Business broadband take-up doubles to 40%

The largest independent survey of business broadband usage ever undertaken in the UK has revealed that usage has increased to 40% and that one in two companies claim it is crucial to their business.

Launching its Business Broadband survey, the British Chambers of Commerce announced that the percentage of companies with a broadband Internet connection has doubled from 19% to 39% over the last year. One third of those businesses without broadband, (33%) plan to acquire a connection as soon as it is available, and one in six companies plan to acquire broadband within a year.

Over 60% of all companies see more effective communication as the biggest benefit of having a broadband connection for their business. Improved business productivity was the next most important benefit, chosen by 46% of respondents. The survey found that cost savings are a more significant benefit than improved productivity for manufacturers, retailers and distributors: 45% of all companies cited cost savings as a benefit of a broadband connection.

President of the British Chambers of Commerce Isabella Moore said: "Broadband is taking hold in Britain. More than half of all respondents, (52%) believe that broadband is critical for their business to succeed. Even so, far too many businesses are still viewing broadband as just a faster narrowband connection. Government and industry must now focus on ways in which to improve broadband users' understanding of its full potential."

An important driver encouraging broadband adoption – a source of frustration to companies that cannot readily gain access - is pressure from customers and suppliers to use broadband-enabled applications. Over 60% of all companies think customers will pressure them within the next five years to conduct business that requires a broadband connection. Nearly half of all companies predict suppliers will exert similar pressure.

Stephen Timms MP, Minister of State for eCommerce and Competitiveness said: "These results are very encouraging. With over two million broadband users in the UK its role in ebusiness is proving an essential tool in driving economic success for SMEs, especially at local level. This survey clearly shows that broadband is going from strength to strength. With £1 billion to help wire up public services, hospitals and schools, that momentum can only increase."

Survey trends show that Internet and external email usage has become virtually ubiquitous in the business world. Overall 85% of companies have a website and of the 14% that did not the majority plan to get one in the future.

Sponsored by Oracle and Cisco Systems 'Business Broadband' polled 4,000 businesses in the UK from all sectors and company sizes.

(SP)