The rural areas of Scotland to get full-fibre broadband thanks to £125m investment
“We are excited to play a crucial role in bringing the very best full-fibre broadband connectivity to rural areas in Scotland” – Neil Conaghan, GoFibre
Thousands of internet users in rural parts of Scotland are set to benefit from speedier connections after the completion of a £125 million funding round.
Edinburgh-based broadband company GoFibre said the investment would support its delivery of two “Project Gigabit” contracts in the south and north east of Scotland, covering the Borders, East Lothian, Angus, Aberdeenshire and the Moray coast.
The funding round has been led by a £45m debt facility from the Scottish National Investment Bank alongside a further £80m from Hamburg Commercial Bank (HCOB). GoFibre was advised by Deloitte on the transaction.
The broadband provider is focused on expanding digital connectivity in underserved rural areas. It contributes to regional economic development by using local supply chains and recruiting talent within the communities it is connecting.
Backed by Gresham House’s British Sustainable Infrastructure Funds, GoFibre was recently awarded a £105m contract by the Scottish Government for the delivery of the UK government-funded Project Gigabit in the north-east of Scotland. The programme enables harder-to-reach communities to access fast and reliable high-speed broadband. The Scottish Government is playing a key role in delivering project procurements north of the Border, working closely with the UK government to deploy funding.
Neil Conaghan, chief executive of GoFibre, said: “This is a significant step-change in GoFibre’s position both as a major independent broadband provider, and as a significant company in Scotland.
“Our appointment as the supplier for the biggest Project Gigabit delivery area in Scotland, in the north east, builds on our win earlier this year for the very first Scottish lot to be announced, for the Borders and East Lothian.
“We are excited to play a crucial role in bringing the very best full-fibre broadband connectivity to rural areas in Scotland, as part of our mission to bridge the digital divide,” he added.
While connectivity has improved in recent years, Scotland’s urban-rural divide remains an issue for many users. Ofcom figures show that 44 per cent of rural communities have full-fibre coverage, compared to 71 per cent of urban communities.
Ailsa Young, investment director of innovation at the Scottish National Investment Bank, said: “GoFibre is a great example of a Scottish scale-up that is targeting growth through delivering tangible local impact. We live in an increasingly digital world where high-speed, reliable internet is essential for accessing services and building and maintaining connections.
“Broadband is a critical service for businesses and communities. This continues to be an important sector for us, so we’re delighted to support GoFibre as it delivers important connectivity to the north east of Scotland.”
The Forfar Indoor Sports Centre is a GoFibre customer. Managing director Mike Ferguson said: “As a small business, having reliable and fast connectivity is crucial; everything from our tills to our booking system relies on it.
“With the new service, we’ve been able to make improvements to our business, like taking online bookings, and we can now livestream our curling matches so viewers can watch the action not only across Scotland but internationally too.”
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