The United Kingdom’s government executive agency, Building Digital UK (BDUK), is on a mission to power the nation with gigabit-speed internet. Managed under the umbrella of the £5 billion Project Gigabit initiative, BDUK has embarked on the procurement phase for its first Cross-Regional Supplier Framework contracts.
Gigabit-speed broadband connectivity assures download speeds of 1Gbps. Project Gigabit’s objective is to enable at least 85% of UK premises to have access to this speed by 2025, amplifying it to 99% by 2030. Although as it stands, approximately 76% of UK premises can tap into gigabit-capable broadband, these stats dip to 53% when taking into account only fibre-to-the-premises.
Ofcom, the UK’s communications regulator, predicts that by March 2025, gigabit coverage should reach 92% of areas. Despite this, the majority of the gigabit-broadband availability has been sponsored by the private sector, with Project Gigabit’s contracts rolling out just last year.
The majority of Project Gigabit’s funding has been channelled into the Gigabit Infrastructure Subsidy programme. In this programme, network operators compete for the chance to extend their gigabit broadband services to areas that are more difficult to access. Here, approximately £1.4 billion has been allocated through local (Type A) contracts and regional (Type B) contracts.
The next move for BDUK is starting the procurement process for two cross-regional (Type C) contracts. This process seeks to collaborate with a single Internet Service Provider (ISP) to offer coverage to areas that are economically challenging and not yet covered by Type A or Type C subsidies. The anticipated contract subsidies are £149.7 million and £139.7 million. The procurement process is open until the 27th August this year, with the successful recipients of the Cross-Regional Supplier Framework contracts expected to be announced around June 2024.
Meanwhile, the government has reacted to the slow progress of Project Gigabit. Dan Creamer has been appointed as the new CEO of BDUK, taking over from Paul Norris who faced criticism for the lack of demonstrable progress.
To engage in more direct conversations about the network operators’ role in the creation of Gigabit Britain, audiences can join the Connected Britain conference. Further gigabit news includes CityFibre nabbing a trio of Project Gigabit contracts worth £318m, GoFibre championing Project Gigabit’s ethos, and Openreach talks about the full fibre uptake challenge.
