The Digital Participation Programme has been in place since 2012. The 2016 programme consists of a Digital Participation budget commitment of £1.9 million to raise the levels of digital participation. Public Library Improvement Funding of £450k has been provided to promote activity within libraries. Additionally, through the Digital Scotland Business Excellence Partnership, we have supported the delivery of the ICT and Digital Technologies Skills Investment Plan with funding of £8.5 million.

The overall impact of our investment so far is that of the four parts of the UK, Scotland has the highest level of basic digital skills. Since measurement began in 2007, the percentage of people in Scotland using the internet has steadily increased; 82% of citizens now have access to the social, cultural and economic benefits the internet can bring.

Extending Digital Participation is an on-going programme which is innovative and responsive to advances in technology. It offers choice to citizens, delivering options from basic digital skills through to employer recognised qualifications.

This approach ensures that in addition to being consumers, citizens have the opportunity to become digital makers. The programme therefore moves beyond ensuring basic digital skills to supporting extracurricular coding clubs, promoting the benefits of being on line and in some instances the provision of Wifi and supported learning in libraries and other community hubs to reduce the barriers to getting on line.

Extending Digital Participation is an on-going programme that is innovative and responsive to advances in technology. It embraces a cradle to grave approach and offers choice to citizens, delivering options from basic digital skills through to employer recognised qualifications.

Those who would benefit the most from being online are often those who are the more vulnerable in society. We have formed a unique partnership with Scottish Council for Voluntary Organisations. An umbrella organisation for charities which already hold a trusted position within their communities to deliver bespoke digital inclusion projects. In addition we work with Housing Associations and other social landlords providing support to help their tenants to gain or improve their digital skills.

Libraries are also valued delivery partners with an important part to play in increasing the levels and quality of digital participation in Scotland. A network of Digital Champions from each of the local authorities help support the investment in training and growing skills within staff and the public.

Our partnership with Scottish Union Learning is increasing skills within the workplace and our support for extracurricular coding clubs encourages young people to increase their digital skills and improve employability.

The Digital Scotland contracts agreed between the Scottish Government, Highlands and Islands Enterprise and BT contain clauses that generate revenue for the public sector if broadband take-up on the new infrastructure exceeds a certain level. BT brought forward almost £18 million of this so-called Gainshare funding in 2015 which can be reinvested in the contracts. BT has modelled this funding, alongside other residual funding within both contracts, in recent months in line with criteria laid out by public sector partners. This process is not yet complete across both contracts. We will announce further details of the coverage impacts arising from the modelling in the coming weeks.

The Scottish Government has written to the UK Government, urging them to establish a Working Group to oversee the design of the proposed Universal Service Obligation (USO) for broadband in Scotland. I recently met with Sharon White, Chief Executive of Ofcom, at which the broadband USO was discussed.

The savings outlined on page 10 of the Audit Scotland report emerged due to BT’s actual costs being lower than expected. These calculations were made by BT not by the Scottish Government or Highlands and Islands Enterprise. The budget freed up by lower than expected actual costs will be redirected into extending the coverage footprint of both projects further, reaching more premises than originally anticipated.

Highlands and Islands Enterprise (HIE) initially allocated £300,000 from its contractual innovation fund to support the delivery of vouchers provided as part of the National Satellite Broadband Scheme. Around £50,000 was utilised. This scheme has since been replaced by the UK Government’s Better Broadband Scheme and is now wholly funded by the UK Government. The balance of HIE’s original funding allocation for satellite has since been reallocated back to the innovation fund, and will be used to extend coverage across the region.

At least 95% of premises across Scotland will have fibre broadband access by the end of 2017, as a result of our investment in the Digital Scotland Superfast Broadband programme and commercial rollout.

It is not possible to state definitively at this stage what speeds will be accessible by 2018. Much of this is dependent upon the commercial deployment of superfast broadband, which the Scottish Government does not hold information on.

The Scottish Government plans to launch an Open Market Review, ahead of new procurement activity in 2017, to determine (a) what has been delivered commercially and (b) what will be delivered commercially over the next 3 years. This will require suppliers to provide speed information at premise level. We will use this information to define a new intervention area for future public investment in broadband.

BT’s calculation of the estimated take-up rate across both Digital Scotland contracts was based on analysis of historical take-up data, BT’s own deployment experience and BDUK’s assessment of similar projects in other parts of the UK.

We will set out our delivery approach, once we have finalised the coverage to be delivered through the existing Digital Scotland Superfast Broadband programme and consulted with the market to confirm future commercial investment plans. We will do this ahead of new procurement activity starting in 2017.

The Scottish Government continues to press BT to ensure that broadband speeds delivered over copper connections are maximised. BT is currently testing new technologies aimed at maximising broadband performance over copper, including a Long Reach VDSL trial on the Isle of Lewis. If successful, this should improve speeds across rural Scotland.

Any premise unable to receive superfast broadband speeds following the completion of the Digital Scotland Superfast Broadband programme, and not part of commercial deployment plans, will be eligible for future phases of public investment to extend superfast access.