Using broadband will help cut costs

More than three-quarters of companies say that using broadband technology will reduce their costs, according to a survey by the Institute of Directors (IoD).

Of the 150 IoD members that responded, 63 per cent have broadband but only 10 per cent feel their needs are met. More than two-thirds believe geographical coverage needs to improve for wider adoption of the technology and 48 per cent think the government should provide more grants to facilitate take up.

Ecommerce minister Stephen Timms told Computing: 'It is great to see British businesses taking advantage of the opportunities broadband offers and it is getting clearer by the day that broadband Britain is really taking off.

'The IoD's statistics support evidence from Oftel last week that there is much greater awareness of broadband and appreciation of its benefits. There is still a long way to go but we are well on the way to creating a highly competitive broadband market - providing UK businesses with choice and value for money,' added Timms.

The survey shows businesses now recognise the importance of broadband, says IoD emarketing director Jonathan Cummings.

'The level of awareness within business now is good and that is a change from four or five months ago,' he said.

'But what is striking is that even small businesses with ADSL don't think it will be sufficient going forward and companies are starting to realise that even higher bandwidth is going to be needed in the future.'

The survey was carried out by the IoD in conjunction with internet service provider Tiscali.