Businesses in rural areas who want to have faster broadband can benefit by applying to the Gigabit Voucher Scheme from the Government. This scheme was launched in 2018 to increase gigabit-capable coverage across the UK, especially in the countryside. Network providers are often reluctant to extend fibre, and it can be expensive to install. This leaves many rural companies without a fast internet connection.
We know there are a few elements to the scheme, so to settle any confusion, we have answered some questions that might come to mind surrounding the Government Scheme.
What is the aim of the Gigabit Voucher Scheme?
This Scheme has two main aims. The first is to connect businesses that are not due for an upgrade through regular industry rollout. The second is to encourage broadband companies to provide gigabit-capable broadband in some of the more rural areas in the UK. Larger providers such as Openreach and Gigaclear are using the scheme; however, it hopes to encourage smaller providers to scale their operations.
Who is eligible, and why do you need good neighbours?
Businesses with broadband speeds of less than 100Mbps can use the Vouchers to support the cost of installing new gigabit-capable connections when part of a group Scheme. Group projects are when two of more SMEs combine their Vouchers towards the shared value of the installation. Single connections are not eligible for additional funding.
What is gigabit internet?
Gigabit internet delivers download speeds of up to 1Gbps. This is the equivalent to 1,000Mbps. This means small businesses must discuss who would like to apply and how the cost will be split between them.
Can you join someone else’s upgrade?
If gigabit-capable broadband goes past any premises, SMEs can upgrade to whatever service the supplier is offering. Suppliers would do their best to switch any premises owner to the best connection they offer. However, in the rural areas, suppliers would likely encourage as many of the premises’ owners in a community to take part in the Scheme to boost the value of the available fund towards the overall installation costs. SMEs in rural areas are urged to contact their current service provider to see if they are registered for this scheme.
If they are eligible for a Voucher, they will see a list of registered suppliers and can choose whom they would like to approach to apply for a Voucher on their behalf.
Who would not qualify?
Premises owners may be ineligible to apply for the Voucher for three main reasons.
- They are not in a rural area.
- The available broadband speed in their area is already more than 100Mbps.
- There is a planned government-funded intervention in the area within the next 12 months.
How can my business apply?
Applicants need to go to the Government website and enter their postcode to ensure they are in an eligible area. If you are in an eligible area, a message will pop up in the box, indicating that you qualify. You can then continue your enquiry with any of your nearest registered suppliers listed. The supplier you select will request a Voucher from the Government, and it will then be confirmed with the applicant that they are happy to go ahead with the Scheme.
If all is confirmed, the supplier will get to work delivering the new connection. After the supplier tells the Government the connection has been made, it will check with the applicant it is working correctly.
How much does it cost?
The scheme’s applicants will not directly receive any funds, as the Voucher is used to offset costs to the supplier installing gigabit-capable broadband to their premises. The premises owner will pay ongoing usage costs for the connection as usual. Rural premises with speeds of less than 100Mpbs can use Vouchers worth £3,500 for each small to medium-sized business to support the cost of installing new and reliable connections. Anything over this amount will need to be paid by the company itself.
What will happen if my application is successful?
If your application is successful, you must agree to take a gigabit-capable connection from the chosen supplier for at least 12 months. The new connection must be double the current speed and must be at least 30Mpbs. Vouchers can only be issued to group Schemes where a group is defined as two or more premises. However, if the cost to build gigabit-capable broadband to those two properties is more than the value of the Vouchers they can claim, the supplier may ask the premises’ owners to pay the balance. So, the larger the group of premises, the more funding can be brought together for the supplier to offset the overall build costs.
Need telecommunications cabling experts in the London area? Our experts specialise in broadband and internet connections. We are happy to answer any queries you may have. Call a member of our team on 0207 630 6094 or email us at hello@datacableinstallation.co.uk.