A report by the Federation of Small Businesses (FSB) into the state of the digital communications market for small businesses has found that there is a gap between customer expectations, received quality of service and promised delivery by broadband providers. Although it found that the sector is generally making good progress, the FSB said that its members often complained about the reliability of the broadband speeds promised by providers. There were also complaints about how long it takes providers to install new services and repair faults.
Small businesses are calling for a Universal Service Obligation (USO) of a minimum of 10Mbps across the UK, rather than the 5% that has previously been suggested. The previous government had said that it would consider a USO as part of its long-term plans to extend superfast broadband coverage to most premises across the country.
Currently, providers advertise potential maximum broadband speeds, but small businesses would like them to advertise the minimum speeds expected, to avoid confusion. The FSB also suggested that providers should draw up a voluntary code of practice to ensure that they deliver the speeds that they promise to their customers. It has been suggested that a code of practice would help to build trust between service providers and business customers.
According to the FSB, some businesses are confused by the complexity of the market and remain unsure about how new services might benefit their business. It is suggested that a voluntary code of practice would go some way towards helping small businesses to understand the services that are available, and how they can be integrated into their future business strategies.
In an increasingly digital environment, businesses located in areas with poor broadband and mobile coverage are at a clear disadvantage. As consumers have embraced digital technologies, they increasingly expect to be able to make purchases and interact with businesses online. Without reliable digital connections, small businesses can struggle to expand and compete with larger companies.
The FSB has found that 99% of small businesses say that the internet is highly important to their work. However, unreliable broadband connections have led some businesses to disengage from the market, which could potentially result in them missing out on the numerous benefits that improved connectivity can offer. Other small businesses have upgraded to superfast broadband, hoping to achieve more reliable connectivity and adequate speeds. However, some businesses have said that they are deterred by the cost of superfast broadband. The report indicates that over half of small businesses already offer online services and a further 15% have plans to do so in the future. Surprisingly, just 36% of businesses were aware that superfast broadband was available in their area.
Mike Cherry, the policy director of FSB, stated that: “large numbers of small firms are using new digital technology to revolutionise the way they do business, but the market still has barriers stopping firms from seizing these opportunities.” He added that, “the success of the digital revolution has led to ever higher expectations from businesses and consumers which at times the market struggles to deliver.”
In order to provide improved broadband connections, the report said that more investment in digital infrastructure is needed. The FSB also said that a plan for rolling out ultrafast broadband should be drawn up. As part of its BDUK (Broadband Delivery UK) programme, the government has pledged to extend superfast broadband coverage to 95% of the UK by the end of 2017. Measures are currently being considered with regard to extending coverage to the mostly rural final 5%.