Reaching 100% Programme (R100) - State Aid: consultation

4. Proposed Intervention

In the absence of premise level data from some broadband infrastructure operators, the Scottish Government has mapped areas as white, grey or black at a postcode level, using the following criteria:

For basic broadband,

• The previous Public Consultation demonstrated that there were no white postcodes for basic broadband. This document is therefore focussed only on NGA broadband.

For NGA,

• A postcode is turned grey if there is only one broadband infrastructure operator providing NGA services (with speeds greater than 30Mbps) to that entire postcode.
• A postcode is turned black if there are at least two broadband infrastructure operators providing NGA services (with speeds greater than 30Mbps) to that entire postcode.
• All other postcodes remain white.

In addition, the proposed intervention area includes a number of "under review" areas (coloured blue on the map). These areas have previously been indicated to have planned commercial coverage for NGA broadband (i.e. mapped as grey or black NGA), but those plans have been reported through the OMR as being 'at risk' (or have otherwise been deemed by Scottish Government as being 'at risk') of not being completed. These areas are subject to continued monitoring and verification of supplier plans by Scottish Government and in the event that these commercial plans fall away these premises will be mapped as white NGA and form part of the proposed intervention area and eligible for intervention via this aid measure.^[9]

The mapping analysis of existing and planned coverage, taking account of the continued monitoring described above, has identified remaining 'white NGA' areas. The outcome before taking account of the R100 contractual coverage is summarised in terms of NGA White, Grey, Black and 'Under Review' premises below:

As noted above, if commercial plans fall away in the 'under review' areas then these will be considered as eligible for intervention and considered as 'white NGA' areas.

This consultation is focussed only on the white postcodes remaining once the contracted coverage has been removed. The Scottish Government will then retain an option to extend coverage to target the remaining 'white NGA' areas by amending existing contracts under the 2016 NBS (and in accordance with the Public Contracts (Scotland) Regulations 2015).

The postcodes subject to this Public Consultation are therefore a subset of the above national summary and are available in a separate file. The breakdown of postcodes to premises is summarised below:

Where possible, the Scottish Government has made coverage information available at a premises level within the identified white postcode areas to suppliers to ensure that any contract extension can target those premises without NGA broadband coverage efficiently. This will include information at a premises level received in response to this consultation.

It should be noted that whilst this consultation includes mapping of basic broadband coverage, any contract change will not deploy basic broadband technologies. The intention is to provide suppliers with details of all the areas where there is basic broadband coverage so as to ensure, so far as possible, that these areas are only overbuilt by NGA broadband infrastructure where the premises will receive over 30Mbps or at least a doubling of speeds, in accordance with the requirements of the 2016 NBS. Where doubling is not possible, the supplier will be obliged to demonstrate that the design is optimised to limit the overbuild of existing basic broadband networks with speeds that are below 30Mbps.

4.1. Procurement

The procurement undertaken by the Scottish Government has been carried out in accordance with the Public Contracts (Scotland) Regulations 2015 and EU Public Procurement Directives. It utilised the Competitive Dialogue Procedure and was conducted in a transparent and non-discriminatory manner, as required by the 2016 NBS.

Any additional build into the IA finalised by this consultation will be procured via contract change/s to the current contract/s.

The Scottish Government's priority is to ensure that the available public funding is used most effectively by ensuring coverage of premises currently getting relatively slow broadband speeds. However, areas with higher speeds may be targeted, subject to the need to provide a 'step change' in broadband capability (as outlined above).

A range of public funding sources will be utilised in support of R100 procurement activity – the Scottish Government, UK Government, local authorities (including through City Regional Deals) and the European Union.