Universal broadband access 'to boost online retail'

11:34 26th February 2010

Companies in Lancashire with an online retail presence could enjoy a significant sales increase over the next few years, new predictions have suggested.

According to research by the Institute of Practitioners in Advertising (IPA), the introduction of 2Mbps broadband across the UK by 2012 would create an additional £1.4 billion revenue through website sales.

The IPA's Search Group has stated that this is because web users with a high-speed internet connection are 36.9 per cent more likely to make an online purchase than those with poorer services.

Mark Fagan, chairman of the body, said the forecasts were based on the assumption that those on slower connections will follow the lead of people who already faster broadband and added that, even if they only increase their purchasing by half, it would still create "an enormous amount of additional e-commerce".

"Having observed how quickly even the most unlikely people adopt new online behaviours when it's a much more user-friendly experience, I know where my forecast lies."

The latest IMRG Capgemini e-Retail Sales Index revealed that online sales reached £4.3 billion during January, which represented like-for-like growth of five per cent from 12 months earlier.

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