Ref: 83/00
29 October 2000

Small and medium sized businesses are increasing their use of the Internet, new research published today by Oftel reveals.

Research of 700 small and medium sized businesses shows that:

• A total of 93 % of medium businesses and 69 % of small businesses are now connected or in the process of connecting to the Internet;

• A fifth of businesses are now using a form of unmetered Internet package;

• Businesses use a wide range of different Internet service providers, taking into account cost, speed of access and content of site.

• Over 70 % of those connected said that they were using the Internet more now than when they were first connected.

Commenting on the findings, David Edmonds, Director General of Telecommunications said today:

"Nearly all the medium sized businesses and well over half the small businesses surveyed either used the Internet or were in the process of getting Internet access.

"Cost is a major factor when deciding which provider to use, and I am pleased that nearly one-fifth of businesses have chosen unmetered access as the most cost-effective way of using the Internet.

"However, our research shows that a lack of understanding of the potential benefits of the Internet discourages businesses from getting access.

"Websites such as www.telecomsadvice.org and www.ukonlineforbusiness.gov.uk have been set up by industry and government to encourage small businesses to make the most of telecommunications and the Internet.

"Our research shows that businesses are actively shopping around to get the best deal for their telecoms services. For example, more than half of medium businesses were using more than one telecoms supplier."

The survey forms part of Oftel's ongoing programme of research. The results will be used in Oftel's current reviews of the mobile phone and dial-up Internet markets, as well as in ongoing policy work and to test policy implementation.

Notes to Editors

1. The research published today is in three parts. Hard copies of all Oftel reports are available to the media from the Press Office on 020 7634 8991 and to the public from the Research and Intelligence Unit on 020 7634 8761.

Use of fixed line services among small and medium enterprises (SMEs)

can be found at http://www.oftel.gov.uk/cmu/research/bfix1000.htm

Internet use among small and medium enterprises (SMEs) can be found at http://www.oftel.gov.uk/cmu/research/bint1000.htm

Mobile phone use among small and medium enterprises (SMEs) can be found at http://www.oftel.gov.uk/cmu/research/bmob1000.htm

2. Also published today is Consumer's use of Fixed Telecoms Services - Summary of Oftel Residential Survey Q2 August 2000 which can be found at http://www.oftel.gov.uk/cmu/research/fix1000.htm

3. UK online for business (formerly the Information Society Initiative) is a partnership between industry and Government geared to help British business - particularly SMEs - to get the full benefit of new technologies. More information is available on their website at www.ukonlineforbusiness.gov.uk

4. www.telecomsadvice.org.uk is an independently edited web site containing advice for small businesses on telecoms equipment and services including the Internet with case studies of small businesses and their telecoms problems.

5. This report has been prepared by Oftel based on the results provided by Continental Research during August/September 2000. The survey was conducted among some 700 SMEs comprising 400 small (1-50 employees) and 300 medium (51-500 employees) businesses located across the UK with a minimum turnover of £50,000.

Back to Press Release Index