Highland Broadband Secures £50m Funding to Expand FTTP Rollout

Alternative network operator and UK ISP Highland Broadband (formerly Lothian Broadband), which is deploying a 10Gbp capable Fibre-to-the-Premises (FTTP) network across rural parts of the Scottish Highlands, has today announced that they’ve secured a £50m funding boost to help support a “major expansion” of their network “throughout rural Scotland“.

The new funding includes £40 million coming from Alpha Real Capital, which is a specialist real assets investment firm, and a further £10 million from the Scottish National Investment Bank (SNIB). The announcement has been welcomed by Scotland’s Deputy First Minister, Kate Forbes, who was present to unveil the funding boost.

The new funding is said to “ensure” that Highland Broadband has the capital as well as the capability and capacity to continue the expansion of its fibre network across rural Scotland. The provider added that it remains “on track to extend its reach to over 150 towns and villages” across rural Scotland in the coming year.

The announcement claims that Highland Broadband “already connects around 50% of all rural premises in the Scottish Highlands“, although we think the words covered or passed would have been more reflective. Data from the Highland Council indicates that, in 2021, the Highlands were home to 110,743 households and around 20,000 business premises.

Deputy First Minister said:

“This is a significant success story for Scotland. The roll-out of Highland Broadband’s network has made a real difference to people and businesses in rural areas, supporting jobs and boosting economic growth.”

I am delighted to see substantial new investment flowing into the company and the rural communities it serves, including a further £10 million from the Scottish National Investment Bank. This takes the Bank’s total investment to £60 million, which has helped Highland Broadband raise an additional £40 million of private capital.

Commercial investment in future-proofed broadband infrastructure is a key part of Scotland’s digital strategy. We are working with operators like Highland Broadband to expand full fibre coverage, while also targeting public funding where it is needed most to support communities the length and breadth of Scotland.”

Gavin Rodgers, CEO of Highland Broadband, added:

“This injection of £50 million of new capital means we have the funding as well as the capability to continue network expansion throughout rural Scotland.

We are delighted to secure the backing of Alpha Real as a new funder and also welcome the ongoing support of the Scottish National Investment Bank.

Raising this capital ahead of a series of important projects means we can focus on operational delivery rather than sourcing further finance.”

In addition, Alpha Real’s Head of Alternative Credit, Brad Bauman, said that they were attracted to invest in the company due to its “highly differentiated business model, quality of the platform and the experienced management team“.

Customers of the service typically pay from £39.99 per month (discounted to £29.99) for an unlimited 150Mbps (symmetric) service on a 24-month term, which rises up to £79.99 (discounted to £49.99) for their 900Mbps tier or £139.99 (discounted to £89.99) if you want their top 5Gbps tier! Various phone, pay TV and mesh WiFi solutions can also be added at an extra cost.

The higher than usual pricing reflects the remote rural nature of their build area. But the provider also offers up to £600 in “switching credit” to new customers, which is an impressive amount to help cover any early termination charges from your old ISP.