Agenda item

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which advised of the current work being undertaken to develop opportunities and infrastructure based on Next Generation Access (NGA) communications technologies, and also on early discussions with Alcatel-Lucent on the opportunities for infrastructure and service developments in Aberdeen City (and potentially beyond) and proposed delivery models to deliver on these.

By way of background the report provided an overview of the national context surrounding next generation broadband. In particular the report highlighted that the Economic and Societal case for NGA technologies was considered in: A Framework for Evaluating the Value of Next Generation Broadband, Broadband Stakeholder Group (June 2008)and that overall the BSG report made clear that future NGA technology would deliver added economic and social value.

Turning to the local context, the report advised that the uneven distribution of NGA, identified a critical challenge for Aberdeen City and Shire region.  Being distant from large centres of population, would present challenges in attracting the correct support and investment at the right time to deliver those technologies that support business growth and enhanced public services. In addition, ACSEF had identified a number of areas within their published Economic Action Plan where NGA could play a critical role in transport, global connectivity, attracting and developing skilled people and company headquarters. However, it was highlighted that although competition in the delivery of faster speed broadband in large urban areas was emerging where Cable companies present a competitive challenge to incumbent telecoms operators through their installed fibre networks.  Aberdeen had no such cable incumbent reducing the commercial pressures on national network operators to upgrade their provision. In addition, there was no current fibre provision through the BT network to Aberdeen and the City was currently only due to be included in the 4^th Phase of deployment (completion due by 30/12/2012).

The report provided a detailed overview of similar work that had been undertaken to date in the city, namely the “Connected City” programme and advised of recent reforms to the regulatory framework applying to telecoms within the UK. The reforms key aims were “Accelerating broadband access for all Europeans” and “Encouraging competition and investment in next generation access networks” including provision for the shared use of existing ducting. In line with this Competition in the delivery of faster speed broadband in large urban areas was emerging where Cable companies presented a competitive challenge to incumbent telecoms operators through their installed fibre networks.  However, Aberdeen had no such cable incumbent reducing the commercial pressures on national network operators to upgrade their provision. There s no current fibre provision through the BT network to Aberdeen and the City was currently only due to be included in the 4^th Phase of deployment (completion due by 30/12/2012).

In line with the above, the report reminded members of a previous proposal (which was not progressed), from FibreCity (part of the i3 Group) to install a fibre network across the City at “no cost” to Council or other public sector bodies and the reasons why this was not progressed.

Further to this, officers undertook a search for potential consultancy groups who would be in a position to assist in the development of a prospectus for the delivery of “World Class digital connectivity”, as defined by ACSEF, within the context of Aberdeen business and community requirements and to draw up cost estimates and financing models for such a deployment.  Initial work was underway with consultants from the Strategic Markets group within Alcatel-Lucent, who had offered to assist the development of such a prospectus at no charge to the Council.  In addition Alcatel-Lucent had agreed to identify potential assessment and trial schemes where the Council might wish to lobby for inclusion.  The initial focus of such work would seek to identify those key (existing and emergent) services that would best benefit the businesses and citizens of Aberdeen.  Aligned to this work, officers were also in regular contact with the EGovernment team looking at the potential of their Open data programme to stimulate collaborative relationships with the wider business ICT sector in the city.  This work was key to ensure that both sectors benefited from opportunities in fixed and mobile communications and that maximum benefit was drawn from the data held by the Council.

The Committee resolved:-

(i)         to approve ongoing engagement with Alcatel-Lucent in the development of technical and cost options for Next Generation Access and models for delivery, subject to further discussion with Legal and Democratic Services to ensure that Alcatel-Lucent’s had no subsequent role to play in the delivery of these models, which might breach Council procurement rules;

(ii)        to develop a prospectus for internal consideration on delivery options and potential tendering options, subject to this being developed at no financial cost to the Council, other than officer time; and

(iii)       to instruct officers to report back on preferred options to Enterprise, Planning and Infrastructure Committee at its meeting on 15 March 2011.