Two-thirds of UK businesses believe poor internet connectivity is stifling new working practices, a new Be Broadband study has revealed.
Company bosses think that current broadband speeds are impeding the growth of the UK economy, the research indicated.
More than one in three businesses surveyed said their current internet connection would not support new collaborative working applications such as video conferencing, VoIP and access to cloud based services.
Consequently, 72 per cent of people think more reliable and faster broadband will ultimately make their firm more competitive.
Dan Cunliffe, Head of Be Wholesale, said that if businesses want to save thousands of pounds a year on travel by investing in unified communications, video conferencing or remote access, then internet service providers "need to deliver".
"All too often providers concentrate on the pipe, rather than what it's there to do; which is help businesses adopt and use tools that allow them to be more productive, more efficient and more competitive."
Dr Cherry Taylor, Managing Director of Dynamic Markets, agreed that there is clear enthusiasm for new web-based collaboration and productivity tools, but "little confidence that current networks can deliver".