FSB News Release

PR 2010 12

Issue date: Friday 12 March 2010

Small firms must get the broadband service they are promised, says FSB

New FSB-ICM figures show six in ten are unhappy with their broadband speeds

As the Digital Economy Bill is debated in the Lords next week, figures from the FSB-ICM survey of 1,300 small firms shows that a quarter (24%) of respondents are dissatisfied with their broadband service.

Of those small firms that are dissatisfied, six in 10 (63%) said they are unhappy with the speed and reliability of their internet connection supplied by their service provider.

Another 30 per cent said the area they live in has an unreliable broadband connection and 13 per cent said they would consider moving business premises to an area with faster broadband.

The FSB is concerned that small firms are being promised a service from their broadband supplier which is not being delivered. The Government must ensure that good broadband infrastructure is put in place to ensure small firms and consumers get the broadband service they expect.

As the Digital Economy Bill is debated in the House of Lords, the FSB is urging the Government to ensure that the needs of small businesses and consumers are kept at the forefront of the debate and is calling for:

• Internet service providers to be obliged to deliver a minimum and guaranteed connection speed of 8Mb/s direct to business premises
• The telecommunications ombudsman's remit to cover all service providers and their contractors
• Ofcom to act truly independently of the industry in order to really ensure that small firms are getting a good deal.

John Wright, National Chairman, Federation of Small Businesses, said:

"The online world is crucial to small business development, especially as small firms look to grow and expand as the economy recovers. Small businesses, particularly in rural areas, have been promised action to deal with slow broadband and the ‘notspots' – where there is no broadband access – but they have seen little action.

"These figures show that the broadband service provided to small firms is letting them down. Small businesses need fast and reliable broadband to ensure the UK remains a key player in the global economy. The Digital Economy Bill gives the Government a chance to guarantee Britain becomes a real competitor and the FSB is calling on the Government to enforce rules on service providers and regulators so that small firms are given the fair deal they deserve."

ENDS

Notes to Editors

1. The FSB is Britain's leading business organisation with over 213,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk

2. The FSB-ICM ‘Voice of Small Business' February Survey was conducted between February 24 and March 08. The results are based on an online survey of 1,289 respondents of the FSB-ICM panel. The research was conducted by ICM Research and Guided Insight. www.icmresearch.co.uk/media-centre.php

3.  As the Digital Economy Bill moves to the House of Commons on March 22, the FSB is calling on the Government to ensure that it puts the needs of Britain's small businesses and consumers first and calls for clarity, independence, independent technical advice and good engineering practice in broadband infrastructure. At this stage the Government must agree to promote and finance one technical standard and Ofcom, as communications regulator, must truly act independently of industry.

The FSB is calling on the Government to:
 
• Stop the passing the buck on faults as stated by the Lord Corbett of Castle Vale and Lord Erroll between BT and ISPs when it comes to dealing with faults on customers' lines. A rigorous form of line testing must be put in place to ensure that faults known to affect broadband services are detected. Providers must maintain all line plant and exchange equipment up to an expected standard and good engineering practice must be applied to all repairs. All broadband faults must be fixed within 48 hours of first being reported.

• The telecommunications ombudsman must be able to rule directly against all service providers and there must be no exemptions. Customers should be able to cancel all contracts ie 12, 18, or 24 month contracts at any time without penalty if their service does not meet expectations.
 
• ISPs must be obliged to deliver a minimum and guaranteed connection speed of 8Mbits/sec download speed end to end, with guaranteed and consistent upload speed. There must be a minimum level of service stipulated in writing and notification of any traffic management that may be applied to the broadband connection. It is essential that IP throughput is not subject to 'traffic management' restrictions or 'throttling' for the service the customer requires.
 
• Small businesses must have confidence in the speed and reliability of their broadband provision. Ofcom must ensure providers give accurate information on connection speeds (IP throughput that is useable by the customer) and ensure there is one UK wide standardisation and technical specification of the method of transmission on that fibre for all network providers. Local authorities must also play a vital role in infrastructure provisioning and maintenance, especially under and beside the main roads.