RURAL business leaders are calling for urgent discussions on measures to address the continued neglect of rural areas by mobile network operators as new figures reveal a persisting digital divide in the UK. 

Nearly half a million (480,000) small businesses cannot access superfast broadband, with 192,000 not even being able to access 10 Mbps. 

Coverage of business parks and rural areas continues to lag, affecting the ability of businesses to grow and innovate. 

The regulator Ofcom has issued a stark warning that unless radical new plans are developed people living and working across the UK’s countryside will continue to struggle to receive a good service, which it deems unacceptable. 

Figures show that coverage makes it possible to make and receive phone calls across only 52 per cent of UK landmass and that the discrimination felt by rural areas is acute. 

The evidence also shows how mobile operators are focusing their investments on rolling out infrastructure in rural areas. Roll out of 4G services mean that coverage is available in 89 per cent of locations within urban areas, more than double the coverage figures for rural areas (37 per cent).

CLA South East Regional Director Robin Edwards said: “It is shocking that Ofcom has no confidence that the operators have a plan to deliver the coverage rural areas need. 

"This comes despite legally binding commitments made by the mobile companies that coverage would be delivered by the end of next year. Today’s report casts this prospect in to serious doubt. 

“We are seeking urgent meetings to discuss what can be done to force the industry to deliver more than just promises but actually roll out the infrastructure required to connect our countryside. 

“Our first demand will be for concrete reassurances that Ministers will use the auction of new mobile spectrum licences to impose stringent conditions which require the operators to deliver the extended coverage they have failed to do to date.” 

The Federation of Small Business (FSB) has been campaigning to ensure that the USO covers small businesses as well as domestic households. 
Ofcom has confirmed today the USO should ensure every home and small business in the country has the right to a decent, affordable broadband connection of 10 Mbps or above by the end of the current parliament.

Mike Cherry, FSB national chairman, said: “Too many small businesses are held back by poor broadband coverage and slow speeds. 

“Although progress continues to be made, Ofcom has shown today why an ambitious USO is essential to get all small businesses connected to a basic level of broadband. 

“We are pleased that Ofcom have set out clearly the challenges small firms face and the options the Government has in resolving this issue. 

“The situation for many small businesses is urgent – there is no time for delay. Government must step up and deliver the broadband our members need. If small businesses are to compete in the new digital economy, they need to be able to get online.”

  • The UK Government is expected to commence the tender process for acquisition of licence rights for new spectrum capacity next year.