The UK government has announced a significant step towards addressing digital exclusion in Scotland by signing a £157m contract with Openreach, the country’s top broadband provider. This initiative aims to deliver gigabit broadband connectivity to nearly 65,000 homes and businesses, particularly those in some of the UK’s most remote regions.
Target Areas for Gigabit Connectivity
The rollout will focus on several hard-to-reach locations, including islands off the west coast of Scotland, such as the Outer Hebrides, where only 7% of residents currently have access to gigabit broadband. Other areas included in the upgrade are the isles of Skye, Islay, Tiree, and rural regions in the Highlands like Applecross and Durness, the northwesternmost village on the UK mainland.
Project Gigabit and Economic Boost
This £157m contract marks the largest agreement under the Project Gigabit initiative, a £5bn government program launched in 2021 designed to improve broadband access and support economic recovery in the wake of the Covid-19 pandemic. The project aims to enhance digital infrastructure, fostering growth in tech and creative sectors, and promote job creation across the UK.
Collaboration for Enhanced Connectivity
The UK government will collaborate with the Scottish government and Openreach to implement this broadening of broadband access. This contract is part of an £800m agreement announced in August 2024 that seeks to tackle digital exclusion in rural areas throughout Britain. Efforts are already underway to connect more than 227,000 locations in challenging-to-reach areas of Wales and England.
Support for Existing Initiatives
The new contract complements ongoing efforts under the Scottish government’s Reaching 100 (R100) program. It further builds on a previous Project Gigabit agreement in Scotland, awarded in February 2025, which aims to bring gigabit connectivity to approximately 11,000 properties in the Borders and Midlothian. Additional contracts are anticipated later in 2025 for regions including Orkney and Shetland, as well as parts of eastern Scotland.
Community Impact
Yvonne Boles, senior site manager of Tayside Reserves at RSPB Scotland, highlighted the positive impacts of improved broadband access. She noted that connectivity improvements have been transformative for operations at the RSPB Loch Leven visitor center. Previously struggling with unreliable service, the upgraded internet has streamlined office work and enhanced customer experiences, particularly with payment processes at on-site facilities.