Meeting documents

The Executive
Tuesday, 29 April 2003

EX290403-10

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ITEM EX10

EXECUTIVE – 29 APRIL 2003

OXFORDSHIRE COMMUNITY NETWORK

Report by the Head of Strategic ICT

Introduction

  1. Since inception of the OCN project following approval by Council in December 2001, the Executive has from time to time received brief updates on the progress of the project through the monthly budget monitoring reports. The present report responds to the Executive’s request at the meeting on 21 January for a fuller report back in 3 months on progress with the development of the project.
  2. Objectives of the Project

  3. The County Council’s adoption of the OCN project was on the basis that government funding opportunities, specifically National Grid for Learning (NGfL) and New Opportunities Fund (for the People’s Network), could be tapped in order to provide Schools and Libraries with a high-speed, county-wide Broadband communications network – the Oxfordshire Community Network (OCN). The OCN was designed in such a way as to meet the minimum requirements for speed, robustness and security, but also to provide an infrastructure with the potential to meet additional strategic needs: for the County Council; other tiers of Local Government; and, if possible, communities and businesses within the County. This initiated a complex and highly innovative Project to be implemented to a demanding timescale but with limited staffing and organisational resources.
  4. The first phase of the Project has, therefore, primarily focused on the roll-out to schools and libraries in order to meet the timetable commitments attached to the funding streams.
  5. Results of First Phase

  6. The Oxfordshire plan commitment, insofar as it relates to the OCN, is defined as: "Completing broadband connections to schools and libraries. Examine feasibility of extending connection to council offices (where cost effective) and develop a strategy for sharing the capacity with households and small businesses especially in the rural areas of the county".
  7. By the end of the 2002/03 financial year, 127 (around 40%) of the County’s 315 Schools, and 33 (77%) of the 43 Libraries had been connected, but this period also included the installation of the Central Network Control Infrastructure, the County-wide ‘Backbone’ circuits and the 15 distributed Broadband Access Points (BAP’s). This represents c.80% of the total workload for phase 1. Inevitably, as with any Project of this size and complexity, a number of technical problems have been encountered and resolved and the OCN team is confident that by September this year, connection of all the County’s Schools and Libraries will have been achieved (with a small number of exceptions due to building or other external factors).
  8. This first phase has also seen Broadband connections to 20+ Lifelong Learning Centres, mostly in clusters around Blackbird Leys; Berinsfield, Wood farm and Banbury. The feedback from these, the connected schools, and public reaction from libraries has been very enthusiastic. Practical benefits arising from connection include: fast (and free) access to the Internet from both libraries and schools and publicly available access from (the more rural) areas poorly served by commercial Broadband providers. As the network matures, benefits will expand to include; accessibility by schoolchildren to ‘day’ work from home and multi-school access to lessons in ‘minority’ or specialist subjects via video-streaming.
  9. The costs of implementation have been higher than expected due to an increased level of complexity. This has arisen from a number of sources, principally: variations in the nature of, and inconsistencies between, pre-existing schools’ local area networks (LAN’s); conversions of existing facilities to preserve continuity of service from existing suppliers (e.g. RM); and electricity supply problems at both County Hall and Macclesfield House. In many cases this has necessitated additional network configuration work and therefore increased staffing costs. It was also found necessary to enhance the level of support and training for the migration of schools to the new network. Given the overall size and complexity of the project, a variation of just over 8%, especially when compared with many other Government Projects, is not unreasonable and would very likely have been exceeded by the costs of undertaking the level of detailed survey work at each site necessary to have accurately foreseen them. The resulting revision of the project timetable inevitably resulted in a lower than budgeted level of income from school subscriptions.
  10. It is important to stress that failure to support the project financially as agreed at the February Executive, could easily have compromised the NGfL targets, on which future instalments of the funding depend.
  11. Options for next phase

  12. Plans are in the advanced stages of exploiting the network. These encompass three main areas:

        1. Replacement of Oxfordshire County Council’s internal Wide Area Network (WAN)
        2. Joint e-government projects with the District Councils and other (Public Sector) partner organisations;
        3. Use by Communities, rural Small and Medium Sized enterprises - SME’s, and the viability of being able to offer Broadband connection to domestic subscribers, making Oxfordshire a truly "wired county".

    (i) County Council Wide Area Network (WAN)

  13. Plans are being developed for a phased programme for rolling out OCN to replace existing WAN links and to reach those establishments not currently connected to internal networks at all. This will give a more secure, faster access to central facilities e.g. MIS and Social & Health Care record keeping.
  14. This will entail a complete re-appraisal of the WAN in relation to present/future need which will encompass all occupied Oxfordshire County Council premises (whether presently connected or not). It will also assess the most practical solutions in terms both of connectivity and ‘Working Practices’, particularly in the case of outlying (mainly Social & Health Care) staff, for whom it may prove more cost effective to provide a connection from Home. All existing links will be re-assessed and either maintained or replaced dependant on need and strict ‘value-for-money’ criteria.
  15. Consideration is also being given to using the network for the future carriage of ‘voice’ traffic. If school traffic is included (for which they currently pay themselves), present expenditure is in excess of £2M annually. It is difficult to quantify the potential savings (and there would be some ‘one-off’ conversion costs), but an annual saving of between 5% & 15% ought to be possible. Voice enabling links to the District Councils would potentially make an additional contribution.

    1. (ii) Working with District Councils and other Partners

  16. Although managed as a discrete project, the OCN was recognised from the outset as an essential element of Oxfordshire County Council’s e-government plans. Its role was central in helping to secure at least £600,000 for the Oxfordshire Partnership as a whole (not all earmarked for OCN and not yet included in the costs analysis – see "Financial Variations" below) of Local Government On-Line (LGOL) funding from the ODPM to develop connectivity with other local public sector partners.
  17. After slow initial progress, partnership with the Districts is now proceeding well. The utility of the OCN is seen by most (if not all) as key for a unified communications network and an enabling layer to the development of a county-wide Portal (Gateway).
  18. It is likely that at least 3 of the 5 District Councils (along with at least one Town Council) will connect to OCN in the coming 3-6 months, each making a ‘net’ contribution in excess of £30K to OCN, in the first year. Additional ‘income’ could also arise from the local Strategic Health Authority who have requested costs to connect up to 12 hospital sites across the OCN. This, if accepted, would yield a further income of £312K (capital) in the current financial year plus a collective annual revenue for this and successive years of some £90K. This is speculative at this stage and subject to discussions presently under way with the SHA and may impact/be impacted by, the procurement of the new NHSnet (N3) national network.

      (iii) Small businesses and rural communities

  1. Since the OCN project was launched, public awareness of Broadband in general has increased significantly but is largely only available only in urban areas. Significant areas of the Country are not ‘connected’, and are unlikely to be for some time, if ever, under present conditions. Contrasting this, it is inevitable that the demand, from both community groups and small-to-medium sized businesses (SME’s) will continue to grow. It is consistent with Oxfordshire County Council’s aims for economic and community development that the OCN is exploited beneficially to help meet that demand. It is also entirely compatible with Central Government’s aims as expressed in the ‘Building Broadband Britain’ campaign, and the Countryside Agency commitment to the removal of rural exclusion – ‘The Digital Divide’ (endorsed by DEFRA). Recent ODPM, DTI and SEEDA initiatives, although in very early stages, appear likely to be beneficial in this regard, also there are encouraging signs that the regulatory issues that have dogged our attempts to date to make the OCN more widely available may soon be dismantled.
  2. Community use of the OCN is being pioneered to some extent by a ‘trial’ connection, for 2 public access terminals in Thame Town Council’s ‘one-stop-shop’ (also to include connection to the OCN of their LAN). In addition, we are aware of several locally organised and funded initiatives to obtain Broadband connection from non-BT sources in combination with ‘Wireless’ distribution technology and questions are being asked about the potential role for local schools to become a local ‘hub’ to connect those communities to the OCN. There are regulatory complications and commercial barriers to a local authority offering such a service directly, but exploratory discussions with industry representatives suggest that it may be possible to establish a partnership jointly to facilitate access to OCN to other users in the county, and/or to encourage BT or other suppliers to ‘Broadband enable’ the County’s rural exchanges. This could potentially offer a more appropriate means of connection for Communities and SME’s and still leave the option of a ‘school’ hub for the more remote rural areas. This view was discussed with both the Strategy Director and the Regional Broadband Advisor of SEEDA both of whom endorsed the view.
  3. Longer term governance of OCN

  4. Until now, the project has been steered by a "Project Board" which has largely focused on the achievement of the phase 1 element of the Contract. The ongoing operational control of the OCN, and its exploitation for service delivery, will benefit from a re-appraisal of its status in the newly created Resources function in order to continue the development of the infrastructure.
  5. Financial Variations

  6. Annex A, provided by the Head of Finance, tabulates the sources and application of funding for the project. The following figures summarise the variations between the original projections and the currently estimated costs and funding:
  7. Total Costs

    2001 Projection £16,558,000
    Current Estimate £17,913,500
    Difference £1,355,500 (8.2%).

    This difference arises from an additional £866,784 on expenditure (excl. Operating Costs), a REDUCTION of £228,832 in Operating Costs and an extra £717,500 in Education expenditure (see Para 7).

    Government Funding

    2001 Projection £3,351,000
    Current Estimate £3,538,900
    Difference £187,900

    Variance (to be funded internally and/or by ‘Income’)

    2001 Projection £13,207,000
    Current Estimate £14,374,600
    Difference £1,167,600

    These figures, along with those in Annex A (download as .doc file) do not include any provision for potential income. Present estimates indicate a possible income, in the present financial year, of c.£390K capital, plus £190K revenue (see Para 15).

    Medium Term Financial Plan Table (download as .xls file)

    RECOMMENDATIONS

  8. The Executive is RECOMMENDED to note the progress outlined in the report and endorse the general principles set out for further development of the project.

STEPHAN CONAWAY
Head of Strategic ICT

Background Papers: Nil

Contact Officer: David Blue, OCN Business Manager, Tel 01865 815594

April 2003

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