Rural communities across Scotland are set for a major connectivity upgrade, thanks to a new £50 million investment in internet provider Highland Broadband’s fibre network, with plans to reach over 150 small towns and villages in the coming year.
The Edinburgh-based network provider has secured £40 million from investment management firm AlphaReal, along with another £10 million from the Scottish National Investment Bank, as it continues to expand its network and close the digital divide for Scotland’s most isolated areas.
To date, the company claims to have connected around half of all rural premises throughout the Highlands to its full-fibre infrastructure, including across the Black Isle, Great Glen and the Cairngorms.
Last year, Highland Broadband said that prior to work starting in 2015, less than 1% of premises from Inverness to the north of Scotland, the Black Isle, and on the east coast had access to a gigabit-capable network.
Ahead of unveiling the fresh investment at the Grantown Hub, Deputy First Minister Kate Forbes said: “The roll-out of Highland Broadband’s network has made a real difference to people and businesses in rural areas, supporting jobs and boosting economic growth.
“Commercial investment in future-proofed broadband infrastructure is a key part of Scotland’s digital strategy.
“We are working with operators like Highland Broadband to expand full fibre coverage, while also targeting public funding where it is needed most to support communities the length and breadth of Scotland.”
The company’s ability to raise £40 million in private capital is at least in part down to the sustained support of the Scottish National Investment Bank. This latest investment takes the Bank’s total to £60 million, following the initial provision of £20 million in cornerstone funding in 2021, and a further £20 million in 2023.
That cash has already allowed Highland Broadband to install gigabit-capable networks to areas of East Lothian, Stirlingshire, Fife and the Highlands north of Inverness.
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“This injection of £50 million of new capital means we have the funding as well as the capability to continue network expansion throughout rural Scotland,” said Gavin Rodgers, CEO of Highland Broadband.
“We are delighted to secure the backing of AlphaReal as a new funder and also welcome the ongoing support of the Scottish National Investment Bank.
“Raising this capital ahead of a series of important projects means we can focus on operational delivery rather than sourcing further finance.”
Earlier this summer, the Scottish Government announced that it had surpassed its commitment to deliver gigabit-capable broadband connections to 20,000 Scots homes and businesses last year.
However, the country is still disproportionately affected by digital exclusion, especially in rural areas, with Scottish premises four times more likely to have unusable broadband connections than those in England.
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