Broadband 'crucial to businesses in rural Wales'

Demand for IP telephony solutions could be set to increase in rural parts of Wales after an MP said broadband has become a vital resource for businesses in these areas.

Glyn Davies, who represents Montgomeryshire in the House of Commons, insisted that high-speed internet connections are "crucial" for firms based outside of the major towns and cities, BBC News reports.

However, he stressed that broadband is also important to the wider public and could help to boost entrepreneurship in rural communities.

"Good access to the internet is something that is going to be necessary to sell houses, to set up businesses and retain public services," Mr Davies commented.

He was speaking after a report by telecoms regulator Ofcom revealed that broadband penetration in Wales is lagging behind many other parts of the UK.

Ben Underwood, director of the Country Land and Business Association in Wales, recently suggested that the scarcity of high-speed internet connections in rural communities is putting some firms off establishing themselves in these areas.