Broadband contract still not awarded nearly two years on

A NEW contract for broadband infrastructure previously described as “potentially really significant” for Shetland has still not been awarded despite going out to tender in 2024.

The Scottish Government confirmed that the Project Gigabit contract, covering Shetland and Orkney, is now only expected to be awarded later this year.

The scheme, funded by the UK Government, is targeted at premises which fall outwith the Scottish Government’s R100 contract and commercial activity from Openreach.

More than 13,500 premises are thought to be eligible in Orkney and Shetland for the Gigabit scheme. Gigabit speeds are 1,000Mbps.

Procurement got underway on a £40.7 million contract for the Northern Isles in late 2024, with an expectation that it would be awarded to a contractor in 2025.

However the Scottish Government said the procurement process is still progressing, with the aim of a contract being awarded later this year.

Highland Broadband previously confirmed it had thrown its hat into the ring for the major contract.

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Managing director Colin Woodward said there is still “no firm date” when the outcome of the procurement will be confirmed.

At a previous meeting Shetland Islands Council’s development director Neil Grant said Project Gigabit is “potentially really significant” for the isles.

The first Project Gigabit contract was awarded in February 2025 to deliver faster broadband in the Scottish Borders and East Lothian, and a second contract for North East Scotland was awarded in July that year.

Further Project Gigabit contract awards are expected later in 2026/27, including for the Northern Isles, Fife and parts of Perth & Kinross and Clackmannanshire.