Are SMEs losing out by paying for unwanted services?
Businesses in London could be losing £37m a year as a result of paying for unwanted landlines, according to new research.
The report from the Centre for Economics and Business Research, done in conjunction with communications provider Relish, also estimated SMEs lose more than 50,000 working days each year waiting for broadband installation.
That equates to £7.8m lost in productivity according to the report, which also suggests that London is behind other regions when it comes to broadband speeds.
Central London had the slowest speeds while the Silicon Roundabout – an area where SMEs are abundant – had the second slowest speeds in all of Greater London.
Only 6% of SMEs in the capital can access superfast broadband states the CEBR, meaning many businesses are losing out on productivity as a result.
Every little helps
While a quarter of SMEs revealed they planned to switch provider in the coming year, it still means many businesses are currently paying for services that they are not necessarily receiving.
This may be considered a minor issue over a small period of time, but for businesses where budgets and finances are tight, it could impact on the bottom line.
For businesses where IT is at the forefront, the threat is particularly great and these companies could easily have concerns over the potential requirement of business recovery methods.
It would be hoped that these sorts of situations do not develop, but acting quickly where finances are being drained can be an essential part of ensuring a company is able to continue trading.
Finding good landline connections and reliable broadband services can make all the difference, especially for businesses choosing to place themselves in the heart of the capital.
With productivity being affected, the need to act quickly is highlighted as it could potentially lead to economic issues, at a national and regional level.
Alternatively, businesses should consider other options available to them, as they may be able to proceed without the need to pay out on a landline.
By Phil Smith