Application for Strategic/Pathway Partnerships

1.	Project Title:		Affordable Broadband Connectivity (ABC)

2.	Project Address:		1, St. Luke's Social Enterprise Centre, 85, Tarling Road, London, E16 1HN

3.	Project Manager:		Richard Steel

			Telephone:		0181 534 4545 x 24811

			Fax:		0181 557 8716

			Email:		richard.steel@newham.gov.uk

4.	Organisation:		London Borough of Newham

5.	Project Summary:		This project will work with a small number of local firms to explore the practicalities of using DSL and other "alternative" technologies, to deliver useful broadband applications at affordable costs. The impact on existing networks will be closely monitored. A particular focus in terms of content will be delivery of distance learning materials by members of the Newham Online partnership.

6.	Programme:	Obj 2	Priority:	3		Measure/s	3.2

Start date:

1. 10.1999

Completion Date:

31.12.2001

8.	Aims of Project:		To provide 20 SMEs with broad access to business applications within the Newham Extranet and Teleregion networks that will sustain and support their growth. To provide the capability of connecting a further 100 SMEs To demonstrate how existing investments in the telematics infrastructure of the Teleregion can be maximised through providing an exemplar of how broadband access can be expanded locally on an affordable basis. To provide a guide for those wishing to deploy affordable broadband technologies.
9.		Brief Description of Project

Purpose:

A major barrier to use of the Net by local organisations is the perception that it is unreliable, slow, insecure, expensive and lacks relevant content. Newham Online is creating an interlinked network of 13,000 computers giving fast, secure broadband access to some 73,000 local people. It is also organising and increasing the accessibility of local content. This project will explore ways of extending high bandwidth access to this network, and the Teleregion, through the use of xDSL, IR laser, microwave and other radio solutions (alternative connection technologies- ACTs) all of which are substantially cheaper than traditional leased line connectivity. We will work intensively with a small number of local SME's to explore the effects of greatly reducing the costs of broadband access to relevant content and to assess the impacts of their use on the wider network infrastructure. We will install the capability to extend broadband services to many more SMEs. We will ensure that the lessons learned are shared with all Teleregion participants.

Activity:

Establish an ACT demonstrator project in Stratford. Work with UeL to provide appropriate content that will take advantage of the broadband connectivity. Connect 20 SMEs to the extranet using using ACTs Deliver distance learning and other content Monitor effect on the networks Monitor use by SMEs and survey them as to their views on the use of the connectivity Maintain an up to date account of the project on the Newham Online web site and publish its work through the Newham Online mailing lists. Produce a guide that can be used by the main infrastructure owners as to how they can extend broadband access to their existing networks. Produce a guide that can be used by local SMEs, organisations and individuals that will enable them to determine their options for connecting to the Newham Extranet (note this will inevitably be area specific)
10.		Describe how the Project meets the objectives of the Priority/measure and Objective 2 Funding Agenda:

This project will maximise the effectiveness of public investment the Teleregion by demonstrating the practicality of affordable means of providing SMEs with broadband access to the infrastructure that has been created. The Teleregion has given its nodes responsibility for deployment in their area. The creation of the Newham Extranet through the linking of Newham's 11 WANs will permit Teleregion based applications to be directly accessible from Newham schools, libraries, housing offices, leisure centres, doctors surgeries college and university buildings amongst others. This project will demonstrate how these existing networks can be cheaply extended and thereby provide a complete model for how the Teleregion can be deployed in its other areas. It will certainly result in the expansion and increase of local use of telematics in Newham and has the potential to have a significant impact on this throughout the Teleregion. It has the potential to greatly increase the demand for networked services run over the infrastructure
11.		Synergy and Need:

a. What is the demand for this Project? How has this been determined?

This project has been developed by the Newham Online partnership and reflects a logical next step to its existing Gateway and Extranet project in that it seeks to establish affordable means for extending broadband access to the extranet, its content and its 73,000 users (by Dec 2000 and counting only approved and funded WAN deployment plans.) The project has synergy with the network development plans of the Newham Online infrastructure partners (Newham Council, UeL, NCFE, and Newham Community Health Trust) and the Teleregion. It is possible to deploy 2M SDSL at a cost that is under 20% of that charged by BT for a similar level of connectivity and this assumes writing off the capital equipment over three years. Similarly microwave links can be established at around 25% of the costs of comparable leased lines. Demand for microwave connectivity has been evidenced by Newham Online establishing the capability to offer 10M microwave connectivity in Stratford utilising a local tower block. The first two connections will service two business centres but there is demand for this to be extended to creative sector SMEs and this is the subject of the Creative Networking in Newham Obj2 bid. The logic of deployment of broadband technologies to SMEs in their own premises requires both applications that demand more bandwidth than can readily be provided by dial up connectivity and cheaper connectivity. A 2Meg leased line from BT will cost 15,500 in the first year and 6,270 pa thereafter which puts it out of reach of most SMEs. Comparable running costs for a 2Meg DSL line using BT Keyline service are 1,783 and 707 pa providing appropriate capital equipment is provided at both the network and user end. This project will meet the installation and capital costs of connection (which will inevitable decrease in any case), it is anticipated that there will be considerable demand for SMEs for unlimited broadband connectivity at an effective cost that is little more than many will currently pay for dial up Internet access. This project will explore the use and impact of such access.
b. How does this Project benefit local people and disadvantaged communities? (Priorities 2 & 4 only)

If the development of the network infrastructure of Newham were to be left to the private sector it would undoubtedly be the case that its existing economic deprivation would be increased by exclusion from the information society. This is because private sector investment in infrastructure reflects its assessment of the economic return that will be earned and the economic profile of Newham is such that the return will inevitably be low. It is no coincidence that BT decided to trial its own ADSL service in Ealing. It is also the case that in Newham the cable infrastructure that has been installed is copper not fibre and thus cannot be used to deliver broadband IP access. This project will help demonstrate the practicality of affordable broadband technologies. It is anticipated that this will encourage take up by many organisations that have premises open to the public. Their linkage to the Newham Extranet will soon enable the Council's service level information to be delivered at all such access points thus greatly increasing the availability of such information. The wide deployment of broadband connectivity to the extranet will also provide many opportunities for SMEs to develop leading edge skills in the area of broadband applications. The Digital media Alliance (Recommendations for Growth) predicts a rise from 20.750 jobs in the sector in '98 to over 100,000 in 2007 and this project will ensure that there is a greater chance of such jobs being created in Newham than would otherwise be the case.

c. What are the implications of Match Funding not being Approved or forthcoming:

Match funding from Newham, MASE & UeL has been agreed. Marconi is a lead partner in the Newham Gateway and Extranet project and it is anticipated that it will wish to continue its involvement by participating in what is in effect a deployment phase of this project, however it has not been able to reach a decision within the bid timetable. If Marconi decides not to be partners in this project we will consider a request for involvement made by another multinational networking company.

12.	Project Costs

How will the Project costs be met?		1999 £(000)	2000 £(000)	2001 £(000)	Date of Confirmation of Commitment
Objective 2 ERDF			66,500	41,500	N/A
LB Newham		1,500	70,000	70,000	26.2.1999
Marconi		1,500	11,500	11,500	March '99
MASE		325	1,500	1,500	26.2.1999
UeL (BDC)		750	3,000	3,000	26.2.1999

TOTAL		4,075	152,500	127,500

What will the money be spent on? (List main items of expenditure with costs):

Expenditure (Detail)	1999 £(000)	2000 £(000)	2001 £(000)
Central network costs)	0	78,000	58,000
Salaries	4,075	35,500	35,500
Equip at SME's	0	20,000	20,000
Installation	0	15,000	10,000
Premises		2,000	2,000
PPS & other o/h	0	2,000	2,000

TOTALS	4,075	152,500	127,500
GRAND TOTAL	284,075

13.	Project Outputs

Description of Output (see enclosed definitions)		Total

Private sector contribution		34,575
Number of SME's assisted to enhance telematics (by establishing a broadband link to the Newham Extranet and installing at least one broadband requiring distance learning application - services valued as at least 5k/SME)		20
SME's assisted to enhance telematics (through tailored advice on the options for broadband connectivity and applications. This service is valued at under 5k per SME as it does not include the project delivering the installation itself though the distance learning application will be supplied)		30
Guide for WAN owners on extending broadband connectivity along with implications for existing networks		1
Guide for SMEs and individuals on options available for broadband connection in Newham		1

Additional Information for Applications sent to Teleregion

How will the proposed project development be made available for public use and access?

The capacity of SMEs, and indeed the general public, in a locality to benefit from alternative communication technologies depends critically on the owners of the existing network infrastructure. An essential requirement for deployment is the need to have an existing network infrastructure to connect to. In Newham this infrastructure and, more importantly, the commitment to support its extension, exists.

We will produce a guide to help organisations wishing to deploy alternative communication technologies, this will be of direct benefit to all Newham Online partners as, in conjunction with Newham Online's network GIS, it will enable them to decide how to extend their networks, or connect to existing ones. Not all of this guidance will be relevant in all areas of the Teleregion as the technologies deployed depend critically on features such as the proximity of local telephone exchanges and tower blocks. It follows that, outside of Newham, a substantial part of the potential public impact of this project depends on the commitment of the Teleregion partners to extending broadband connectivity in their area. No indirect outputs created through adoption of technologies demonstrated by this project by such partners are included.

What is your exploitation plan for ensuring the viability of your project beyond the period of grant-aided support?

Newham Online has made an in principle decision to establish a local service provider, owned by the main network infrastructure owners, to manage the Newham Extranet. This project will complement that strategy by developing local expertise, experience and by providing a local demonstration of relevant technologies. It is intended that the services established and demonstrated by this project will be transferred to the Extranet management company for commercial exploitation once their feasibility has been adequately demonstrated.

3. What evidence is there that you have the skills and capacity identified and available for your project to succeed? Wherever possible name organisations, units or individuals.

The partners in this Newham Online project are :-

Newham Council - Central Computing Services - The project will directly involve John Defoe who is LBN's Network Manager and Richard Steel who is Head of IT Contract Services. Richard Steel will be Project Manager and Richard Stubbs who is Director of Newham Online will co-ordinate the project. Newham Council is one of the UK's leading authorities in terms of DSL deployment.

Marconi is the UK's leading network company- The project will involve a range of top level networking experts. The principle link person will be Nigel Worthington who has worked on the Newham Gateway and Extranet project.

MASE is a specialist company that has worked with Newham Council and other Newham Online partners to deploy DSL, microwave and IR technologies. Steve Tyler is a director of the company and will be directly involved in implementing solutions devised in this project.

The University of East London's Business Development Centre represented by its Director, Martyn Laycock, will be the main source of appropriate local business contacts for the project and will provide distance learning applications that require broadband connectivity.