A divide in broadband speeds could harm the economy if
telecoms regulatorOfcomdoes not ensure businesses in
rural areas have equal access to those in cities, business leaders
have warned.
Competitiveness minister, Stephen Timms, said super-fast
broadband is vital, and a delay in deploying next-generation
connections could stall the success of the economy. But businesses
outside major conurbations say speeds of current broadband networks
are inadequate.
The
Confederation of British Industry (CBI) said Ofcom needed to
facilitate investment in rural areas where there was demand.
"Businesses have a need for a standard quality of service provision
across the UK," said Jeremy Beale, head of e-business policy at
CBI.
David Harrington, head of regulatory affairs at the
Communications Management Association, said, "For the sake of our
gross domestic product, Ofcom needs to get off the fence and take a
positive lead in encouraging investment in broadband networks
nationwide.
"Unless enterprises across the UK have access to equal speeds,
the UK will be unable to compete for future inward investment."
Christopher Meacher, IT manager at Fold Hill Foods in rural
Lincolnshire, said, "BT business broadband is at best providing
12.5% of the advertised speed, so why should we pay 100% of the
bill?"
Alternatives such as leased lines that offer guaranteed
bandwidth to subscribers are one option, but prices remain
expensive. One Computer Weekly reader was quoted between £6,460 and
£16,979 per month to upgrade broadband capacity on a leased line to
connect offices in Manchester.
BT said the distance from an exchange and the quality of lines
would affect the type of broadband that it was technically possible
to deliver, but said it expects to offer connections of up to
24mbps nationwide by 2012.
Ofcom said it was concerned about the mismatch between
advertised and delivered broadband speeds, and it is considering a
range of measures to improve the information available to
consumers.