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This item was published during the term of a previous administration that ended in April 2007

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Plans to accelerate reach of Broadband

02/12/2002

Plans to accelerate the roll out of Broadband, stimulate competition and improve access to customers for all service providers, were outlined today.

Up to £24m has been allocated to support business take-up and ensure that by the end of 2003, at least 70 per cent of the population have access to ADSL Broadband.

Summarising the intended impact of the intervention strategy, Enterprise Minister Iain Gray said:

"By the end of 2003, we aim to take Scotland from the current ADSL coverage figure of around 40 per cent of the population, beyond the current UK figure of 66 per cent, to a level in excess of 70 per cent We want to do this through a commercial partnership, which will, of course, be subject to State Aid rules.

If we do not intervene, commercial projections indicate that we will not achieve 70 per cent coverage until 2006, which is not acceptable"

The Minister announced the initiative at the launch of the Executive's progress report on "Connecting Scotland: Our Broadband Future" - Making it Happen.

An extension of Broadband infrastructure and a technology-neutral marketing campaign to raise awareness of the benefits of existing services will be part of the package.

Mr Gray said:

"When my predecessor, Wendy Alexander, launched the Executive's broadband strategy last year, its aim was to promote affordable access across Scotland, to facilitate economic development and to prevent a digital divide between urban and rural areas.

Since the launch of the strategy, and despite the recession in the global telecoms market, there has been progress on commercial coverage."

Scottish Enterprise and Highlands and Islands Enterprise are driving forward initiatives to stimulate demand through the establishment of Broadband demo centres throughout Scotland, a programme of road shows and a newly launched information website to advise and inform both business and individuals about broadband in Scotland.

Trials of alternative delivery mechanisms for rural areas are underway including a major Wireless project in the Western Isles, Powerline carrier projects in Crieff and Campbeltown, and Scottish Enterprise's ATLAS project. The Enterprise Agencies also have a number of initiatives to encourage the development of content and applications.

To stimulate demand for higher bandwidth connectivity, particularly in the remoter parts of Scotland, 'Pathfinder' projects are being developed. Negotiations between the Executive and other public sector organisations in Scotland are due to conclude with the awarding of contracts for these projects next summer.

The Minister said:

"Despite everything that is already being done, we always accepted that intervention might be necessary to kick start a positive chain of events, that's why the provision was in the original strategy. Having listened to what businesses are telling us, we are acting to increase access and stimulate demand.

Our actions, taken along side developments already occurring in the market place will grow the supply side further. What we are aiming to achieve is a virtuous spiral, where increased supply results in higher take up which in turn, delivers greater investment in infrastructure.

The technology neutral marketing campaign is part of this and we will work with the business sector and commercial partners to ensure maximum take up of the available services."

The Scottish Broadband Website was launched at the end of November 2002. It can be accessed at;

Western Isles, Fixed Wireless Trial, is one of a number of trials of alternative delivery mechanisms. The project is currently at the procurement stage and has the potential to extend broadband access to the public sector and business right across the region.

Launched in June 2002, the Powerline Carrier Trials in Crieff and Campbeltown are the first in Scotland to use electricity power networks to deliver broadband communications.

The first phase of project ATLAS is to set up a virtual telecoms trading exchange (TTE) in Scotland supported by a link (backhaul) to london. The target market for the TTE will be large corporates and Internet Service Prodivers. Phase II aims to link up a series of business parks around the country and will spread the benefits of ATLAS more widely.

Two Pathfinder projects, one in the Highlands and Islands, the other in the South of Scotland, were set up in the Autumn of 2001. The projects seek to exploit the potential of the public sectors aggregated demand for higher bandwidth connectivity to lever in major investment. The first stage of the formal procurement process is the publication of the Contract Notices inviting expressions of interest. These were published in November 02.

Page updated: Thursday, July 22, 2004