UK digital networks get business thumbs up

Latest CBI/KPMG infrastructure survey reveals 82 per cent of firms questioned feel networks are better than five years ago

A significant 82 per cent of UK firms are happy with improvements to UK digital networks and are confident the trend will continue.

That is one of the findings of the CBI/KPMG infrastructure survey 2012, which questioned more than 560 UK firms for the research.

It revealed more than 80 per cent of those questioned said the quality and reliability of digital connectivity has a significant impact on their investment decisions.

In addition, 40 per cent of respondents felt that the UK networks outshine those in other parts of the world, with 27 per cent feeling it is behind the curve internationally.

Significantly, 54 per cent of firms with a presence in more than 50 countries feel that the UK's digital infrastructure is ahead of international benchmarks.

Milan Sallaba, head of strategy advisory for technology, media and telecoms at KPMG, said: "Given the increasing role of faster and reliable fixed and mobile web access in facilitating business growth and investment decisions, these figures are encouraging and prove that significant progress has been achieved in the provision of digital infrastructure in the UK.

"Core business processes are ever more dependent on connectivity, and firms now rely heavily on digital communication both internally and to reach their customers. Without significant digital infrastructure progress, businesses in the UK would be at an international disadvantage.”

In other results, two thirds of respondents said they felt the UK's infrastructure would not improve over the next five years and on a more negative note, 50 per cent of those questioned said the speed of fixed-line networks in the UK was average, while 24 per cent felt it was below average.

When questioned on UK mobile networks, 48 per cent described them as average and 43 per cent rated them below average.

Sallaba added: "With next-generation wireless mobile broadband infrastructure (4G) yet to launch commercially in the UK, and penetration of superfast fibre-based broadband lines lagging behind some nations, the UK still has a way to go to catch up with leading countries.

“However, with further investments a priority for most major network-based communications companies in the UK, the gap is likely to decrease in the coming years. The government, in particular, should be mindful to ensure that the existing regulatory frameworks support commercial business cases for country-wide investment, and that slow administrative processes continue to be tackled to support the efficient rollout of new infrastructure.”