Talks are taking place to ensure that world-beating internet technology is launched in Yorkshire.

Neil Daly, chief executive of skyLINC, the York-based communications operator, today reported that two organisations, one based in Europe and the other in the U.S. could now go some - but not all - the way towards providing the £6 million funding necessary.

He stressed that local backing was still needed if Yorkshire was to become the first area in the world to get the benefits of a balloon-transported transmitter in the sky.

In Business Press last March Peter Chambers, business development manager of skyLINC, based at Tower House, Fishergate, York, warned that unless the firm found regional backing for its system, it might have to move to the US.

Since then Mr Daly has returned from Brussels where, he said, he received political backing from Euro-MPs for the venture and involved himself in the talks "which are at a sensitive stage, but we are making fantastic progress". He added: "Now we are hoping to have a dialogue with Yorkshire Forward and get their help to ensure that Yorkshire is the home for a new technology which is potentially the biggest thing since satellite communication.

"We are making every effort to ensure that the business grows in Yorkshire."

skyLINC successfully tested its revolutionary Libra wireless transmitter lifted by a massive helium-filled balloon from Rufforth airfield last September, effectively making it a 1.5 mile- high mast for super-speed broadband.

With an 80-kilometre circumference "footprint" and made rock-steady using gyroscope stabilisers, the Libra system would be cheaper, faster and reach the rural parts that other broadband systems could not reach, said skyLINC. Eighteen of them could cover the UK.

What was more, said skyLINC, small business users of ISDN broadband were paying two to three times the price of the Libra service for a 20th of the Libra bandwidth which could be accessed via a receiver dish.

Updated: 10:24 Tuesday, May 06, 2003