SMEs need high-speed broadband

Small and medium-sized enterprises (SMEs) across the UK need better access to high-speed broadband to help them realise their expansion plans.

The government recently announced plans to provide universal connectivity within the next four years, but the scheme has targeted connection speeds of two megabits per second (Mbps), which may not be enough for many businesses by 2012, reports ComputerWeekly.com.

Conventional copper wiring web networks can sustain speeds of up to 50Mbps, but there is mounting pressure for expanded investment in fibre optic technology, where potential connection speeds are much higher.

SMEs in rural areas have a particularly hard time as their broadband services can be affected by their lack of proximity to telephone exchanges, while they can suffer from the same outages and peak-period speed reductions that affect domestic users.

More stringent regulation is one possible solution, such as forcing internet service providers to compensate firms for business lost during broadband outages.

Virgin Media recently launched a 50Mbps fibre optic service and is developing plans for even higher speeds.