Small firms need good broadband service

15 March 2010

The government has been urged to make sure that small businesses receive a fast and reliable broadband service.

Ahead of the Digital Economy Bill's passage through the House of Lords, the Federation of Small Businesses (FSB) has published the results of a survey showing that a significant proportion of smaller firms are unhappy with their broadband connection.

According to the survey, a quarter of the 1,300 firms polled expressed dissatisfaction with their broadband service.

Of those who were unhappy, 60 per cent questioned the speed and reliability of the connections. Another 30 per cent claimed they were based in an area with unreliable broadband.

The FSB wants the government to make sure that the needs of small firms are kept at the forefront of the debate about the future of the UK's broadband system.

In particular, the FSB said that internet service providers should be obliged to deliver a minimum and guaranteed connection speed of 8Mb/s direct to business premises.

The telecommunications ombudsman's remit should cover all service providers and their contractors, while Ofcom should act in a way that is truly independently of the industry in order to make sure that small firms are getting a good deal.

John Wright, the FSB's national chairman, said: "The online world is crucial to small business development, especially as small firms look to grow and expand as the economy recovers.

"These figures show that the broadband service provided to small firms is letting them down. Small businesses need fast and reliable broadband to ensure the UK remains a key player in the global economy. The Digital Economy Bill gives the government a chance to guarantee Britain becomes a real competitor, and the FSB is calling on the government to enforce rules on service providers and regulators so that small firms are given the fair deal they deserve."