Ofcom Study on Broadband Services for SMEs
26 Jun 2015 10:47 AM
Ofcom has yesterday published Broadband Services for SMEs, a detailed study into how well small and medium-sized enterprises (SMEs) are served by the communications market.
The UK's 5.2 million Small and Medium Enterprises (SMEs) are critical to driving economic growth: they constitute 99.9% of UK businesses, and account for 60% of private sector employment and 47% of business revenue. High quality communications connectivity is essential to their ability to participate in and drive the digital economy.
Some general comments about how SMEs' needs differ from both residential consumers and large enterprises, particularly in the case of broadband connectivity, were noted by Ofcom:
- As many SMEs rely on communications networks for business-critical services, they often have lower tolerance for outages than residential consumers. SMEs are also more likely than residential consumers to use services dependent on a high-quality uplink such as use of cloud-based applications or video conferencing.
- SMEs are also more likely than larger enterprises to depend on mass-market broadband products as they have less need for the dedicated, uncontended connectivity provided by leased lines, and are less able to afford the higher costs associated with them. They are also less likely than large enterprises to have the skills and dedicated resources to scope and negotiate bespoke communications service packages.
The report finds that 83% of small businesses consider communications services to be fundamental to their business, and 78% use a fixed broadband connection.
While 85% of SMEs feel their business needs are well catered-for by the communications market, a significant number expressed concerns around broadband speeds, availability, quality of service and choosing between providers.
In the news release published yesterday, Ofcom has called for joint action between the regulator, industry and government to improve broadband services for smaller businesses. This includes that announcement of an agreement from three of the UK's largest suppliers to work on a new Code of Practice for business broadband services.
In the next three months, Ofcom will develop its business portal to further provide advice to SMEs and disseminate it (through stakeholders such as Government, communications providers, commercial intermediaries, Go On UK, SME business networks, and SME representatives like the Federation of Small Businesses), in order to reach a larger number of SMEs.
Ofcom will report on progress in their next Consumer Experience Report in early 2016.