The report examined the effect on Scottish businesses

Economic development consultants SQW examined the increasing availability of different generations of broadband and their value to businesses in Scotland.

The report said that most benefit still came from first generation bandwidths.

Deputy First Minister Nicol Stephen said it made "good reading" for all those involved in rolling out broadband to every community in Scotland.

Economic forecast

"From the outset we have said that broadband would become a vital communications tool in the modern era," he said.

"The economic forecast contained in today's report vindicates the executive's decision to support rollout.

"More businesses are taking advantage of the faster internet connection it provides, which will help both their output and the economy as a whole."

He said ministers did not foresee a need to support the supply of second and third-generation broadband, but would monitor the rollout of the technology.