Broadband Britain

Most of the UK's smaller corporate companies now fully recognise the business benefit potential of broadband, according to an independent survey undertaken by Vanson Bourne on behalf of Telefónica UK Limited.

Thhe neww independent market study of boardrooms and IT departments in the UK's smaller to medium size companies, with predominantly between 500 and 2000 employees, shows compelling evidence that 'Broadband Britain' is finally happening in the country's business heartlands. A significant majority of respondents, just over three-quarters of them, now recognise that broadband-based communications networks are essential for driving business efficiency, and intend to deploy them within the next 12 months.

While the report's findings are encouraging, they raise concerns at the very high number of business heads, 87 per cent, admitting to infrequently or never participating in strategic review meetings with their IT and telecoms management. Telefónica believes non-IT senior management will need to work smarter at understanding the dynamics of communications networks if they are to realise the full benefits and return on investment of broadband-enabled services.

"Broadband networks are not a passport to maximising business efficiency without the regular input and interaction of both IT and non-IT senior management. As the survey indicates, the high number of IT departments being left to decide, on their own, what's good for business in some companies is somewhat alarming," commented Andrew Peters, chief executive of Telefónica UK. "We urge service providers to work with businesses to ensure boardrooms meet with IT more frequently, and play a more proactive role in helping them review and properly understand the implications of communications networks on operating costs, productivity and enterprise empowerment."

According to the survey a large majority of IT professionals, 84 per ceent, in this size of company have or will utilise IP VPN broadband-enabling technology as their preferred route to broadband over more traditional leased line and ISDN technologies. This is a shared but segregated service confined to a single operator's computer or network.

This demonstrates IP VPN's growing acceptance as a more cost-effective and flexible approach to broadband, according to Telefónica. The survey shows IP VPNs are especially popular for interconnecting multiple branch offices, providing high-speed internet access to remote and mobile workers, and enabling new or enhanced business application, such as CRM (Customer Relationship Management), ERP (Enterprise Resource Planning) and Voice services.

"Clearly the cost and performance benefits of IP VPNs are acting as an important catalyst in driving demand for broadband networks from many smaller and medium size corporate companies," said William MacKay, Telefónica UK's head of marketing. "Until now, these companies may have baulked at the perceived cost and hassle of broadband deployment, but now they can see a totally new way of cost-effectively acquiring broadband infrastructure, especially suited for connecting up their businesses with minimum disruption."