rural business report
TRANSCRIPT
I N T RODUC T ION F ROM GA R ET H W I L L I A MS
“The pandemic sharply underlined the importance of internet connectivity. For many business leaders, myself included, maintaining any level of business continuity through the various lockdown periods would have been nigh on impossible without functioning broadband.
“But, despite having one of the most advanced and sophisticated economies in the world, there are still areas of England where internet speeds are unable to meet basic needs such as sending an email or opening a webpage.
“This report explores the state of internet access and internet speeds in rural England, and its impact on businesses.
“The data, which we compiled and analysed in partnership with the Countryside Alliance, shines
a light on the challenges, ambitions and opportunities open to rural businesses. It gets under the skin of how they use broadband and how its speed, or lack thereof, has helped and hampered their growth plans.
“Despite the work we’ve been doing over the last ten years to connect some of the most rural areas of the country to our ultrafast network, rural businesses are still at a disadvantage. We hope that, by shining a light on how difficult the situation is, we can show how critical it is that UK Government acts to address the enduring barriers to rolling out gigabit capable infrastructure in rural communities.”
Gareth Williams CEO, Gigaclear
2
“This report explores the state of internet access and internet speeds in rural England, and its impact on businesses.”
Rural Business Report
I N T RODUC T ION F ROM SA R A H L EE
“A successful rural economy is vital for maintaining a living and working countryside. As we move into a digital age the rural economy is becoming more reliant on digital connectivity.
“The countryside economy is already 16% less productive than the national average, but has enormous untapped potential which good connectivity would help unleash. If you were to level up the countryside by delivering connectivity, the economy has the potential to grow by up to £43bn in England alone.
“The pandemic has once again highlighted the disparity in broadband connectivity across the country, but has been particularly felt by those businesses operating in rural areas, as the networks have struggled to keep up with unprecedented demand.
“This is why this important report is so timely and highlights the real struggles rural businesses face when it comes to operating in a digital world, without decent connectivity.
“Whether you are running a farm B&B or a design agency, connectivity is vital for the success of any business. While the Government is hugely ambitious for a digital Britain, an ambition we fully support, it is currently the case that those running businesses in the countryside simply do not have the connectivity that they need and deserve. The Government must deliver on its ambition. Fundamentally, we should all be digitally connected, no matter where we live.”
Sarah Lee Director of Policy, Countryside Alliance
3
“The pandemic has once again highlighted the disparity in broadband connectivity across the country, but has been particularly felt by those businesses operating in rural areas.”
Rural Business Report
DIGI TA L I N F R AST RUC T U R E M I N IST ER M AT T WA R M A N SA I D:
“Improving internet access is central to our plan to build back better from the pandemic and the government is funding the biggest broadband rollout in British history in order to dismantle the digital divide between urban and rural.
“Our record £5 billion Project Gigabit fund is prioritising bringing lightning-fast speeds to rural areas and we are exploring using innovative wireless and satellite technologies to connect the hardest to reach.
“We welcome Gigaclear’s report and will consider its findings as we press on with our ambitious plans to boost businesses and stimulate investment in the UK’s countryside communities.”
Matt Warman Digital Infrastructure Minister
4Rural Business Report
E X EC U T I V E SU M M A RY CON T E N TS
6 Methodology
7 Rural Business: Benefits & Challenges
9 The State of Rural Broadband
12 The Impact of COVID on Rural Business
14 Post-Covid Recovery
16 The Future of Rural Broadband & Business
17 Conclusion from Gareth Williams, CEO, Gigaclear
5
85%
65%
Only 7%
14%
1 in 5
80%
of rural businesses report their internet as being either poor but manageable (47%), or unmanageably poor (38%)
of business owners have invested in either a 4G router (45%), or satellite internet access (20%), increasing business overheads
of rural businesses have full fibre internet, while over half (56%) have an ADSL copper connection
of rural businesses have closed completely since the pandemic
businesses have had to resort to working out of a café or equivalent public space to get the required connectivity to operate
said better internet access would have the single biggest positive impact on their business recovery post-pandemic
Rural Business Report
6
The data in this report was collected from 651 survey respondents, all members of the Countryside Alliance and all owners / operators of rural businesses.
Nearly a third (30%) of survey respondents operate agriculture, forestry, hunting and fishing businesses. But the remaining 70% work in a range of sectors you would expect to see in any town or city, including professional, scientific and technical services (9%), accommodation (7%), real estate (4%), information and communication (4%), finance (4%) and construction (3%).
What type of business do you operate?
MET HODOLOGY
0
5
10
15
20
25
30
35
Acco
mm
odat
ion
Adm
inist
rativ
e &
supp
ort s
ervic
es
Agric
ultu
re, f
ores
try,
hunt
ing
& fis
hing
Arts
& c
rafts
Bars
or p
ubs
Butc
her
Bake
ry
Cafe
Clot
hing
& A
cces
sorie
s
Char
ity
Crea
tive
serv
ices
Ente
rtain
men
t
Cons
truct
ion
Educ
atio
n, h
ealth
& so
cial w
ork
Fina
nce
Gun
Mak
ers
Info
rmat
ion
& co
mm
unica
tion
Man
ufac
turin
g
Min
ing/
quar
ryin
g an
d ut
ilities
Prof
essio
nal, s
cient
ific&
tech
nica
l ser
vices
Publ
ic ad
min
and
def
ence
;ot
her s
ervic
es
Real
esta
te a
ctivi
ties
Tran
spor
t and
sto
rage
Shoo
ting
supp
liers
Who
lesale
, ret
ail &
repa
ir of
mot
or v
ehicl
es
Oth
er (p
lease
spe
cify)
Rural Business Report
7
Broadband internet speeds in rural England are, for the most part, significantly slower than urban areas.1
Yet even with such a significant disparity, it could still be the case that the state of internet access in rural England is at least serviceable. But, according to the business owners we surveyed, that is not the case. They report the benefits as being things like pleasant working environments (82%), a better work/life balance (62%), the proximity to nature (54%), shorter commutes (37%), the ability to work with friends and family (32%), and the joy that comes from carrying on family traditions (34%), among other things.
Unsurprisingly, internet connectivity does not feature in that list.
In fact, rather than being overblown, poor internet connectivity is a challenge faced by 90% of business owners surveyed. To put the universality of the problem into context, the next most common challenges faced by rural businesses are a lack of transport links (32%), road size and condition (31%), and crime (15%).
Interestingly, after crime, the next most common challenge is not being taken as seriously as competitors based in towns and cities (14%). Could internet access play a part in this perception? We delved a little further into the state of rural broadband…
Before the pandemic, what benefits did you experience operating a rural business?
1 Broadband (publishing.service.gov.uk)
RU R A L BUSI N E SS: BE N E FI TS & CH A LLE NGE S
0
20
40
60
80
100
Mor
e sp
ace
for m
ybu
sines
s pr
emise
s
It en
ables
you
to c
ontin
uea
tradi
tiona
l cra
ft or
skil
l
The
abilit
y to
be
able
to c
ontin
uea
fam
ily b
usin
ess/
tradi
tion
Prox
imity
to n
atur
e
Bette
r wor
k/life
bala
nce
Mor
e af
ford
able
busin
ess
rate
s
Mor
e af
ford
able
mor
tgag
e or
rent
Less
com
petit
ion
Gre
ater
cus
tom
er lo
yalty
Sens
e of
com
mun
ity
Low
er s
taff
cost
s
Wor
king
with
frien
ds o
r fam
ily
Shor
ter c
omm
ute
(clo
ser t
o ho
me)
Mor
e pl
easa
nt c
omm
ute
Plea
sant
wor
king
envir
onm
ent
Rural Business Report
8
Before the pandemic, which of the following challenges did you face as a rural business?
RU R A L BUS I N E S S: BE N E F I TS & CH A LLE NGE S
0
20
40
60
80
100
Oth
er (p
lease
spe
cify)
Busin
ess
prem
ises
not g
iving
the
right
impr
essio
n of
the
com
pany
Lack
of c
hoice
of s
uita
ble
busin
ess
prem
ises
Mar
ketin
g th
e bu
sines
sis
mor
e di
fficu
lt
No p
assin
g tra
de/c
usto
mer
s
Com
petit
ion
(via
inte
rnet
)
Crim
e
Not b
eing
take
n as
ser
ious
lyas
tow
n/cit
y-ba
sed
com
petit
ors
Lack
of s
uppo
rting
amen
ities
in lo
cal a
rea
Cost
of i
mpo
rting
/ ex
porti
ng
Road
size
/ co
nditio
n
Diffi
culty
Ret
ainin
g st
aff
Diffi
culty
Attr
actin
g st
aff
Shor
tage
of s
killed
wor
kers
Shor
tage
of g
ener
alta
lent t
o ch
oose
from
Poor
tran
spor
t lin
ks
Poor
inte
rnet
con
nect
ion
Rural Business Report
9
Perhaps unsurprisingly, the majority of respondents (56%) claimed to have old-school copper wire (ADSL) broadband connections.
Fibre / copper (FTTC) connections, which have been the norm in towns and cities for over ten years and are about five times faster than pure copper ADSL connections, only account for 18% of rural broadband connections and still suffer from the problem of the speed of service degrading over distance.
Only 7% report having full fibre/ Fibre to the Property (FTTP), the type of connection that best enables uninterrupted video conferencing, conference streaming, large file uploading and downloading and ultrafast browsing.
This difference in take up of connection technologies does appear to play out in terms of service quality. 85% of respondents report their internet as being either poor but manageable (47%), or unmanageably poor (38%).
What type of internet connection do you have?
T HE STAT E OF RU R A L BROA DBA N D
0
10
20
30
40
50
60
Don’t knowFull fibre to the property (FTTP)
Fibre/copper (FTTC)Copper wire (ADSL)
Rural Business Report
Do you currently suffer from a poor internet connection?
10
Despite this, the survey responses evidence rural businesses needing internet access just as much as anyone else. Even in rural areas, connectivity is a necessity to modern commerce, so rural businesses have little choice but to persist with extremely poor internet speeds to access information online (82%), access business tools and services (71%), communicate with existing customers (81%) and conduct marketing to reach new potential customers (58%).
Rural businesses are accessing the internet, however, albeit through their own efforts.
T HE STAT E OF RU R A L BROA DBA N D
0
10
20
30
40
50
No, I have always been well connected to ultrafast internet
No, I have ultrafast internet now, but I have
suffered from a poor internet connection
in the past
My internet speeds are about average (around 30Mbps)
Yes, my internet connection is poor
but it’s just about manageable
Yes, my internet connection is
unmanageably poor
Rural Business Report
In the past, what have you done to try to circumvent poor internet speeds?
Rural Business Report 11
Nearly half (45%) have had to invest in a 4G router to be able to get reliable access to the internet. While a fifth paid for a satellite connection or simply upped sticks and worked from a café in town (20% and 19% respectively).
Shockingly though, 26% admit to paying for IT support that simply cannot solve the issue of poor internet connectivity. And extreme measures are being taken in some cases, with 7% hiring an agency or freelancer to access the internet for them, and 3% giving up and moving premises all together.
T HE STAT E OF RU R A L BROA DBA N D
0
10
20
30
40
50
Oth
er (p
lease
spe
cify)
Mov
ed p
rem
ises
Wor
ked
at a
caf
é or
oth
er p
ublic
spa
ce
Got
sta
ff to
wor
k fro
m h
ome
Take
n w
ork
hom
e
Spen
t lot
s of
mon
ey o
n IT
sup
port
Clos
ed s
hop
to u
sein
tern
et s
omew
here
else
Hire
d an
age
ncy
or fr
eelan
cer t
om
anag
e on
line
oper
atio
ns
Paid
for a
sat
ellite
inte
rnet
con
nect
ion
Boug
ht a
4G
rout
er
Rural Business Report 12
Like many businesses across the country, 44% of the rural businesses surveyed have been able to continue their operations by working from home during the pandemic, a further 5% closed shopfronts, but continued operating online.
Obviously, the result has been increased reliance on the internet to maintain business continuity. Zoom and Teams have been as essential in rural England as anywhere else, with 70% using video conferencing to stay in touch with clients. Supplier communications (61%), continuing sales online (41%), online marketing (35%), communicating with staff (33%), all these things have put extra strain on rural business’ internet connections.
Has your business had to close in the lockdown period/s?
T HE IMPACT OF COV ID ON RU R A L BUSI N E SS
0
10
20
30
40
50
Other (please specify)No, we haven't closed but are
working from home
We’re an essential business and have
been operating throughout the
lockdown periods
Our store front closed, but we are still operating online
We closed for one lockdown but
remained open for the others
Yes, we’ve closed completely
13
And it’s not just the “soft” or unmeasurable business operations that have had to go online. COVID has meant increased precautions even for essential businesses like grocers and butchers, that’s why 10% have invested in contactless payment systems that require internet access to operate, despite their poor connections.
In what ways has your business relied on the internet throughout the pandemic?
T HE IMPACT OF COV ID ON RU R A L BUSIN E SS
0
10
20
30
40
50
60
70
80
Oth
er (p
leas
e sp
ecify
)
Inst
alle
d co
ntac
tless
pay
men
tsy
stem
for i
n-pe
rson
pay
men
ts
Incr
ease
d so
cial
med
ia a
ctivi
tyto
kee
p cu
stom
er e
ngag
emen
t up
Incr
ease
d co
nten
t on
the
web
site,
suc
h as
mor
e ph
otog
raph
s of
pro
duct
s,to
acc
ount
for t
he fa
ct th
at p
eopl
eco
uldn
’t se
e th
em in
per
son
befo
re b
uyin
g
Zoom
/Tea
ms
calls
with
em
ploy
ees
to k
eep
them
mot
ivate
d
Dive
rsify
ing
my
busin
ess
to b
e ec
omm
erce
led
Keep
ing
cust
omer
s up
to d
ate
with
ope
ning
hou
rs a
ndCO
VID
prec
autio
ns
Reac
hing
new
cus
tom
ers
thro
ugh
onlin
e m
arke
ting
Cont
inui
ng s
ales
thro
ugh
the
inte
rnet
Com
mun
icat
ing
with
sup
plie
rs
Clie
nt m
eetin
gsth
roug
h Zo
om
13Rural Business Report
Rural Business Report 14
0
10
20
30
40
50
60
70
80
Oth
er (p
lease
spec
ify)
Gov
ernm
ent
finan
cial s
uppo
rt
Chea
per p
rope
rtym
ainte
nanc
e
Chea
per
impo
rting
/ ex
porti
ng
Bette
r roa
d co
nditio
ns
Bigg
er ta
lent p
ool
to e
mpl
oy fr
om
Ultra
fast
inte
rnet
conn
ectio
n
When asked ‘what would have the single biggest positive impact on their business recovery post-pandemic’, only 8% said more Government financial support. Only 3% said a bigger talent pool to recruit from or better road conditions. Only 2% said discounted importing and exporting. Only 0.6% said cheaper property maintenance.
POST- COV ID R ECOV E RY
of respondants said better internet access would help their business recover
80%
In terms of business recovery after the pandemic, which of the following would have the single biggest positive impact on your business?
Rural Business Report 15
The vast majority of rural businesses surveyed (58%) believe they could recover post-COVID at least 50% faster with ultrafast internet than without, with 20% saying twice as fast and 12% saying even faster than that.
It’s clear that rural businesses are crying out for better internet access.
POST- COV ID R ECOV E RY
How much faster could your business recover post-COVID if you had better internet access?
0
5
10
15
20
25
We
don’
t use
the
inte
rnet
Mor
e th
an tw
otim
es fa
ster
Twic
e as
fast
75%
fast
er
50%
fast
er
25%
fast
er
10%
fast
er
No fa
ster
(our
inte
rnet
conn
ectio
n is
ultra
fast
)
Rural Business Report 16
of the country is to have gigabit capable internet by 2025, according to Government plans
86%
0
10
20
30
40
50
I don
’t kn
ow b
ut I
am n
ot c
once
rned
I don
’t kn
ow b
ut I
am c
once
rned
I may
hav
e to
cons
ider
clo
sing
It w
ill be
diffi
cult
tom
ainta
in th
e sp
eed
and
quali
ty o
f ser
vice
I offe
r
It w
ill be
diffi
cult
tore
cove
r pos
t-CO
VID
My s
taff
will
have
tow
ork
from
hom
e
I will
stru
ggle
to k
eep
up w
ith th
e co
mpe
titio
n
It w
ill be
diffi
cult
to g
row
I may
hav
e to
con
sider
mov
ing m
y bus
iness
to a
bette
r-con
nect
ed a
rea
It w
ould
not
impa
ctm
y bus
iness
The Government aims to connect atleast 85% of the country to gigabit capable internet by 2025. Gigaclear, among others, is working to achieve this commercially and in partnership with BDUK.
The importance of that target to rural businesses cannot be understated. If their broadband connection was to never improve, 20% of respondents said they would consider moving their businesses to a better-connected area, 41% would find it difficult to grow, and 46% said they would struggle to keep up with their competition.
T HE F U T U R E OF RU R A L BROA DBA N D & BUSI N E SS
If your internet connection never improved, how would it impact your business?
CONC LUSION F ROM GA R ET H W I L L I A MS, CEO, GIGAC L E A R
“In the last 30 years, internet connectivity has gone from a novelty to an essential part of day-to-day life. It’s exceptionally hard to operate a modern business, let alone grow, without it.
“Businesses in rural England have been largely left behind by the telecoms market. It is, ultimately, harder and more expensive to build gigabit capable networks to them than in urban areas. Properties tend to be further apart, roads tend to be smaller, and communities can be separated by miles of privately owned agricultural land.
“The pandemic has brought this issue to the public consciousness as we’ve all had to rely on the internet more than ever over the last 18 months. But the situation has been dire for years.
“With the support of the Government, companies like Gigaclear are expanding their networks across rural England to connect businesses to not just working broadband, but gigabit-capable broadband with speeds comparable to that in Silicon Valley.
“This represents a huge economic opportunity, not just for individual businesses, but for the country as a whole, at a time when economic opportunities are desperately needed.
“But there are still obstacles to overcome. The negotiation of land access is one of the most significant causes of delay to rural network rollout. This issue disproportionately impacts rural areas, as land holdings are often larger than in urban areas. Where urban network operators often have multiple build routes available to them at a similar build cost, rural rollout is then more likely to be dependent on a single critical path in order to be commercially viable. When land access cannot then be negotiated in a timely, reliable way, delays and descope of work are far more likely.
“As DCMS reflects on the responses to its recent consultation on reforming the Electronic Communications Code to simplify and accelerate fixed network operator land access, I hope this research reinforces the need for such reform.
“Can we connect 85% of the country by 2025? It’s ambitious, but we hope so.”
Rural Business Report 17
Gareth Williams CEO, Gigaclear