Another withdrawal from Highlands and Islands fibre broadband scheme

Cable & Wireless has withdrawn its application for a tender to roll out fibre optic broadband across the Highlands and Islands.

The network operator is the second company to back out of the project, coming shortly after Fujitsu's decision to quit the framework due to a perceived lack of public investment.

Highlands and Islands MSP Rhoda Grant has expressed concern at the move and urged the Scottish and UK governments to increase their super-fast broadband funding allocations.

"This pilot is of vital importance to every community throughout the Highlands and Islands and it is essential that more public money is invested in this project," she remarked.

According to Ms Grant, only around ten per cent of the estimated costs of the initiative have so far been secured.

Scotland's Highlands and Islands was one of the first regions in the UK to be chosen as a fibre optic broadband pilot site, with Cumbria, Herefordshire and North Yorkshire also selected back in October 2010.