New research finds broadband is failing to deliver
17 November 2010 — LONDON: Two thirds of UK businesses, enterprises and SMEs, believe poor internet connectivity is stifling new working practices and say current broadband speeds are impeding the growth of the UK economy, according to a wide ranging new study released today by the UK’s newest wholesale broadband provider, BE Wholesale.
More than one in three businesses in Britain said their current internet connection wouldn’t support new collaborative working applications such as video conferencing and VOIP. Consequently, 72 per cent of people from enterprise and SMEs think faster, more reliable broadband will ultimately make their business more competitive.
However, there’s a clear awareness of the business benefits of such applications with over 60 per cent of respondents believing unified communications, for example, would reduce their costs and increase productivity. A belief supported by both enterprise and SME businesses that have already trialled new IP-based services; 80 per cent of whom report strong financial benefits.
Commissioned by BE Wholesale and carried out by independent research specialist Dynamic Markets, the survey looks at the adoption of new collaborative and cost saving web applications in a broad range of over 500 businesses across the UK, including SMEs and larger companies, and investigates whether the current broadband provision is a barrier or enabler.
Other key findings showed that British businesses are quick to see the opportunities of Web 2.0:
· 29 per cent of SMEs have experimented or are considering using at least one type of internet based business application
· 23 per cent of SMEs say employee remote access (VPN) is now a key business tool
· 21 per cent of SMEs have adopted VOIP as essential part of their business infrastructure
But there’s a worrying disconnect for both larger companies and SMEs, between the promises of new applications and many broadband networks’ ability to deliver on them.
· 60 per cent of respondents don’t believe they’re receiving the speeds they’re paying for
· 38 per cent of businesses think their internet connections cannot support applications such as high definition video conferencing and VOIP
· Six out of ten businesses would adopt new collaborative applications, but only if they’re sure these wouldn’t impact email and web search based activities
According to Dan Cunliffe, Head of BE Wholesale, service providers need to think differently: “If SMEs want to save money and gain competitor advantage by investing in unified communications; remote access or VOIP for example, then their broadband needs to be able to support this.”
“All too often providers concentrate on the pipe, rather than what it’s there to do; which is helping businesses adopt and use tools that allow them to be more productive, more efficient and more competitive. The research brings this into stark contrast and highlights the need for a mindset change right across the broadband and ISP market. “
Dr Cherry Taylor, Managing Director of Dynamic Markets, said: “Today’s results suggest that many broadband networks are failing British businesses, with worrying ramifications for the UK economy as a whole. While there is clear enthusiasm for new internet-based collaboration and productivity tools, there’s little confidence that current networks can deliver.”
For further information and to access the full report, please contact:
Alexandra Banks/Waggener Edstrom
Tel: 020 7832 3800
About BE Wholesale
BE Wholesale is the UK’s wholesale broadband provider for O2/Telefonica.
BE Wholesale reinvents broadband to enable businesses in high definition: By providing crystal clear communications and fast uninterrupted connectivity to customers and partners, businesses can effectively use modern rich media applications such as cloud computing, video conferencing and VOIP.
Our superfast, ultra-reliable and uncongested network delivers a whole new business experience. Our network was built in 2005 and was the first in the UK to use ADSL2+ technologies. It means a low contended broadband experience and, according to OFCOM, the fastest upload speed of any UK DSL provider.
BE Wholesale’s high-performing and reliable platform brings ISPs the confidence and control they need to go on and deliver tailored services to attract and retain customers in the demanding business market.
O2/Telefonica acquired BE back in 2006. Building on its reputation as having an established quality network and leading position in the consumer/prosumer space, BE retained its named and officially launched into the business wholesale market under ‘BE Wholesale’ in November 2010.
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Senior Account Executive
Waggener Edstrom Worldwide – London
D: +44 (0)20 7632 3872
M: +44 (0)7966 590747