The Scottish Government

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Listen

measuring Scotland's progress towards A SMART, SUCCESSFUL SCOTLAND

digital connectivity

LEAD INDICATOR
6A - COST AND COVERAGE OF BROADBAND

Why this measure?

Broadband technology is vital to allow the development of on-line activity and its availability will help encourage firms to locate in Scotland and allow those firms already there to expand their businesses and connect with the rest of the world. Though development of the physical infrastructure is of great importance, it must be done at reasonable cost if businesses and households are to derive the benefits of fast Internet access.

How does Scotland perform?

The definition of broadband used for indicator 3a (on use of broadband) is over 128kbps.

If we move up to 500kbps and over (e.g. DSL and cable modem - sometimes referred to as mainstream broadband), approximately 53% of the Scottish population and 66% of the UK population have access to broadband services. Everyone can get access to broadband no matter where they live if they connect using satellite broadband. However, this has far higher costs than standard connection to a line. Recent OFTEL benchmarking on these type of services show that prices are now as cheap in the UK, and by extension, Scotland, as they are in a number of other European countries.

Results for price level, price index and bandwidth for business broadband services (cable modem services included)

Note: DS = downstream, GM = geometric mean
Source: OFTEL International benchmarking study of internet access (dial-up and broadband), 2002

Some companies will need a higher capacity connection of 2Mbps or more. There is no average figure for the cost of 'Mbps leased line'. In the UK, the cost of lease lines is related to a number of factors such as the distance between the customer and provider, level of competition etc. Research has demonstrated that, in general, lease line costs are significantly higher in Scotland than other parts of the UK, such as, for example, the south-east of England.

What does this mean for Scotland?

These figures indicate that the UK is well placed in terms of the relative cost of 'mainstream' broadband services at over 500kbps capacity. Coverage, at least by cable, is likely to be less uniform due to the geography of Scotland, but the majority of the Scottish population will live and work in areas where cable connection is likely. Data for the take up of broadband by businesses (Indicator 3c) show that even with Scotland's strong performance in terms of cost, take-up remains low. Given the strong focus of telecommunications companies on broadband communication during 2002 Scotland's businesses may be expected to increase their take-up rate over the next year.

6B - SHARE OF POPULATION ONLINE

Why this measure?

The number of people on-line gives an indication both as to the supply of information that can be accessed online and the ease with which it can be accessed as well as the availability of online connection. An Internet conscious and skilled population is increasingly important for business, but it is also becoming an increasingly important social connection, of which failure to have access to can lead to exclusion.

How does Scotland perform?

Percentage of households with access to the Internet (2001)

Rather than the percentage of the population online, the percentage of households online has been used as the measure. It can reasonably be assumed that if a household is connected to the Internet that all those within it have access. Scotland is ranked ninth out of an OECD sample of 21 countries, placing it in the second quartile, alongside Finland, New Zealand and the UK - though it does have 4% fewer households connected than the UK. Denmark leads the first quartile with almost 60% of households online. It should also be remembered that individuals will, in many cases, have access to the internet from work, public libraries and schools and this may be a substitute for access from home. All information available indicates the percentage of households online has increased year on year, as would be expected as the costs of connection fall.

What does this mean for Scotland?

The results show that Scotland has comparatively good access to the Internet, with a connectivity rating higher than many OECD countries. The much higher level of households online in the USA may indicate that the "head start" they enjoyed in Internet access shows the level of Internet penetration that continued growth in connections will lead to in Scotland.

6C - SHARE OF THE POPULATION IN SOCIAL INCLUSION PARTNERSHIPS AND OTHER FRAGILE AREAS WITH INTERNET ACCESS

Why this measure?

This measure is one of the Scottish Executive's social justice targets. The Internet, and access to it, is becoming ever more important. Failure to have online access leads to missed opportunities in terms of access to employment as the Internet becomes an increasingly important employment search tool. However, exclusion can go further than that to other levels of social interaction with the prospect of the so-called 'digital divide' having long term socially disjunctive effects.

How does Scotland perform?

Percentage of households with Internet access/PC ownership by income band (2001)

There are no data available to indicate the level of Internet access in SIPs, however using net household income as a proxy does indicate Internet access for different levels of affluence. It is clear that both PC ownership and Internet access are positively related to household income, with Internet access higher as a percentage of PC ownership for higher income bands. No directly comparable information is available across time.

What does this mean for Scotland?

The benefits of Internet access are not being enjoyed across the Scottish population. Though the costs of Internet access have dropped over the recent past, there are still significant set-up costs involved in getting on-line and they appear to act as a barrier to greater participation in Internet benefits.

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