Reliability and compensation report: the impact of poor business fibre connectivity
April 24, 2024
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4
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Highlights
The 2024 Reliability and Compensation report puts a value on just how much internet outages cost businesses. Last year, economic productivity in London lost £5.7 billion because of connectivity outages. ISPs should compete on the quality of their networks, to drive performance improvements and better serve the business community.
In today's digital world, unreliable business internet connections are costing businesses and damaging the UK economy.
Our recent Reliability and Compensation Report, authored by Assembly Research, using data from the ONS and a survey conducted by YouGov, revealed that: 51% of UK fixed business connectivity customers experienced an outage in the past year, but 61% of those affected never received compensation.
Your business internet service provider (ISP) should make promises (in the form of a robust and transparent Service Level Agreement (SLA)) about keeping your business connected.
If they won’t make contractual promises, that says a lot about their confidence in their network. Automatic compensation would hold them to account.
The reality of internet outages
Digital connectivity is a cornerstone of business operations, and the economic repercussions of poor connectivity are very real.
19% of businesses with a business internet contract experienced more than three outages in the past year.
Overall, the UK economy lost £17.6 billion due to fixed business connectivity outages in the past year, with London businesses alone losing £5.7 billion.
Even brief outages that might have been tolerated ten years ago significantly impact productivity today. We’re more reliant on connectivity than ever before. And that’s only going to increase.
Tim Creswick, Founder and CEO of Vorboss, says:
“ISPs should all be incentivised to compete on quality – that would force an uplift in network performance, and in turn drive a much-needed economic boost.”
The problem with getting money back
Even though connectivity outages are common, not many businesses receive compensation.
Only 35% of UK fixed business connectivity customers who experienced an outage in the last twelve months received compensation.
Based on a sample of current tariffs, a meagre average of only £7.53 in direct financial compensation would have been available for the average outage time.
Businesses depend on the internet for everything from internal functions, like cloud-based services, to external interactions with suppliers and customers, so it’s critical they can trust their internet to work.
Especially as our demands on internet infrastructure increase.
The power of the SLA
Many businesses are not aware of the promises—if any —that their internet provider has made, or what they should receive if there’s a problem.
23% of UK fixed business connectivity customers were unsure whether their contracts included SLAs, and 21% didn’t know if their contract specified compensation arrangements if certain service quality levels weren’t met.
This makes it hard for them to ask for money back when things go wrong and suggests that there's a significant change is needed in how internet providers talk to their business customers.
When asked why they hadn’t asked for compensation, 44% of UK fixed business connectivity customers believed the claim wasn't worth the time and effort.
34% didn't bother to ask because they didn’t expect to receive any compensation.
Customers should be the priority, and getting automatic compensation when things go wrong is one way to make sure they are treated fairly.
While being compensated for internet outages doesn't fully make up for lost productivity, clear promises and automatic money back when things go wrong are essential to ensure that networks are competing on quality. And they’re essential to enabling businesses to make an informed choice about the provider that’s best for them.
For detailed statistics and insights that can guide your decision-making, read the complete Reliability and Compensation Report.
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When Flight Centre, the unforgettable-experience-plotting travel experts, were preparing to open a brand-new shopfront on Upper Street in central London, everything was going to plan. The team had lined up suppliers early, including their internet provider, expecting smooth sailing to launch day.
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So good, they brought us to Barcelona
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