Independent experts say Superfast broadband has benefited Cornwall’s economy by nearly £200m
Around 4,500 jobs created or protected thanks to superfast, Cornwall and the Isles of Scilly now have 95% fibre broadband coverage.
Superfast Cornwall, the pioneering fibre broadband programme funded by the European Regional Development Fund, BT and Cornwall Council, has been the catalyst for large-scale economic growth in Cornwall, bringing £186.1 million of economic benefit, according to independent research published today by SERIO at Plymouth University and Buckman Associates.
The research estimates that more than 12,000 Cornish companies are connected to the high-speed network, resulting in 2000 new jobs being created and a further 2,500 safeguarded.
The programme, which began in 2010, has now reached its goal of making fibre available to 95% of Cornwall and the Isles of Scilly, far outstripping the original aspiration of 80%, and including 30% (85,000) with access to ultrafast fibre to the premises (FTTP). It has created one of the best-connected rural economies for fibre broadband in the world.
The research involved more than 2,000 separate survey responses and is thought to be the UK’s most advanced piece of research into the economic impact of fibre broadband. It shows the full success of the programme, with a prediction that by June 2016 – a year after the completion of the first stage roll-out - the impact will increase from £186.1m to over £250m.
Of those businesses connected for at least one year, 79% cited performance improvements and nearly half have been able to develop new goods and services. The study also found that connected businesses demonstrated an average of more than four times more growth in revenues over the same period than non-connected businesses. Nearly half (49%) reported that superfast broadband had helped their business to generate new sales and almost a quarter (24%) of that group pointed to new trade overseas, showing how superfast broadband is giving Cornwall’s businesses a platform to compete in global markets.
Some 258,000 homes and businesses are covered by the open access high-speed network built by BT’s local network business, Openreach. With more than 67,000 homes and businesses now connected, through 60 different internet service providers, Cornwall is seeing some of the highest take-up of fibre found anywhere in the UK. Some areas that were upgraded early in the project are seeing take-up in excess of 40%.
During the course of the project, Cornwall set a new world record for the fastest broadband speed of 10 Gbps in November 2012 at Threemilestone Industrial Estate, Truro.
Digital Economy Minister Ed Vaizey MP said: "Superfast Cornwall has done a remarkable job in transforming the digital landscape of the region. Through the generation of new sales, the opening up of overseas markets and enabling the development of new goods and services, superfast businesses are now seeing, on average, four times more growth than that of non-connected ones. Superfast broadband's role as one of the strongest drivers of growth is clearly evident, which is why Government, together with local authorities, is investing more than £1 billion to take superfast coverage to 95 per cent of the UK by 2017."
Nigel Ashcroft MBE, Superfast Cornwall programme director for the Cornwall Development Company, Cornwall Council’s economic development company, said: “This is great news for the Cornwall economy and it vindicates the brave decision by Cornwall Council over five years ago to invest in partnership with BT and the EU on a superfast broadband project, far ahead of most other areas in Europe. We always had faith that faster broadband would be a catalyst for growth, innovation and prosperity – but the scale of the progress we’re making is now both unquestionable and staggering, which shows just what can be achieved through partnership and collaboration. Cornwall is attracting great investment and talent because it has the natural beauty and digital infrastructure to compete with anywhere in the world.
“Whilst 95% coverage is a remarkable achievement for Cornwall, we have not forgotten about the remaining most rural and hardest to reach 5%, which is why the council recently announced a further project that aims to bring access to superfast broadband to at least 99% of premises in the region.”
Dr Ranulf Scarbrough, Superfast Cornwall Director for BT, said: “We’re very proud of the work BT has done and will continue to do in Cornwall. The region became a template for us to follow in other rural areas of the UK where connecting people to broadband can be extremely challenging.
“Cornwall Council has shown tremendous vision and leadership which, combined with the skill and ingenuity of our engineers, has enabled us to go even further than planned. Today, investing in fibre seems an obvious way to transform a rural economy, but let’s not forget when we started the UK was in the depths of a recession and Superfast Cornwall was blazing a trail for others to follow.
“People across Cornwall now have a wide choice of high-speed service providers – a benefit of our open wholesale network – and they can reap the benefits of the fibre broadband technology in both their private and professional lives.”
Allice Hocking, Head of SERIO, Plymouth University, said: “The findings clearly show the important difference that superfast broadband can make to a business’ growth prospects, particularly in a predominantly rural area like Cornwall. This is especially impressive given that the programme was implemented at a time when Cornwall, just like other parts of the UK, was recovering from recession. In addition, while the main findings show a marked rise in employment resulting from superfast, other evidence collected during the research points to the role that superfast can play in improving productivity, something which is seen as particularly important to the UK economy at this current time.”
Among the many Cornish businesses to benefit from high-speed fibre broadband is Natural Generation, of Perranporth, which installs and maintains wind turbines and solar panel developments as well as other renewable energy products. Ivor Thomson, Managing Director said: “Since the arrival of fibre broadband, Natural Generation’s turnover has grown from £2.5 million to become a £10 million business, and we have expanded our team. Having superfast has helped us to reach out to new customers across the UK and internationally, extend our portfolio range and services to customers. We are now perceived as major players in a very competitive market place. Superfast broadband has made a huge impact on our business.”
Enquiries about this news release should be made to Max Wilkinson or Joe Brunwin 01242 577277, or the BT Group Newsroom on its 24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369. All news releases can be accessed at our web site: www.bt.com/newscentre.
The Superfast Cornwall Evaluation Final Report, June 2015
The report shows that the programme safeguarded £94.3m, created £30.5m million from new business start-ups and £61.3 million from established businesses, giving an overall impact of £186.1 million. To view the full report please visit superfastcornwall.org/impact (available from 1am on 3rd July)
SERIO, based at Plymouth University, provides specialist social, economic and market research across the South West and beyond. It delivers analysis and intelligence to public, private and third sector organisations to help them make informed decisions and develop effective policy and strategy. For more information visit www.serio.ac.uk.
For further information about Plymouth University visit http://www.plymouth.ac.uk/pages/view.asp?page=24583#about
About Buckman Associates Ltd
Buckman Associates Ltd is an economic development consultancy based in Devon. It offers high-quality support to clients across a range of disciplines from evaluation to research and strategy development. A particular specialism is understanding and quantifying the economic impact of Government programmes and initiatives.
About Plymouth University
One of the leading modern universities in the UK, ranked in the top four institutions in the country under the age of 50 by Times Higher Education. Twice awarded the Queen’s Anniversary Prize for Higher and Further Education, and has won numerous awards and accolades in respect of teaching, research and sustainability, and also the first university in the world to receive the Social Enterprise Mark.
Over 28,000 students, which include those at partner colleges across the South West, are enrolled on courses from farming to pharmacy, business to biology, and design to dentistry. And the 12,000 paid internships provided every year for students is just one of the many ways that they are helped to develop new skills and graduate ready-for-work.
Investment has been more than £150 million in the campus over the past seven years and they are the first modern university to launch a medical school. Through the £100 million network of support facilities and services, they are growing hundreds of businesses across the region and beyond. To find out how Plymouth is making a difference to its communities, please visit www.plymouth.ac.uk
About the evaluation report
*The independent evaluation of Superfast Cornwall was undertaken by independent researchers at SERIO at Plymouth University, in collaboration with Buckman Associates. Businesses connected to Superfast for 12 months or longer were surveyed by phone between September 2012 and March 2015.
**The Superfast Cornwall Evaluation Report June 2015 was completed by SERIO at Plymouth University in collaboration with Buckman Associates. The survey fieldwork was conducted by Marketing Means. Both SERIO and Marketing Means were commissioned by Cornwall Development Company to carry out this work. SERIO and Buckman Associates independently analysed the survey data that is presented in the Report.
About the Convergence Programme:
The Superfast Cornwall programme is part financed by the Cornwall & Isles of Scilly Convergence European Regional Development Fund Programme 2007 to 2013. The Department for Communities and Local Government is the managing authority for the European Regional Development Fund Programme, which is one of the funds established by the European Commission to help local areas stimulate their economic development by investing in projects which will support local businesses and create jobs. For more information visit www.gov.uk/browse/business/funding-debt/european-regional-development-funding
ERDF Convergence investment: Up to £53.5 million
BT Investment: Up to £78.5 million
TOTAL: Up to £132 million
For more information visit www.erdfconvergence.org.uk
About Cornwall Development Company
Cornwall Development Company Ltd is the arm’s length economic development company for Cornwall Council. Further information is available at www.cornwalldevelopmentcompany.co.uk
BT’s purpose is to use the power of communications to make a better world. It is one of the world’s leading providers of communications services and solutions, serving customers in more than 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed/mobile products and services. BT consists principally of five customer-facing lines of business: BT Global Services, BT Business, BT Consumer, BT Wholesale and Openreach.
For the year ended 31 March 2015, BT Group’s reported revenue was £17,979m with reported profit before taxation of £2,645m.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.
For more information, visit www.btplc.com.
Openreach is BT’s local network business responsible for the last mile of the UK access network – the copper wires and fibre connecting homes and businesses to their local telephone exchanges. Openreach provides communications providers with services and products associated with that network.
Friday 3 July 2015