Digital investment key to Highlands and Islands growth

A comprehensive report commissioned by Highlands and Islands Enterprise (HIE) is outlining the importance of world class telecoms to the economic future of the region.
As Glasgow and Edinburgh gear up for super-fast broadband provision, the agency is looking at the goals that need to be set to encourage private and public investment in the Highlands and Islands.

The report identifies a staged development of provision in the region. There is already a high level of availability and HIE’s priorities are to help broadband users achieve improved speeds - in line with the ‘Digital Britain’ commitments, as well as supporting the roll out of mobile 3G and the infrastructure needed for next generation broadband.

“Technology is so important to our economy that it underpins almost everything HIE is trying to achieve. There has been considerable public sector funding put into overcoming the challenges of connecting services, businesses and individuals in the Highlands and Islands. The role of the internet and mobile technology is increasingly pivotal in everything from education, to supporting health care services, to opening up new markets to business, and nowhere are the benefits felt more keenly than in remote and rural areas,” said Alex Paterson, HIE director of regional competitiveness.

He added: “Local people are embracing these opportunities and the report shows that broadband take-up is higher here than for Scotland or the UK. The area has already had to think innovatively to tackle the issues surrounding connectivity and our next step, given the additional costs in rural areas, is to provide strong business and social arguments as to why we should be a priority for next generation access (NGA).”

NGA involves replacing some or all of the current copper phone line and fibre optic cables to offer significantly higher broadband speeds - typically in excess of 40Mbit/s. NGA is considered to deliver significant economic and social benefits.

The report examines the infrastructure which will be required and the cost to deliver it across the region. The figures estimate it will cost around £81m to deploy ‘fibre to the cabinet’ (FTTC) right across the Highlands and Islands, and £480m to deliver fibre connectivity directly to the region's households and businesses.

It estimates that roll-out of NGA could be commercially viable for around 40% of Highlands and Islands premises because costs will be in line with those anticipated for other UK roll-outs. However, this leaves a funding gap which HIE wishes to see closed.

Mr Paterson commented: "Telecoms connectivity is a cornerstone of the digital economy, and provides opportunities to accelerate innovation and raise productivity. HIE is committed to ensuring that the region attracts funding and consequently infrastructure for Next Generation Access broadband coverage; it will be key to our ambition to be one of the most competitive regions in the world."