R100 Interim Evaluation

Executive Summary

This report forms part of a wider programme of research and analysis assessing the qualitative and quantitative impacts of investment in broadband in Scotland. At the time of publication, R100 rollout is ongoing. The findings presented in this report represent the impact of R100 to date - the full effects of R100 will likely take further time to mature, with some impacts taking longer to materialise than others.

Introduction

This report sets out an evaluation of the Scottish Government’s Reaching 100% (R100) Programme. Reaching 100% (R100) is a £600m programme which aims to extend ‘superfast’ broadband access at a minimum to 100% of premises across Scotland. The programme is made up of 3 strands:

• R100 contracts being delivered by Openreach which are primarily providing gigabit capable, full fibre connections
• the R100 Scottish Broadband Voucher Scheme (SBVS) which offers a subsidy of up to £5,000 for premises not covered by R100 contracts or commercial build – while an important element of R100, SBVS makes up a small proportion of the overall programme
• planned commercial investment by a variety of broadband providers

At the time of publication, rollout is ongoing, with delivery of connectivity via R100 contracts and SBVS split into North, Central and South contracts. At the time fieldwork commenced in October 2024, the North, Central and South contracts (including SBVS) had delivered 15,093, 17,361, and 16,525 premises respectively.

The Investment Objectives for the R100 Programme are as follows:

• Improve business performance in Scotland by facilitating increased productivity, innovation, and access to new markets.
• Improve wellbeing of people across Scotland.
• Reduce the negative impact of the digital divide, through a) addressing regional disparities in provision and b) increased availability amongst groups disproportionately represented in these areas.
• Strengthen communities, including in rural areas, by offering enhanced opportunities to work, trade, and deliver public services, helping to address depopulation.
• Aid the transition to net zero by reducing travel requirements that result from ability to work or engage with others remotely.
• Increase Scotland's capacity to maintain business productivity, activities important for wellbeing, and access to essential services in the face of communication disruption, especially for those rural and island communities.

The primary aim of the evaluation was to evaluate the R100 Programme against the above investment objectives. In addition, the evaluation also aimed to expand the evidence base on broadband use and its benefits to help inform the continued development of the Scottish Government’s Digital Appraisal Manual for Scotland (DAMS).^[1]

Methodology

Having completed a literature review on the benefits of enhanced digital connectivity, a series of logic maps specifying the range of potential outputs, outcomes and impacts which may result from the delivery of the R100 Programme were developed.

Primary research was then undertaken in order to gather evidence of the potential changes. The primary research involved two stages as follows:

• Stage 1: a survey of residential and organisations / businesses affected by the R100 Programme
• Stage 2: follow up focus groups / interviews with residents and businesses / organisations identified during Stage 1

Each of these is discussed further below.

Stage 1: Surveys

Three groups of properties affected by the R100 programme and therefore of interest to the research were identified as follows:

• Group 1: those who have been provided with broadband via R100 and have taken up the connection
• Group 2: those who have been provided with broadband via R100 but have not taken up the connection
• Group 3: those who are scheduled to receive broadband via R100 but have not yet been connected

In order to gather information from each of the above groups, two online surveys were produced; the first aimed at residential properties and the second aimed at businesses / organisations.

The surveys were structured around both the Investment Objectives and the potential outputs, outcomes, and impacts identified within the logic maps. Each survey incorporated separate sub sections accessible via appropriate survey routing for properties in each of the above three groups. A broad overview of the topic areas covered in each of the surveys sub-sections is set out in Table 1.

To ensure only those in the above groups (and therefore those who were eligible to respond) were able to access the survey, a postcode / address checker was used as a gateway to the survey. Those who entered an eligible postcode / address were then routed to the correct sub-section of the survey based on the group they fell into as recorded in the Scottish Government’s data on R100.

The surveys were live for a 27-week period from October 22nd, 2024, to 1st May 2025 and were promoted to eligible respondents via: community awareness raising activities and ‘to the occupier’ letters issued to eligible addresses.

In total, 941 unique^[2] household responses were received to the survey. The tables below show the breakdown of residential and business responses by group. The overall number of household responses is satisfactory and provides a reasonable level of confidence in the results. As may be expected, the responses to the business survey are lower and therefore a note of caution is needed when interpreting the business survey results.

Stage 2: Focus Groups

In addition to the above surveys, a series of online focus groups / one-to-one interviews with residents and businesses affected by the R100 Programme were also undertaken. The aim of these focus groups / interviews was to explore the topic areas covered within the survey in more depth and gather individual experiences to help supplement and augment the survey findings.

Focus group attendees / interviewees were recruited via a question in the above surveys which asked respondents whether they would be interested in taking part in follow up focus groups / interviews. In total 49 participants took part in this aspect of the research.

The focus groups / interviews were delivered virtually via Microsoft Teams and lasted up to one hour each. There were two researchers in attendance, one steering the discussion and one scribe. In advance of the focus groups / interviews, separate Resident and Business Topic Guides were prepared which were used as a broad framework to help guide the discussions.

Key Findings

The key findings from the evaluation with respect to each of the R100 Investment Objectives are summarised below. These findings represent the impact of R100 to date - the full effects of R100 will likely take further time to mature, with some impacts taking longer to materialise than others.

Improve business performance in Scotland by facilitating increased productivity, innovation, and access to new markets.

While the business survey sample sizes were small and therefore it is difficult to draw firm conclusions, the results of the research suggest that the delivery of improved connectivity through the R100 programme has resulted in improved business performance for the businesses who have taken up the connection. Focusing specifically on the metrics within this objective:

• 69% (n=20) of Group 1 businesses in the sample reported an overall positive benefit on business performance
• 76% (n=22) reported a positive impact on productivity
• 52% (n=15) reported a positive impact with respect to innovation
• 31% (n=9) reported a positive impact with respect to access to new markets.

The Group 1 businesses in the sample also reported positive benefits with respect to turnover (41%, n=12), the number of customers / visitors to their business premises (38%, n=11), the range of products / services provided (35%, n=10), and the cost of supplies (34%, n=10).

A range of positive impacts with respect to business activities were also identified, with the results providing an indication of the key mechanisms through which the improvement in connectivity results in improved business performance. The business activities on which the improved connectivity had the largest positive impacts were:

• Accounting and financing activities - 66% (n=19) of Group 1 businesses in the sample identified a positive impact
• Accessing online networks and storage - 66% (n=19) identified a positive impact
• Selling products or services, including online bookings / tickets - 59% (n=17) identified a positive impact
• Promotional activities, including via social media – 52% (n=15) identified a positive impact

A high proportion of Group 2 and Group 3 businesses in the sample identified their current broadband connectivity as a key constraint on business performance. Overall:

• 59% (n=19) of Group 2 and Group 3 businesses in the sample strongly agreed or agreed that their current broadband connectivity impedes the performance of their business / organisation
• 60% (n=18) strongly agreed or agreed that their current broadband connectivity contributes to lower levels of productivity
• 58% (n=18) strongly agreed or agreed that their current connectivity limits innovation
• 36% (n=11) strongly agreed or agreed that their current broadband connectivity limits their access to new markets

The above issues were also highlighted in the open text responses to the survey and in the one-to-one interviews with businesses in Group 1 highlighting the significant efficiency gains and those in Group 2 and 3 reporting reduced productivity, higher operational costs and missed market opportunities.

Key Point: Overall, the results of the research suggest that the delivery of R100 has led to improved business performance and increased productivity, innovation, and access to new markets for the businesses / organisations who have taken up the connection. A range of mechanisms for this were identified through the research, including improved accounting and financing, being able to access online networks and storage, and the ability to more easily advertise / promote and sell products / services. While considerable benefits for businesses were identified, it should be borne in the mind that achievement of these is contingent on businesses taking up the connection, with those that don’t upgrade at risk of relative declines in productivity and competitiveness. The barriers to take-up and the implications of this are discussed further below.

Improve wellbeing of people across Scotland

To help identify wellbeing impacts, two questions which specifically focused on the topic of wellbeing were included in the resident survey as follows:

a question asking Group 1 respondents who lived at the property when broadband was installed whether the improvement in broadband had a positive or negative impact on their wellbeing

a question which replicated the format of the questions on personal wellbeing included in the UK’s APS^[3] whereby respondents are asked one question covering each of the four measures of personal wellbeing (namely life satisfaction, feeling the things done in life are worthwhile, happiness, and anxiety) - this approach to capturing wellbeing impacts is well established in the literature and has been used in previous evaluations of similar schemes although attributing any change identified to the investment being evaluated can be challenging.

In terms of the former, nearly 50% (49%, n=130) of Group 1 respondents in the sample stated that the improvement in connectivity had had a positive impact on their wellbeing.

With respect to the UK APS personal wellbeing question, the results indicate that respondents in Group 1 had higher wellbeing scores than those in Group 2 and Group 3, corroborating the above findings. It is noted however there are a wide range of factors which could influence the APS wellbeing scores and it is therefore difficult to attribute the differences between the groups directly to the R100 Programme.

Beyond the specific questions on wellbeing, Group 1 respondents to the survey also identified a range of positive impacts of the improved connectivity which are likely to contribute to improved wellbeing. For example, a high proportion of Group 1 respondents (proportions shown in brackets) reported positive impacts on:

Keeping in touch with family and friends (63%, n=165)

Feeling of connectedness to wider world (62%, n=164)

Finding out about what is going on in the local area (47%, n=125)

Feeling of connectedness to the local community (35%, n=94)

The positive benefits with respect to wellbeing were also noted by Group 1 respondents in the open text survey responses and the focus group discussions, with respondents noting that they are now better connected with family and friends and the local community and that this has resulted in reduced isolation and improved mental health.

While there were clear wellbeing benefits for Group 1 respondents, it should be recognised that these benefits do not extend to those who have not taken up the connection offered by R100 and in contrast to those in Group 1, those not taking up the connection may be at risk of further marginalisation and reduced levels of wellbeing, particularly where digital connectivity and digital services replace more traditional means of communication without inclusive alternatives.

Key Point: Overall, while it is difficult to draw firm conclusions from the results of the specific question on personal wellbeing, the wider research suggests that the delivery of R100 has resulted in improved wellbeing amongst those respondents who have taken up the connection offered via R100. As with businesses, while considerable benefits in terms of wellbeing were identified, it should be borne in the mind that achievement of these is contingent on households taking up the connection, with those that don’t upgrade at risk of further marginalisation / reduced levels of wellbeing, particularly where digital connectivity and digital services replace more traditional means of communication. The barriers to take-up and the implications of this are discussed further below.

Reduce the negative impact of the digital divide, through a) addressing regional disparities in provision and b) increased availability amongst groups disproportionately represented in these areas.

There is a clear disparity in provision between connectivity levels in urban areas in Scotland and those in more rural locations^[4] and this inequality can have a range of negative impacts which can affect the long-term sustainability of rural areas. R100 aims to address this disparity and thereby reduce the negative impacts of the digital divide through the delivery of broadband services in locations where they would not otherwise be provided by the market.

The Scottish Government maintains a database of properties which have either benefited from the R100 programme or are due to benefit over the upcoming period and data from the September 2024 version of this database suggests that 80% of the properties affected by R100 are in rural locations with just 17% located in urban areas.^[5] The programme therefore appears to be effectively targeting rural areas with the aim of addressing the above disparities in provision.

While the programme is targeting rural locations, it is noted that the research suggests that those provided with connectivity via the main contracts were more satisfied with the speed and reliability of their connection than those provided with connectivity via IVS or SBVS (who are perhaps more likely to be in rural and island communities). Perhaps unsurprisingly given the need for voucher recipients to more actively engage with the programme / suppliers, voucher recipients also appeared to experience more challenges with respect to communication. There is therefore a risk of uneven outcomes across the programme footprint and an element of continued geographic inequality.

The impact on the availability of broadband amongst groups disproportionately represented in these areas will depend on the ultimate level of take-up amongst these groups. While the specific groups in question are not defined in the objective, the following is of note:

• Rural areas in Scotland tend to have a higher proportion of elderly residents
• The most remote rural locations have higher proportions of those aged 65+ with long-term health problems and / or disabilities
• While the picture in terms of income is more complex, island and rural communities experience higher costs of living which impacts levels of disposable income
• In terms of businesses, microbusinesses and sole traders make up a large share of rural enterprises.

A number of key barriers to take-up were identified in the research, including:

• A lack of awareness of R100
• Cost barriers – including the cost of the connection and the cost of devices
• Process barriers – i.e. the complexity of the voucher application process / changing an existing contract.

These are discussed below.

Lack of Awareness

The research suggests that a lack of awareness of R100 is the primary barrier to up-take, with more than 85% of Group 2 households eligible for the voucher scheme, 50% of Group 2 households eligible via the main contracts, and 81% of Group 2 businesses unaware of R100. Furthermore, for the large majority of households who were unaware, the lack of awareness was the only barrier to take-up with the majority of those in the sample who were unaware (89% of households with a current connection and 74% of those without a current household connection) stating that they intend to apply now that they know about the programme.

A lack of awareness was also raised in the focus groups, with some beneficiaries noting that they only found out they were receiving a connection when engineers appeared and others noting that communication was of a poor quality. A lack of awareness of R100 is a particular challenge with respect to the voucher scheme which requires eligible property owners to take the initial action and progress with an application. From an equality perspective, awareness gaps may disproportionately affect older residents and disabled people, who are more reliant on clear, accessible, and timely information. Unclear communication also risks reinforcing scepticism about public investment initiatives and, in rural areas particularly, may be interpreted as evidence of being lower priority.

Cost and Process Barriers

These barriers are likely to be more acute for:

• Low-income households who are most affected by affordability challenges
• Older adults with lower digital confidence who are less likely to complete voucher applications or switch providers without support
• Disabled people who may encounter additional obstacles in the application processes if accessibility is not built in.
• Small businesses, particularly in agriculture and tourism, who often lack administrative capacity to navigate complex application processes or invest in new technology and who may therefore be at risk of relative declines in productivity and competitiveness.

Where take-up is limited or focused on particular groups, the overall benefits of R100 will be reduced and equality of access will not be achieved. Further, as digital connectivity becomes the norm, excluded groups risk becoming more marginalised. In order to maximise the effectiveness of the programme and achieve broader equality aims, there may therefore be a need for:

• More targeted communication which is delivered in accessible formats and distributed through trusted intermediaries, including schools, GP practices, libraries and community groups.
• Direct support and guidance for groups more likely to be affected by cost and complexity barriers.

Key Point: The R100 programme appears to be effectively targeting rural locations with the aim of addressing the regional disparities in broadband provision. While effectively targeting rural areas and therefore addressing existing disparities, it is worth nothing that satisfaction amongst voucher recipients (who are likely to be concentrated in more remote rural locations) was lower, creating a risk of some level of continuing geographic inequality. The extent to which the R100 results in greater availability of broadband connectivity amongst certain groups in targeted areas will depend on the ultimate level of take up amongst such groups. The emerging findings from this research suggest that the key barriers to take up are a lack of awareness of R100, the cost of upgrading; and the complexity of the voucher application process / changing an existing contract. These barriers are likely to be more acute for certain groups in society. In order to ensure this objective and wider equality aims are achieved, targeted communication and more direct support and guidance for these groups would be beneficial.

Strengthen communities, including in rural areas, by offering enhanced opportunities to work, trade, and deliver public services, helping to address depopulation.

The results of the survey and focus groups suggest that the delivery of R100 has provided enhanced opportunities to work for those taking up the connection.

While based on a small sample, 20% (n=54) of Group 1 residents who had lived at the property when broadband was installed said they were able to work from home more frequently as a result of the improved connectivity. Being able to work from home can particularly help strengthen communities in rural areas where the barriers to accessing employment are often higher due to long travel distances, high travel costs, and a lack of transport connectivity. As well as facilitating working from home, there was also some evidence from the survey that R100 had enabled some Group 1 respondents to work more hours (5%, n=12), change job (3%, n=9), or take on an additional job (3%, n=7) although sample sizes were small and therefore it’s difficult to draw firm conclusions on these aspects.

In addition to employment, while sample sizes are small, there was some evidence that the improvement in broadband had enabled access to education, with 9% (n=25) of Group 1 respondents stating that they can now access formal learning opportunities which they previously could not access. A range of courses were identified in the open text responses including degrees, diplomas, postgraduate studies, and professional and work-related training. There was also some evidence that the delivery of broadband had led to a general improvement in digital skills for some, with 33% (n=87) of Group 1 respondents stating that the improvement had had a positive impact on their digital skills and 28% (n=75) stating that it had had a positive impact on their confidence using the internet

In terms of providing enhanced opportunities to trade, while sample sizes were relatively small, there was some evidence from the Group 1 business survey that R100 had had a positive impact on trade with:

• 59% (n=17) of Group 1 businesses stating that the improvement in broadband had had a positive impact on selling products / services
• 38% (n=11) recording a positive impact with respect to the number of customers / visitors to their promises
• 34% (n=10) recording a positive impact with respect to the range of products / services provided
• 34% (n=10) recording a positive impact with respect to the cost of supplies
• 31% (n=9) recording a positive impact with respect to access to new markets

Conversely, those who had not taken up the R100 connection or had not yet been provided with the connection, identified a number of challenges in terms of trade due to their current levels of connectivity. For example:

• 63% (n=19) of Group 2 and 3 respondents strongly agreed or agreed that their current broadband connectivity limits their ability to sell / provide products and / or services
• 43% (n=13) strongly agreed or agreed that their current broadband connectivity limits their ability to make bookings
• 40% (n=12) strongly agreed or agreed that their current broadband connectivity prevents them using lower-cost suppliers
• 36% (n=11) strongly agreed or agreed that their current broadband connectivity limits access to new markets

While the research did not explicitly cover the delivery of public services, there was evidence that respondents from all three groups complete government processes, pay council bills and access virtual GP appointments online, highlighting the importance of internet connectivity for such activities regardless of the level of connectivity. The wider availability of broadband connectivity may contribute to increased use and the greater viability of such services with resultant cost savings for both those using and providing the services.

In terms of strengthening communities, there was also some evidence from the survey that the availability of broadband had had a positive impact on the level of community activities in some areas with 24% (n=63) of Group 1 respondents stating that there had been a positive impact on this aspect. The findings with respect to the number of shops and other services available locally were more mixed with roughly equal proportions of Group 1 respondents stating that the improvement in broadband had a positive / negative impact on this aspect. The impact on local shops / services may take longer to materialise than the period covered in this research. As touched upon above, where the availability of broadband leads to the closure of local shops and other services, there may be a consequent impact on community cohesion and a disproportionate impact on groups in society who do not use online services, such as older people, low confidence users, or those on lower incomes, who may experience feelings of increased isolation.

Depopulation is a particular challenge in rural locations where more limited employment, education and social opportunities can lead to outmigration, particularly amongst younger cohorts. Enhancing digital connectivity can help to break this cycle as improved connectivity can make activities, including the delivery of education, services, and business activities viable in less central locations. While sample sizes were small and therefore it is difficult to draw firm conclusions, there is some evidence from the survey that the availability of superfast broadband has encouraged some people to move to the areas affected, with 42% (n=13) of Group 1 respondents who had recently moved stating that they would not have done so if superfast broadband (or quicker) had not been available. As with the impact on local shops / services, the impact in terms of depopulation may take longer to materialise than the period covered in this research.

Key Point: Overall, the results suggest that the delivery of R100 has contributed to a strengthening of the communities affected by the programme particularly with respect to opportunities to work and the level of community activities in some areas. While sample sizes are small, there is also some indication that the availability of broadband connectivity has influenced people’s decision to move to the area. The impact of the programme on the number of shops and other service available locally is less clear. The overall balance of benefits / disbenefits in this respect is likely to differ depending on the community in question and may take longer to materialise than the period covered by this research. It is noted though that if digital services replace local provision, such as banking or council services, without inclusive alternatives, there is a risk that older and low-confidence users are further excluded.

Aid the transition to net zero by reducing travel requirements that result from ability to work or engage with others remotely.

While sample sizes are small, there is some indication from the survey results that the ability to work and engage with others remotely has resulted in a reduction in travel at the local level. Overall, 12% (n=32) of Group 1 respondents to the survey said that the improved connection had resulted in a change in the level of day-to-day travel made by their household, with almost all of these stating that their household travel had reduced. A range of reasons were provided for this, including being able to work from home more frequently; increased use of online shopping; and accessing government and NHS services online. Several respondents also emphasised the benefit of being able to check public transport options before leaving the house, thereby reducing unnecessary trips.

While the above may lead to a reduction in travel and a consequent reduction in greenhouse gas emissions, it is also the case that home working and the delivery of online shopping / services will themselves generate carbon emissions (e.g. through additional domestic energy consumption, more delivery drivers etc) which will in part offset the savings generated. In addition, the research identified evidence of increased community activities as a result of the ability to organise online which may contribute to additional travel albeit potentially more locally based.

Key Point: Overall, the results suggest that the improvement in connectivity has led to a reduction in day-to-day travel for some households due to increased home working, higher levels of online shopping, and use of online government and NHS services. Some of these savings will however be offset by carbon emissions generated via other activities with more detailed analysis required to determine the overall impact.

Increase Scotland's capacity to maintain business productivity, activities important for wellbeing, and access to essential services in the face of communication disruption, especially for those rural and island communities.

The research suggests that the delivery of improved broadband connectivity has improved the capacity of businesses and communities during periods of disruption.

In terms of business productivity, evidence from the business survey suggests that Group 1 businesses are now able to undertake a wider range of business activities online, including accounting and financing, accessing online networks and storage, selling products or services, and being able to call customers and suppliers through Wi-Fi. As noted above, there is also evidence of people being able to more frequently work from home because of improved connectivity. In the event of a disruption, there is therefore greater capacity in the system to maintain business productivity.

There is also evidence from the surveys that the availability of broadband has enabled residents to access travel and emergency information more easily during periods of disruption, helping to maintain access to essential and other key services. In total, 37% (n=96) of Group 1 households said that the improvement in broadband had benefitted their household in periods of disruption, with respondents highlighting that they are now able to access up-to-date travel and other emergency information which they were previously unable to access.

Key Point: The research suggests that where businesses and residents have taken up the enhanced broadband connectivity provided by R100 additional opportunities for communication and additional mechanisms by which to deliver business activities have been created and these channels help to maintain business productivity and access to key services during periods of disruption.