More than 400 of Yorkshire and Humber's remote rural small and medium-sized businesses are benefiting from the opportunity funded by Yorkshire Forward to test broadband internet, in an effort to boost the region's use of e-commerce.

That is the claim by the regional development agency, which spent nearly £1.5 million to connect 200 rural and 250 urban small and medium-sized enterprises (SMEs) to broadband for an initial 12-month period.

Now the firms which took part in the trial are reaping the rewards with more than two-thirds renewing their subscriptions. They include:

IT company Sumatrix, of Foxholes, between Scarborough and Malton

Design and graphics firm Bow House Ltd, of Easingwold

Cambrai Aircraft Covers at Langtoft, in the East Riding, (which has increased its output fourfold)

The Gareth Owens Partnership, the Boroughbridge-based communications consultancy which has helped to provide broadband access to 100 pupils at its local primary school and other villagers

The Yorkshire Dales-based Centre For Management Creativity, which, with blue-chip clients including William Hill, Reuters and GlaxoSmith-Kline, was among those struggling to compete against city-based firms because of its location.

Latest research shows that in terms of internet use, just over half of Yorkshire and Humber firms have a website - the lowest level in the country - compared with nearly three-quarters in the East of England, illustrating the need to increase access.

Yorkshire Forward selected 450 companies in the region, all of whoich were in areas where broadband technology was not available, and companies that were either already IT literate, connected to the internet or doing internet training.

Jim Farmery, head of technology infrastructure for Yorkshire Forward, said: "We recognise that broadband technology coupled with the right content plays a major role in the future for businesses operating within the global market place. We needed to convince regional companies of what broadband can offer in terms of competitive advantage.

"By piloting the new technology directly with a range of businesses in the region, we are able to track, and be in a position to demonstrate first-hand, the business advantages that can be achieved by signing up to the latest in broadband technology.

"The fact that so many businesses are prepared to pay to continue with the service proves we have succeeded in getting the message across."

Yorkshire Forward hopes that by pump-priming demand for broadband satellite technology in less commercially attractive areas, awareness will be raised of the benefits, leading to greater investment by the private sector.

Updated: 09:46 Monday, March 22, 2004