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Broadband Strategic Development

Review of Deployment Funding Options

Next Generation Access projects are likely to require funding from a variety of sources. Even projects driven by public bodies are unlikely to be able to be fully funded by public money in the current economic climate. Private funding may be the most predominant source but some public funding may be available under certain circumstances. Network developers need to understand the options open to them with regard to funding in order to ensure the best possible financing of their project.

Private funding can be achieved through debt and/or equity sourced from a variety of investors. They will be interested in the take up of services on the network and the likely revenue from services which will contribute to their return on investment.

Public funding may be available directly from government or from other bodies, such as regional development agencies or EU funds. Any award through this method is likely to be through a bidding or qualification process, after which a fixed sum of money may be awarded for use in a project. For example, Broadband Delivery UK (BDUK), part of the UK Government Department of Culture Media and Sport, expects to fund projects throughout the UK via submission of Local Broadband Plans from local bodies which would describe their funding options and investment requirements.

InterConnect and its partners have experience in all aspects of funding and can provide assistance in the following areas:

  • Identification of funding options
  • Model estimated returns
  • Provide an assessment of commercial funding feasibility
  • Provide advice on procurement routes.