Oftel chief urges SMEs to make most of telco rivalries

NEWS Small firms are failing to take advantage of competition between rival telcos, claims David Edmonds, director general of telecoms watchdog, Oftel. Edmonds, speaking at a business conference at Leeds University, said SMEs are missing out on golden opportunities for lower costs and better connections. A recent survey found that small businesses with up to 50 employees are more likely to use BT - 90 per cent, compared to only 80 per cent of large businesses. "At an overall level small businesses are less likely than large businesses to use alternative suppliers, less aware of advanced services, and less likely to use newer telecoms services," he said. Edmonds then added that the main explanations the companies gave for this was either 'too much hassle' or 'satisfied with current supplier'. Edmonds also cited research that is yet to be published in which Oftel found SMEs are not making the most of ecommerce. "While 7 in 10 small businesses surveyed have email, three quarters of these never use the Internet to sell, and a half never buy or order goods over the Internet." But Stephen Alambritis, head of parliamentary affairs at the Federation of Small Businesses is confident this will change in 2000. "This year it will become top of the agenda - 25 per cent of SMEs will go online and the same number will also change telco provider." Alambritis admitted there had been inertia among SMEs over the years, but he said: "They simply haven't had the time or the where-with-all to make the change, even though it would benefit them." He also called for greater input from telcos to make it easier to switch supplier.