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Telcom firms drop out of superfast broadband scheme  24/11/11

A second bidder has pulled out of a superfast broadband pilot scheme for the Highlands & Islands.

Cable & Wireless has withdrawn its tender to install an next-generation internet network in an effort to provide vastly improved broadband access up to 30 megabyte per second by 2020 for local homes and businesses in the region.

Fujitsu has also dropped out sparking leaving only two telcom firms, British Telecommunications  and Commendium, in the running for the contract which is due to be awarded in August.

Highlands & Islands Labour MSP, Rhoda Grant called on the governments at Holyrood and Westminster to urgently increase their funding allocations for broadband.

Mrs Grant said: “This pilot is of vital importance to every community throughout the Highlands & Islands and it is essential that more public money is invested in this project – so far only 10% of the estimated costs have been secured.”

Mrs Grant continued: “Westminster is presently investing more in broadband in Scotland than our own Scottish government is and this needs to change.

“That said, I am appealing again to Westminster to release the remaining money it has set aside for rural broadband (£167m) but I am also calling on our government at Holyrood not only to introduce its broadband action plan with immediate effect but also to urgently increase the amount it is investing in Scotland’s digital future.”