Slow broadband threatens UK plc productivity

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Slow broadband speeds are threatening business efficiency, according to a new survey’s findings published today.

Around a third of UK businesses questioned by Communications Management Association (CMA), in partnership with Ofcom and BT’s Openreach, said they did not receive satisfactory access to internet technology, including infrastructure, services and applications.

But more than a third also predicted that they will need speeds of 100 Mbps to be able to meet future demand for next generation internet technology, which has led the professional communications body (which is also part of the British Computer Society) to renew its call for the government to create a national broadband strategy.

David Harrington, CMA’s director of regulatory affairs, said: “The gap between government rhetoric and formulation of policy appears to be as wide as ever. Back in April last year, we warned there was a limited window of opportunity over the next 12 to 24 months to develop and implement a concerted and innovative approach to regulation and policy making that would lead to a market-led transition to next generation broadband."

“Fourteen months on, there is little sign of either a concerted or innovative approach to regulation and policy-making, which the government acknowledged as recently as last September as being necessary,” he said.

The CMA’s criticism as a result of its survey comes on the same day that Ofcom chief executive, Ed Richards called on UK telecoms companies to work together to draw up a framework to accelerate the roll out of super-fast broadband UK networks.

The CMA, whose members spend £13 billion a year on communications and networks, found 38 per cent also wanted next generation network access for the anticipated benefits of improved bandwidth, speed and quality.

But, while Ofcom is encouraging telecoms companies to increase investment, the CMA survey found only one in four companies would be willing to pay more for such access. More than half were not, who were typically characterised as very large organisations that already used high bandwidth services.

An executive summary of the survey report is available on the CMA’s website.

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