This item was published during the term of a previous administration that ended in April 2007
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Broadband stretching out into rural areas
03/08/2004
A further £1 million is to be made available to encourage rural businesses to take up broadband, it was announced today.
Eligible businesses will be able to receive £1,000 towards a two-way satellite system or a high-cost bespoke business broadband solution tailored specifically to their needs.
Enterprise Minister Jim Wallace said he had decided to introduce a new scheme following the success of last year's incentive scheme which provided over 3,000 Scottish businesses with £2.2 million so that they could install broadband.
The scheme aims to further increase broadband take-up in areas of Scotland that will not have access to mass market broadband before autumn 2005.
The announcement was made during the Minister's visit to Midton Acrylics in Lochgilphead which benefited from an earlier pilot scheme to help companies take on a broadband satellite connection.
Mr Wallace said:
"Broadband can make a real difference for rural businesses. Talking to Ken Enock today here at Midton Acrylics the benefits of broadband are all too evident. Transferring large files around much more quickly makes life that much simpler for the company.
"Three thousand rural businesses have already taken advantage of our earlier incentive scheme. They know that it makes sense and I am keen that others should get the chance.
"I have therefore decided to make a further £1 million available to help companies in rural Scotland get connected to broadband.
"Broadband helps to remove some of the barriers which geography puts in the way of rural businesses. We are committed to growing Scotland's economy and it is clear to me that putting in place the technological infrastructure such as broadband is a key ingredient in our future economic success.
"That is why we are committed to rolling out broadband to every community in Scotland.
"It is equally important to ensure that communities also take advantage of broadband when it is available. That is why today's incentive scheme is so crucial and I am sure it will be well received by rural businesses."
The managing director of Midton Acrylics, Ken Enock said:
"We have been connected to the Broadband Satellite System with the assistance of Argyll and the Islands Enterprise and their support staff for over a year.
"Our business is vitally reliant on rapid response to our customers' requests and the connection allows us to move files 20 times faster than conventional equipment, it also offers us the facility to utilise an FTP Server which speeds up the transfer of data and operates over the 24 hour period which is particularly helpful to transmit large files and for international customers who operate in different time zones.
"Therefore the provision of this service has assisted our business in the modern competitive environment has contributed to our supply of highly regarded products world wide."
The grant will be awarded on a first-come basis and the criteria for broadband connectivity should include at least 500kbps download and 250kbps upload.
The new Scottish Business Broadband Incentive (SBBI) builds on the success of last year's Incentive Scheme (2003/04), which received over 9,000 applications and has already encouraged over 3,000 small and medium sized companies (SMEs) to buy a new business broadband connection.
The new SBBI has included improvements identified in the customer satisfaction and post installation/award evaluation surveys from last year's SBBI.
The summary profile of 2003/04 business applicants is:
- Around 50 per cent are limited companies
- Approximately 50 per cent have been in business for more than five years
- Approximately 60 per cent have three or fewer employees
- Around 34 per cent requested the free training / demonstration for broadband on offer
Since the closure of the 2003/04 Scheme, a register of interest has been maintained through the Broadband for Scotland website.
The SBBI Scheme 2004/5 is being implemented nationally through the business section of the Broadband for Scotland website at www.broadbandforscotland.co.uk.