Broadband should be a universal service obligation
The Government must make basic broadband speeds a universal service obligation to help small firms grow and strengthen recovery, the Federation of Small Businesses (FSB) has said.
The FSB is pleased to see the Government's recognition of the importance of tackling the lack of broadband for small businesses and customers and welcomes the appointment of a Broadband Minister - something we have been calling for.
But in a new report ‘Broadband: Steps for an Incoming Government' the FSB is concerned that small businesses are not trading online as efficiently as they could because of a lack of fast and reliable broadband, and urges Ed Vaizey, the newly created Broadband Minister, to swiftly put measures in place to ensure the reversal of this.
Small firms - especially in rural areas - are not getting the service they are promised by their service provider. FSB research shows that nearly a third of small firms were offered between two and four Mbps, however 94 per cent said they felt their service providers' offerings were failing their advertised claims.
A lack of broadband speed reduces productivity for small firms. Yet, fast and reliable broadband speed will help small firms develop their business and strengthen economic growth - putting in place super-fast broadband could create 60,000 jobs and add £18 billion to UK GDP.
The FSB is calling on the Government to guarantee fast and reliable broadband to help offer small businesses new opportunities by putting measures in place, including:
Ensuring the Broadband Minister has direct oversight of the roll-out, improvement and maintenance of broadband and puts these plans in place immediately.
Making broadband an essential service, similar to those of gas, water and electricity.
A stronger role for the telecommunications ombudsman and Ofcom who must be able to rule directly against all service providers, their contractors and group companies.
Incentivising small businesses to win contracts for the installation, maintenance and ownership of providing broadband services.
The FSB has long been calling for funds to be set aside from the BBC's TV Licensing Fee to be used as an element of the financing for the broadband roll-out, so welcomes the Government proposals to look at this as a real option.
John Walker, National Chairman, Federation of Small Businesses, said: "The lack of broadband is unacceptable in the 21st Century. The UK is lagging behind and as a result small businesses - especially in rural areas - cannot develop their business online which is vital for the growth of the UK's economy.
"Small firms are being misled by their service providers which are promising broadband speeds that they are simply not delivering. Broadband is not a luxury but an essential service. We welcome the creation of a Broadband Minister but he must act quickly and efficiently to ensure the universal service commitment for basic broadband speeds is an obligation if the country truly wants to become a global competitor. Until then the UK's 4.8 million small businesses will be left lagging behind as well."