London businesses have lost almost £6bn over the past year due to connectivity outages, new data has revealed.
Some 60 per cent of businesses in the capital reported one or more losses of service over the last 12 months, with nearly 30 per cent hit at least three times, according to a new study commissioned by internet provider Vorboss.
The total cost to the London economy was £5.7bn and this number rose to £17.6bn for the whole of the UK.
For businesses based in London, the average loss was £18,620. That loss of economic value is due to an average 314 lost hours (nearly 40 working days) of productivity per London business.
Tim Creswick, founding chief executive at Vorboss, said: “As the data in this report shows, the productivity uplift that would come from improved network quality is massive.
“We 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.”
As a result of the findings, Vorboss has urged Ofcom to introduce an automatic compensation scheme for fixed business connectivity providers.
The communications regulator implemented automatic compensation for consumers in 2019, which led to increased compensation payouts.
“Ofcom’s introduction of automatic compensation in the consumer market has been a success, pushing service providers to improve quality, while giving customers reassurance that compensation is real and tangible,” explained Creswick.
“If the scheme was extended to include businesses, we would see the same benefits, along with a significant productivity boost to London and the UK economy through reduced outages,” he added.
An Ofcom spokesperson said: “We constantly keep the market under review, and we’ll consider the research Vorboss has submitted to us.
“Following consultation, we’ve previously introduced automatic compensation for residential customers, as well as rules that mean providers of products and services to SMEs need to provide clear and accessible information on the service levels and compensation they offer.”