CD137 5G Industrial Testbed Business Case and Delivery Plan

Park Royal is London's largest industrial estate. It accommodates a wide range of businesses from small start-ups to large multi-national brands which operate across a range of sectors. The Mayor's London Plan sets a target for an additional 10,000 new jobs and 1,500 new homes across Park Royal.

OPDC has developed a programme to support industrial regeneration over the next 10 years which seeks to address the most pressing issues and capitalise on opportunities. It has been developed in consultation with businesses and stakeholders and through work that forms the Park Royal evidence base.

As part of the Industrial Regeneration Programme, OPDC has ambitions to transform Old Oak and Park Royal into a large-scale, integrated 5G testbed capable of supporting artificial intelligence, data analytics, virtual and augmented reality, connected and autonomous vehicles and innovation in all sectors.

Taken from the Digital Catapult Report Sector Analysis - 5G Sector Testbeds and Trials

Large scale integrated digital testbed example

Digital Greenwich is an example of a large-scale integrated digital testbed. It is developing new standards for smart infrastructure and data with international partners. The Sharing Cities programme is trialling technology in Greenwich such as energy management systems in social housing blocks, energy-saving lighting and controls, and sensors and digital connectivity in lampposts. Autonomous delivery robots and vehicles have been tested and the technology is now being scaled in other cities abroad. The borough is also trialling a range of air quality sensor and now data standards to measure air pollution and gain further insights into the levels and causes of pollution.

Potential use cases and opportunities for 5G in Park Royal:

• End-to-End Smart Inventory & Asset Management
• (i) Business to Business Scenario - the transportation of goods, mainly in large quantities, between ports, warehouses, manufacturing sites and other logistic hubs
• (ii) Business to Customer scenario - last mile logistics where goods are delivered to or even picked up by customers.
• Digital Twin of Hubs - a digital twin can use real time data on a virtual model and help test service deployment or prevent faults
• Augmented Reality powered hub operations
• Connected and Autonomous Transport Systems
• Automated Warehouse Management
• Drone Logistics
• Cloud robotics ( Compute power in the cloud, resulting in smaller, cheaper robots)
• Collaborative robotics (Cobots)
• Predictive maintenance of manufacturing assets on the factory floor (using large network of sensors)
• Time critical hazard detection (using high resolution video steaming, IoT sensors, etc.)
• Remote monitoring and remote maintenance of manufacturing assets (in a hazardous environment or instance)
• Quality control based on augmented reality (AR) headset to improve identification and resolution of faults.

5G will bring enormous benefits and opportunity to businesses by allowing enhancements and differentiators to existing products and services or by providing a platform for entirely new digital services. 5G can also improve the operation of the industrial estate, enabling the roll-out of SMART technology to increase the efficiency of mobility, energy and servicing.

5G will be a crucial enabler of the Fourth Industrial Revolution. The first industrial revolution saw a transition from hand production to machines through the use of steam and water power. The second industrial revolution saw an increase in productivity through better transport and communication networks, and greater electrification. The third industrial revolution saw a marked increase in computer and communication technologies.

The Fourth Industrial Revolution is a combination of digital data, connectivity, and cyber physical systems which will lead to disruptive and transformative digital technologies. It will increase productivity in UK industrial sectors and the UK economy as a whole. However, the adoption of new technologies is dependent on seamless high-speed data coverage.

Central Government is particularly interested in industrial projects that can demonstrate the value of 5G beyond enhanced mobile broadband and help improve efficiency and productivity in the UK economy.

On a regional level, the Mayor has set an ambition to make London the smartest city in the world. A smart city is a collaborative, connected and responsive city. It integrates digital technologies and uses city-wide data to respond to its citizens' needs.

Park Royal offers a suitably high value proposition as a demonstrator project or early adopter of full 5G coverage. However, current broadband provision in the estate is poor with only 20% of the estate able to access to fibre to the cabinet.

in 2018, OPDC successfully secured up to £1m from the Department for Digital, Culture, Media and Sport's (DCMS's) Local Full Fibre Network Fund as part of a pan-London application led by the GLA and TfL. This funding will be used to install two fibre broadband spines which will provide fibre to the cabinet for 60% of Park Royal. OPDC is working with TfL to clear DCMS' final assurance requirements.

In 2019, DMCS launched the 5G Industrial Testbeds Fund. At the time, OPDC was unable to meet the criteria of the competition but had positive feedback from colleagues at DCMS, the Digital Catapult, the GLA and West London Alliance and was encouraged to continue developing a testbed proposal.

Through this commission we will instruct external consultants to help us create a business case and delivery plan for a 5G testbed focusing on industrial land use in our area and an integrated network across West London.

The objective of this commission is to create a business case and delivery plan for a 5G testbed focusing on industrial land use in our area and an integrated network across West London.

The commission will be delivered in two stages:

• The first stage will seek to develop a viable business case for private and public sector investment in fibre and 5G, and secure high-level commitment from a coalition of delivery organisations.
• If the first stage is successful, the second stage will create a detailed delivery plan setting how the partners will work together to create a 5G Industrial Testbed in Old Oak and Park Royal.

In Stage 1, the external consultants will be expected to:

1. Access a range of options and make recommendations on the scope of the project
2. Access a range of options and make recommendations on network design
3. Provide a detailed business case including:

• Challenges addressed and Cost/Benefit Analysis
• Key outputs and viable use cases
• Analysis of social and economic contribution
• Commentary on how the project can support local, sub-regional, regional and national objectives and a wider 5G ecosystem
• Assess a range of delivery models, including commercially sustainable funding models

Assess appetite for private and public sector funding and collaboration with stakeholders

Produce detailed analysis of costs, financing, funding and added value.

If Stage 1 is successful, we will start Stage 2, where the external consultants will be expected to:

1. Assess delivery models, make recommendations and produce detailed delivery plan(s)
2. Make recommendations on an operating model and governance arrangements.

By the end of the commission we hope to have assembled a consortium of partners to deliver a 5G Testbed.

If Stage 1 is unsuccessful, the commission will end.

Under section 149 of the Equality Act 2010, as a public authority, the OPDC is subject to the public sector equality duty and must have 'due regard' to the need to (i) eliminate unlawful discrimination, harassment and victimisation; (ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and (iii) foster good relations between people who share a relevant protected characteristic and those who do. Protected characteristics under section 149 of the Equality Act are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sex orientation, and marriage or civil partnership status (all except the last being 'relevant' protected characteristics).

Risks

Risk 1 - The Business Case is not viable or attractive. In Stage 1, the business case fails to generate interest from private or public sector organisations.

Mitigation - Do not proceed to Stage 2.

Risk 2 - Conflicts with other strategies/studies that are being commissioned. The proposals being recommended within the strategy may conflict with other proposals from studies or strategies hat are being developed concurrently.

Mitigation - Ensure that continued discussions take place during the development of all related strategies to ensure that they are aligned.

Risk 3 - External stakeholders may disagree with proposals being made with the Business Case or Delivery Plan. Disagreements may arise from stakeholders, which could affect the timing of the completion of the project.

Mitigation - Include stakeholders within the development of the strategy. SMT will review and sign-off the strategy at key stages in its development.

Risk 4 - The scope and budget may creep during the project. During the project, additional inclusions may be identified which will result in a variation to the scope and an increase in budget.

Mitigation - Fortnightly review meetings with the consultants and client have been requested within the scope.

Stakeholders

The 5G Testbed Business Case and Delivery Plan will require external input and local stakeholders will be invited to join steering or working groups or contribute through workshops or consultation events. Local stakeholders will include:

OPDC has considered other options for resourcing this work, including using in-house staff. However, we have concluded that engaging a specialist external organisation (with access to greater expertise, resource and networks than OPDC or the GLA) for a short period of time is more cost effective than recruiting or seconding new staff members. OPDC will continue to work with expertise within the GLA group to ensure consultant input is focused where such resources is not available.

Expenditure of up to £80K to appoint consultants to work on the 5G industrial Testbed will be funded from the 2020/21 Delivery Budget; £75K from the Industrial Regeneration budget and £5K from the Land Use and Intensification budget.

Any changes to this proposal, including the requirement of additional funds will be subject to further approval via the Authority's decision-making process.

The report above indicates that the decision requested of the CEO falls within the OPDC's object of securing the regeneration of the Old Oak and Park Royal area and its powers to do anything it considers appropriate for the purpose of its objects or purposes incidental to those purposes, as set out in the Localism Act 2011.

Any services the subject of the expenditure must be procured in accordance with the OPDC's Contracts and Funding Code.

Officers must ensure that appropriate contractual documentation be executed by the service provider and OPDC, before the commencement of the services.