FSB News Release

PR 2009 39

Issue date: 18 June 2009

FSB: Government stuck in a time-warp over broadband speeds

Federation of Small Businesses response to Lord Carter's Digital Britain report

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

"The Federation of Small Businesses (FSB) welcomes the Government's commitment to ensure universal access to fast broadband, but warns the expected 2mbps by 2012 lacks ambition and shows the UK is in a time-warp.

"Research by the FSB shows that a third of small businesses already have 2mbps broadband speed, yet struggle to do core, day-to-day business activities. More than half of small businesses rely on the internet for up to 50 per cent of their annual turnover, yet simple tasks such as emailing, marketing, buying and selling, are time-consuming because their broadband speeds are letting them down.

"The online world is crucial to small business development, especially for firms in rural Britain where businesses have been waiting for years for promised Government action to deal with the ‘notspots' - where there is no broadband access.

"By 2012, £1 in every £5 will come from online commerce, but if small businesses are to compete, the Government must take bolder action.  Around 60 per cent of small businesses want a minimum broadband speed of 8mbps. But with Japan leading the way, making high speed broadband of 90mbps available to everyone, the FSB urges the Government to do more.

"Small businesses are ready to play their part. Now the Government needs to step up and take the country into a future when UK businesses are internationally competitive."

ENDS

Notes to Editors

1. The FSB is the UK'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 http://www.fsb.org.uk.

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