Business broadband and phone packages do not deliver what they promise, because the quality and speed of connections available from service providers are slower and less reliable than those advertised. That's according to the Federation of Small Businesses' annual 'Voice of Small Business' survey, which found that nearly two-thirds (63 per cent) of those who took part in the survey were dissatisfied with the speed and reliability of their business broadband connection.

It even found that as many as one business in eight would consider relocating to another area which benefited from faster broadband speeds.

The FSB has called on the UK Government to intensify its efforts to provide a top-quality broadband infrastructure across the country, and to ensure that small firms and individuals have access to a level of broadband service which was appropriate for their needs.

The government’s current commitment, outlined in the Digital Britain report of early 2010, is to have high-speed broadband connections available to 80 per cent of the UK population by 2017. But the FSB has already said that this target will hit rural businesses hardest, as they are likely to be disproportionately represented among the 20 per cent which would not have high-speed broadband connectivity by this date.

Of the current service, the FSB says it is worried that broadband service providers cannot meet the promises over service levels they are giving to business customers. It believes this will not happen until the Government commits to delivering a measurable level of business broadband performance, and backs this up with the investment needed to ensure that it is achieved.

FSB National Chairman John Wright said that modern small businesses were particularly dependent on being able to achieve good online performance as they grew and played an important part in lifting the UK economy out of recession.

He added that while promises to tackle areas where no broadband connection had been made, no action had been taken towards eliminating them. This, he said, amounted to letting down small businesses.

He especially urged that telecoms watchdog Ofcom should be seen to be acting more independently of the industry so that it was seen to be campaigning to secure a better deal for businesses.

The FSB is asking the Government to set down and enforce rules obliging service providers to ensure that their business broadband and phone packages meet their customers’ needs, and are priced so that they represent a good deal to small businesses.