Slow broadband costing UK businesses GBP £11 billion each year
Research by FLR Spectron has identified slow broadband speeds as a significant yet underappreciated threat to business security across the UK.
The company's Broadband Black Spots report analysed median broadband speeds and predominant providers in the 100 most populous towns and cities, identifying areas where inadequate connectivity diminishes business productivity, undermines cybersecurity, and impacts financial stability.
The research highlights the ten towns and cities where slow internet connections put businesses at risk of cyber attacks: Wrexham, Luton, York, Winchester, Eastbourne, Chichester, Canterbury, Hastings, Havant and Aberdeen. Wrexham, with Plusnet as its leading provider, was found to have the slowest median speed in the country at just 33Mbps—less than half the UK's national average of 73Mbps.
The effects of these black spots extend well beyond bandwidth frustrations. FLR Spectron reports that employees lose an average of 44 minutes per week to poor connectivity, adding up to a full week of lost work per employee per year. These delays are estimated to cost UK businesses £11 billion annually in lost productivity, with the average company losing around £13,000 yearly.
Customer service is another area under strain. The report notes that 34% of businesses experience customer service issues due to poor internet, potentially resulting in lost sales and damaged reputations. These challenges can directly impact business performance and brand perception.
Cybersecurity exposure is also of increasing concern. According to the report, slow broadband delays essential security updates and patches, leaving systems vulnerable to data breaches and ransomware attacks. The average UK business affected by a cyberattack loses £8,460, while larger firms can face losses up to £13,400.
Communication within teams also suffers, with 65% of employees reporting dropped calls or interrupted meetings due to poor connectivity. These disruptions hinder decision-making and strain client relationships.
Data integrity and compliance risks are also highlighted. Slow speeds can cause cloud backups to fail and files to become corrupted, jeopardising critical business data. For regulated industries, unreliable internet can result in missed reporting deadlines and legal penalties, particularly under regulations like GDPR and PCI DSS.
Even economically robust regions aren't immune. Despite contributing nearly a quarter of the UK's GDP, London ranked only 45th nationally for broadband speed, with a median speed of 78Mbps.
In contrast, some areas show what's possible with better infrastructure. Horsham in West Sussex recorded the fastest median broadband speed in the UK at 352Mbps—more than eleven times faster than Wrexham. This speed enables users to download approximately 2,000 songs in just three minutes, and it significantly outpaces Hull (160Mbps) and Southampton (142Mbps), the next fastest areas.
The report uses Wrexham as a case study to illustrate the practical consequences of slow broadband. Downloading a 4K Netflix movie like Adolescence takes over five hours in Wrexham, compared to just 30 minutes in Horsham.
FLR Spectron's findings come as the UK approaches the copper-based Public Switched Telephone Network (PSTN) retirement, set for January 2027. The company urges businesses and households still reliant on PSTN to upgrade to fibre as soon as possible to avoid further connectivity challenges as the deadline nears.
To help address the risks posed by slow internet, FLR Spectron offers several recommendations: encrypt your connection using a VPN, regularly update software and replace routers every 3–5 years, switch to fibre for more reliable speeds, set complex and unique passwords for all accounts and devices, and invest in cybersecurity training to ensure all staff understand the risks and best practices.
