Ofcom Hopes to Improve Broadband Provision for UK SME Businesses

The communications regulator has today spoken of its “concern” for small and medium sized businesses in the United Kingdom, which it fears may be struggling to get the best out of the available broadband and phone services. As a result Ofcom has set out a new plan that aims to both examine and tackle any related issues.

Ofcom’s own data shows that the majority (85%) of SMEs believe they are well served by the UK communications market, although they also found that many such firms have still experienced problems with their service. This is less of an issue for big companies, which in a highly competitive market can use economics of scale to their advantage.

Ed Richards, Ofcom’s Chief Executive, said: “While there have been developments in the range of services available over the past decade, we’re still not confident that SMEs are benefitting as consistently as they should be from high quality digital communications.” As a result the regulator has today touted its new SME Plan, which lists some of the measures they’re taking to address the problem.

Availability, competition and service

Promoting widespread availability of superfast broadband.
Ofcom’s autumn Infrastructure Report will assess the gaps in superfast broadband coverage for residential and business users in both rural and urban areas. Ofcom is already working closely with Government and industry to identify potential ways to fill these gaps. Better availability for SMEs as well as residential consumers is a priority.

Service quality and choice for SMEs.
Ensuring high quality of service and choice are priority areas for Ofcom. Earlier this year, Ofcom started its review of ‘business connectivity’, which looks at how well competition is working in the provision of dedicated connections known as ‘leased lines’; these are used by some SMEs. However, many SMEs have diverse needs and may use a combination of business and residential services. Ofcom is examining how the market is serving such SMEs, alongside the broader review of business connectivity, and will consider whether regulatory intervention is necessary.

Protections for SMEs.
It is important that businesses can navigate the market confidently, with effective protection and redress if things go wrong. Ofcom is reviewing how effective its consumer protection rules for telecoms (called ‘General Conditions’) are at protecting SMEs from problems like poor service and difficulties when switching provider. This review will assess whether the rules are providing the right level of protection for SMEs.

Support and research

Supporting businesses in rural areas.
Communications services like broadband and mobile can be particularly important for businesses in rural areas. Ofcom is working with its Advisory Committees in the nations to understand the experiences of small businesses in more remote parts of the UK. This will help shape future policies to support small businesses at local and regional level.

‘Contract checklist’ for businesses.
The first part of Ofcom’s SME Plan is a ‘contract checklist’ for business consumers. Published today, this guide offers advice on what businesses should look out for when taking out a new landline phone, broadband or mobile phone contract.

Business consumer portal.
Building on today’s guide, Ofcom will this autumn launch a web portal offering advice and support specifically for businesses. This will provide information on choosing a service provider, advice on resolving disputes and knowing your rights as a business.

Ofcom research on SMEs.
Ofcom’s work to help SMEs is underpinned by extensive research, which will be published later this year. This looks at satisfaction of communication services among SMEs; awareness of new technology and different suppliers; data on switching and complaints and the prevalence of problems experienced by businesses.

We should think that one of the biggest issues for SMEs is whether or not they’re covered by a superfast broadband (24-30Mbps+) network and getting that problem solved is perhaps worth more than half the battle. The government’s Broadband Delivery UK (BDUK) scheme, alongside other efforts by alternative network providers, should go a long way to addressing those issues.

In the meantime Ofcom has uploaded a somewhat general contract checklist for business consumers, which is a simple guide that offers “advice on what businesses should look out for when taking out a new landline phone, broadband or mobile phone contract“.