Companies based in central London are losing £37 million worth of business every year due to dodgy Internet connectivity, according to a new report.
After conducting a survey involving over 400,000 SMEs in the area, the Centre for Economics and Business Research (CEBR) found that SMEs are losing 54,000 working days per year as a result of dodgy broadband.
The report, which used data from market research firm YouGov, reveals that the average broadband speed recorded in the City of London lies at 11.2Mbps. The London average, on the other hand, is 20.5Mbps.
"The fact that central London has the highest concentration of SMEs suffering from low broadband speeds has implications for productivity in London's economy," said Colm Sheehy, a senior economist at CEBR.
The research also revealed that 60 per cent of respondents said that they could operate without a landline, yet spent at least £30 million just to maintain them each year.
"In addition, the requirement to have a landline for most broadband services despite nearly two-thirds of SMEs being able to operate effectively without it indicates that businesses are getting poor value for money from their landline," added Sheehy.
The statistics are incredibly worrying. Not only are many of the capital's businesses being crippled but this news also deals a heavy blow to the UK's overall plan to establish itself as a technological world leader.
Back in May, it was revealed that parts of the moon have faster connectivity than parts of the UK.
Image credit: Foster + Partners