London SMEs Resent High Landline And Broadband Costs

Aug 21, 2014

A report by the Centre for Economics and Business Research (CEBR) has revealed the dissatisfied state of broadband in London's small business sector.

The study found that SMEs based in the UK capital claim to lose over 50,000 working days each year waiting for broadband installation and lose £7.8m in productivity as a result.

They also waste £37 million each year on unwanted landlines and experience the slowest broadband speeds in the country.

The survey is the work of Relish, a firm that supplies superfast business access in the capital.

Its poll also found average speed of broadband in the heart of the metropolis' commercial sector, the City of London, was found to be 11.9Mbps, which works out at 47.6Kbps per second, if divided equally between a workforce of 250.

This is compared to a cross-London average of 20.5Mbps.

Furthermore, 62% of SMEs involved said that they believed they could operate effectively without a landline.

The study used YouGov data on 206 IT decision makers from London SMEs (businesses with less than 250 employees).

For Colm Sheehy, senior economist at CEBR, We have found that, in total, landline tax costs Londoners £193m per year, which is an unnecessary cost.

"People rarely use their home phone, and [small and medium enterprises] said they can operate effectively without it.

Author: Tom Phelan
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