APPENDIX 20
Memorandum submitted by the British Chambers
of Commerce (BCC) (S35)
1.1 The British Chambers of Commerce (BCC)
welcomes the opportunity to respond to the inquiry of the Environment,
Food and Rural Affairs Committee on access to broadband in Rural
areas. This paper focuses on the needs and requirements of businesses
and has been prepared, following consultation with our Rural Forum
and our quality assured network of 60 accredited Chambers of Commerce,
which represent between them over 135,000 businesses of all sizes
and sectors of the economy. As such, we are the main representative
body for small employers in the United Kingdom.
1.2 Rural areas contain a diverse array
of businesses and enterprises, covering a whole range of industries.
In a world increasingly dependent on IT, and in particular fast
access to the Internet, to remain competitive it is crucial that
businesses have access to fast and efficient computer technology.
Access to broadband is an issue of growing importance in rural
areas since there is already evidence of a divide between those
businesses that have access to this service and those that do
not. Businesses unable to access broadband are at a competitive
disadvantage.
1.3 There is currently a considerable level
of confusion between the broadband/ADSL services and technology
that are and are not available in rural areas. To address the
problems of providing effective access it is imperative that there
is joined up thinking between the relevant government bodies,
Regional Development Agencies and providers of technology, so
that the most appropriate solutions are embarked upon from the
outset.
DEMAND FROM
BUSINESSES FOR
BROADBAND IN
RURAL AREAS
2.1 The following are examples of businesses
that have been affected by an inability to use broadband and are
reconsidering their location as a result.
2.1(i) A manufacturing company based in a
small market town, which is one of a number of world-wide subsidiaries,
needs to be able to upload and download data to and from its parent
company on a daily basis. It is unable to do this effectively
without broadband and its operation in the UK is the only one
without access to this service. As a result of this the company
has hinted at relocating. With 50 people currently employed (a
very high number in a rural area) by this company such a move
would have a huge impact on the local economy.
2.1(ii) A small media company located in
a very rural area has six employees, (which again is a significant
number in a sparsely populated rural area), has reported losing
business because it does not have broadband. Being unable to use
this service means that they cannot tender quickly enough for
contracts, are unable to send documents and graphics fast enough
and find it difficult to access a range of world-wide networks.
2.2 The notion of being able to set up a
business anywhere is not borne out by businesses in rural areas
not accessible by broadband. The mission statement of the Department
of Trade and Industry commits to "making the UK the best
place to start and grow business", this ambition is not currently
being fulfilled in Rural areas.
2.3 There are a number of programmes and
experiments that have been set up in rural areas in attempt to
discern demand and the most appropriate method of delivering Broadband
in remoter areas. The response to these programmes has been very
dramatic and provides additional anecdotal evidence of the demand
for broadband in rural areas.
2.4 A pilot Satellite Broadband scheme recently
launched amongst businesses in Hastings has generated a huge amount
of interest, without any formal advertising or publicity. At the
initial meeting 30 places were filled and since then there have
been 100 expressions of interest and 55 participants have now
signed up. All businesses that take part in this particular scheme
must meet certain criteria including the following: they must
not have ADSL in their organisation, nor be able to connect to
ADSL and must demonstrate a business benefit to be gained and
be prepared to do a case study after it is up and running.
2.5 Campaign groups have been set up to
ask people to register to demonstrate that there is a demand for
broadband in rural areas. Two such groups are DemandBroadband.com,
who estimate that up to 70% of people can't get connected in the
East of England and wewantbroadband.co.uk, who encourage people
in remoter areas to register their interest in accessing broadband
in attempt to focus the attention of suppliers.
2.6 Broadband has been provided for some
schools in rural areas and some land-owners who allowed poles
to be put on their land to provide schools with access to broadband
have done so only to discover that they are not permitted to access
this service.
British Chambers of Commerce
27 February 2003
| 
