The Importance Of Businesses Accessing The Internet

A lack of office space in Cambridge with access to high-speed internet connections is preventing some companies from expanding, according to the Federation of Small Businesses.

Speaking to news website Cambridge First, Dick Jarvis, chairman of the Cambridge East branch of the FSB, said the issue was holding some businesses back. He said: "One of our members wants to increase his business from two to four people. He's working from home at present but wants to move out. But, because his is an internet-based business, he wants high-speed internet. He can find places but they don't have high-speed internet."

Businesses may also struggle to get a true idea of the internet speed they are likely to receive at a location until they have signed up and connected to a provider. Research carried out earlier this year by telecoms watchdog Ofcom found that average download speeds achieved by broadband customers are less than half of "up to" speeds which are used by some advertisers to push their internet packages.

The internet is also an issue for Britains mobile providers, as theyve recently been urged by MPs to sort out the issue of poor mobile internet coverage. The networks have been slammed for infighting while the problem of mobile coverage in rural areas becomes an increasingly bigger problem.

On Tuesday, Ofcom published details of the current coverage situation within the UK. The regulator claims that overall geographic coverage by all five 3G network operators stands at just 13%, whilst coverage in terms of premises is significantly higher, at 73%. Ofcom found the areas with the lowest 3G geographical coverage were the highlands of Scotland and mid-Wales. An auction to allocate 4G spectrum was due to take place in early 2012, although that was recently postponed by Ofcom until this time next year.

Speaking to the BBC's Technology Correspondent, Rory Cellan-Jones, the Commons Culture Media and Sport Committee's chairman John Whittingdale said that commercial factors need to be considered. Delays to the rollout of 4G mobile broadband and improved speeds could damage UK businesses and consequently the economy too. He said: "At the moment we're in the middle of the pack, but if theres a significant delay then we could find ourselves trailing behind."

Speaking at a business conference in London earlier today, David Cameron said grants would be awarded through the Regional Growth Fund, which is set to be administered by RBS, NatWest and HSBC. According to a report by The Independent, ministers anticipate that the scheme could unlock as much as 500m of new investment by small and medium businesses.

The idea is for small firms that are unable to secure commercial funding to support investment in new capital assets and the creation of new jobs to seek government support through the banks' regional networks.