{"id":8465,"date":"2015-01-15T08:16:26","date_gmt":"2015-01-15T08:16:26","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=8465"},"modified":"2015-01-15T16:25:18","modified_gmt":"2015-01-15T16:25:18","slug":"fsb-claim-half-uk-rural-small-businesses-dissatisfied-broadband","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2015\/01\/fsb-claim-half-uk-rural-small-businesses-dissatisfied-broadband.html","title":{"rendered":"UPDATE FSB Claim Half of Rural Small Businesses Dissatisfied with Broadband"},"content":{"rendered":"<p>The <a href=\"http:\/\/www.fsb.org.uk\/\" target=\"_new\">Federation of Small Businesses<\/a> (FSB) has today warned of a &#8220;<em>two-speed digital economy<\/em>&#8221; after it published the results of new research, which found that 49% of rural small businesses are dissatisfied with the quality of their broadband service and this falls away significantly to just 28% for similar firms based in urban areas.<\/p>\n<p><!--more--><\/p>\n<p>The results are perhaps unsurprising given that most rural areas are still waiting to benefit from an upgrade via the Government&#8217;s on-going <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/bduk\" target=\"_blank\">Broadband Delivery UK<\/a> programme, which aims to make fixed line &#8220;<em>superfast broadband<\/em>&#8221; (<strong>24Mbps+<\/strong>) speeds available to 95% of the population by 2017 (the rest are being promised speeds of at least 2Mbps).<\/p>\n<p>In the meantime many such rural locations are left to suffer from long copper or aluminium based <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/adsl\">ADSL<\/a> (up to 8Mbps) and ADSL2+ (up to 20\/24Mbps) lines, which tend to be both slow and much more unreliable than more modern fixed-line or fixed-wireless connectivity methods (e.g. <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ftth\">FTTH<\/a>, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttc\">FTTC<\/a>, Cable <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/docsis\">DOCSIS<\/a> etc.).<\/p>\n<p>The FSB&#8217;s study, which is based off <strong>1,400 responses<\/strong> from members of their &#8220;<em>Big Voice<\/em>&#8221; Research Community Panel in December 2014 (this is a survey forum for small firms that was setup late last year), also warned that the issue is predicted to become even &#8220;<em>more significant over the next two years<\/em>&#8221; as small firms will ultimately become more reliant on a high quality broadband connection to do business. Bad luck if you can&#8217;t get one then.<\/p>\n<p>According to the results, more than three quarters (77%) said that email will be critical to their business and more than half (57%) said broadband will be essential to engaging with their customers in the next two years. The FSB&#8217;s research also categorises rural business dissatisfaction across a number of areas, including reliability (47% dissatisfied), upload speed (61%) and download speed (61%). This represents nearly a 50% gap in reported satisfaction levels with comparable urban businesses.<\/p>\n<blockquote class=\"bq1\"><p><strong>Mike Cherry, National Policy Chairman for the FSB, said:<\/strong><\/p>\n<p>&#8220;<em>This research paints a worrying picture of a divided business broadband landscape in the UK, and unless addressed highlights a clear obstacle to growth in the coming years. We risk seeing the emergence of a two-speed online economy resulting from poor rural broadband infrastructure.<\/em><\/p>\n<p><em>It&#8217;s worrying that as many as 14 per cent of UK small firms still view the lack of a reliable broadband connection as being the primary barrier to their growth. A reliable connection is now viewed as a key business requirement by 94 per cent of small UK businesses, yet continued poor connectivity in rural areas represents a huge missed opportunity for economic growth in many parts of the country<\/em>.&#8221;<\/p><\/blockquote>\n<p>Naturally the FSB has once again used this opportunity to press their previous demands, which call for a minimum broadband speed of <strong>10Mbps<\/strong> to be supplied to all business premises by 2018\/19, and a pledge to deliver minimum speeds of <strong>100Mbps to all by 2030<\/strong>. <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> has similarly suggested, on several occasions, that the 2Mbps <strong>Universal Service Commitment<\/strong> (USC) could be lifted to 10Mbps (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2014\/10\/broadband-speeds-10mbps-needed-effective-quality-service.html\" target=\"_blank\">here<\/a>), but so far the Government has chosen not to respond.<\/p>\n<p>As usual it&#8217;s easy to think up a number and plonk it onto a piece of paper, albeit much more difficult to show how that could actually be achieved in a practical and economic sense. Never the less time has moved on since 2Mbps was first mooted for the USC some 5-6 years ago and these days it&#8217;s already looking a bit weak for modern requirements.<\/p>\n<p>Personally we&#8217;re starting to think that it might be better to centralise everything around a 30Mbps+ USC and then peg 2Mbps for a legally-binding USO by 2020. Admittedly this might push some consumer prices up, but once BDUK&#8217;s work is complete then the cost increase shouldn&#8217;t be a huge\u00a0one and its benefits may ultimately outweigh any negatives.<\/p>\n<p><strong>UPDATE 4:23pm<\/strong><\/p>\n<p>The boss of business ISP Fluidata has added a comment.<\/p>\n<blockquote class=\"bq1\"><p><strong>Piers Daniell, MD of Fluidata, told ISPreview.co.uk:<\/strong><\/p>\n<p>&#8220;<em>It is <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>\u2019s telephone infrastructure that is holding back the government targets, as this is what the 24 Mb\/s delivery is based on. However, many businesses find 100 Mb\/s insufficient so we do need to be aiming higher. This is where wireless and fibre come in as speeds of 1Gb\/s can be achieved.<\/em><\/p>\n<p><em>The cost of delivering in rural areas are higher which is why <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a> isn\u2019t investing in them. We have been working with a large number of alternative providers who are using alternative methods to deliver speeds of 1Gb\/s to businesses in rural areas. By digging their own fibre, installing masts or even running services through other pipes, like CCTV infrastructure, they are able to deliver services in a cost effective manner to these hard to reach locations.<\/em><\/p>\n<p><em>What we need is the government to recognise this ability and support it so our rural businesses see the benefit<\/em>.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The Federation of Small Businesses (FSB) has today warned of a &#8220;two-speed digital economy&#8221; after it published the results of new research, which found that 49% of rural small businesses are dissatisfied with the quality of their broadband service and this falls away significantly to just 28% for similar firms based in urban areas.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[471,472,38,34],"class_list":["post-8465","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-bduk","tag-business","tag-politics","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - 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