UK broadband upgrade 'could boost businesses'

Proposals that Britain's broadband network should be upgraded to fibre optic connections have the potential to give businesses a boost, it has been suggested.

Comparison website Broadband Choice highlighted that companies in countries such as France and Japan receive much faster broadband services than UK firms, who may fall behind as a result.

"It definitely will have an impact on small businesses, especially as the amount of data that we look to transfer increases in size," said Michael Phillips, product director for Broadband Choices.

"I am working from home today and I have lost 20 per cent of my productivity because of slow connections," he added.

Faster lines would encourage businesses to make greater use of internet-based communications, such as sending data to clients or calling them up using VoIP services.

IP telephony demands a good connection to the web, especially when video conferencing is used as well, so the extra bandwidth provided by fibre optic broadband lines would improve the reliability of these communications.

Mr Phillips added that the improvements to Britain's broadband system would likely match the £15 billion spent on the London Crossrail link and would bring a similar boost to business.