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Dublin: 11 °C Sunday 26 May, 2013

Online sales affected by poor broadband quality in Ireland

The Irish Small and Medium Enterprises Association is calling on the government to do more.

Image: Associated Press Photo

ONLINE SALES OPPORTUNITIES are being affected because of inadequate broadband quality in Ireland according to new research by the Irish Small and Medium Enterprises Association (ISME).

ISME says that “serious inadequacies” still remains for companies using information and communications technology (ICT) with broadband quality seen as an impediment to to companies developing and increasing online sales.

In a survey of 1,034 companies this month, ISME found that 97 per cent of companies use the internet for business purposes with 84 per cent having their own website.

However, 47 per cent of those indicated quality of service as their greatest concern.

The survey also found that:

  • One third of companies use the internet for on-line selling, a small increase from the 28 per cent in 2010.
  • The main purpose for using the internet is banking (87 per cent), communications (77 per cent), research (70 per cent) and sourcing suppliers (63 per cent).
  • The average cost of set-up of a web site was €4,568 with an average maintenance of €1080.
  • 46 per cent of companies reported that the internet has reduced their business costs.
  • 43 per cent of companies (up from 26 per cent in 2010) have a social networking site presence, with the majority (85 per cent) on Facebook and 61 per cent using the business professionals social network site LinkedIn.
  • 30 per cent recoded an increase in business due to using social networking.
  • Companies who do not have a website indicated a lack of in-house expertise (40 per cent) and costs (16 per cent), as their main concerns.

Responding to the findings ISME’s chief executive Mark Fielding said there was a danger the so-called smart economy “is passing us by and SMEs in Ireland are missing out, as consumers, both domestic and foreign, purchased on-line from outside the State.

“The increase in the number of 40-foot containers arriving into the country, full of ‘on-line purchases’, is evidence not to be ignored.”

He called on the government to do more to tackle problems associated with broadband speeds  in Ireland.

Read: Plan for full broadband coverage in Ireland by end of 2012 >

Read: Ireland makes the top ten for global broadband speeds >

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Comments (8 Comments)

  • The Internet makes a company’s offers a lot more comparable so to get business you have to compete internationally on price (and service) and product range. The reason why people buy from company’s abroad is not the speed or avalability of broadband services , instead it is the significantly lower price point and wider product range abroad.

    Reply
    • I run an online retail business, http://www.sleek.ie . My business is DIRECTLY affected by poor broadband infrastructure. I am competitive with pricing, offer free postal and am stock holding, so I don’t rely on any 3rd party company, therefore my service is 2nd to none. The biggest draw backs for me are in the areas of site updates, backups, image uploads, browsing competitor sites for price comparisons etc. At times, I have a 128k connection right down to no connection at all… I live in a relatively rural area but only 3 miles from a well serviced town (Westport)… I have had to go to cafes with web access at times just to carry out site changes… It make a business that is tough, VERY tough and needlessly so IMHO….

      Reply
    • Paul, I can imagine that your situation is difficult.

      You make a good point: There are companies in Ireland that offer good products and good prices. I more referred to the ’40-foot containers full of on-line purchases arriving in Ireland’ as per the statement of the ISME official when I was talking about competitive prices.

      Your situation is different, though. In your case it is the regional availability not the availability in general. Interestingly, with Westport only 3miles away broadband services could be delivered to you, but it would cost a handsome amount of money. So the problem is not that it is can’t be made available, the problem is how much would you be able or prepared to pay.

      You live in a village with approx. 900 inhabitants a little off the main roads and I am sure you would never expect a motorway to be built to your home. The rural access roads will probably be sufficient to get to the next bigger regional road and from there to a national road and then to a motorway. Your “broadband” situation is similar: You are on a rural access “road” – that is not of very good quality. But building a higher category road (i.e. broadband) would be very difficult to justify economically. So, unless a social component is added of the type “Every house in Ireland has the right to be connected via a motorway!” it will be unlikely that high-bandwidth or high-quality Internet services will make it to sparsely populated rural areas.

      Reply
  • It is about time the government got tough with the companies that have been licensed to provide broadband to this nation. This business of concentrating in the most populated areas, and just about ignoring remote places, has to stop. Eircom, who as far as I can see has been dragging its feet in terms of facilitating access to its exchanges, should be stripped of the ownership of that infrastructure. That (infrastructure) should then be spun off into another company. which would derive its profits from charges for the use of its assets. That gets rid of one conflict of interest.

    Reply
    • Chrissy, the government would have been able to do that when Eircom was sold many years ago, but at the time the government – in their wisdom – didn’t consider anything like that. If Eircom now was separated from the infrastructure, I expect Eircom would fight tooth and nail to keep it and there is a good chance that they would win. The opportunity for the government has gone.
      Access to Eircom exchanges is possible now, but the question is if it makes economic sense for other operators to provide services in less populated areas.

      The only option the government now has is to finance/subsidise the delivery of broadband in rural areas. This would mean that taxpayers will have to pay for it and in proportion it would be the people in cities and towns that would pay for what could be perceived as the life-style choice of others in rural areas. And if you like it or not the question about broadband vs A&E (or similar) could easily come up as well. (E.g. If the money was only there for one of the two, which one should it be?)

      Reply
  • As someone who lives outside of a broadband area, any broadband would be good.

    If I had broadband it would improve my opportunity to return to work.

    Reply
  • Last year I lived in Bulgaria. It’s supposedly a poorer country, and still trying to throw off the communist shackles…the people in some areas have almost nothing – you get the drift. One of these areas that I visited amazed me. Media wise, they have hundreds of stations that come as part of a very reasonable package and that includes several American stations offering entertainment, news, and many many more. With regard to their broadband, I could not believe how much superior it was compared with the mediocre service we get here. This report does not come as a surprise to me at all. The connection I have now is fine and doesn’t freeze up as much as the last one but for downloading anything it can take quite a while. I downloaded movies in Bulgaria and it would take about approximately 7 minutes. In Ireland, it takes over 30 mins, and sometimes even more.

    Reply

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