Memorandum submitted by the East of England
Development Agency (S38)
THE ECONOMIC DEVELOPMENT CASE FOR BROADBAND
Broadband is not an end in itself; it is a tool
and an increasingly important element of infrastructure. It is
essential for the development of a balanced knowledge economy,
the success of which will determine the economic future of our
region. The benefits of the knowledge economy have so far been
concentrated in urban and suburban areas leaving rural areas at
a disadvantage. The expansion of broadband would have the effect
of allowing small and medium-sized businesses, and individuals
located in rural areas, gain the same opportunities as those located
in towns and cities, and this is vital in terms of supporting
a thriving rural economy.
INTERNET USE
IN RURAL
AREAS
For information and communications technology
(ICT) generally, rural parts of the region show a lower level
of internet use compared to urban areas. The rural figure of 39%
in 2001-02 (Countryside Agency "State of the Countryside"
report for the East of England 2002) was the equal second lowest
for any region in the country.
In terms of land-based businesses, there is still
a high percentage (around half) with no access to the internet
at all, in spite of DEFRA's intention to roll-out the e-based
application process.
DEMAND FOR
BROADBAND
The East of England is poorly served with fast-access,
broadband internet connections. Currently only 53% of people,
compared to 62% nationally, have access to mass market broadband
connections and this falls to a meagre 5% in rural communities.
The fact that 46% of the population in this
region live in the rural areas also helps to put these figures
into perspective.
Anecdotally, we have already had several reports
of businesses which have moved back into urban areas because they
could not access broadband in more rural locations—it is
becoming an increasingly important issue for rural businesses
which want to take advantage of e-commerce.
EEDA'S BROADBAND
INITIATIVES
EEDA has developed its broadband action plan,
supported by a £5.8 million fund from the DTI and EEDA, to
increase broadband provision across the region. Our activities
include:
1. Broadband brokerage
A service where people who can't get broadband
are encouraged to register their details online, so that EEDA
can encourage supply in areas where there are clusters of demand.
Over 8,500 people have already registered their interest for broadband
on www.demandbroadband.com, following significant marketing of
the site since October 2002, and EEDA is now starting the process
of encouraging suppliers to service clusters of demand, through
its providers, Masons Communications. For further information
about affordable broadband services available via BT and ntl in
towns and villages across the East of England, log onto the connecting
website, www.broadbandbrokerage.com
2. Connecting communities competition
EEDA has launched its connecting communities
competition, which offers communities the chance to apply for
a slice of three million pounds competition funds to get connected
to broadband. Community groups including individuals, companies,
or a mixture of the two, are invited to put a bid together including
a business case for the best way of getting broadband to their
community. Over 130 community groups based in areas where broadband
is not yet available have already registered their interest in
this competition, and winning communities will be announced in
June 2003. Through this competition, EEDA will fund several broadband
connections via new solutions (see trials—below)
3. Technology trials and public networks
EEDA is helping to fund technology trials across
the region so that broadband solutions for rural areas can be
brought to market more quickly. Current trials underway include
a wireless technology trial across Tendring (Essex) organised
by Tendring District Council, rural DSLAM trials with BT in Shottisham
(Suffolk) and Burnham Market (Norfolk) and involvement in the
national Remote Area Broadband Inclusion Trial (RABBIT) across
areas which have no hope of broadband connection by any other
means. EEDA is also supporting a project in Norwich and surrounding
areas to set up the first ever public-owned broadband network.
Further information is available in the attached press releases.
OBSTACLES TO
BROADBAND DELIVERY
Thin demand and longer distances between settlements
in rural areas makes the provision of services uneconomic using
cable or ADSL-based solutions. The best solution is wireless-based
broadband, but the problem with wireless is that the Radio Communications
Agency is failing to deliver the parts of the radio spectrum which
operators require to deliver a commercial service. The adoption
of a more industry-friendly attitude would be the single most
beneficial step which the government could take to encourage the
spread of broadband.
THE ROLE
OF DEFRA
DEFRA initiatives could work with the brokerage
service to help build up clusters of demand in rural areas and
make commercial operators aware of their existence. EEDA's brokerage
service is run by an independent telecommunications consultancy
which recommend the best method for connecting any community.
I hope that this information is useful to the
inquiry and we look forward to hearing the results.
I would like to add our support to the need
to ensure that rural areas do have the chance to have access to
broadband as soon as possible. If we are to support and encourage
a thriving and sustainable rural economy, and this region has
extensive rural areas, then those who live and work in those areas
must be able to operate under the same conditions and with the
same technological support as their urban counterparts.
ISSUED ON BEHALF OF THE EAST OF ENGLAND DEVELOPMENT
AGENCY
DEMAND BROADBAND CAMPAIGN
PRESS RELEASE
EMBARGOED UNTIL 14.00 ON TUESDAY, 25 FEBRUARY
2003
Companies invited to supply broadband
services
East of England Development Agency presents
first broadband connection market opportunities
Major broadband solutions providers joined smaller
suppliers today (25 February) as the East of England Development
Agency (EEDA) launched the second phase of its demand broadband
campaign—to encourage broadband supply to clusters of demand
identified by registrations on its broadband brokerage website
(www.demandbroadband.com).
Mason Communications (the telecommunications
advisor running the brokerage service for EEDA) announced that
Diss (a Norfolk market town) and Felaw Maltings (a business start
up centre in Ipswich) are the first clusters of demand in the
East of England revealed by EEDA's independent service. Diss is
a cluster that mixes both business and residential broadband users,
while Felaw Maltings, with over 60 businesses in one building,
serves the needs of those resident organisations and the surrounding
area.
The broadband brokerage website is the central
point of all activities for the Demand Broadband campaign being
run in the six EEDA counties (Bedfordshire, Cambridgeshire, Essex,
Hertfordshire, Norfolk, and Suffolk). With over 8,000 registrations
to date, the website is providing the figures necessary to show
potential broadband suppliers where the demand lies in the East
of England. EEDA is then able to supply these figures to network
providers who will be free to decide whether they wish to bid
to that community to supply broadband.
At the event, potential suppliers also heard
details about EEDA's connecting communities competition, and about
the chance to bid to install broadband to a winning community.
Broadband supply organisations can become members
of EEDA's brokerage service, at any time, by contacting Mason
Communications on 0161 772 8161. E-mail: broadbandbrokerage@mason.biz.
As soon as new clusters of demand are identified, information
will be passed on to all those suppliers registered with Masons.
Stuart Cowie of Mason Communications stressed:
"The information provided via the competition and the broadband
brokerage is essential in judging the viability of supplying a
service in a particular area. We will not favour any particular
supplier. We make available information by regular communication
to all broadband solutions providers, large or small, who will
then have the chance to bid to provide a service to a demand hotspot."
Mason Communications already has a long list
of suppliers ready to meet some of the demand across the region.
Stephen Timms, e-Commerce Minister said, "Thanks
to EEDA's Demand Broadband campaign, two new areas in Norfolk
and Ipswich have been identified as new markets for broadband.
The number of registrations on the demand broadband site shows
the level of enthusiasm for these technologies among both businesses
and consumers. The more this demand is demonstrated, the further
broadband will spread, opening up access to everyone in every
part of the UK.
"With providers being given the chance
to bid for these ready-made markets, EEDA's project is also bolstering
the competitive environment driving forward broadband in the UK."
To register on the brokerage, broadband suppliers
should contact Stuart Cowie at Mason Communications on 0161 772
8161.
Those people interested in entering the competition
or to register their demand for broadband are urged to log on
to www.demandbroadband.com, or call the EEDA broadband helpline
on 0845 601 8824.
Further details: Stuart Cowie, Mason Communications
Ltd. Tel: 0161 772 8161. E-mail: broadbandbrokerage@mason.biz
Press information: Jacquie Warner, Omobono Ltd.
Tel: 01638 724171 or 07774 274026. E-mail: jacquie.warner@omobono.co.uk
NOTES TO
EDITORS
Demand Broadband Campaign
In October 2001, the E-Commerce Minister announced
a £30 million package of regional funds to boost the delivery
of fast internet services via broadband technology to all parts
of the UK. Like the other eight development agencies countrywide,
the East of England Development Agency (EEDA) is playing a pivotal
role to increase access in the East of England through its own
£5.8 million broadband programme.
The first part of EEDA's broadband programme—the
broadband brokerage has been established to enable EEDA to gain
a full picture of demand across the region. And through an independent
web site, www.demandbroadband.com, both individuals and business
can register their interest in getting broadband for their area
so that EEDA can tell the phone companies where demand is coming
from and then work with them, through its brokerage, to find economic
ways to supply it sooner. Over 8,000 registrations have already
been received.
The second element of its Demand Broadband campaign—the
unique connecting communities competition—will give businesses
and communities in the six East of England counties (Bedfordshire,
Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk), the
chance to bid for part of a £3 million competition fund to
get broadband supplied to them.
Full details are available on the brokerage
website www.demandbroadband.com.
EAST OF
ENGLAND DEVELOPMENT
AGENCY
The East of England Development Agency (EEDA)
is the driving force behind economic regeneration in the East
of England: Bedfordshire, Cambridgeshire, Essex, Hertfordshire,
Norfolk and Suffolk. EEDA has an ambitious target to make the
East of England one of the top 20 European regions by 2010—the
region is currently third out of the 11 UK regions in terms of
economic performance, but only 27th out of 77 European regions.
MASON COMMUNICATIONS
Mason is a leading independent Telecoms &
IT Convergence consultancy providing business solutions to public
and private sector organisations worldwide.
East of England Development Agency
3 March 2003
| 
