Ref: 37/01
3 May 2001

The number of businesses with Internet connections continue to grow, research published today by Oftel reveals.

The new research, conducted among 700 small and medium enterprises (SMEs), shows that:

• Internet penetration continues to rise amongst SMEs, with 92% of medium businesses and 59% of small businesses connected;
  
  
• Almost a quarter of surveyed SMEs are using more than one Internet Service Provider (ISP), and 86% are satisfied with the information available to them when choosing their ISP, package and type of Internet connection;
  
  
• A fifth of small businesses and two-fifths of medium businesses have changed their fixed telephony suppliers, with the majority finding this an easy process; and
  
  
• A third of SMEs have switched their mobile network, although some reported a need for further information when making this change and also found it difficult to compare different prices and packages.

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

" The number of businesses with an Internet connection has increased by over ten percent in the past three months. Over sixty percent of surveyed businesses are now connected with others likely to be 'on-line' soon.

" This research also shows that demand for other telecommunications services from small and medium sized enterprises is growing too.

" Businesses are still making greater use of the choices available to them. The website www.telecomsadvice.org.uk, gives further independent advice on how businesses can take advantage of these choices, particularly for those who find it difficult to compare the different packages available."

This latest quarterly survey is part of Oftel's continuing programme of research and is used in ongoing policy work and market reviews.

Notes to Editors

1. The research published today is in three parts and is available from Oftel's website:

• Business use of Fixed Telephony - Oftel Small and Medium Business Survey Q4 February 2001 is at www.oftel.gov.uk/publications/research/2001/q4fixed0501.htm.
• Business use of Mobile Telephony - Oftel Small and Medium Business Survey Q4 February 2001 is at www.oftel.gov.uk/publications/research/2001/q4mobile0501.htm.
• Business use of Internet - Oftel Small and Medium Business Survey Q4 February 2001 is at
  www.oftel.gov.uk/publications/research/2001/q4internet0501.htm.

2. Hard copies of these reports are available to the media from Oftel's Press Office on 020 7634 8991 and to the public from the Research and Intelligence Unit on 020 7634 8761.

3. Small and medium enterprises (SMEs) are defined as businesses with up to 500 employees and a minimum annual turnover of £50,000.