This is the cached copy of http://www.wellington.govt.nz/projects/new/broadband/pdfs/broadband-rfc.pdf

Page 1
Wellington City Council
Broadband Request
for Concept
Friday 27
th
April 2007
Page 2
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 1 of 14
WELLINGTON CITY COUNCIL
REQUEST FOR CONCEPT - ENABLING ECONOMIC
TRANSFORMATION THROUGH BROADBAND
1. Overview
1.1 Introduction
It is currently recognised that Wellington City (and New Zealand in general) is lagging
behind most of the OECD nations in regard to access to high-speed broadband networks
and services.
The Wellington Regional Strategy has identified broadband as a key enabler of economic
growth and one of seven priorities for the Wellington region. The position of Wellington
City Council (the Council) is being developed in the context of the regional approach.
The Council is developing a programme for enabling economic transformation of the city
through broadband. As an essential part of this the Strategy and Policy Committee of the
Council has agreed to issue this Request for Concept (RfC) - to explore options that will
accelerate penetration of high speed broadband services in the city and region through the
establishment of strategic partnerships and collaborative projects with other organisations.
As a result of the RfC, the Council may:
x
engage in further discussions and negotiations with other organizations; or
x proceed to a Tender or Request for Proposals (RfP) stage; or
x take no further action.
1.2 Purpose of the RfC
Through this RfC process, the Council intends to identify strategic partners that can assist
in fulfilling its vision for the extended availability of genuinely high speed, affordable,
open access broadband connectivity specifically for Wellington City, and potentially
throughout the Wellington region.
Any initiatives need to consider the broader regional context and the Council is therefore
keen to see concepts that consider broader geographic coverage in the Wellington Region.
The strategy needs strategic partners who share a common sense of purpose in developing
high speed broadband infrastructure and who are leaders in their areas of business
including:
Page 3
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 2 of 14
x providers of basic high speed connectivity via fibre optic cable or wireless
networks
x world class technology providers
x users - businesses, public and private sector institutions and the community
x investors in strategic infrastructure projects.
The detailed purpose of this Request for Concept is to:
1.
Progress the Council’s intent to facilitate development of a genuinely high speed,
affordable, open access broadband infrastructure and determine what optimal form
that facilitation might take.
2.
Determine the feasibility of creating strategic partnerships through which the
Council can implement its vision.
3.
Determine the feasibility of providing an open access network beyond the
Wellington CBD. (The CBD already has four competing networks including those
operated by Vector and City Link which both use an open access model.)
4.
Identify potential suppliers of broadband capacity and capability, and their ability to
provide broadband offerings within Wellington City, and ultimately across the
region.
5.
Assess the current Business Development Plans of network, content and service
providers to gain a view of the level of Council engagement that may be required in
order to meet the Council’s strategic goals and timing objectives.
6.
Make a preliminary determination of potential coverage to “MUSH” entities within
Wellington City and consider the same for the Region.
7.
Develop a clear basis for development of any future Partnership Agreements and/or
RfPs, should these eventuate.
1.3 Who should Respond to this RFC
x Telecommunications infrastructure and wholesale bandwidth providers
x Service Providers
x Network Operators
x Installed fibre optic cable owners
x Network Integrators
x Wireless broadband companies
x Demand aggregators. Those companies considering using Telecom’s unbundled
bit stream services or installing xDSL equipment over an unbundled local copper
loop.
x Potential strategic investment partners
Page 4
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 3 of 14
We encourage creative and innovative thinking. Respondents to this RfC may wish to
consider forming alliances before responding.
2. Background
2.1 Council’s Mandate for Action
At the meeting of the Wellington City Council Strategy and Policy Committee of 1 March
2007 it was resolved that the Committee:
1.
Note: that the Council adopted the Information and Communications Technology
(ICT) Policy in June 2006, at the time noting the economic development component
would be developed subsequently.
2.
Note: that the Wellington Regional Strategy has identified broadband as a key
enabler of economic growth and one of seven priorities and that the Council’s
position is being developed in the context of the regional approach.
3.
Note: that the Government’s Digital Strategy provides a strong community
endorsement for a more active public sector role in broadband. The 2007/08 and
2008/09 Draft Annual Plan processes will provide a further opportunity for
community consultation on the economic development amendments to Council’s ICT
Policy.
4.
Agree: that Council’s vision for broadband connectivity in Wellington City is:
"That, by 2012, all of Wellington City will have affordable access to an interactive
and open broadband network capable of supporting applications and services
using integrated layers of voice, video and data, with sufficient two-way capacity
in the city, and out to the world, to meet the ongoing information and
communications needs of the city's residents, businesses, investors and
institutions."
5.
Agree: that Council has a key role in achieving the vision and this will include
adopting and owning the vision and developing a plan for the community to achieve
it.
6.
Agree: that the Council will have a role in facilitating provision of the broadband
infrastructure required, and in developing demand.
7.
Agree: that further work be undertaken on this potential role for Council including:
a. issuing a Request for Concept document to engage potential industry partners in
developing implementation options for the vision
b. engaging with key business, government and community sector stakeholders
c. consulting with the community through the 2007/08 Draft Annual Plan process
d. looking into policy changes that could be made to help achieve the vision (e.g.
changes to the Subdivision and Roading codes of practice)
Page 5
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 4 of 14
8.
Agree that a further report on options for implementing the vision be brought back
to this Committee by June 2007.
2.2 Council’s Strategic Objectives
Vision
Wellington City Council is of the view that there are significant social and economic
benefits for businesses, institutions, social services, residents, and the community in
general in having access to high speed broadband services. An argument exists that these
needs will not be realized by commercial service providers in a timeframe that ensures
Wellington will not fall further behind other major regional centres and OECD countries.
Current international thinking
1
is that cities should be seeking speeds of a minimum 20-
25Mbps with the ability to increase to 100 Mbps and above over the medium term. This
may underestimate required speeds as typical bandwidth speeds have increased by a
factor of approximately 100 over the last 10 years. The Council’s vision is to remove
bandwidth speeds as a constraint from the broadband network within Wellington, out to
the region and to the world.
Actions by the Council are designed to accelerate the ubiquitous availability of high-
speed broadband access and the proliferation of services enabled by this.
The Council understands that the establishment of multiple infrastructure providers is not
always efficient and is therefore keen to place more emphasis on competition at the
services level – giving end users access to numerous competitive service providers
The Council’s vision incorporates the following critical elements for a network:
x open access – that stimulates competition among services, not networks, through
the provision of wholesale bandwidth access to retail service providers, where the
infrastructure and network provider(s) provide non-discriminatory access over
common infrastructure (The Council notes that open access does not necessarily
mean free access);
x symmetrical capacity – to allow interactive two-way communication at the same
upload and download speeds and capacities;
x very high capacity – to support advanced services, and effectively remove capacity
as a constraint;
x an aggressive roll out time table, to allow the city to capture the benefits of being a
leader in ensuring the provision of high speed infrastructure;
x affordable and ubiquitous access for 95%+ of businesses and households in
Wellington City - Council recognises that coverage may need to proceed in phases
and will work with partners to identify potential priority areas; and
x local peering and interconnection – to reduce network costs by encouraging
optimal routing of traffic and ensuring interconnection with other networks and
service providers (both national and international).
1
Seattle Broadband Task Force May 2005
Page 6
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 5 of 14
Strategic Objectives
The Council would like to facilitate the development of a pervasive very high speed open
access city wide broadband infrastructure that provides businesses and households with
affordable access. This will form a critical component of the city’s ICT infrastructure to
accelerate economic transformation through broadband. The objectives of the network are:
1.
To provide affordable, true broadband connectivity to Wellington businesses,
MUSH entities, and ultimately all residents.
2.
To re-establish Wellington as a leader in the “high tech” industry making it
attractive for these companies, ICT entrepreneurs and talented workers to stay or
move into the region.
3.
To ensure that Wellington’s ICT infrastructure remains nationally and
internationally competitive in the long term, supporting economic development,
investment and talent attraction.
4.
To stimulate the creation and uptake of high bandwidth services to end users, in
Wellington, nationally and internationally.
5.
To promote educational, health, social and cultural development of Wellington
residents and visitors.
2.3 Enablement Approach
Staged approach
The following staged approach is intended to provide guidance on Council’s current
thinking and should not be interpreted as prescriptive or binding. It is also understood that
various geographic areas may be at differing stages at any give time.
The ideal broadband scenario is that by 2012 there is citywide deployment of a fibre-optic
network, where fibre is used for both the backbone and the last mile to every household
and premises in the city. This, however, is unlikely in the short term and therefore a
staged approached is envisaged:
Stage 1: Backbone and “MUSH” spurs
The first stage would be the deployment of a fibre backbone network across the city. It
would connect major council buildings, libraries, medical centres, schools, major private
sector businesses, etc. The Council estimates that this would involve approximately 100
km of fibre.
Stage 2: Fibre to the Node (FTTN) with a Copper or Wireless Last Mile
Once the backbone is in place, extensions can be made from the backbone to a point
where it can meet an open access last mile link (which could be wireless, fibre, or copper).
The length of the copper loop has been noted as a significant barrier to obtaining high
Page 7
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 6 of 14
broadband speeds. FTTN can help shorten the copper loop and make fast VDSL
broadband connections available as an interim solution.
It is likely that the presence of a fibre backbone or FTTN would lower the barriers to entry
for wireless providers over the last mile and therefore result in more widespread
development of wireless solutions. This should be seen as a medium term solution and
ultimately fibre to the home will be needed.
Stage 3: Fibre to the Home (FTTH)
Fibre to the Home (FTTH) and Fibre to the Premises (FTTP) includes the extension of
fibre optic cable to customers. The cost of running fibre down streets and roads is
significant, since this would involve approximately 1,000 km of fibre to ensure a single
pass of all streets and roads in Wellington City. The Council is keen to explore options for
accelerating any commercial roll out and to participate in local “trials” where feasible.
It should be noted that the ultimate objective is the availability of a network that can
deliver performance that removes speed as a constraint. Although it currently seems very
unlikely, investigations may show that technologies other than fibre will be able to
achieve this.
Note: A limited number of existing projects are being progressed with Council and
respondents are encouraged to discuss these projects with Council, noting that
confidentiality constraints may exist.
2.4 Council’s Roles
The Wellington City Council has declared its intention to assist in the development of
high speed broadband networks throughout Wellington City, (and ideally more broadly
throughout the city-region where other territorial authorities wish to partner). Two of the
outcomes of this RfC are to determine what optimal form that assistance might take and to
identify potential strategic partnerships with suitable organisations which will lead toward
fulfillment of the council’s strategic objectives.
The Council therefore sees its potential roles as:
x Use of Council owned infrastructure. Enabling the commercial use of Council
owned infrastructure such as ducting, overhead trolley bus wires and structures,
buildings, water towers, hill top sites etc. (the technical feasibility of each option
will need to be determined).
x An anchor tenant. Local government potentially becoming an anchor tenant.
x Advocacy. Through such mechanisms as its submission to the Government’s
Digital Strategy, the Council has been an advocate for open access, fibre-based
networks being made available across New Zealand.
x A neutral broker and facilitator. Council currently works closely with
broadband providers to facilitate the rolling-out of new broadband networks across
the city. There is also a potential role for the Council to act as a neutral broker,
Page 8
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 7 of 14
bringing supply and demand together, where there is information and market
failure.
x A financial contributor. The Council has historically contributed both to
CityLink in 1995 and Cafenet in 2001. In addition, numerous other programmes
are underway to educate and stimulate the use of broadband. It could also be an
option for the Council to invest directly or with partners through public-private
partnerships in broadband infrastructure.
x A joint venture partner. The Council could make available via a partnership
venture; ducting, cables or lit fibre cables, to network operators.
Given the variety of roles Councils could play, there are some possible models for how a
Stage 1 & 2 of roll out could be structured. The following models have been used in other
jurisdictions and should not be seen as the only options. The Council welcomes creative
and original models for achieving its vision and objectives. This should include discussion
of approaches to all proposed stages including Stage 3 - FTTH:
Option A. Council role is restricted to advocate and facilitator.
Councils could make assets like buildings, structures, street furniture, trolley bus wires,
and existing or future pipes/ducts in the roadway available on terms that recognise the
wider benefits to the city of better telecommunications infrastructure. This option relies on
market incentives to drive future infrastructure investment, and would be likely to mean
continued multiple sets of infrastructure at layers 0, 1 and 2. As the "base" option, it is
likely that Councils will need to take a more proactive role.
Options B-E would also include Council’s facilitator and advocacy role.
Option B. Council as (Co-)owner of layer 0
Councils could own, possibly in conjunction with joint venture partner(s) a single layer 0
duct or right of way (RoW) infrastructure that it would make available on a cost recovery
basis to multiple providers of higher layers.
Option C. Council as (Co-)owner of layer 0 and 1
Councils could own, possibly in conjunction with joint venture partner(s) layers 0 and 1
(duct/RoW and dark fibre).
Option D. Council as (Co-)owner of layers 0,1,and 2
Councils could own, possibly in conjunction with joint venture partner(s) layers 0
(duct/RoW),1 (dark fibre) and 2 (lit fibre).
Option E. Interim Infrastructure
Councils could own, possibly in conjunction with joint venture partners an interim single
network up to layer 2. This would precede Options B, C, or D and use trolley wires where
possible for speed of deployment and cost reasons.
In other jurisdictions the role of the public sector has in some cases changed over time,
with some layers or functions of a network sold back into the private sector.
Page 9
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 8 of 14
2.5 Scope of Project
Geographic Coverage
The Wellington City Council’s primary focus is the Wellington City area, up to and
including Tawa. Maps of the Wellington City Council jurisdiction, illustrating the urban
footprint, roads, trolley bus lines, rail lines, MUSH entities and employment densities are
available on the Council’s website. They can be found at:
http://wellington.govt.nz/projects/benefits/broadband.html
Other Councils in the region have expressed an interest in the process and share the vision
for the region. Interested parties are encouraged to consider the wider regional context for
any proposal, (for example, by a development path for progressive regional roll out.)
A regional context recognises the importance of the other cities in the region and that
Wellington plays a central part in the overall economic structure of the region.
Other areas that should be considered by respondents include:
x
Hutt City
x
Upper Hutt City
x
Porirua City
x
Kapiti Coast District
x
Wairarapa districts
However, responses relating exclusively to the Wellington City Council area will be
assessed on their merits.
Market Coverage
Initial priorities will be placed on:
1.
Coverage to MUSH entities, large and small business enterprises throughout the city.
2.
Interconnection to market aggregators such as mobile phone network operators,
wireless distribution networks and local access resellers.
2.6 Additional reference material
Referenced documents are available for inspection or download through the Wellington
City Council web site at the following locations.
1. Report to the Strategy and Policy Committee, 1 March 2007: ICT Policy - Enabling
Economic Transformation through Broadband
http://www.wellington.govt.nz/haveyoursay/meetings/committee/Strategy_and_Policy/20
07/01Mar0915/pdf/01_broadband.pdf
2. Wellington City Council Information and Communications Technology Policy – July
2006 http://www.wellington.govt.nz/plans/policies/ict/index.html
3. Wellington Regional Strategy http://www.wrs.govt.nz/
Page 10
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 9 of 14
3.
The RFC Process
3.1 Project timetable and Process
The anticipated timetable for this RfC is;
Date
Activity
27 April 2007
RfC issued
11 May 2007
Final date for registering intention to respond
5 weeks
Response and discussion with responders period
1 June 2007
RfC closes
4 weeks
RfC evaluation period
30 June 2007
Potential partners identified
2 August 2007
Council Committee report and approvals for next steps
to be determined
Tender or Request for Proposal process, and formal
consultation process with the community
Please note that the timetable is indicative only and may be subject to change at the
discretion of the Council.
3.2 Submission of RFC
Important note to responders: Anyone interested in participating in any subsequent RfP
must submit a response to this RfC as participation in any subsequent RfP (if any occurs)
will be by invitation only.
Registration of intention: All organisations intending to respond to this RfC must
register their interest by sending an email to Nicola Old, broadband@wcc.govt.nz. by
5pm on Friday 11 May 2007. Respondents should provide the following information:
1. Organisation Name
2. Organisation Address
3. Key Contact Name
4. Phone and email contact details for key contact
Page 11
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 10 of 14
Submitting the RfC: All responders who have registered their intention to respond to
the RfC will be required to submit a comprehensive response to this RfC by placing it in
the Council’s tender box located at the main reception desk, ground floor, Wellington City
Council’s Municipal Office Building, Wakefield Street, Wellington before by 5pm,
Friday 1 June 2007.
While every care will be taken to place postal or couriered Reponses in the tender box, the
Council has no responsibility for failure to do so before the closing date.
3.3 Format of responses
Responders must provide two bound paper copies plus one electronic copy (on CD Rom
in MS Word or excel) enclosed in a sealed package labeled “Request for Concept –
Enabling Economic Transformation Through Broadband” and addressed to:
Wellington City Council
Main Reception Desk, Municipal Building
101 Wakefield Street
Wellington
Attention: Wayne Maxwell
Director, Strategy and Partnerships
3.4 Correspondence with Council
All communications with the Council during the response period should be directed via e-
mail to:
broadband@wcc.govt.nz
or to the Council's authorised representative:
Wayne Maxwell
Director, Strategy and Partnerships
PO Box 2199
Wellington
New Zealand
Correspondence with other parties within the Council may cause the responder’s response
to be disqualified.
3.5 Confidentiality
This RfC will be released to the industry in an open way and known interested parties will
be notified. The contents of this RfC, however, are not to be used for any purpose other
than for the recipient to respond to the RfC.
The Council will keep responses received confidential. However, the Council is subject to
the Local Government Official Information and Meetings Act 1987 and may be required
to disclose information under that Act or under any other law or by any Court. However
before the Council releases any of your confidential information, an authorised
Page 12
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 11 of 14
representative of the Council will meet with you to discuss what information can be
disclosed and the basis upon which 'good reasons' can be established to withhold
disclosure of your confidential information.
3.6 Costs
All costs incurred by the responder in connection with this RfC, its response and any
subsequent RfP are the sole responsibility of the responder,
3.7 Liabilities and Obligations
This RfC is seeking concepts and information only at this stage, and its issue and any
responses are not to be taken as an obligation or an intention by Council or any other party
to enter into a legally binding commitment to proceed with any RfP, negotiations,
partnerships or consequential projects.
3.8 Retention and use of RfC
The Council may retain any response received and may use general concepts and other
ideas and suggestions proposed in the response for the purposes of developing any RfP.
3.9 Additional information and clarification
Any requests for additional information or clarification of this RfC must be made in
writing or by email as set out in 3.4.
The Council will issue any clarification and/or change to this RfC by way of notice in
writing or by email. A copy of each amendment notice will be mailed or delivered to each
person receiving this RfC. All amendment notices will become part of this RfC.
Responses to requests for information or clarification that relate solely to one responder
and contain commercially sensitive information will be provided to the responder
requesting the information or clarification only.
The Council will not be bound by any statement, written or verbal, made by any person
other than the authorised representative. The authorised representative (or any other
person specifically authorised by the authorised representative) is the only person
authorised to make representations or explanations in relation to this RfC.
3.10 Rights reserved by the Council
The Council reserves the right to:
x
reject all or any response;
x
call and/or re-advertise for responses or revisit any prior RfC process;
x
waive any irregularities or informalities in the RfC process;
x
amend the closing date, the acceptance date, or any other date in the RfC documents;
x
amend this RfC and any associated documents, by the issue of a written notice;
x
seek clarification of any response;
Page 13
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 12 of 14
x
suspend or cancel (in whole or in part) this RfC process;
x
consider or reject any alternative response, at the Council’s sole discretion;
x
enter into discussions and/or negotiations with any responder at any time and upon
any terms and conditions;
x
meet with any responder before and/or after the RfC closes.
The Council will not be bound to give any reasons for decisions made as a result of this
RfC or as an outcome of the RfC evaluation.
All information provided by the Council in relation to this RfC is released on the
following basis:
x
Such information provides a background only;
x
The Council makes no representation or warranty other than as expressly set out in
this RfC document;
x
Reliance on any information provided by the Council is at your own risk; and
x
The information will not form part of any subsequent RfP or contract documents
other than as specified in these RfC documents.
Responders will be responsible for verifying the accuracy and adequacy of information
supplied by or on behalf of the Council.
4. Requirements of Responders
Responders are invited to put forward their views on how the following aspects of the
proposed vision and subsequent enablement objectives can be implemented.
1.
Establishment of a city or region wide fibre optic backbone network based on open
access network concepts.
2.
Business models for any proposed solution (revenues, financing, public-private-
partnerships etc).
3.
Ownership and governance structures such that the Council’s long term objectives
are sustained and it continues to have influence over its investment.
4.
How such a network could be initially financed and economically sustainable in
the long term (funding models).
5.
What would be the optimal method and timeframe for rolling out the network such
that investment risk is minimised and key target customers are prioritised.
6.
How such a network could be operationally maintained so that agreed service
levels are met.
7.
The need for any policy changes by Councils [to accelerate deployment] which
would help commercial operators deploy such a network at lower cost and in
reduced time frames.
8.
How the assets of Councils could be utilised to deploy the network in order to
reduce infrastructure build costs and accelerate implementation time frames.
Page 14
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 13 of 14
9.
The feasibility of partnering with the Council in establishing a fibre to the home
trial.
10.
How the development and availability of services and content might be accelerated
in order to ensure a high uptake rate.
11.
Provide evidence of :
a. Financial stability and track record of the organization.
b. Track record and capability in the provision of high speed bandwidth
infrastructure and services.
c. Current organisation structure, including:
i. name and address of the company or organisation
ii. brief history of the company or organisation including the core
areas of your business, relative position in the market, size of
operation and future plans/focus; and
iii. an outline of company or organisation ownership including details
of directors and controlling shareholders and type of legal entity
(e.g., partnership, private, listed, etc)). Please include a copy of
your latest annual balance sheet and accounts.
Responders are also invited to:
12.
Provide information as to what support (or leadership) role their organisation could
play in meeting the strategic objectives of the Council.
13.
Provide (on a confidential basis) their business plans and time frames for the
expansion of broadband services to any targeted market within the Wellington
Region and suggesting where the Councils could assist in their plans.
14.
Responders should also include details of any current and future initiatives the
responder has or is planning to undertake.
15.
Provide any additional information or concepts which they may feel are relevant to
this RfC.
5. Response Evaluation Criteria
The following criteria will be used to evaluate responses to this RfC:
1. Innovative and comprehensive responses to Section 4 of this RfC.
2. Adherence to the open access network concepts and ability to contribute to the
Council’s stated vision and objectives.
3. Willingness and ability to form a strategic partnership with the Council and other
partners, including other Councils in the Wellington region.
4. Ability to work with anchor tenants, potential customer groups and accelerate
service uptake.
5. Financial stability and track record of the organization.
Page 15
27/04/2007
Wellington City Council – Broadband Request for Concept
Page 14 of 14
6. Track record and capability in the provision of high speed bandwidth infrastructure
and services.
6. Terms
The following terms are explained for the convenience of responders.
MUSH– stands for Municipalities, Universities, Schools and Hospitals. In the context of
this RfC it can also be generally interpreted as health, local and central Government,
education, cultural and commercial sectors.
Open Access Network - A common shared broadband network that allows any
telecommunications operator or service provider to deliver its services and applications to
an end user connected to that network – including the backbone, and the connections to
each home or premises. For clarification - the network owner and operator should
therefore provide “bit” transport across the network to end users on non discriminatory
basis to all service providers. This is in contrast to vertically integrated systems where the
owner of the network can restrict who runs services over it and therefore prevent
competition (For further Guidance on this, also refer to Section A, Para 4 “The Broadband
Challenge, Funding Grant Criteria”, release by MED October 2005).