Chamber and committees

Audit Scotland’s report estimates that 132,000 premises will not have access to fibre broadband following completion of the Digital Scotland programme. In the vast majority of cases, these premises will be able to access basic broadband (minimum of 2Mbps) or access funding, via the Better Broadband Scheme, to improve their service.

The Scottish Government has made a commitment to deliver 100 per cent superfast broadband access by 2021. All premises that do not have superfast access delivered commercially or via the Digital Scotland Superfast Broadband programme will be eligible for inclusion in our programme for new public investment aimed at extending coverage.

There are no definitive cost estimates available at this time. This will be dependent on the exact number of premises remaining unserved and the nature of the technology deployed.

The funding allocation announced in the Programme for Government is aimed at encouraging more Internet Service Providers, content providers and local businesses with an online dependency and customer base in Scotland to join IXScotland – the first Internet Exchange point in Scotland, which we helped launch in 2013.

We are currently working up detailed proposals for the scheme, in conjunction with key partners including the IXScotland Steering Group. We will announce more details in due course.

There have been no meetings with the UK Government specifically on the impact of Brexit on the rollout of superfast broadband in Scotland. However, Scottish Ministers are liaising with UK counterparts on the wider financial implications of Brexit. The impact of Brexit was also discussed at my meeting with Sharon White, Chief Executive of Ofcom, on 24 August 2016.

The Digital Participation Programme has been in place since 2012. The 2016 programme consists of a Digital Participation budget commitment of £1.9 million to raise the levels of digital participation. Public Library Improvement Funding of £450k has been provided to promote activity within libraries. Additionally, through the Digital Scotland Business Excellence Partnership, we have supported the delivery of the ICT and Digital Technologies Skills Investment Plan with funding of £8.5 million.

The overall impact of our investment so far is that of the four parts of the UK, Scotland has the highest level of basic digital skills. Since measurement began in 2007, the percentage of people in Scotland using the internet has steadily increased; 82% of citizens now have access to the social, cultural and economic benefits the internet can bring.

Extending Digital Participation is an on-going programme which is innovative and responsive to advances in technology. It offers choice to citizens, delivering options from basic digital skills through to employer recognised qualifications.

This approach ensures that in addition to being consumers, citizens have the opportunity to become digital makers. The programme therefore moves beyond ensuring basic digital skills to supporting extracurricular coding clubs, promoting the benefits of being on line and in some instances the provision of Wifi and supported learning in libraries and other community hubs to reduce the barriers to getting on line.

Extending Digital Participation is an on-going programme that is innovative and responsive to advances in technology. It embraces a cradle to grave approach and offers choice to citizens, delivering options from basic digital skills through to employer recognised qualifications.

Those who would benefit the most from being online are often those who are the more vulnerable in society. We have formed a unique partnership with Scottish Council for Voluntary Organisations. An umbrella organisation for charities which already hold a trusted position within their communities to deliver bespoke digital inclusion projects. In addition we work with Housing Associations and other social landlords providing support to help their tenants to gain or improve their digital skills.

Libraries are also valued delivery partners with an important part to play in increasing the levels and quality of digital participation in Scotland. A network of Digital Champions from each of the local authorities help support the investment in training and growing skills within staff and the public.

Our partnership with Scottish Union Learning is increasing skills within the workplace and our support for extracurricular coding clubs encourages young people to increase their digital skills and improve employability.

We will set out our delivery approach, once we have finalised the coverage to be delivered through the existing Digital Scotland Superfast Broadband programme and consulted with the market to confirm future commercial investment plans. We will do this ahead of new procurement activity starting in 2017.

A breakdown of the £14 million is provided on page 10 of the Audit Scotland report. This comprises innovation funds across both contracts, funding originally allocated to deliver non-fibre technology and interest accrued.

The Digital Scotland contracts agreed between the Scottish Government, Highlands and Islands Enterprise and BT contain clauses that generate revenue for the public sector if broadband take-up on the new infrastructure exceeds a certain level. BT brought forward almost £18 million of this so-called Gainshare funding in 2015 which can be reinvested in the contracts. BT has modelled this funding, alongside other residual funding within both contracts, in recent months in line with criteria laid out by public sector partners. This process is not yet complete across both contracts. We will announce further details of the coverage impacts arising from the modelling in the coming weeks.

Highlands and Islands Enterprise (HIE) initially allocated £300,000 from its contractual innovation fund to support the delivery of vouchers provided as part of the National Satellite Broadband Scheme. Around £50,000 was utilised. This scheme has since been replaced by the UK Government’s Better Broadband Scheme and is now wholly funded by the UK Government. The balance of HIE’s original funding allocation for satellite has since been reallocated back to the innovation fund, and will be used to extend coverage across the region.

The Scottish Government continues to press BT to ensure that broadband speeds delivered over copper connections are maximised. BT is currently testing new technologies aimed at maximising broadband performance over copper, including a Long Reach VDSL trial on the Isle of Lewis. If successful, this should improve speeds across rural Scotland.

Any premise unable to receive superfast broadband speeds following the completion of the Digital Scotland Superfast Broadband programme, and not part of commercial deployment plans, will be eligible for future phases of public investment to extend superfast access.