United Kingdom Framework Agreement (Broadband Network)
The Framework Agreement is part of Building Digital UK’s (“BDUK”) Broadband Delivery Framework (“Framework”).
Under the Framework, the UK Government subsidizes private sector investment to provide broadband to areas where there is otherwise not a viable commercial market. It uses a gap-fund subsidy commercial model, where Government funding subsidizes capital costs, but the supplier bears the risk of implementing, owning and operating the network and therefore the risk of ensuring its commercial success. It is expected that customer revenue will cover operating and maintenance costs, as well as generate sufficient profit to provide a return on the investment. BDUK is responsible for the overall operation and governance of the Framework, and is the authority for design and costing and for ensuring compliance.
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