Hundreds of thousands of rural homes and businesses with outdated broadband infrastructure will receive major internet speed upgrades, as the UK government looks to help bridge the digital divide across the country.

Up to £800 million in government investment will be provided via contracts to Openreach, the telecoms provider, to modernise broadband infrastructure in rural areas of England, Wales, and Scotland.

The deal with the telecoms provider is being made under Project Gigabit, a broadband rollout initiative which targets locations too expensive for providers to reach in their commercial build, and which would otherwise be left behind with poor digital infrastructure.

The investment will provide access to lightning-fast, gigabit-capable (1Gbps+) broadband to around 312,000 homes and businesses across the country, helping remote residents and businesses finally gain access to the fastest connection on the market.

Contracts worth £288 million have already been signed with Openreach under the agreement to connect approximately 96,600 homes and businesses in England and, for the first time, Wales.

Talks are now underway with them to agree further contracts to benefit around 215,800 more premises across England, Scotland and Wales. The government said that more announcements are expected in the coming months.

The announcement follows the government’s vow to redouble its efforts to achieve full gigabit coverage by 2030, and help grow the economy, accelerate innovation, and improve people’s lives.

It also comes around a year after DIGIT covered a report which found that, funding-wise, regions like Scotland and Wales had thus far been comparatively left in the dark with Project Gigabit.

Speaking on the news, secretary of state for science, innovation and technology, Peter Kyle, commented: “Over the past decade, the UK’s broadband rollout has clearly not happened fast enough and has overlooked too many areas, especially in Scotland and Wales.

“Robust digital infrastructure is essential for growth, productivity and competitiveness and this shortfall not only poses risks to our economic stability, but also entrenches existing inequalities across the country.

“We are fixing this by delivering for hundreds of thousands of homes and businesses up and down the country, focusing on the areas that were not prioritised by the previous government, such as Wales.

“Today marks a significant milestone in delivering on our promise to redouble our efforts to achieve full gigabit coverage by 2030 and lay the foundations for a more inclusive, dynamic and prosperous future for all citizens.”

Recommended reading

• New Builds in Scotland Could Come with Gigabit-capable Broadband
• UK Altnets Broadband Overbuild Leaves Rural Areas in Jeopardy
• Digital Exclusion Growing in Scotland

The CEO of Openreach, Clive Selley, added: ”Research shows that full fibre provides a host of economic, social and environmental benefits – and I believe we’re the best in the business at delivering it.

“I’m proud we’ve been chosen, through a fiercely competitive process, and we’re already cracking on with the job.

“This is a British infrastructure success story. Our network already reaches more than 15 million urban and rural premises and, wherever we build, we bring the widest choice of providers for customers.

“I’m confident we can reach as many as 30 million homes by the end of the decade if the conditions remain supportive.”