Scottish Government Contract Extension
Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, has been awarded an extension to the Broadband Reach rollout programme by the Scottish Government for a further 12 months. Avanti expects that the programme extension will generate an additional £500,000 of revenue over the contract period.
This extension comes following the successful conclusion of the initial Broadband Reach programme, in which over 2,200 homes and businesses across Scotland, which could not access terrestrial broadband, were provided with satellite broadband at speeds of up to 3Mbps. Avanti will continue to offer broadband services to these existing customers under the project.
Satellite broadband has been highlighted by the Digital Britain Interim Report as a key technology to deliver the minimum 2Mbps commitment to approximately 10% – 15% of the population living and working beyond the reach of terrestrial communications.
David Williams, Chief Executive of Avanti, said:
“I am very proud of our work with the Scottish Government. Together we have completed the fastest deployment of its kind we have ever seen, despite working over the winter in some difficult conditions. It is a great vote of confidence that Avanti is successfully delivering solutions to the Digital Britain rural broadband problems, and we look forward to the launch of our HYLAS satellite at which point our customers will experience a world beating quality of service. We don’t believe that there is an economically viable solution to the rural broadband problem other than satellite.”