Press release
15 March 2006

Caught in a trap! UK SMEs stuck in the broadband slowlane

Forget red tape and late payment of bills, communications deprivation is the latest issue to face the UK SME sector. Small businesses don’t think internet and telecoms companies offer them the products and services that work the way they and their budgets work and believe they are less competitive as a result.

This is the key conclusion of a study conducted for Bulldog Business, the leading innovator of high speed broadband and phone services for small businesses and undertaken to research the marketplace for their new Small Business product, which is to be launched this week .

According to the report – ‘Caught in a trap’ – The Bulldog 2006 SME communications report - UK small businesses do not feel that they fully take advantage of the latest communications technologies because they cannot find the right supplier and package. 45% said that they felt their business could grow faster if they could gain access to the latest communications technologies, at the right price, with the right customer support. 61% have held back at some time from ordering more phone lines because the costs were too high.

SMEs do not think broadband or phone suppliers understand their type of business – 63% think their voice telecoms supplier either does not understand or just pretends to understand their business and 68% feel the same way about their broadband supplier. SMEs don’t work the hours normal businesses work. So the ability to get quality customer support whenever they need it is a crucial factor for all UK small businesses. 52% would like a 24 hour a day, seven day a week customer service option and 9% would even pay a premium for this. Most broadband providers shut down at weekends totally and early evening on weekdays.

The study suggests there is a big market for combined voice and internet services. Most SMEs – 69% - buy their internet and phone services from separate suppliers. Only 8% would not consider buying both services from the same supplier if the products and services were good value and reliable.

Carlo Soresina, director of sales and marketing, Bulldog Business, comments, “So far, very small businesses have not had the right broadband and phone internet services and customer support offered to them. This research shows just how much they would like to get into the communications fast lane, if they could afford it.”

In response to these findings Bulldog has launched a new product portfolio this week (see separate announcement). Bulldog’s Small Business and Medium Business products are aimed at businesses with up to 10 and 50 employees respectively and offer both voice and broadband internet with the most competitively-priced SME multi phone line solution in the UK, unlimited broadband, free security software and seven day customer support. Other products aimed at this sector will be launched in the months to come.

About this research

This research report was compiled in March 2006 following primary research on 200 small businesses, each with less than 150 employees. The research was carried out by Vanson Bourne, a specialist IT research house, on behalf of Bulldog Communications, the leading LLU innovator of broadband and voice services to small businesses and SOHOs in the UK.