Ninety-five percent of U.S. businesses with five or more employees have at least one broadband connection, according to an FCC survey of 3,506 American managers, owners and IT directors. Eighty-six percent of businesses with 11 or more locations said that all of their offices have Internet access. More than half (54%) said they didn’t know their connection speed, a percentage similar to that reported by residential customers.
Seventy-three percent of businesses reported having DSL connections while 15% reported having dedicated lines. Seventy-six percent of small businesses (5-25 employees) reported having DSL while 12% reported having dedicated line access. Fifty percent of the largest businesses (>501 employees) reported having DSL according to the FCC and 42% said they connect via dedicated lines.
Sixty-three percent of businesses responded that they are “very satisfied” with their current service. Running new applications and improving customer communications were the reasons most frequently cited for those that said they were planning to upgrade their service.
The 85% of businesses that said they weren’t planning to upgrade their service in the next year said their current connection was “adequate,” were skeptical about the benefits that would be realized from doing so, and expressed concerns about costs. The cost of service was a barrier to upgrading for 50% of businesses while 30% said it was a major reason. Twenty percent said cost was a minor reason.
The FCC also gathered information on business spending for Internet service. The median for broadband spending was $125 per month. The mean amount spent was $2,198. The median monthly broadband spend for small businesses was $95. The corresponding figure for medium-sized businesses (26-100 employees) was $150. Large business spent an average $600 per month while the largest businesses surveyed spent a median of $950 per month.