Irish Businesses Slow to Join the Full Fibre Revolution

The latest data published by the telecoms’ regulator, Comreg, have revealed that only 10% of all Irish businesses are using a full fibre broadband connection.

Poor connectivity risks undermining efforts for Irish businesses, particularly SMEs, to fully embrace digital technologies, according to broadband operator SIRO.

Comreg has just published its Quarterly Key Data for Q2 2024, covering the three months of April, May and June 2024. This reveals that only 30,788 Irish businesses have moved from outdated broadband technologies such as copper or cable to fast, reliable and future-proofed fibre to the premise (FTTP) broadband.

With over 300,000 businesses in Ireland, Comreg’s data indicates only 10% of those businesses are using fibre to the premises (FTTP) broadband.

In total, full fibre (FTTP) broadband is available to 68% of all Irish premises, with 47% of those premises now having an active FTTP connection.

Both the level of access to full fibre broadband and the take up of this service have grown considerably in recent years as network rollouts accelerate. However, the majority of the take-up has been by residential customers, with the pace of adaptation not replicated by Irish businesses.

In an EU context, the most recent Digital Economy and Society Index (DESI) 2022 found that Ireland’s take-up of fixed broadband was lower than the EU average. Previous research by the European Commission from 2019 noted that the digital economy in Ireland “appears to run at two different speeds, with a small number of multinationals with high digitisation but with indigenous SMEs, slower in leveraging digital solutions to reduce costs, drive innovation and expand their market presence”.

The data comes a time when the digitalisation of business, particularly SMEs, is an increasing focus for Government to ensure they remain competitive and sustainable into the future. The Department of Enterprise, Trade and Employment has set a national target of 90% of SMEs to reach basic digital intensity by 2030 and to have at least 75% of enterprises using Cloud, AI and Big Data by 2030.

SIRO Chief Commercial Officer Ronan Whelan noted: “Households have enthusiastically embraced full fibre broadband as access to fibre networks has expanded across the country, but Comreg’s data shows this has not been replicated amongst Irish businesses to the same extent.

“Enterprise Ireland has recognised “a key enabler for strong digitalisation is internet reliability.” Full fibre broadband, with greater resilience, greater bandwidth and faster connection speeds, is best placed to meet this requirement.

“Low levels of business FTTP broadband take-up has consequences. It risks undermining wider national objectives on digitalisation at a time when the future of small businesses really requires they embrace digital transformation.

“Business representatives, Government and the fibre broadband industry must redouble efforts to more effectively communicate to Irish businesses the relevance and benefits of full fibre broadband to their business. This should include fibre broadband awareness campaigns, ensuring that adequacy of connectivity features on prominently digital fitness checklists, and that companies are advised on full fibre broadband solutions when availing of state supports,” added Mr Whelan.