UK SMEs slow to embrace broadband

Brussels, 02 Oct 2002

A study has found that less than 10 per cent of the 1.2 million small and medium sized enterprises (SMEs) in the UK have taken up broadband.

According to the survey, by telecoms watchdog Oftel, businesses account for only 30 per cent of ADSL (asymmetric digital subscriber line) services. It had been thought that new content would encourage the take up of broadband, but many business leaders now believe that location is more important.

A spokesperson for the UK Federation of small businesses said that many SMEs are located outside the areas covered by broadband - about one third of the UK cannot receive ADSL or cable broadband. High costs are also a deterrent for many SMEs.

The Federation suggests that tax breaks for providers in rural areas would increase take up.

CORDIS RTD-NEWS/© European Communities, 2001