UK Gigabit Voucher Scheme FAQs

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Qualifying businesses in many rural parts of the UK are eligible for a Voucher worth up to £3,500 to help get new leased-line fibre broadband installed under the UK Gigabit Voucher scheme.

The Government recently urged SMEs to apply, with Digital Minister Matt Warman MP arguing the £70m pot is “still there for the taking.”

But what is the Gigabit voucher scheme, and how does it work?

 

How fast is gigabit?

Gigabit broadband is 1,000 megabits/per second (around twenty-times the download speed of a normal domestic FTTC connection) and unlike conventional broadband, supports a ‘symmetrical’ upload rate that is equally as fast as the download.

In most cases however, SMEs will deliberately opt for a more limited connection speed on a gigabit ‘bearer’ (eg: 200Mbit/s up and down) to keep costs manageable, while retaining the capacity and option of regrading up to a maximum of 1,000 Mbit/s at a later date if needed.

 

What does the voucher get used for?

Most connectivity providers charge an installation cost on new Leased Line installations – normally based on the length of fibre cabling that must be ‘dug in’ to connect the business. The voucher is a refund to help offset this upfront cost. Businesses must pay the ongoing monthly connectivity charges as normal, but the voucher is intended to help firms overcome the initial barrier-to-entry.

 

I’d like £3,500 please.

Quite! Although the the voucher is paid direct to your chosen supplier. Once your business has applied and been deemed eligible, your supplier will submit your voucher with your details when you place the initial order for your leased line. After your fibre is dug-in and connected, the scheme will check that your service is live before paying your supplier the due amount.

If your install is less than £3,500 you are likely to only be awarded the relevant cost, rather than the full amount. In most cases businesses will be signing a leased-line term with their provider for the ongoing cost of connectivity – normally between one and five years.

 

Can I use my voucher via Lineal?

Yes! We use Gamma Telecom Ltd for fibre leased-line connectivity, who are an approved supplier under the Gigabit Voucher Scheme.

 

Why is this funding being offered?

Successive Governments have reasoned that investing in better broadband is good for UK business growth, but the logistics of physically digging in fibre cabling is left to third-parties such as Openreach. Those providers insist ‘hard-to-reach’ properties are not economic to connect under the regional FTTC and FTTP broadband roll-outs because of the upfront cost of this installation work, or that gigabit fibre to the entire country is only achievable over the long term. For the best return on investment, the Government wants to prioritise upgrading businesses that already suffer slow speeds.

Gigabit fibre installations to commercial properties are also a capital project – the physical fibre, once ‘dug-in’ to a business premises, may end up being used for years to come by future businesses who take over the site, allowing more companies to benefit from widespread upgrades to the existing infrastructure.

 

What are other businesses doing?

To date around £90m worth of vouchers have been awarded so far, and around 29,000 connections have already gone live. The Government’s election pledge during 2019 was for gigabit fibre for the whole of the UK by 2025, a target which is widely expected to be missed.

This leaves rural businesses dependant on inclusion in their regional fibre-to-the-cabinet broadband roll-out as a stopgap, hoping to be included in an early tranche of Openreach’s future FTTP roll-out, or looking to fund the upgrade to a leased lined themselves.

 

Help! We really are out in the sticks!

If the cost of your install is still too large, there are other options: such as pooling your vouchers with neighbouring eligible businesses, accessing faster connections via 4G or point-to-point link. Speak to us to learn more.

 

How do I find out more?

You can learn more about eligibility and how to apply for your voucher via the UK Government’s Gigabit Voucher Scheme website here: https://gigabitvoucher.culture.gov.uk/ or get in touch with Lineal for more information.

Broadband speed advertising reviewed by Ofcom

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A public consultation on broadband speed and delivery is being conducted by Ofcom until 10th November, as the regulator seeks to hold Internet Service Providers (ISPs) to account.

Ofcom currently requires ISPs to provide an estimated download speed the end user will receive in product advertising.

Providers typically advertise possible broadband speed with the phase ‘up to’, rather than guarantee a deliverable lesser service level (very difficult) although under new rules may be asked to express this as a form of average to more accurately reflect the broadband speeds experienced by the majority of customers.

The consultation is part of a trend in recent years for regulators to tighten up broadband speed advertising rules, and eliminate the more misleading claims sometimes used by ISPs to imply a better quality internet service – as Virgin Media found out to its cost, when a series of adverts featuring Jamaican Sprinter Usain Bolt and several unsubstantiated phrases such as “bye-bye to buffering” were blocked by the Advertising Standards Authority.

Subject to the findings of the consultation, new rules are expected to give consumers the right to terminate their broadband contracts without penalty should their provider not be able to guarantee the minimum standard of service on which the contract was sold.

Exactly what that ‘minimum standard’ should be in future hasn’t yet been made clear. Very few users will receive the perfect 80Mbps download speed theoretically granted to them from super-fast fibre in 80:20 enabled-areas, but to what extent the service will be degraded largely depends on copper-wired distance from the nearest fibre-enabled BT cabinet to each customer’s router.

Businesses seeking a required level of connectivity may opt for a dedicated leased line with higher data allowances – although these carry waiting periods for installation, and are not a cost-effective option for an individual domestic consumer.

Although device recorded internet speeds may indeed depend on a number of factors, users can perform a like-for-like test of both their upload and download speeds using Ookla’s internet speed-test app on Lineal’s website.

 

For connectivity advice and communications expertise: speak to Lineal today.