Stephen Timms MP

BizNet Launch

I am delighted to have been given this opportunity to launch BizNet. It is always rewarding to see private and public partnerships in action and this relationship between Watford Electronics and Bedfordshire & Luton Business Link is a unique and very encouraging one. My particular thanks to Nazir Jessa and to all at Watford Electronics for their support on this project. I know that, as a company they have “walked the talk” and their willingness to help others within the region is to be applauded.

Technology rushes on and most of us are so busy in our day-to-day activities, that we find it hard to keep up-to-date with developments. Not that long ago the Internet was new, but now it is part of normal life for most of us. Mobile phones were as large as bricks a few years ago but now are small, powerful units with long battery life and have features such as built in video cameras, global positioning, Internet capability, text messaging facility and powerful computing capability. They have become much more than just a telephone.

Earlier this year, we saw a significant milestone in the development of the UK mobile telecommunications industry. Along with Italy, the UK became the first major market in Europe to roll out a 3G service with the launch of “3” by Hutchison 3G. Its mobile broadband and I’m an enthusiastic user. Luton hot spot is another example of broadband mobility, in this case, using wi-fi technology.

We are committed as government to helping businesses understand how Information and Communication Technology (ICT) can benefit them, through enhancing efficiency and productivity. There is growing evidence to emerge to demonstrate a clear link between ICT and productivity. Earlier this year, a report by London Economics, commissioned by Cisco Systems, found that ICT investment has made both an important contribution to output growth in the UK over the period 1992-2000, and a sizeable contribution to labour productivity growth.

The work of Keith Padbury, the local adviser, and the many other advisers around the country, supported by UK Online for Business is a crucial element in assisting understanding and helping companies successfully integrate the technology into their business.

How companies successfully exploit the availability of Broadband will be an increasingly important aspect of a company’s ability to become e-enabled. Broadband allows fast access to the Internet, essential for the transmission of large files or graphics and for video work such as downloading films or video meetings. An even more important feature is that it is always on. Now you leave the computer on all the time and send or receive e-mails or files in real time, no waiting. From an economic point of view, you have a fixed cost access regardless of the amount of time you spend on-line, which enables you to budget more easily for it. But it is more than just this. Broadband services, whether delivered over the telephone line, cable wire, satellite, terrestrial radio antenna or to the next generation mobile telephone, have the potential to increase productivity, enhance competitiveness and open up completely new markets.

Our aim is for the UK to have most extensive and competitive broadband market in UK by 2005. There are now 2 million broadband users in the UK and this is increasing by 35,000 new connections every week. Broadband via Asymmetric Digital Subscriber Line (ADSL), cable or wireless is available to 71% of the population, exactly same population now as in US.

The public sector will have an important role. The UK Broadband Task Force, which I launched towards the end of last year, encourages the most effective use of public and private sector procurement in broadband solutions. The Task Force works closely with the Department of Education, as well as the Department for Health and other government departments to extend networks in local communities and has coordinators in the English regions, as well as Scotland, Wales and Northern Ireland. We will be investing over £1Billion over 2003-2006 in broadband connectivity for public services. This will include providing all primary and secondary schools with 2 Mbps to 8 Mbps broadband connections by 2006; every GP will get at least a 256 Kbps fixed line connection; and Primary Care Trusts and Strategic Health Authorities will get 2 Mbps connections by March next year. Aggregating key aspects of public sector demand will bring broadband infrastructure to a wide range of sites quickly and efficiently, as well as, ensuring that broadband becomes available more widely. I am taking a close personal interest in the broadband aggregation project, chairing the Ministerial Group that oversees the process.

For its part, BizNet is a very good example of the sort of project that needs to happen, as it raises awareness of Broadband and allows people to see the benefits of high speed, always on access for themselves. Where broadband is concerned, seeing is, definitely, believing. I expect this facility to make an important contribution to the take up of broadband within the region.

BizNet is just one element within the broader regional broadband activity. Elsewhere, EEDA has used the £3 million provided by the DTI to promote its excellent “Connecting Communities Competition”, where communities have joined together to apply for funding to promote Broadband in areas where there is currently no Broadband service. The results will be announced shortly, but the mere existence of the competition has driven more exchanges to be equipped more quickly, as well as promoting an expanded WiFi and Broadcast Broadband service, particularly in rural areas. Other Regions are keen to copy the idea. EEDA also promotes the e-Procurement Programme in Local Government and is making SMEs aware of Broadband Applications that they can make use of in the e-Enabled world of today.

Building awareness of the benefits to business of using ICT effectively is core to the activities of UK Online for Business. Through its adviser network, over 300 ICT advisers deliver front line advice to SMEs through Business Links and other channels. As well as the adviser network, a lot of very useful work is being done through the regional champions and the e-business clubs that have been established. Additionally, around 49,000 visitors go to the UK Online for Business website each month.

An important part of the UK Online for Business programme is the E-Commerce Awards competition, which is a national competition entirely dedicated to the successful use of the Internet by small businesses and other small organisations. Here in the East of England, the sponsors are BT and EEDA. Nominations are running at an all time high in this Region, which produced the National Winner the year before last.

The competition carries regional and national cash prizes over a number of categories including E-Business Start-up, E-Trading and Voluntary & Community. New for this year are the National Innovation Awards covering Mobile and Wireless Technology, Broadband Communications, Supply Chain Integration and use of “Technology Means Business” Accredited Advice. There are fifty prizes totalling £182,000 and entries close at the end of July so get your entry in NOW! Up to last week there had been 1,518 nominations and I hope to see that this region is one of the more successful in terms of companies entering. I hope you will all contribute to a final push in the last few weeks before entries close. This is the fifth year for the competition and it has produced some outstanding entries, many of whom get considerable PR as the aim of the competition is to show SMEs that, regardless of how small they may be, can still make the Internet work for them.

There are some leaflets available here for you to take away if you wish and Keith or Trace-Ann from Bedfordshire UK Online for Business will be happy to help you enter the competition.

One of the key roles for the Government is to ensure that the Internet becomes second nature for everybody in society. We want everyone to be able to access the benefits of the Internet. Technology can be a great leveller, a liberator for some and a lifeline for others. From a business perspective it provides a level playing field for large and small companies. It permits collaborative teleworking rather than having staff commute to expensive offices. It encourages co-operative working between suppliers and resellers so that a more efficient supply chain results. Watford Electronics’ e-business is an example of how a supply chain can work to the benefit of the supplier, the reseller and the consumer.

There is still much to do for SMEs, and BizNet is another step along the way of helping small business come to terms with technology as it develops. I am delighted to have this opportunity to welcome the launch of BizNet today.

I understand that I am now to be taken downstairs to officially open the demonstration area and so will now hand you over to Richard Kneller, the Regional UK Online for Business champion.