FSB: Broadband should be a universal service obligation

Small businesses require help from the government to gain access to much-needed broadband access, according to the FSB.

It is vital the government makes basic broadband a universal service obligation to help small firms grow and support the economic recovery, an industry body has said.

According to the Federation of Small Businesses (FSB), the appointment of a broadband minister is a positive step forward however, there is a concern that many businesses do not have access to top broadband and therefore are not trading online as efficiently as they could.

The FSB's Broadband: Steps for an Incoming Government report suggests that small firms in rural areas in particular are not receiving the service promised by the best broadband deals, with 94 per cent claiming that the rates delivered by providers fall short of those advertised.

John Walker, national chairman of the FSB, said: "The lack of broadband is unacceptable in the 21st century. The UK is lagging behind and as a result small businesses – especially in rural areas - cannot develop their business online which is vital for growth."

Research from the FSB found that many small and medium-sized enterprises feel that access to fast broadband would provide a timely boost to business accounts.

By Nate Sawyer