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Hogmanay 2005 marked the end of a project to deliver broadband service to some of the remotest telephone exchanges in of Scotland.

Nearly 400 far-flung communities have been given access to broadband thanks to a scheme, backed by the Scottish Executive, to convert rural telephone exchanges for broadband operation.

Under a deal signed with BT in April, the £24m initiative has provided broadband access in areas where there were no plans for commercial services – about one-third of all Scottish exchanges.

The Scottish Executive announced that it had met its target to connect 378 of the UK's most remote exchanges, putting Scotland ahead of most of the EU in the race for comprehensive broadband access.

The Isle of Foula, lying between Shetland and Orkney, remains the only telephone exchange in this scheme yet to be connected, with activation planned for June 2006. In the meantime Foula enjoys broadband downloaded via satellite and relayed by wireless.

According to the Scottish Executive, 99.7% of Scotland now boasts broadband access with only a few places, far from their nearest telephone exchange, still waiting for the internet revolution.

Nicol Stephen, deputy first minister, said:

"Scotland's future economic prosperity depends on our having fast, reliable connections to worldwide communications networks.

"Broadband can make a real difference to businesses, particularly those in rural areas.

"It helps them become more efficient, promote their products and services, and break into new national and global markets."

Just 0.03% of the 1615 remote communities targeted by the scheme still remain without coverage, although it is hoped they will be brought up to speed by spring.

Another 21 telephone exchange areas in the Western Isles without a commercial broadband service are being connected through a separate wireless network project led by Highlands and Islands Enterprise.

Most of this project has already been launched, and the outstanding areas are expected to gain access within a few months.

The Scottish Executive acknowledged that limitations in copper-wire technology could still prevent a small minority of Scottish households far from exchanges from accessing broadband.

A spokesman said: "Whilst the executive is not committed to providing broadband to every household, it has been working to identify any clusters of 'out of reach' households in Scotland where there is a demand for broadband. The executive is developing the next steps for providing solutions to these 'clusters' over 2006, subject to criteria, including budget and value for money."

For the first time, there are now more UK households with broadband than dial-up internet connections.

According to BT, 8.9 million homes have been connected, with the number of new connections increasing from 5500 per week in 2001, to 73,800 in the past year.


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