Small businesses cite advantages of high-speed Internet

Three in four small businesses report that high-speed Internet service has improved business productivity and nearly two in three say it has made them more competitive, according to a news release from SBC Southwestern Bell.

The Yankee Group, an industry analyst firm, surveyed by telephone a random sampling of 500 small businesses with SBC DSL High-Speed Internet service.

The survey found that in today's marketplace, small businesses are using the super-fast Internet connection to take advantage of broadband-enabled applications in an effort to increase their bottom line.

"After upgrading to broadband, small businesses quickly recognize the return on investment from high-speed DSL Internet service across all business areas, said Mike Lauricella, program manager of the Yankee Group's Small and Me-dium Business Communications Re-search and Consulting practice.

Business process

The survey found that a broadband connection allows the Internet to become a core part of the business process for small businesses by improving communications and increasing productivity and improving communications. Specific-ally, the survey found that:

67 percent of businesses said their broadband service had already delivered a positive return on investment.

55 percent of businesses viewed their DSL Internet service as indispensable and vital to their business.

74 percent said DSL Internet im-proved business productivity.

69 percent said broadband and im-proved customer service.

64 percent said that a broadband connection also enabled businesses to compete more effectively.

58 percent said that DSL Internet had helped improve employee job satisfaction.

Of those businesses that switched from another type of online access to DSL Internet service, the number who now feel the Internet positively impacts their business productivity increased 97 per-cent.

Broad communication

The release said that in this era of broadband Internet, where greater speeds and more applications are becoming the norm, business customers are using DSL Internet service to communicate with customers, employees and vendors. For example:

88 percent are sending and receiving e-mail with large attachments.

90 percent are conducting research and reading news online.

74 percent are purchasing goods and services over the Internet.

With a broadband connection, businesses are becoming more sophisticated in their Internet usage, the release said. For example, they are now using the Internet for online scheduling and calendaring with employees and partners, real-time collaborative document editing, distance learning, online customer support and online marketing campaigns.

Reasons for adoption

Ninety percent of businesses adopted a DSL Internet connection to receive higher connection speeds, followed by greater service reliability than other broadband technologies (64 percent), and an instantly available Internet connection (58 percent).

Specifically, customers chose DSL Internet because:

69 percent like being able to use the Internet and the phone simultaneously.

59 percent like the greater capacity to upload files.

55 percent view DSL Internet as the most convenient technology to adopt.

61 percent like the ability to use applications requiring greater bandwidth.

The Yankee Group predicted that the number of DSL Internet subscribers will reach 4.5 million by the end of 2001 and that number will grow by more than 50 percent to 6.8 million subscribers by the end of 2002.

According to the release, the Yankee Group believes that the "killer application" for DSL will continue to be "sending e-mails with large attachments."

The Yankee Group added that online procurement and customer service applications, such as customized intranets for customers and CRM tools, will be the next set of applications to see widespread market adoption.