Project Gigabit: UK subsidy advice

Commercial

Details of the contracts and procurement process are available at the eTendering System for Gigabit Infrastructure Subsidy Contracts.

Access to Infrastructure Code - Use of Existing Infrastructure

For the purposes of the Gigabit Infrastructure Subsidy Scheme programme, there is a requirement for Suppliers to offer access to other bidders for infrastructure it operates in an intervention area, should the Supplier(s) wish to bid for a particular requirement.

BDUK has implemented the Access to Infrastructure Code to meet this requirement. Suppliers must either agree to and comply with this Access to Infrastructure Code in respect of their corresponding infrastructure, or confirm that they have no infrastructure in the intervention area. The Access to Infrastructure Code is available here.

Background

The Future Telecoms Infrastructure Review (FTIR) was published in July 2018 and laid out a vision for a full fibre and 5G future for the UK highlighting the considerable potential benefits to the UK.

The key findings of the FTIR were that, despite over 97% coverage of superfast broadband, largely based on copper user connections, the UK was in danger of falling behind on rolling out fibre and 5G connections. It proposed a more proactive approach than has been taken historically in the UK.

The FTIR proposed, as part of a wider range of measures under the Project Gigabit, an “outside in” procurement approach, named the Gigabit Infrastructure Subsidy . In essence this procurement approach seeks to minimise market distortion by relying on industry to build where it makes commercial sense to do so. Rather than wait for this process to run its course, FTIR recommends that we identify the non-commercial areas, expected to be at the outside of the networks, and to build to these premises in parallel to commercial build , seeking to provide gigabit-capable connectivity across all areas of the UK at the same time, ensuring no areas are systematically left behind.

Government subsidy rules

Under the United Kingdom/European Union Withdrawal Agreement of October 2019, all awards made prior to the end of the Transition Period (31 December 2020) continue to fall under the State Aid regime for a period of four years and need to be managed in accordance with the rules in that period.

This also applies for future procurements and awards made under the Superfast Broadband Programme. We are developing the UK Gigabit Programme within the UK Subsidy Control Regime and have published detailed guidance on the approach.