Slow broadband holding back business innovation

Sluggish broadband speeds hindering uptake of productivity-boosting technologies

UK businesses blame slow broadband speeds for impeding the growth of the UK economy by stifling innovative working practices, according to research from wholesale broadband provider BE Wholesale.

The research showed that as a result of slow internet connections one in three businesses couldn't support new collaborative working applications, such as videoconferencing and voice over IP (VoIP). It also limits companies' access to cloud-based services.

Some 72 per cent of respondents believe that more reliable and faster broadband would improve business competitiveness.

This is reflected in the fact that over 60 per cent believe unified communications (UC) would reduce costs and increase productivity, and of those who have trialled new IP-based services, 80 per cent have seen financial benefits.

"If businesses want to save thousands of pounds a year on travel by investing in unified communications, videoconferencing or remote access, then service providers need to deliver," said Dan Cunliffe, head of BE Wholesale.

"Similarly, if they want to eliminate call costs between multiple offices using VoIP, their broadband needs to be able to support this," he added.

"This research highlights the need for a mindset change right across the broadband and ISP market".

BE argued that there was a worrying disconnect between the promise of exciting new applications, and the inability of broadband networks to deliver them.

Some 60 per cent of respondents don't believe they are receiving the internet speeds they have paid for, and 38 per cent do not think current internet speeds would support desirable applications, such as high-definition videoconferencing and VoIP.