Rural and small businesses still suffering bad broadband

A large number of businesses remained without a reliable broadband connection, a new survey said on Monday, despite many respondents saying a fully-functional connection was “extremely important” to their operations.

The survey, released by the British Chambers of Commerce, showed that 99% of businesses agreed a reliable connection was important, with 82% saying it was “extremely” important.

Despite that, almost one in five businesses that responded - 18% - said they suffered from unreliable connections, with 11% calling their connections “not very reliable”, and 7% saying their internet access was “not at all reliable”.

“Business communities across the UK still report that our digital infrastructure is not fit for purpose,” said British Chambers of Commerce director general Adam Marshall.

“Throughout the country, significant numbers of companies of every size and sector lack reliable internet connectivity – a basic requirement for businesses to operate efficiently in today’s world.”

Rural businesses were the hardest hit, with 30% of businesses outside of urban areas having unreliable connections.

In towns and inner cities, the figure was 15% and 13% respectively, with 12% of businesses in suburban areas calling their broadband unreliable.

It was also smaller businesses that were more likely to suffer at the behest of their service provider, with almost a quarter - 24% - of sole traders, and more than a fifth - 21% - of micro-businesses reporting issues.

“Unreliable connections stunt productivity, causing needless delays, costs and frustration,” Dr Marshall quipped.

“While businesses in every corner of the UK are affected, our research shows that it’s rural areas and small businesses that are most likely to suffer.

“An unreliable connection acts as an obstacle to growth, and puts those firms most in need of support at a competitive disadvantage.”

The survey suggested that more reliable connections would allow businesses to do more, with nearly half of businesses - 48% - saying that if the reliability of their broadband connection was improved it would allow them to use more applications, particularly cloud-based services, the transfer of large files and remote server access for employees.

Dr Marshall said the BCC had been been calling on both providers and the Government for “years” to fund the necessary upgrades required to deliver superfast broadband to business communities.

“Regulators, too, must ensure that firms actually get the quality and speeds of connection they are promised.”

The BCC still welcomed recent ministerial announcements about investing in 5G technology and efforts to build a world-class digital infrastructure in the UK, Dr Marshall said, but added there was “still a long way to go” in getting the basics right.

“The immediate focus must be on providing all companies with connections that are reliable and of sufficient speed, which would boost business confidence and encourage firms to maximise opportunities for growth, trade and investment.”