Broadband should be a universal service obligation, says FSB
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) 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.”
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 www.fsb.org.uk
2. To read the report ‘Broadband: Steps for an Incoming Government’ please go to www.fsb.org.uk
3. The FSB is also calling for:
– The Minister must also ensure the role of the Office of Communications (Ofcom) is reviewed and refocused.
– Full transparency at all levels of decision making and good engineering practice at every level. The process of specifying and equipping a network to allow it to provide the highest quality of service and maintenance to its users must be independently externally audited.
– A stronger role for the Telecommunications Ombudsman and OFCOM. The Ombudsman must be able to rule directly against all service providers, their contractors or group companies without exemptions. Customers should be able to cancel all contracts at any time without penalty if their service does not meet the written contracted service, which must be specified.
– There must be greater transparency by industry on the true cost of delivering broadband across the UK.
4. This is a national release; additional information may be available on a regional basis. For regional FSB contacts please go to www.fsb.org.uk/regions
Contacts
Stephen Alambritis: 020 7592 8112/ 07788 422155
Eric Beech: 020 7592 8128/ 07917 628998 eric.beech@fsb.org.uk
Prue Watson: 020 7592 8121/ 07825 125695 prue.watson@fsb.org.uk
Sara Lee: 020 7592 8113/ 07595 067068 sara.lee@fsb.org.uk
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