EEF demands review of business broadband competition

EEF, the manufacturers’ organisation, is urging the Government to review competition in the business broadband market to ensure companies are not paying too much for their connections to the internet.

The organisation particularly wants competition in the leased lines sector to be scrutinised, as these are so key to business operation and will only become more so as the 'Internet of Things' becomes more mainstream.

The EEF’s research among members found that more than nine out of 10 now consider a fast broadband connection to be just as important to running their businesses as electricity. Some 95 per cent of those polled said they needed to access secure online services on a daily basis, as well as using it for routine emails and administration.

Although most said they were happy with the broadband service they currently have, members did raise concerns about high prices. A quarter of small- and medium-sized firms are paying more than £5,000 a year for their broadband and half of those quizzed said the cost of accessing the internet has jumped in the last two years.

Businesses also expect to be using the internet more in the future and highlighted the need for fast and affordable connections.

The EEF’s senior policy researcher, Madeline Scott, said: “Internet connected capital equipment is going to become more prevalent and 62 per cent of firms expect to be investing more in this area in the next five years.

“Indeed, half of respondents to the survey say their current internet connection is not adequate for their expected needs over the next five years, with just 35 per cent disagreeing.”

The report called for an assessment of Britain’s digital infrastructure by the National Infrastructure Commission, and a report on where investment is needed.

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