A Scottish telecommunications company which aims to tackle digital inequality has been boosted in its drive to deliver broadband to the Highlands and Islands after securing a further £10 million of public funding.

Highland Broadband has received the backing from the Scottish National Investment Bank (SNIB), which has now provided £50m of debt and equity funding to the firm. It previously supported the firm with cornerstone funding of £20m in 2021 and a further £20m last year, which helped it install gigabit-capable networks in East Lothian, Stirlingshire, Fife, and the Highlands north of Inverness.

The firm, which is part of Lothian Broadband Networks, began deploying further network throughout the Highlands across the Black Isle, Great Glen, and the Cairngorms as part of its latest phase.

Highland Broadband estimates there are around half a million premises across Scotland which are still without access to gigabit-capable networks, and plans to connect as many of those as possible over the next few years. It said the latest investment from SNIB would help it provide connectivity to more than 100,000 premises.

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The development bank was launched by former First Minister Nicola Sturgeon in November 2020 with a £2 billion war chest of patient capital to invest over 10 years. It was established to tackle some of the biggest challenges facing Scotland, with a remit to invest in three key “missions”: the drive to net zero, tackling “place-based” inequality, and harnessing innovation to help people flourish.

Overall, the bank has now deployed £640m across its full portfolio to date.

Gavin Rodgers, chief executive of Highland Broadband, said: “The Highlands and Islands face unique connectivity challenges, but we view overcoming these barriers as essential for providing what should be a basic service for everyone in Scotland. The bank’s continued support has enabled us to accelerate our plan to connect these regions, which ultimately helps reduce place based inequality in areas such as education, employment and healthcare.

“Prior to starting work 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. The company’s work has now improved that to around 80% and expects to reach 98% coverage by the end of this year.”

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Andy Clapp, executive director of SNIB, said “Our support of Highland Broadband’s multi-year effort to connect all parts of Scotland aligns with one of our core missions to increase equality through improving spaces. The installation of gigabit capable networks, which so many of us take for granted, is already having a real-world impact that’s strengthening the threads of Highland communities.”

A statement noted that the congregation of the Alness Baptist Church has been able to expand its outreach work and reach people through its social media platforms, stream weekly services, and highlight community events after installing its network in Alness near the Cromarty Firth.

It also said the community hub in the Stirlingshire town of Cowie is now able to offer high-speed broadband for local residents who need access for schoolwork and email, and to support its range of events.

Pastor Robert Adair of Alness Baptist Church said: “For us, it’s about being better connected with the wider community and not just hidden behind four walls. We want to be out there engaging with people and building relationships. The new broadband enables us to do all of this and more, and we really feel like we’re making a difference.”

Clare Stevenson, chair of Cowie Rural Action Group said: “We have a full calendar of events planned in for the rest of the year, so we’ve really been looking to improve the centre as much as we can. Having access to high quality broadband means we can communicate to more people, promote our events and provide a hub that keeps people connected. Feedback to date has been really positive.”