The Federation of Small Businesses has recently claimed that the government needs to do far more with regards to its broadband plans to help small businesses, and has described the government of being ’stuck in a time warp’

In a recent outburst the Federation of Small Businesses in the UK has slated plans by the government with regards to the development of broadband, and has stated that the government needs to take far bolder action so that small businesses can benefit from these broadband plans. The Federation also described the government as being ’stuck in a time warp’ with regards to its broadband plans.

One official from the Federation of Small Businesses said that more than fifty percent of small businesses rely on the Internet for up to half of their annual turnover, and therefore broadband plans needed to be bolder to ensure that small businesses could continue to rely on the Internet. He said: “By 2012, £1 in every £5 will come from online commerce, but if small businesses are to compete, the government must take bolder action.”

He added that around one third of small and medium sized enterprises, also known as SMEs, had access to broadband speeds of 2Mbps but around sixty percent wanted minimum speeds of 8Mbps. He said: “With Japan leading the way, making high-speed broadband of 90Mbps available to everyone, the FSB urges the government to do more.”

Whilst SMEs are said to make up around ninety seven percent of the economy in the UK many of these businesses, particularly those in more rural areas, do not have the necessary access and speeds that they need to operate as effectively as they could. The FSB said that government plans were not adequate, stating: “The aim is essentially to tinker with the broadband speed rather than solve the underlying issue, which is that the UK is using arcane technology. The nation’s copper infrastructure desperately needs to be upgraded to fibre optic to satisfy businesses’ requirements for today and in the future.”

Source - Computer Weekly