The Government has awarded a contract worth up to £3.3m to Avanti Caledonian Broadband Ltd to extend affordable broadband services.

The contract covers over 3,800 premises across ‘out-of reach’ areas in Scotland, where broadband cannot be accessed due to distance from an ADSL-enabled telephone exchange. These include parts of North Sanday and Rousay in Orkney, Jura, Angus Glens, Cumbernauld and Skye. 

Avanti plans to use a combination of technologies, including satellite and wireless, to deliver this.  Rollout of broadband services is set to start in July and be completed by May 2009 at the latest.

Commenting on the new contract Enterprise Minister Jim Mather said: "I'm delighted that a contract has now been awarded to extend broadband availability around Scotland.

"In the 21st century, as many people as possible should have broadband access. It is a vital tool for business, helping drive economic growth, and is now used by ever more households as standard.

"Scotland currently has over 99 per cent broadband availability and we have been monitoring access difficulties - that's why we asked those without access to come forward and register so that we could build a clear picture of the extent of the problem. I'm pleased that every single eligible household and business should now benefit from affordable broadband access over the coming months, giving business a boost and enhancing the lives of householders."