The business benefits of superfast broadband are undeniable and UK coverage is moving forward apace, yet uptake among SMEs remains surprisingly low, according to Rob Lee, Marketing Director at Openreach.
He says that fibre could become one of the industry's biggest missed opportunities unless resellers connect with the evolving needs of their ADSL customers.
Many businesses operating within Openreach's fibre broadband footprint have no idea they are in a superfast fibre enabled area. Early last year 40 per cent were in the dark according to research by Openreach. The study indicates that more needs to be done to take fibre to market, and comms resellers should be at the vanguard of this push. "By the time we reach two thirds commercial fibre coverage of UK premises by the end of Spring 2014, up to 2.5 million small businesses will have access to fibre broadband via our network," stated Lee.
Openreach research also confirmed that among those companies using fibre, 70 per cent said it had opened up the potential for them to use many more applications, with just over two thirds of fibre broadband adopters pointing to improved efficiency as a result. "There is also clear evidence that when a business gets superfast broadband at one site there follows a desire to upgrade at another location," added Lee. "And businesses using ADSL-based solutions may find in time that it just doesn't offer them the bandwidth capacity to function to their full potential. The story here spells out a growing pipeline of opportunity for UK communications providers who engage with fibre broadband."
At the end of 2013 over two million premises across the UK had subscribed to superfast fibre broadband via the Openreach network. Of those, around 65,000 SMEs had taken the leap. Research also shows that once that step has been taken, few would consider going back to their old connection, with 70 per cent saying it has opened up potential for more applications; 60 per cent believing it has transformed the way they work; and over 50 per cent saying they have saved money as a result of adopting fibre broadband. "Many SMEs are finding that fibre broadband bridges the affordability gap between current ADSL and Ethernet-based solutions," added Lee. "Fibre broadband fits with their desire for more bandwidth, both upstream and downstream, and also fits within their budget."
Lee also noted that SMEs wanting to 'transform' their business, typically with two-ten people on site, have been key among the early adopters. Case studies also show that SMEs are looking at Openreach' Superfast Fibre Access (SFFA) as a way of connecting 'agile' employees and home workers.
Fibre broadband offers new ways for small businesses to connect with customers. They can use it to beef up the experience of real-time video calls and take collaborative working to a new level. They can also take advantage of hosted applications to reduce software and licensing costs. "Combine this with online data storage and SMEs can dramatically cut the cost of computer hardware as well," commented Lee. "There are benefits at the front end too. Shops for example can speed things up at the tills and even entice more Wi-Fi network-seeking customers through the doors."
The availability of superfast broadband closes the divide between traditional consumer connectivity and lower bandwidth Ethernet, making it more important than ever to help businesses choose the right products for the right reasons, believes Lee. "It's vital that they understand the options and think about the future carefully, especially if a resilient, dedicated Ethernet service is really where their requirements are heading," he added. "For this reason we have produced a range of materials to help CPs provide exactly that kind of advice."
Openreach is at the heart of one of the biggest network upgrades in the world. "Our Superfast Fibre Access network is roaring ahead, stated Lee. "We've already passed over 17 million homes and expect to cover around two-thirds of UK premises by the end of spring 2014, at least 18 months ahead of the original schedule. Working alongside the UK government we're also helping to reach the 'final third', those properties in rural areas that are hard to reach, or not commercially viable with private funding alone. BDUK funding, together with investment by the private sector, will ensure that 90 per cent of UK premises will be able to access fibre broadband within the next few years when all networks are taken into account."
When selling fibre broadband, noted Lee, it's worth considering the customers' circumstances first. Ask questions such as: How many employees do they have and what's their average bandwidth/usage per person? What applications and file size do they typically use? How much bandwidth is needed? What are their future business plans and what are their competitors doing? Is it likely they'll need more and more bandwidth over time as they need to service more customers in remote locations/overseas?
"Qualifying leads and prospects is an important first step in the sales process," he said. "It's also worth remembering the benefits of faster data transfer, giving more opportunities to work smarter, saving time through increased use of online and collaborative tools, video and storage options. Consider the efficiency angle too. Businesses are looking at cost savings alongside revenue growth. There could be opportunities to sell supplementary products. Is there a story on capex versus opex for end users? Think about how you can stand out from the crowd and innovate the product to tap into your target markets."•