Telecommunications services in Scotland’s Highlands & Islands are now better than any others in the UK, according to David Day, deputy chairman of the Highlands & Islands Development Board. The claim is backed up by a UKP16m investment spent on upgrading the exchange infrastructure in the area, culminating in a 64Kbps ISDN link for data, voice text and video transmission (CI No 1,193). The fibre optic kilostream link means that call connections to the south are immediate, facsimile and electronic mail is sent up to 25 times faster than over an ordinary phone line and videoconferencing rates are charged at the same as those of an ordinary phone call. The ISDN initiative has been seized by the Development Board, rather than British Telecom. It put up UKP5m towards the cost of modernising the exchanges, most of which was obtained as a one-off grant from the Treasury. Telecom says that without the UKP5m it would not have had the incentive to modernise exchanges in the area at this point. Not even major UK cities will have ISDN links until the end of 1991. And other rural areas will have to wait until sometime in the mid-1990s – unless other sources of public money are provided. As well as encouraging UK companies to set up in the area, the Board is hoping to entice foriegn concerns to install European headquarters in time for 1992. At present, international ISDN links are available to the US, France and Japan. In a videoconferenced speech from Inverness to London, Sir Robert Cowan, chairman of the Development Board explained why the link was economically important: we see ISDN as an opportunity to reinforce our activities in rejuvenating the economy of the Islands. The Islands in particular, have been experiencing severe economic decline and a population run in recent years. A major barrier to interesting companies in the Highlands & Islands has been the perception of their remoteness from the rest of the UK and Europe. Sir Cowan said that the link should help to overcome that image and enable firms to feel close to customers, close to colleagues and close to suppliers. Companies that have already expressed interect in investing in the area as a result of the ISDN link are mostly small UK firms in the service sector, most of which would retain a small office in the south but move the bulk of their operations to the area. An independent report by Analysis Ltd has identified two major reasons for moving north – economic expediency and concerns for quality of life. Costs are generally lower than in the south east, especially office space which in the City is around UKP45 per square foot, compared with UKP8 in Inverness. And Telecom reckons telecommunications charges can be reduced by 30% with ISDN because of the speed of the line. But quality of life was an equal factor in deciding to move according to Sir Cowan, clean streets, unpolluted air and some of the most beautiful countryside in Britain are all excellent reasons for leaving the City behind.
