In depth: how Scottish economy could be turbocharged by £6bn if rural connectivity accelerated

Now, Virgin Media O2 is calling for policy-makers, planning authorities and landlords to remove obstacles to help rural communities fulfil their potential, and wants to see rules in place making it faster, easier, and cheaper to provide the infrastructure it says is required to deliver the connectivity on which customers rely.

The study addresses four sectors central to the UK’s rural economy – tourism, agriculture, manufacturing, and small businesses – saying connectivity improvements could create 284,000 rural jobs. Looking at tourism in particular, which has seen bookings in rural areas soar, it added that such businesses could increase turnover by about a tenth, equating to an extra £842 million a year, and employment by 3.8 per cent.

Virgin Media O2 also found that 13 per cent of Brits are planning a staycation in Scotland this year, with 70 per cent of those surveyed believing connectivity is an important part of choosing a destination, but a fifth reporting having had holidays in the Highlights and Islands stymied by poor internet connectivity.

Meanwhile, around a quarter of rural business decision-makers surveyed said that if they had improved connectivity, they would make greater use of technologies such as cashless payments, video calling/conferencing or online booking.

Virgin Media O2, which says it is Scotland’s largest gigabit provider, in March of this year said it was providing next-generation gig one broadband to 1.3 million homes north of the Border, while it has flagged its investment of more than £200 million over the last seven years to power up connectivity north of the Border.

Expansion

That came after in February it said it had along with Vodafone expanded 4G networks to two rural Scottish communities, Traquair in Peeblesshire and Balmacara in Ross-shire, as part of a collaboration between the Scottish Government’s Scottish 4G Infill Programme and UK Government’s Shared Rural Network.

The latter is a £1bn joint initiative between mobile network operators and the state working to improve the reliability of 4G coverage in rural areas, including upping Scotland’s 44 per cent of landmass currently getting this type of signal from all four mobile network operators (Virgin Media O2, Vodafone, EE and Three) to 74 per cent eventually.

Virgin Media O2 has also now said that as part of the SRN, recently further expanded its 4G network to an additional 50 sites across rural communities, bolstering coverage across an area covering almost 2,200 square kilometres. This includes upgrades at tourist hotspots such as the Scottish Highlands and the Hebrides, while it has secured planning consent for works at a further 100 locations.

Jamie Stone, Liberal Democrat MP for Caithness, Sutherland and Easter Ross, told The Scotsman: “I have long argued that no business in the UK should be disadvantaged because of where they are based. Businesses in my constituency have previously been held back because of a lack of connectivity, so Virgin Media O2’s recent work in the area has been most welcome.

“This latest research highlights just how much of an impact improved connectivity could have on the Scottish economy, by enabling businesses to become more efficient and improve their customer experience with digital technology. Improved connectivity will also ensure that visitors to the beautiful Highlands and Islands will have the best experience possible this summer, as the ability to stay connected on holiday becomes more important than ever.”

Virgin Media O2, which has said it plans to lay off 2,000 workers by the end of this year, shone a spotlight on the remaining digital divide between urban and rural communities and economies, saying this is preventing the latter from achieving their growth potential.

Transform

It added that improved connectivity “could enable and power new technologies which transform rural economies and life – from drone farming and smart livestock monitoring to wearable technology and automated booking apps for the hospitality sector”. However, not everyone is onboard with the digital revolution, with the rural Knoydart peninsula in Lochaber having rejected UK Government plans to install a 4G network, saying it would be “totally disproportionate”.

Telecoms business Virgin Media O2 has also now said it has partnered with the Welsh Government and rural coverage experts Wavemobile to bring next-generation connectivity to historic “not-spots”. The first area in the UK to benefit is South Stack, a remote nature reserve and popular tourist destination managed by the Royal Society for the Protection of Birds (RSPB), where for the first time visitors can now reliably access mobile signal, and card payments can be taken at the visitor centre.

Virgin Media O2 said this has been possible since key kit, the size of a shoebox and harnessing a network of low-earth orbit satellites, was recently installed. It added that it can provide 4G coverage to an area of several kilometres, and enables near real-time tracking of wildlife, enabling the RSPB to track a bird’s location, for example.

Jeanie York, chief technology officer at Virgin Media O2, said “At a time when communities across the UK are struggling, this new analysis demonstrates how improved rural connectivity could herald a Great Rural Revival. The last decade has seen fixed and mobile networks rolled out to new corners of the UK, and now the transformational potential of connectivity has been made clear with the ability to unlock £65bn of new growth in rural areas.

“Through working closely with industry partners, the UK Government, planning authorities and landowners, we can deliver the essential network upgrades that will help to bridge the rural-urban connectivity divide, provide faster and more reliable coverage and unlock new jobs and growth in the process.”