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Rural economies hampered by sluggish broadband, CBI tells Ofcom
While BT has countered calls for it to stump up a significant portion of the estimated £15 billion it will take to replace the UK's copper wire telephony infrastructure with the argument that the demand for higher broadband speeds is relatively low, business leaders have yet again highlighted the detrimental effects slow connection speeds are having on the national economy.
At the end of last year, the government's minister for competitiveness Stephen Timms argued that super-fast broadband speeds - that is anything up to 40 mbps - are essential in order for the economy to move forward and keep up with other countries, where 20mbps is currently offered as standard to both business and domestic customers.
However, the situation is currently so bad in some rural areas that a worrying number of enterprises are struggling to work effectively with speeds which are inadequate for even the simplest existing technology and systems.
On the back of research which has found that some businesses are receiving broadband speeds of just 12 per cent of the advertised rates, the Confederation of British Industry (CBI) has called on the telecommunications industry watchdog to intervene in order to safeguard organisations operating outside of the main urban centres and the national economy in general.
In particular, the body has called for the establishment of a uniform broadband rate across the UK, with this seen as a vital first step towards keeping up with the rest of the world.
"For the sake of our gross domestic product, Ofcom needs to get off the fence and take a positive lead in encouraging investment in broadband networks nationwide" added David Harrington, head of regulatory affairs at the Communications Management Association, which has backed the CBI's proposals.
"Unless enterprises across the UK have access to equal speeds, the UK will be unable to compete for future inward investment."
Though BT has stated that it expects to be able to offer connections of up to 24mbps nationwide by 2012, the company has also effectively issued a disclaimer by reiterating the fact that the distance from an exchange and the quality of the lines would still then affect the type and speed of connection it is technically possible to deliver.
As the aftermath of last year's Which? report into broadband speeds highlighted, the speed issue is not in question, but rather it is the funding issue which is, and is set to remain, highly contentious.
With UK Broadband having come under heavy criticism recently for failing to deliver on its bold ambitions to 'revolutionise' broadband access for British households, it seems likely that, unless Ofcom heeds the CBI's advice and intervenes, internet service providers are going to remain reluctant to pledge super-fast speeds for businesses anytime soon. 
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