The follow-on investment is enabling the company, which services customers in communities across Scotland, to tackle digital inequality by expanding its delivery of ultrafast broadband coverage.

Highland Broadband, which is part of Lothian Broadband Networks Limited, estimates that around half a million premises across Scotland are still without access to gigabit-capable networks and it plans to connect as many of those as possible over the next few years. The Bank’s latest investment will help the company make significant progress, providing connectivity to over 100,000 premises.

The Bank initially provided cornerstone funding of £20m to Highland Broadband in 2021 and a further £20m in 2023, which helped it install gigabit-capable networks to areas of East Lothian, Stirlingshire, Fife and the Highlands north of Inverness. As part of its latest phase, Highland Broadband began deploying further network throughout the Highlands across the Black Isle, Great Glen and the Cairngorms.

Gavin Rodgers, CEO, Highland Broadband, said: “The Highlands and Islands face unique connectivity challenges, but we view overcoming these barriers as essential for providing what should be a basic service for everyone in Scotland.

“The bank’s continued support has enabled us to accelerate our plan to connect these regions, which ultimately helps reduce place based inequality in areas such as education, employment and healthcare.”

Prior to starting work in 2015, less than 1% of premises from Inverness to the north of Scotland, the Black Isle, and on the east coast had access to a gigabit capable network. The company’s work has now improved that to around 80% and expects to reach 98% coverage by the end of this year.

Andy Clapp, executive director, Scottish National Investment Bank, added: “Our support of Highland Broadband’s multi-year effort to connect all parts of Scotland aligns with one of our core missions to increase equality through improving spaces.

“The installation of gigabit capable networks, which so many of us take for granted, is already having a real-world impact that’s strengthening the threads of Highland communities.”

After installing its network in the town of Alness, near the Cromarty Firth, the congregation at Alness Baptist Church has been able to expand its outreach work and reach people through its social media platforms, streaming its weekly services, highlighting community events, and directing people to services where they can seek support.

Pastor Robert Adair, Alness Baptist Church, said: “For us, it’s about being better connected with the wider community and not just hidden behind four walls.

“We want to be out there engaging with people and building relationships. The new broadband enables us to do all of this and more, and we really feel like we’re making a difference.”

Similarly, in the Stirlingshire town of Cowie, the community hub is now able to offer high-speed broadband for local residents who need access for schoolwork and email and use it to support its range of events.

Clare Stevenson, chairperson, Cowie Rural Action Group, said: “We have a full calendar of events planned in for the rest of the year, so we’ve really been looking to improve the centre as much as we can.

“Having access to high quality broadband means we can communicate to more people, promote our events and provide a hub that keeps people connected. Feedback to date has been really positive.”