Extending High-Speed Broadband scheme
Subsidy reference no: SC11333 - scheme to procure a framework contract of multiple suppliers to deliver the Extending High-Speed Broadband (EHSB) project.
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If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email: scu@gov.wales.
1. Region
Wales
2. Title of subsidy scheme
Extending High-Speed Broadband
3. UK legal basis
Section 60(1) of the Government of Wales Act 2006
4. Specific policy objectives of the scheme
To provide fast reliable broadband to as many of the remaining “white”* premises as possible using £70 million clawback funding from the Superfast Cymru project, where there is an economic case for intervention and increase the coverage of superfast broadband from 96.86% to as close to 100% as possible.
*” white” premises are premises that have broadband speeds less than 30Mbps and that the market has told us they have no intention to provide fast reliable broadband to within the next 3 years. (i.e., evidence market failure and the associated inequalities of poor broadband).
5. Purpose of the scheme
To address as many of the remaining premises as possible the Welsh Government is planning to procure a framework contract of multiple suppliers to deliver the Extending High-Speed Broadband (EHSB) project. Once the framework is established, the intention is to award a series of call-off contracts following individual competitive selection processes, that will provide grant funding to telecoms providers to cover the “gap” in costs that are required to deliver superfast connections.
6. Public authority(ies) authorised to implement the scheme
Welsh Government
7. Category(ies) of eligible enterprise
The framework will be setup as 2 lots. The first lot will be for projects that will cover more than 1,000 premises and will be aimed at attracting the larger telecoms suppliers. The second lot will be for projects delivering to fewer than 1,000 premises and will be suitable for SME’s and Voluntary, Community and Social Enterprises (VCSEs).
8. Sector(s) to be supported
Information and communication
9. Duration of the scheme
The scheme will run from 4 August 2025 until 5 August 2033.
10. Budget for aid under the scheme
£70,000,000
11. Form of support
Grant.
12. Eligibility terms and conditions
To be eligible to be on the framework suppliers must complete the application form attached to the invitation to tender (ITP) on eTenderWales portal which includes a number of pass/fail criteria.
The suppliers solution must result in broadband speeds greater than 30Mbps.
13. Basis for calculating subsidies
The costs of delivering broadband connectivity are well known through experience in delivering broadband schemes over the past decade. Of relevance is the current roll-out of full fibre with Openreach where the average cost per premises is £1,442 for all premises connected* rising to £1,668 for all contracted* premises. The actual cost per premises across the roll-out varies significantly ranging between £200 and £20,000. Given the remote nature of the remaining 84,174 premises it is assumed that the costs per premises will be towards the higher end of the range given that for fibre deployment cost increases with distance from the network. To derive a cost per premises for the remaining 84,174 premises an average cost per premises was calculated for those premises that were over the ‘cost cap’ in the current contract. The average cost for these premises is £6,000.
The subsidy will only be funding eligible costs and will be a gap-funded model.
14. Maximum subsidy allowable under the scheme
£70,000,000
15. Contact information
Subsidy Control Unit
Welsh Government
Cathays Park
Cardiff CF10 3NQ
United Kingdom
Telephone: + 44 (0)3000 604 400
Email: subsidycontrolunit@gov.wales
Rydym yn croesawu galwadau a gohebiaeth yn Gymraeg / We welcome calls and correspondence in Welsh.
