The state-aid supported Connecting Devon and Somerset (CDS) programme has suffered yet another problem with one of their rural broadband contracts, which occurred today after they announced that their full fibre roll-out deal with Worcestershire-based Airband was being “scaled back” following its underperformance.
In case anybody has forgotten, CDS is a local government-led partnership that has spent many years helping to deliver faster internet infrastructure to areas where the market had failed to invest (usually rural locations). The scheme has already helped over 326,000 poorly served premises to access “superfast broadband” speeds (usually 30Mbps+), which mostly occurred via deployments by Openreach (FTTC + FTTP), as well as some smaller alternative networks.
On the flip side, CDS has also suffered from plenty of big bumps and delays along the way, which often related to the inability of contracted operators – usually smaller players – to deliver on their deployment plans without suffering big delays. For example, there was the scrapping of Gigaclear’s contract in 2019 (here), then the decision to terminate Truespeed’s deal in 2022 (here) and both of those followed after CDS rejected BT’s original Phase 2 build proposal in 2015 (here).
The latest problem child of this programme appears to be Airband. CDS contracted with the provider, initially in 2016 to deliver fixed wireless infrastructure, and additionally in late 2020 to rollout fibre broadband networks to communities across Devon and Somerset, with four contracts originally due to conclude at the end of 2024.
In total, Airband is contracted to deliver 55,493 premises (examples here and here), but to date the operator has only delivered 18,794 premises in collaboration with CDS. Much of this work was originally due to complete by the end of 2024, but it hasn’t escaped our notice that there haven’t been any progress updates from CDS on this since last year.
Similarly, back in June 2024, we reported on some very public complaints by local councillors, which highlighted how “hundreds of homes and businesses” were being affected by slow broadband speeds and delays in work to install new fibre cables (here). This followed earlier news of Airband’s restructuring, which included some job losses and a slow-down in their deployment plans (here); the operator has since focused more on growing take-up.
What’s happened now?
The CDS announcement highlights that Airband, following its earlier restructuring and reduction in their build plans, can “no longer complete its contracted build for CDS in full” and has thus sought a change to its contract. After detailed discussions between CDS, the Building Digital UK (BDUK) agency and Airband, the provider has now committed to provide full fibre access to 8,377 more premises covered by the contracts
The new agreement will see Airband providing FTTP broadband to a total of 27,171 out of the 55,493 premises it was originally contracted to deliver (we understand this will now be completed by Sept 2027). This additional build will further unlock fibre delivery by Airband to 10,997 non-contracted premises along the network build routes, giving an overall commitment to connect a further 19,834 premises in Devon and Somerset.
Rufus Gilbert, CDS Board Member and Devon County Councillor, said:
“Sadly we’re in a position where we have little choice other than to scale back these contracts with Airband. The company is unable to fulfil its contractual obligations, which is deeply disappointing for us and the communities that have been waiting for a decent broadband connection. A lot of work has gone into coming to an agreement on what they can now complete, and we’re urging BDUK to work with us to find solutions to the communities that are missing out.”
Mike Rigby, CDS Board Member and Somerset Council Lead Member for Planning, said:
“Naturally we’re disappointed that many local residents who should have been receiving access to fibre broadband will no longer benefit from these contracts. There’s no escaping the fact these are not easy times for the industry as many alternative network providers have slowed their build. If it was easy and profitable to build fibre broadband networks in rural areas, it would have done commercially by now. But it’s challenging.
When it became apparent that Airband would have to scale back its build for CDS, following the company’s restructure, our teams have worked behind the scenes to come to an agreement with Airband over what could still be delivered. That has ensured that nearly 8,400 homes and businesses will still be provided with access to full fibre, but for those not included in Airband’s ongoing delivery, CDS will do everything it can to help communities get a connection as we know how vital it is for rural communities to have decent broadband.”
Kash Rahman, MD of Airband, said:
“We’ve had to make tough decisions on our build activity this year and we are sorry if this news comes as a disappointment to residents who are left waiting for better connectivity. We have come to an agreement with CDS and will continue building the fibre network, albeit scaled back from the original contracted number. The region is an important part of our network, we have worked hard to deliver against engineering challenges, and we will continue to deliver better broadband for people who need it. I’m really proud of the team for the work done to date.”
The CDS team said they were now urging BDUK to “re-enable rural [gigabit broadband] voucher applications to open promptly in communities where Airband will no longer be delivering“, which could offer those communities a potential alternative. CDS is also seeking confirmation of the Devon and Somerset premises that will be connected under the nationally led contracts awarded to Openreach (BT) as part of the Government’s separate Project Gigabit programme (here).
Meanwhile, the CDS contract with rural ISP Wessex Internet, covering South Somerset, remains in place and to date has connected 3,006 homes with a further 302 going live by December 2024. The contract is on track to complete in June 2025. CDS adds that superfast broadband coverage in Devon and Somerset currently stands at around 93% of premises, which is said to be above the 86% average for UK rural areas. Public take up of CDS-funded broadband connections is also claimed to be above the national average.
The Airband situation is clearly embarrassing for CDS, given their many similar challenges over the past few years, and probably won’t help Airband’s reputation all that much either.
UPDATE 1st Nov 2024 @ 8:18am
You can find information on communities which will still be built as part of Airband’s CDS contract here, and communities which will no longer be included in the rollout here.