The City of London Corporation, the local authority responsible for the UK capital’s Square Mile area, has suggested that thousands of businesses in the district are working with outdated broadband. Statistics show that insufficient broadband speeds are not just a problem in this are however. It is an issue for small businesses throughout the UK.
Operating on dated broadband connections
Insufficientbroadband speeds are a particular issue for many SMEs in the City of London. According to the Independent The City of London Corporation recently told the influential Business, Innovation and Skills select committee that over 9,000 businesses in the district are operating on slow, dated broadband connections.
The Corporation submitted a written statement to the government’s Business, Innovation and Skills Select Committee stating: “There is deep concern that the attractiveness of the City is increasingly disadvantaged by the lack of fast broadband connectivity at an affordable level. Leased lines are prohibitively expensive for many small companies, leaving them struggling on copper ADSL lines with slow speeds and unreliable connectivity.”
The Square Mile local authority went on to write: “This stance has an immediate, deleterious effect on hi-tech SMEs which operate in and around the Square Mile and in the long run could damage London’s position as a leading edge global city.”Increasingly, London is becoming a global technology hub; it was recently named the best city in Europe for digital start-ups.
The UK has developed a robust digital economy. A study conducted by The Boston Consulting Group earlier this year estimated that the internet economy will comprise 12.4% of UK GDP by 2016 – more than any other G20 country. Research from the Federation of Small Businesses showed that nearly every small businesses surveyed rated the internet as “highly important” for their operations. However just 15% are “very satisfied” with their broadband connection.
Meanwhile many small to medium sized enterprises (SMEs) lack even a “fast” speed of 10 Mbps. Statistics quoted by Computer Business Review suggest that 130,000 SMEs in certain business areas are unable to receive speeds above 10 Mbps. Only 68% have access to “superfast” broadband speeds of 30 Mbps or more, compared to 85% of all premises polled.
The issue of outdated broadband isn’t restricted to the Square Mile. SMEs across the UK lack the infrastructure necessary to capitalise on the country’s booming digital economy. As Verastar recently reported, the government are planning to introduce a ‘universal service obligation’ of at least 10 Mbps.
Verastar is a leading provider of essential business services to micro SMEs, operating under the following brands: Kinex, Clear Business Water, Titan Telecom, Marble Telecom, Economy Gasand 118777 Limited. Our business model is focused on providing a spectrum of consolidated services that disrupt traditional markets and create great savings, efficiencies and value for our customers.