Annex A of this Public Review Closure Note can be found here.

A list of postcodes showing White, Grey, Black and Under Review postcodes can also be found here. A list of eligible premises is available to suppliers upon request.

The proposed Intervention Area - shown in Annex B - has been submitted to BDUK’s National Competence Centre (NCC) to be considered for approval to proceed. A full list of eligible UPRNs within the proposed Intervention Areas is available to suppliers on request.

3.2 BDUK Classifications and methodology for this PR

During the PR, BDUK categorised premises as gigabit White, Grey, Black or Under Review (WGBU).

Subsidy control classifications are set out below:

• White - indicates premises with no gigabit network infrastructure and none is likely to be developed within 3 years^{[footnote 1]}
• Grey - indicates premises where a single qualifying gigabit infrastructure from a single supplier is available or is to be deployed within the coming 3 years^{[footnote 1]}
• Black - premises with two or more qualifying gigabit infrastructures from different suppliers being available, or will be deployed within the coming 3 years^{[footnote 1]}
• Under Review - indicates premises where suppliers have reported current or planned commercial broadband coverage, but where claimed current gigabit coverage has not been verified, or, in respect of planned build, where evaluators are confident that gigabit infrastructure will be delivered, but some risks to delivery remain, or there are some gaps in evidence

BDUK will only provide subsidy to target premises that have been designated as White. Premises which have been designated as Under Review may be included within the Deferred Scope of a procurement. Where this is the case, a further review will be undertaken to confirm whether they are Grey or White before they are released for build.

In accordance with the OMR / PR processes, supplier data submitted during the OMR and PR has been mapped using a methodology that protects commercially sensitive supplier data. To reflect this sensitivity, postcode level maps only are provided in this document and we will only release White and Under Review UPRNs.

3.3 Summary of PR findings - premises eligibility

For presentational purposes only, postcode-level mapping has been used to present maps showing eligible premises. (NB we will only subsidise build to premises which have been designated as White - postcodes are not used to determine intervention areas for subsidy). For this purpose, postcodes have been classified as follows:

1. A postcode is White if any White premises are present
2. A postcode is Under Review if any Under Review premises are present
3. A postcode is Black if all premises in the postcode are classified Black
4. A postcode is Grey ie all premises are Grey or a mixture of Grey and Black

A postcode-level map summarising these premise classifications is provided in Annex A. Suppliers - please note that these maps do not show which UPRNs have been determined as White and Under Review.

The outcome of the Public Review is summarised in terms of White, Grey, Black and Under Review postcodes and premises below:

Postcode Classification	Number of Postcodes	Number of Gigabit Black Premises	Number of Gigabit Grey Premises	Number of Gigabit Under Review Premises	Number of Gigabit White Premises
White	8,119	19	30,212	33,550	57,832
Under Review	9,223	10	25,902	113,491	0
Grey	3,738	195	41,344	0	0
Black	11	86	0	0	0
Total	21,091	310	97,458	147,041	57,832

3.4 Forthcoming procurement

During the PR stage for Cornwall, Lot 32, BDUK sought responses from the market and other stakeholders to validate the Subsidy Control map (showing Gigabit White, Grey, Black and Under Review determinations). BDUK also carried out market engagement to seek feedback from suppliers about the design of the proposed Intervention Area and Lot, the Procurement Type (A - Local Supplier, B - Regional Supplier or C - Cross-regional Supplier) and also the capacity of the market to bid for a potential procurement.

The total public funding investment has been based on the final number of premises requiring subsidy. BDUK will confirm a budget drawn from public funding for this area within the forthcoming tender documentation. Details of any restrictions on the use of public subsidy will be explained within the tender documentation.

The procurement type selected for Cornwall, Lot 32, following engagement with market and other stakeholders, is anticipated to be a Procurement Type A- two Local Supplier Contracts. A premise-level map detailing these proposed Intervention Areas can be found in Annex B.

Indicative funding allocated to the proposed lots and premises for procurement is as follows:

• Approximately 9,500 remote premises in central Cornwall, from the north coast (between Newquay and Otterham) to the south coast (between Portloe and Fowey) - £18.02m

• Approximately 9,750 remote premises across Penwith and The Lizard, as far as Hayle, Praze-an-Beeble and Constantine - £18.08m

Cornwall, Lot 32 forthcoming procurement will be carried out in accordance with the Public Contracts Regulations 2015 (PCR2015). BDUK procurement approaches are designed to address the scale of the individual procurements. Cornwall, Lot 32’s procurement will be conducted in a transparent and non-discriminatory manner.

The Authority, BDUK, reserves the right to amend or withdraw the procedure for the competitive sourcing process at any time. Any amendments will be done in line with the Procurement Regulations.

Suppliers acknowledge and accept that by issuing this document (PR Closure Notice) BDUK shall not be bound to progress or conclude any related procurement activity.

Under no circumstances shall the Authority incur any liability in respect of the information contained in this document or any supporting documentation.

3.5 Timescales

The following table summarises the indicative timescales for the procurement:

Activity	Date
Procurement Start Date (SQ Launch)	March 2022
Estimated Contract Commencement Date	Autumn 2022

Further information on Project Gigabit procurement timelines can be found here.

3.6 Summary of PR findings

• There are 57,832 White premises (out of 302,000) where the market does not intend to build, indicating there is a strong commitment from active suppliers in Cornwall to reach a large proportion of premises in the County.
• The Intervention Area was designed to address areas outside of where we expect the commercial sector to build to, prioritising footprints where there is an appetite for BDUK to go further, faster.
• We contacted all known national and local suppliers to ask them to respond to the OMR and PR. This included working closely with Cornwall Council to ensure active and prospective suppliers were aware of the OMR and PR and could feed in their responses.
• Whilst a Regional Type B procurement was initially anticipated for Cornwall, following the review of OMR/PR responses and subsequent market and local engagement it was determined two Local Type A procurements were a better solution at this time.

4. Conclusion

A key output for the OMR / PR for Cornwall and the Isles of Scilly (Lot 32) is the maps showing premises that are eligible for subsidy.

Annex A sets this out in a map at postcode level. This provides an indication of areas where premises are eligible for subsidy. A full list of White and Under Review UPRNs is available on request to Suppliers via [email protected].

Annex B sets out the UPRNs for inclusion in the Intervention Areas for Cornwall. A full list of eligible UPRNs is available on request to Suppliers via [email protected].

From these maps, BDUK developed Intervention Areas that were proposed to the market during the PPME phase. Annex B sets out the proposed Intervention Areas at a UPRN level.

5. Annex A – Map indicating locations of eligible premises

The above postcode level map indicates areas where those premises eligible for subsidy are located ie White areas. These eligible premises may be included within the Intervention Area. Black, Grey and Blue (Under Review) areas indicate where those premises ineligible for Subsidy are located.

6. Annex B – Map of proposed intervention area(s)

Please see section 3 above for information on BDUK’s findings, contextualising how eligible premises were included in the proposed intervention area.

The above premise level map indicates eligible premises that form the proposed intervention areas. This map will be accompanied by a list of eligible premises which suppliers can request.

The Blue IA contains approximately 9,500 eligible remote premises in central Cornwall, from the north coast (between Newquay and Otterham) to the south coast (between Portloe and Fowey)

The Purple IA contains approximately 9,750 eligible remote premises across Penwith and The Lizard, as far as Hayle, Praze-an-Beeble and Constantine

1. There may be occasions where credible plans extend beyond a 3-year period, in that case, these may be taken into account. ↩ ↩² ↩³