With more than half (52%) of business owners revealing they want to adopt full fibre when it becomes available in their area, Prime Minister Boris Johnson’s ambitious promise of nationwide full fibre or gigabit capable broadband by 2025 must be kept, according to the Federation of Small Businesses (FSB).
It calls on Government, industry and regulators to work together to remove barriers to full fibre provision, to ensure no-one is left behind in the fourth industrial revolution.
Small businesses are being held back by poor broadband and mobile connections, according to new research by the The findings, in FSB’s report Lost Connection show 41% in the South West are struggling with broadband speeds insufficient for current business needs. Almost half (44%) say their broadband is not good enough for their future needs.
On mobile connectivity, data shows more than half (56%) of small firms in the region cannot get a good connection on their mobile phones.
Connection issues are crushing the growth and productivity of small business owners, with more than one in three (32%) reporting poor mobile and broadband connection preventing them from contacting or being contacted by existing customers – or even potential new clients. A similar number (30%) said poor connection is a barrier to growing their business, and more than a quarter (26%) of small firms say poor mobile coverage has led to a loss of business or sales.
It’s urging a strong focus on the small businesses currently struggling with poor internet connection, with an emphasis on connecting those being left behind. FSB is also calling for a public commitment from Government that all premises receive download speeds of at least 10 megabits per second (Mbps) by the end of 2021, regardless of whether they have proactively asked to be connected under the Universal Service Obligation (USO).
The USO, which comes into force next March, gives residents and businesses the legal right to request a ‘decent’ broadband connection providing a download speed of at least 10 Mbps. However, FSB statistics show that over a third (38%) of small firms in the South West are still grappling with download speeds of less than 10 Mbps.
To help improve network coverage and attempt to get rid of ‘not spots’ in rural areas, FSB is supporting the idea of a shared rural network among the four large mobile network operators to try to bridge the gap in phone reception.
FSB is also calling for the scheduled spectrum band auction of both 4G and 5G take place without delay, to help improve mobile reception.
Nicola Bailey, FSB Development Manager for Dorset, said: “Unfortunately, an unreliable internet connection and poor phone signal are familiar challenges for small businesses across the UK.”
“Trying to communicate with new and potential clients while you can’t access your emails or your phone signal drops out is not only frustrating but, as we see in this new research, causes the loss of vital business. This is hugely problematic for a small firms, hampering the productivity of the UK’s army of small businesses and sole traders.
“These findings are particularly stark in rural areas where even more business owners are struggling to communicate with customers.”