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30pc of SMEs Failed in Attempt at Broadband Upgrade

A survey of 601 small and medium sized enterprises (SMEs) published by Chambers Ireland today (28/11/05) has revealed that three out of 10 companies that attempted an upgrade of their Internet access to broadband failed, mainly due to a lack of availability of the pertinent service in their area.

Chambers Ireland’s SME eBusiness Survey 2005, in association with ESB Customer Supply, also showed that just 29pc of companies access the Internet via broadband and one third still use a standard phone line.

The survey findings also showed that a clear regional divide still exists: while two thirds of companies in the Dublin region have broadband, this figure fell to 41pc and 44pc respectively in the Midland and Border regions.

Announcing the findings, Chambers Ireland’s Head of Research Seán Murphy said, “Urban sprawl is accelerating, rural areas are suffering from depopulation and commuting times are increasing.  The need to facilitate flexible working arrangements is growing, yet digital accessibility is still poorly provided for. By unlocking the full potential of the digital marketplace, many of these challenges can be tackled.”

“If Ireland is to maintain and expand its role in the global economy then it is imperative that our ICT infrastructure be developed to a world class standard.  This will be possible only with effective Government policy that is both committed and sustained,” he said.

“The survey found a direct link between broadband connections and increased usage of all ebusiness applications. Broadband is, therefore, the key to the creation of a real digital marketplace. We must continue to invest in the promotion of broadband and re-position ourselves as a leader in the e-enabled and e-user league tables,” he added

“It is imperative that the Government supports a campaign, similar to Northern Ireland’s SME broadband stimulation programme, to highlight the business benefits of broadband and give free and impartial advice to companies planning to enter the digital marketplace. Coupled with an effective eGovernment strategy, this stimulation programme would enable SMEs to unlock the full potential of the digital marketplace and chambers are willing to act as the conduit for such a programme,” he said.

"Chambers remain concerned at the impediments to broadband access for commercial enterprises that the survey has highlighted. The next year will be crucial in determining whether the Irish market can actually deliver enhanced broadband connectivity. If we do not make rapid progress toward reaching and exceeding the OECD average in broadband connectivity, we may need to address this market failure via enhanced Government intervention," he concluded.

Mary Cleary, Chair of Chambers Ireland’s Digital Policy Council added, “the major challenge facing small and medium sized companies is to raise the provision of IT skills among their staff.   The survey reveals that companies use internet access primarily for emailing and web-browsing – the less skill intensive areas. The fact that firms are overlooking the efficiencies of eBusiness, such as e-learning and teleworking suggests a lack of training and skills in this area.

“According to the survey, the average SME plans to spend over 4% of its annual turnover on IT. It is vital that some of these financial resources are channelled into enhancing the IT skills of employees,” Cleary said.

Louise Murphy, Manager of Business Markets, ESB Customer Supply added, “ESB Customer Supply believes that the integration of web based technologies in business can contribute to business growth and improved efficiency.  From the survey it has identified that internet security and broadband access in all locations are key to the development of e-commerce in Ireland.

 For a full copy of the survey click here