Nearly 40% of ‘online’ SMEs use an unmetered package

Ref: 55/01
Date: 31 July 2001

Oftel has today welcomed the launch of the enhanced website that provides small and medium enterprises (SMEs) with valuable telecommunications advice.

The website, www.telecomsadvice.org.uk, has been re-structured to make it easier for users to navigate their way around the enlarged site and find the information that they are looking for more quickly. It now has over 200 hundred pages of information and 500 links to other useful websites, including many telecoms companies.

The latest developments have been made in response to feedback from users of the site who wanted more categories of information to make it is easier to locate the material they were searching for.

Oftel’s business research has identified that a lack of information and knowledge about the potential benefits offered by the Internet was a reason for many businesses not connecting, so there is still a significant need for information sources such as www.telecomsadvice.org.uk.

Anne Lambert, Oftel's Director of Operations, said today,

" The Telecoms Advice website is an important source of telecommunications information, particularly for small and medium sized businesses and their advisors.

" Oftel welcomes the re-design of www.telecomsadvice.org.uk as visitors to the site will be able to access more information easier and quicker than before. The website is an example of the industry working together, with Oftel’s support, to help consumers make informed choices about the services available to them."

Also commenting on today’s re-launch, Nigel Griffiths, Minister for Small Business, said,

" Businesses rely upon telecommunications systems to communicate with their customers and new installations of equipment often prove expensive.

" Therefore, they need clear, impartial advice about getting the best out of telecommunications and the Internet and I am pleased to see that an improved www.telecomsadvice.org.uk continues to do this.

" Such information is vital for the businesses community so they can compete and succeed in an increasingly converged world."

Neil Marrs of the Forum of Private Business and a member of Oftel’s Small Business Taskforce, added,

" The re-structuring of www.telecomsadvice.org.uk enables business consumers, particularly those who are inexperienced in telecoms and the Internet, to find valuable information very quickly and with minimum effort. Telecoms Advice provides clear and independent advice that is free from technical jargon and is user-friendly."

Oftel’s latest business research has revealed that 39% of SMEs with an Internet connection are using an unmetered package. 92% of medium businesses and 54% of small businesses currently have an Internet connection.

Conducted in May and June 2001 amongst 800 businesses, the findings also show that:

• almost 1 in 3 SMEs currently use an indirect access operator or are considering using one;
• 58% of small businesses and 81% of medium businesses own at least one mobile phone, with over 77% of SMEs with mobiles using a post-pay package; and,
• overall satisfaction with mobile services remains high at 95%.

Commenting on the research, Anne Lambert added,

" Small and medium size enterprises continue to use a wide range of telecoms services. They also continue to take advantage of competition in the sector.

" A recent Oftel survey showed that only one in five people were given correct advice when asking whether they could transfer their mobile number. This highlights the need for information sources such as www.telecomsadvice.org.uk so that consumers can make well informed decisions about their telecoms services."

Notes to Editors:

1. Three documents have been published today by Oftel and are available on Oftel’s website,

-Business use of fixed telephony - www.oftel.gov.uk/publications/research/2001/q5fixb0701.htm
-Business use of Internet - www.oftel.gov.uk/publications/research/2001/q5intb0701.htm
-Business use of mobile telephony - www.oftel.gov.uk/publications/research/2001/q5mobb0701.htm

Hard copies are available to the press from Oftel's press office on 020 7634 8991, or to the public from Oftel's Research and Intelligence Unit on 020 7634 8761.

2. Also available on Oftel’s website are the following reports,

- Mobile Phone Number Portability and SIM Unlocking Research - www.oftel.gov.uk/publications/research/2001/myst0701.pdf,
- TelecomsAdvice website, Qualitative Report - www.oftel.gov.uk/publications/research/2001/tadv0701.pdf

Hard copies are available to the press from Oftel's press office on 020 7634 8991, or to the public from Oftel's Research and Intelligence Unit on 020 7634 8761.

3. The business surveys were conducted among 800 businesses, comprising 500 small businesses (1-50 employees) and 300 medium businesses (51-250 employees), located across the UK with a minimum turnover of £50,000. Quotas and weighting were applied to small and medium businesses separately so that the sample was representative of SMEs (Small and Medium Enterprises) in the UK in terms of business size, industry sector and region.

4. The TelecomsAdvice website is published by Crucible Multimedia Ltd. - a technology spin-out from the University of Sheffield. It is not an Oftel website. Oftel accepts no responsibility as to the content and information on the site or for any decision made by any person in reliance upon advice from the site.

5. The Telecoms Advice website is currently sponsored by British Telecom, Cable & Wireless, COLT, Dolphin, Energis, MCI Worldcom, Nortel Networks, ntl:, One2One, Orange, Telewest, Thus and Vodafone. The site is open to further sponsorship and anyone interested in becoming a sponsor should contact Crucible Multimedia (e-mail: admin@telecomsadvice.org.uk, or tel: 0114 224 2324).

6. The Telecoms Advice website was set up as a result of a recommendation by Oftel’s Small Business Task Force. The Task Force was established to assist small businesses to make better use of telecoms and the Internet to help them grow. The members of the task force include representatives from business organisations like the Federation for Small Business, Forum of Private Business and Telecoms Users Association, industry experts like the Telecoms Industry Association, various telecoms companies and small business advice agencies.