Agenda item

            The Director of Finance and Resources submitted for the Committee’s consideration the undernoted report:

 

“1.      Relevant Background Information

 

1.1      The Super-connected Belfast programme of work comprises three strands:

1.     Belfast Connection Voucher scheme

2.     Public Sector Wi-Fi Hotspots

3.     Metro-Wireless project

 

1.2      This report provides updates on the first two strands of the programme and outlines recent significant developments relating to the Metro-Wireless project.

 

2.         Key Issues

 

2.1      Belfast Connection Voucher Scheme

            The Belfast Connection Voucher Scheme (BCVS) allows small businesses and social enterprises within the new Belfast City Council boundary area to apply for grants of up to £3,000, to obtain high-speed broadband connections. 

 

2.1      The Belfast Connection Voucher team is well established in Digital Services and supports the administration of the Voucher scheme for both Belfast and Derry City councils. An update of the current project status is outlined in the table below.

 

2.3      

Belfast Voucher Scheme (as of 4th September 2014)
Applications received	679
Vouchers Issued	289
Vouchers value	£752,782

 

2.4      Voucher recipients have indicated that they expect to create 600 jobs and grow their businesses by over £30million in the next 3 years. Examples of two major applications in progress include:

 

·        Townsend Business Park – 39 applications at a

value of £115,000

·        Conway Mill – 15-20 businesses

 

2.5      Following a comprehensive review of the Voucher scheme across all participating cities, the Department of Culture Media & Sport (DCMS) are now projecting that whilst there is strong evidence to show the vouchers concept is gaining momentum, voucher take-up will not reach initial predictions.

 

2.6      To ensure maximum take-up DCMS is now undertaking further work to streamline the scheme to enable suppliers and SMEs in all 22 cities to maximise the number of businesses benefitting, with changes expected to be put in place in September. DCMS are also launching a marketing campaign across all cities which will support our own demand stimulation activities.

 

2.7      The experience of the Voucher team suggests that direct engagement with businesses is the most successful way of driving up voucher applications. Feedback from early engagement with local companies also suggests that businesses require support to help them maximise the potential of the infrastructure. To this end 15 demand stimulation seminars are to take place across the city. The  schedule is  as follows:

Date	Time	Area	Location
25th Sep	Breakfast	City Centre	City Hall
30th Sep	Lunch	City Centre	The MAC
2nd Oct	Evening	City Centre	The MAC
2nd Oct	Breakfast	West	Workwest
9th Oct	Lunch	West	Workwest
15th Oct	Evening	West	BMC – Springfield Campus
6th Nov	Breakfast	East	Skainos
13th Nov	Lunch	East	Skainos
19th Nov	Evening	East	Skainos
8th Jan	Breakfast	North	Belfast Castle
15th Jan	Lunch	North	Belfast Castle
21st Jan	Evening	North	Belfast Castle
5th Feb	Breakfast	South	Malone House
12th Feb	Lunch	South	Malone House
18th Feb	Evening	South	Malone House

2.8

 

 

       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2          The schedule of seminars has been carefully planned with telecoms suppliers to ensure they correspond with, supplier roll out plans, areas of current demand and to minimise disruption as a result of physical works. The Voucher Team is planning to hold 3 seminars at each location, morning, lunchtime and evening, on different days to provide the maximum opportunity for businesses to attend.

 

2.10     With the support of the Lord Mayor and members, the profile of these demand stimulation seminars can be raised to levels that would ensure we connect with as many businesses as possible. The Lord Mayor will launch the seminars in the City Hall on the 25th September and members are encouraged to promote the seminars within their individual constituencies and beyond.

 

2.1      Seminar content will include:

·        a general overview of the scheme (Super-connected Belfast Team),

·        explaining how improved connectivity can make business more efficient (local case studies),

·        and, how improved connectivity can drive job creation and economic growth (expert speakers).

 

2.12     It is forecast that each event will be have an average attendance of 35 equating to 525 attendees across all of the seminars. It is also anticipated that approximately 250-350 businesses will benefit from the vouchers as a result of the events.  Should this be achieved, it would deliver almost £1 million of financial support to local businesses.

 

2.13     Public Sector Wi-Fi Hotspots

            The Public Sector Hotspots strand of the Super-connected Belfast programme aims to fund the installation of wireless/Wi-Fi equipment into buildings regularly visited by members of the public. The funding covers broadband connections and equipment, wiring and the cost of installation.

 

2.13     Public buildings eligible for funding must meet the following criteria:

 

·        Hotspots will only be provided within public buildings (owned or long-leased, and occupied by the Council or other public bodies).

 

·        The funding is limited to capital works only with an obligation on the Council and its partners (NICS) to operate the service for a minimum of 2 years and to cover all annual revenue costs.

 

·        The scheme will cover the capital costs of wireless connectivity within buildings, cabling and where necessary the telecoms connection to the building.

 

·        Public Wi-Fi connectivity is primarily for members of the public, however, staff or other groups within a building may also make use of the connectivity if there is spare capacity.

       

 

2.14     In total 120 buildings have been identified for inclusion and a list of these has been circulated. The list is made up of 109 Council buildings and 11 NICS buildings. 

 

2.15     The Public Building Hotspot procurement is underway. The tender closed on the 29th August. Six submissions were received and it is anticipated that the successful supplier will be selected by mid-September.

 

2.16     Metro Bus Wi-Fi

            The Super-connected Belfast team are also actively working to ring-fence DCMS funding to facilitate the installation of Wi-Fi on the Translink Metro bus fleet. Following positive legal opinion on State Aid the project team are awaiting confirmation from Translink that they can meet the criteria stipulated by DCMS, namely:

·        that the project can be delivered by March 2015,

·        does not require State aid clearance,

·        and has a clear and sustainable business case as required by HMT Green Book requirements for ensuring value for money.

 

            A decision on whether this addition will be included will be made by the end of September. The estimated cost of the work is £600k and the operating costs will be met by Translink.

 

2.17     Metro-Wireless

            The Metro Wireless concession contract, which aimed to deliver a city centre wireless zone, has experienced unexpected difficulties. Consequently we must now reconsider our approach to delivering this strand of the Super-connected programme.

 

2.18     Five Telecoms Providers originally applied to take part in the procurement exercise and four successfully met our pre-qualification criteria. However, three of the four pre-qualified organisations withdrew from the procurement during the competitive dialogue process, indicating they were unable to develop a viable commercial business case to sustain a city centre Metro-wireless rollout.

 

2.19     The remaining supplier (GOWEX) presented a highly attractive proposal which met the aspirations of the Council to have a sustainable widespread Wi-Fi offering in the city centre. The supplier also presented a number of impressive case studies of successful high profile city centre Wi-Fi projects which included, New York, Paris and San Francisco. Regrettably, Gowex has experienced widely publicised financial difficulties which have invalidated their pre-qualification status.

 

2.20     It is now proposed that the Council takes ownership of the delivery of this project and procure and implement a city centre Wi-Fi service using funding already allocated within our capital programme. The European commission considers that public funding to a single recipient of up to €200,000 (£160,000) over a 3 year period, has a negligible impact on trade and competition, and does not require State Aid notification. Therefore, the Council is free to establish its own city centre Wi-Fi zone within these constraints.

 

2.21     Initial market research with telecoms suppliers indicates strong interest in a Council funded Wi-Fi network, where Wi-Fi cells are located in areas of high footfall like the grounds of the City Hall. By focussing the installation of Wi-Fi cells on public buildings and by making use of ducting that has already been installed as part of the ‘Streets Ahead’ initiative a significant Wi-Fi zone concentrated on the city centre can still be delivered. It should be noted that if this approach is successful at the end of the three year period another €200,000 can be invested to extend the original Wi-Fi zone.

 

3.         Resource Implications

 

3.1      The Super-connected Project Team will continue to manage the three strands of the programme and the Belfast Voucher team will administer voucher applications for Belfast and Derry.

 

3.2      Belfast Connection Voucher Scheme

            Allocated funding of £9.8M will remain with DCMS and will be released based on the take-up of vouchers.

 

3.3      Public Sector Wi-Fi Hotspots

            £1.35M has been earmarked for this strand based on the building list estimates submitted and funding for Translink Wi-Fi.

 

 

 

	Capital costs	Revenue costs
BCC (109 buildings)	£400,000	£180,000              (BCC annual revenue)

 

3.4      Metro-Wireless

            €200,000 (£160,000) over a 3 year period can be allocated to this project without requiring State Aid notification.

 

4.         Equality and Good Relations Implications

            N/A

 

5.         Recommendations

 

5.1      Members are asked to support the series of demand-stimulation seminars that will take place across the city.

 

5.2      Members are also asked to approve the initiation of a council led city centre Wi-Fi project.”

 

            The Committee adopted the recommendations.