intouch March 2014 East Midlands

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1 BT s investment in broadband is already reaping rewards for businesses and people across the country. But this investment is only part of the story: our recently published report Social Study 2013 looks at the economic impact of BT across the UK and here in the East Midlands. The report, prepared by Regeneris, demonstrates that we play a key role in the economic, business and community life across the region. And the work we do provides a platform for new local business growth. Further details on this are included in this edition of InTouch. There is also good news for the cities in our region, with the announcement of a UK government initiative called the Connection Voucher Scheme. They want SMEs to benefit from 30Mb+ speeds, so will be offering them up to 3,000 towards connection and construction charges. Budget has been allocated to 22 city councils, including Derby here in our region. Further information is included on page 6. Welcome too is the more recent government announcement that an extra 250 million is being made available for fibre broadband. This means that local projects around the UK will now receive additional funding from this substantial pot, with the hardest to reach locations amongst those who stand to benefit most. I have also highlighted the latest Ofcom European Broadband Scorecard, which states that the UK has the highest take-up and coverage of super-fast broadband among the leading European nations. A plethora of other reports have been issued from various organisations, with each in their own way highlighting the continuing importance of fibre broadband to the local economy and how the UK fares against other countries. They make interesting reading and support the work we are doing in the local communities. Whether your focus is enterprise zones, superconnected cities or the rural agenda, we want to work with you to realise the benefits that fibre broadband services can bring to your community. We are also always interested in case studies, so if you have any examples of the benefits super-fast broadband is bringing to businesses or communities, please do share with us. I look forward to hearing from you and exploring the opportunities. me direct: Owen Moody, Regional Director for the East Midlands owen.moody@bt.com. Company s vital role in regional economy revealed Rural broadband revolution reaches major milestone UK is European leader for super-fast broadband Raft of reports prove fibre crucial to UK economy Extra cash found to expand fibre in UK cities Openreach highlights the need for fibre in new developments Engineers shine amid shocking weather Firm commits to connect youth with careers in telecoms Local businesses get chance to go super-fast for less First Northants communities profiting from county super-fast plan Meet your Regional Board members intouch East Midlands January March

2 Company s vital role in regional economy revealed An independent report has found that BT generated a massive 640 million for the East Midlands economy in the past year. The report by Regeneris Consulting, entitled Social Study 2013 The Economic Impact of BT in the United Kingdom, also shows that we support 8,800 jobs in the region through direct employment, our spending with contractors and suppliers and the spending of employees. Analysing the key role our people play in economic, business and community life across the English regions, Scotland, Wales and Northern Ireland, the report highlights that, in the East Midlands, we: are responsible for the employment of 4,160 people 3,790 direct employees and 372 contractors with a total employment income of 133 million spent 151 million with regional suppliers provide work for a further 4,650 people through our spending with businesses that supply our equipment and services, and the spending of employees committed 1.8 million to community, charity and voluntary programmes in 2012/13, spread around every regional community have enabled more than 75 per cent of our employees to work flexibly, with more than 491 homeworkers 12 per cent of the direct workforce. In the East Midlands, we have also already made fibre broadband available to 1.3 million homes and businesses, and are working with broadband partnerships across the counties of Rutland, Lincolnshire, Northamptonshire, Nottinghamshire, Derbyshire and Leicestershire. Volunteering too is a core element of our strategy to be a responsible and sustainable business leader. In the East Midlands, employees contributed 1,082 days some 7,791 hours during the year in volunteering activities. The overall beneficial financial impact of our activities is expressed as a Gross Value Added (GVA) contribution. For the East Midlands, our GVA totalled 640 million equivalent to 1 in every 130 of the region s total GVA. The full report is available at: com/thegroup/btukandworldwide/ BTRegions/England/Factsandfigures/ Factsandfigures.htm Rural broadband revolution reaches major milestone Last December, rural communities around the UK received an early Christmas present thanks to Super Switch on Day, which saw the first broadband cabinets in a number of projects go live. Super Switch on Day marked the enormous progress of the super-fast broadband partnerships with Broadband Delivery UK the government agency providing 780 million in public funding to extend the fibre network to 95 per cent of the UK by The roll-out is accelerating, with many projects already ahead of schedule. Ten thousand premises per week are already being connected to super-fast broadband, with this number set to increase to 25,000 per week this spring and to 40,000 per week by the summer. This builds on our commercial programme, with combined figures from Ofcom showing that in June 2013, some 73 per cent of UK premises already had access to the technology. Commenting on this transformational infrastructure project, which will give the UK every possible advantage when competing in the global economy, Maria Miller, Secretary of State for Culture, Media and Sport, said: We are now witnessing an incredible transformation of super-fast broadband in Britain, and we are already well ahead of other major European countries in many respects. We re determined to ensure that everyone benefits and that broadband is available in the very hardest to reach areas of Britain, making a real difference to people who live in these communities. intouch East Midlands January March

3 UK is European leader for super-fast broadband The UK has the highest take up and coverage of super-fast broadband among the leading European nations, according to a new report. Ofcom s European Broadband Scorecard 2014 finds that the availability of super-fast broadband has increased in the UK from around 60 per cent at the end of 2011 to 73 per cent. This takes it from third to first place for coverage among the five biggest economies in the European Union France, Germany, Italy, Spain and the UK. The regulator s study shows that the UK leads the EU5 on most measures of coverage, take up, usage and choice for both mobile and fixed broadband, and performs well on price. Take up of super-fast broadband, which is capable of providing speeds equal to, or greater, than 30Mbps, had reached nine in every 100 people in the UK at the start of last year, the highest in the EU5. Spain was second with six in every 100 people. Ofcom says that, among the EU5 and using the most recent comparable data, the UK has: highest broadband take-up (83 per cent) highest proportion of people to have bought goods online over a year (77 per cent) highest weekly use of the internet (87 per cent) lowest proportion of people who have never used the internet (8 per cent). Great news Ofcom also analysed a range of broadband product baskets, by examining average and lowest prices available for different packages. The UK comes either first or second within the EU5 on all measures of average price, and either second or third on measures of the lowest available price. Bill Murphy, BT s managing director, said: This is great news for the UK and is largely thanks to BT s fast-moving programme for deployment of fibre broadband across the country, which is among the fastest not just in Europe but around the world. We are on course to deliver fibre broadband to two-thirds of the UK by the end of this spring and we re also working with the public sector on local Broadband Delivery UK (BDUK) projects to further extend fibre to the final third of UK premises. These Ofcom findings confirm that, thanks to support from BT, the UK is ahead of the target set by the government to have the best super-fast network among major countries in Europe by Raft of reports prove fibre crucial to UK economy The last six months have seen the publication of a succession of reports that directly support the company s work across the regions and nations and highlight the ongoing benefits fibre broadband can bring to the local economy, and how the UK is faring in the super-fast race compared to other countries. A summary of the other key reports is below. Analysys Mason International Benchmark of Superfast Broadband (November 2013) Asks whether the UK is falling behind its international peers in super-fast broadband services. It presents factual data up to 2012, alongside Analysys Mason s forecasts to 2018, to show that the UK is ahead of its European peers on measures such as coverage, take-up, average speeds and prices. Superfast Cornwall Research (November 2013) Three research pieces which together show that Cornwall s new fibre broadband network is already providing a major economic boost to SMEs in the region. The study is the first of its kind to explore the economic impact of fibre broadband on British SMEs, and demonstrates that it is a critical component of business growth. Ofcom UK Infrastructure Report (October 2013) A comprehensive review of actual UK communication infrastructure, highlighting the strong position of the UK compared to major EU countries and the US in particular against the key government targets of superfast broadband coverage, take-up and overall speed. It also shows that most of the growth in coverage is a result of BT s continued investment in fibre. SQW/government UK Broadband Impact Study (November 2013) Commissioned by the DCMS, this builds on a review of over 100 of the most reliable studies on broadband impact to develop the Broadband Impact Model which quantifies the expected economic, social and environmental impacts of faster broadband on the UK and is the most in-depth and rigorous examination of its kind to date. Links to more reports of interest are below: Analysys Mason The Realities of Connecting the Final 10% of the UK with Superfast Broadband (September 2013) Broadband Stakeholder Group (BSG) Domestic Demand for Bandwidth (November 2013) National Audit Office (NAO) Infrastructure Investment Report (November 2013) Office for National Statistics (ONS) Quarterly Update on Internet Access (November 2013) Cities Outlook 2014 (January 2014) intouch East Midlands January March

4 Extra cash found to expand fibre in UK cities Over the next three years, the company is to invest a further 50 million in its commercial fibre broadband programme. The money will benefit more than 30 cities, helping to make highspeed broadband available to over 400,000 additional premises. We are spending in excess of 3 billion on deploying fibre broadband, and our open access fibre network already passes more than 18 million homes and businesses. That footprint is set to grow rapidly as various rural fibre programmes are delivered. UK fibre broadband availability currently stands at 73 per cent, when all networks are taken into account. The current Broadband Delivery UK programme, which receives financial support from both central and local government, is set to extend that coverage to around 90 per cent by late 2015 or early Mike Galvin, MD Network Investment at Openreach, said: Our fibre programme is going extremely well with our engineers connecting homes and businesses across the UK. Some city areas have proved challenging in the past but we are returning to those and will pass hundreds of thousands of additional premises with fibre. We are reaching vast swathes of rural Britain with our public sector partners but we will upgrade these city areas under our own steam. Businesses in cities already have access to ultra-fast speeds but fibre will give them greater choice. Our new investment will focus on three areas: enabling city cabinets that weren t part of our original commercial plans due to technical challenges or local planning restrictions deploying fibre to cabinets to serve multidwelling units such as apartment blocks laying further fibre including Fibre To The Premises technology to new build sites in cities. The UK is making strong progress, with more than five million premises already using fibre broadband across all networks. This high level of adoption puts the UK ahead of France, Germany, Italy and Spain, and it is set to close the gap on Japan and the US according to a recent report. That report also found the UK is ahead of its main European peers on various other measures, including average speeds, competitiveness of the market and pricing. BT s fibre network is open to all communications providers on an equivalent basis, ensuring businesses and consumers benefit from intense competition, a wide choice of suppliers and low prices. Openreach highlights the need for fibre in new developments Great progress is being made in deploying fibre broadband across the UK, with services now available to over 18 million premises. More are coming thanks to our 2.5 billion commercial investment programme and through 44 separate contracts with local authorities and developed administrations. By 2016, we expect that around 90 per cent of homes and businesses across the country will be able to access the technology. However, the investment programmes are not being delivered in a vacuum. With the economy growing in strength, the building sector is gradually regaining lost momentum, which means that both greenfield and brownfield sites are being reactivated, major refurbishments are moving forward and new sites are coming on stream too. It is therefore crucial that the provision of communications facilities such as broadband is considered. If not, we risk seeing new developments emerging that do not have the same connectivity as the surrounding areas. To help developers make informed decisions in this area that satisfy their commercial objectives while meeting the needs of future occupiers, our Openreach infrastructure business has produced a guide identifying the options available for various types of sites. In response to requests, this same document has been made available to a number of local authorities, in order to ensure that planning applications for any new developments within their area automatically include provision for services such as fibre broadband where appropriate. Copies of the developer guide can be downloaded at home/network/developingournetwork/ documentationandinformation/buildersguide/ downloads/developers_guide.pdf intouch East Midlands January March

5 Engineers shine amid shocking weather Our engineers have been praised for battling appalling weather conditions this winter to deal with a massive increase in faults. As torrential rain, gales and severe floods engulfed much of the country, Openreach received one of its biggest-ever weekly intakes with many of the reported problems in already waterlogged areas. In a message to engineers across the country, Roddy Thomson, Openreach managing director for service delivery, said: Many people in the south and west of England are really struggling, and the Wessex region is really badly hit. The forecast is for more serious weather in the coming days and even weeks, but we ll be working hard to keep on top of this as far as we can. And, as it stands, we are on track for our highest completion level ever. We are doing a brilliant job keeping a busy work stack in check it could be double what it actually is without your effort, so a massive thanks to everyone. His message back in February came as weather conditions in the UK deteriorated further, with the Met Office issuing a red weather warning its most severe level. It said gusts up to 80mph and possibly 100mph were to be expected in the most exposed areas in west and northwest Wales, which could bring down trees and cause a loss of power supplies. Other parts of the UK were also being lashed by high winds and heavy rain. Thousands of engineers worked extra hours through overtime, while extra people were loaned to the south of England to handle the increased workload. Roddy said: It s going to take some serious grit and determination to get us back to more normal levels, but I know we ll get there. Engineers around the UK endured conditions similar to these in Sevington, Kent. Firm commits to connect youth with careers in telecoms The company is expecting to create around one thousand new apprenticeship and graduate jobs as a part of a major nationwide recruitment drive. Across the UK as a whole, we are casting our net for around 300 top science, technology and business graduates who want to build their careers in the IT and telecom sector with one of the country s leading investors in research and development. Some 730 apprenticeships will also be offered to UK school and college leavers in the areas of engineering, software design, IT support, finance and logistics. In addition, we have created a new digital media technology apprenticeship that will provide new recruits with experience and skills in web development, digital networks, digital TV and digital media distribution. Vince Cable, Secretary of State for Business, Innovation and Skills, said: It s good news that BT are delivering even more highquality apprenticeships and graduate jobs. Hundreds more people will now be able to get the skills they need to get on and help support sustainable economic growth. Technology graduates and technical apprentices will be able to work on a range of cutting-edge projects, including the future of broadcasting and wireless technology, Big Data and the Internet of Things, as well as helping pioneer new developments in high-speed fibre communication networks. Owen Moody, Regional Director for the East Midlands, said: This latest recruitment is great news for our region. It is another example of BT s commitment as one of the East Midlands largest private sector employers and investors. Providing the opportunity for people to build lasting and rewarding careers - as well as our major multi million pound investments in sophisticated technology, such as fibre optic broadband - will play a vital role in the future success of the East Midlands. We have also pledged to provide up to 1,500 vocational training and work experience placements for out-of-work youngsters over the next 18 months. As part of Movement to Work, a UK employer-led initiative, backed by the Prince s Trust and the government, we will offer 18 to 24-year-olds work placements of four to seven weeks. These will combine vocational training, employability skills and work experience and, where possible, be linked into our future recruitment plans. Other opportunities will be available around the UK, including Openreach engineer training plus finance, customer service and business development roles. intouch East Midlands January March

6 Local businesses get chance to go super-fast for less Businesses in the East Midlands are being urged to take advantage of the government s Broadband Connection Voucher Scheme to help reduce the cost of super-fast internet connections. The Broadband Delivery UK initiative provides city councils with additional budget to offer small and medium companies grants of up to 3,000 towards connection and construction charges for a range of services from suppliers, including BT Business. Derby is one of 12 UK cities where the scheme is already available, the others being Belfast, Bristol, Coventry, Cardiff, Edinburgh, London, Manchester, Newport, Newcastle, Portsmouth and Salford. A further 10 cities namely Aberdeen, Birmingham, Bradford, Brighton and Hove, Cambridge, Derry/ Londonderry, Leeds, Oxford, Perth and York are planning to join the scheme by the end of March. Once a business has checked they are eligible via their local city council, and understood the full terms and conditions of the programme, they need to complete an application form. Following an assessment by the city council, they will then receive a provisional offer regarding the amount of funding they can expect, and be asked to get quotes from two providers. Businesses applying must be a small or medium sized enterprise (SME) as defined by the European Commission. This means they employ between 1 and 249 staff and their annual turnover doesn t exceed approximately 40 million. Owen Moody, Regional Director, said: This exciting scheme is a vital step forward for small and medium firms in Derby. Businesses can use the technology to boost their competitiveness, work more efficiently, attract new customers or strengthen relationships with existing customers. For further details about the scheme, and how BT Business can help, please visit First Northants communities profiting from county super-fast plan Northamptonshire County Council is a step closer to realising its goal of delivering complete super-fast broadband coverage for the county, following the unveiling of the first tranche of 10 green fibre cabinets in Towcester in February. Government minister Ed Vaizey was on hand to witness this milestone, which marked the first stage of deployment under the Superfast Northamptonshire project. As a result, most homes and businesses in Towcester now have access to broadband speeds of up to 80Mbps. Once the initial phase of the county-wide roll-out is complete with around 90 kilometres of optical fibre cable laid and 41 new fibre broadband cabinets installed a total of 8,157 premises across Towcester, Silverstone, Long Buckby, Braunston, Blisworth, Paulerspury and Weedon will be able to benefit from the technology. The Superfast Northamptonshire project is a multi-million pound partnership between the county council, the Department for Culture Media and Sport (DCMS) and ourselves that aims to make fibre broadband available to over 50,000 premises by the end of Building on our commercial investment, the project provides the foundation for the county s plans to secure access to super-fast broadband for all its businesses and homes by Cllr Andre Gonzalez De Savage, Northamptonshire County Council cabinet member for strategic infrastructure, economic growth and public protection, said: This is undoubtedly one of the biggest impacting projects we re involved with, which will make an enormous difference in bringing prosperity to the county. BT has delivered more coverage two months earlier than expected at this stage of the project which is a real achievement. Communications Minister Ed Vaizey added: The switching on of the first tranche of super-fast broadband cabinets marks the start of a remarkable transformation of broadband throughout Northamptonshire. The UK already does more business online than any other European country and widespread access to super-fast speeds will provide a welcome boost to Northamptonshire s economy. The new network will be open to all communications providers on an equivalent basis, meaning firms and households in Northamptonshire will benefit from a highly competitive market. To find out more about the services available, go to intouch East Midlands January March

7 Meet your Regional Board members The regional board is made up of senior BT people who work for the different parts of the business. It comprises managers from our business, consumer, government and health divisions, as well as representatives from strategy and social responsibility. This means that we are Gareth Jenkins Gareth s career began at IBM, where after joining as a graduate he was selected for a fast-track programme leading to a role as a Senior Bid Manager. In this capacity he worked on a number of high profile public sector bids before moving into the telecoms industry and joining BT. Gordon Cannon Over the past fifteen years in the company Gordon has worked in a variety of roles across systems engineering, sales, business development, marketing and product management. He says, I believe that the key to an individual or group s success lies in their mindset. A growth mindset, where we apply our best effort and try ever more difficult challenges leads us to a place where we constantly develop and improve. Gordon reflects on his volunteering work, particularly as vice chairman of Governors in a small uniquely positioned to work in partnership across the whole of the company, helping BT design solutions to meet the challenges and issues of the region. What s more, it ensures our regional strategy goes hand in hand with sustainable development. In this issue, we focus on two new members of the East Midlands regional board. Gareth s past eight years in BT have seen him in a variety of roles across bid, commercial, programme and contract management. He says, continuous learning and development are really important to me and BT as a company is great at providing so many opportunities to grow. Looking back at his time in BT to date Gareth is particularly proud of launching a managed services programme across the UK, EMEA and Asia Pacific regions. Building high performing teams is something that really inspires me. BT has so many talented people and when we come together and deliver it s amazing what we can achieve, says Gareth. In his current position within BT he is responsible for leading strategic partnerships within BT s supply base. In his capacity as a member of the BT East Midlands Regional Board, Gareth has taken Lincolnshire primary school, providing the school with additional help and support through skills learnt in my career to date is rewarding in many ways, but nothing beats attending the end of year school leaver s service. To see how the children have grown and developed throughout their primary years, ready to tackle the challenges secondary education and the rest of their lives will bring there are only ever a few dry eyes in the hall by the end! Gordon is a proud member of Grantham Round Table. Everyone thinks Round Table a county focused lead on Northamptonshire. Living just across the border, he regularly enjoys time with his wife and young family in the county s beautiful countryside and historic towns and villages. These are very exciting times for Northamptonshire, Gareth says enthusiastically, the rollout of fibre broadband is moving at pace, with more and more communities being switched on, bringing a wealth of opportunities for people and businesses and playing an important part in the region s economic recovery. It s a great time to be involved in the region and have the opportunity to make a difference. Gareth, 35, lives in Kibworth, Leicestershire and is married with two young sons. He graduated from the Nottingham Trent University with a degree in Business Information Systems. is the Masons or Rotary, but it is much better than either of those! As well as fantastic social events we do raise funds throughout the year. We focus our efforts on Grantham and district, with an overall aim to make the lives of local people better. Gordon has lived in the East Midlands for over 15 years, firstly in Oakham, Rutland and currently Marston, Lincolnshire. He is married with three young children. He graduated from Sheffield Hallam University with an honours degree in Computing Mathematics. intouch East Midlands January March