A YORK firm which has perfected a breakthrough broadband system for businesses has earned Government praise.

E-Commerce Minister Douglas Alexander popped into telecoms developer SkyLINC at Tower House, York, to see a working demonstration of its high-tech answer to providing high-speed, always-on-the internet access and the capacity to transmit high volumes of information.

"I'm delighted to have visited and seen for myself the exciting technology. I'm very impressed," he said.

Already, he added, his Department of Trade and Industry had allocated £3.1 million to Yorkshire Forward, the regional development agency, to explore ways of extending broadband coverage.

This has resulted in a joint survey with the Science City York partnership of broadband needs in the city, for which results and solutions will be announced to York's business community in March.

The Minister used his visit to York to announce a £95,000 national study to create a nationwide picture of new projects being developed to take advantage of broadband in order to "boost the creation of compelling content" .

He said companies like SkyLINC were playing an important part in advancing broadband internet access and maintaining the UK's status as a world leader for internet use and e-commerce.

He said: "The point about broadband is not the technology itself but what it allows us to do.

"The always-on, fast, two-way flow of information means that people will be able to enjoy video on demand and online gaming as well as access to websites with far more interactive functions and impressive graphics.

"Businesses will be able to benefit from such innovations as online video conferencing and the very latest in computer programmes which can be accessed through the internet.

"It is these facilities - known as content - which will give consumers and businesses the real incentive to upgrade to broadband."

Mr Alexander visited SkyLINC at the suggestion of York MP Hugh Bayley who had earlier seen the system in action and applauded the contribution it could make to York becoming "the focus for broadband activity."

But details of the new system designed by SkyLINC is still being kept a close secret by its managing director Neil Daly, although he revealed that microwaves were used, that it was not part of the BT cabling "loop" and would enable service providers to offer businesses "savings in cost and speed of deployment."

He said: "We spent five years in the design of this system and we spent some time looking at the logistics involving new technology and the government bodies ,

"At this stage it is very sensitive. There are a lot of big players out there."

Updated: 11:27 Friday, February 08, 2002