UK businesses just as likely to change ISP

The latest research from Point Topic has found that 12% of UK businesses changed ISP over the past 6 months, with 23% being 'very' or 'fairly' likely to do so in the next 6 months:

"This is broadly in line with our findings last year," says Dr Katja Mueller, Research Director for Point Topic, "there is some shift from 'very' to 'fairly' likely but overall it's pretty steady."

The picture changes when we examine likelihood of churn against which ISPs the business is currently with. More than 40% of both Bulldog (Pipex) and Orange customers in the sample say they are 'very' or 'fairly' likely to change supplier soon.

The reasons for picking (or sticking with) a particular ISP have changed over the last 12 months. While service 'reliability' remains the top concern for business 'price' has slipped down the list when businesses confirm what they regard as 'very important' in selecting an ISP. This contrasts with the selection of fixed telephony supplier, where an uninterrupted service is taken for granted, and 'competitive pricing' was specified as the most important factor by 55% of respondents, against 42% for 'reliability'.

"We believe this reflects the fact that more and more businesses are relying on the internet for business critical services and applications," says Dr Mueller. "If the people in your office can't get their email, or if your warehouse can't access the stock control system then your business suffers financially."

The study goes on to reveal that businesses are now more likely than ever to pay extra for a service where improved reliability can be gained.

The proportion of businesses paying more than £50 per month (but less than £499) for broadband has doubled from 17% in March 2006 to 34% in March 2007.

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