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Developments in telecommunications over the past few years, especially broadband communications, have demonstrated the benefits and efficiencies that such technologies can bring to office occupiers, for example, the faster and more efficient transfer of data and the use of video conferencing. Institutions in the UK have been slow to react to this change in providing services. The growth in the Internet in the late 1990s led to the development of a new market in real estate and telecommunications, as a number of institutions realised the “value added” to be made from providing telecoms services. However, following the downturn in the economy and the consequent fall‐out within the IT and telecoms sector, including the collapse of a number of telecoms providers, the market for providing these services appears to have been reduced. However, despite this, research still continues to demonstrate demand for such services from office occupiers. A recent survey by OFTEL shows that 63 per cent of businesses are connected to the Internet, although a significant proportion of these still use a traditional dial‐up connection, suggesting significant scope for the growth of broadband services. Similarly, a survey of Thames Valley office occupiers has shown that nearly 90 per cent of occupiers consider high‐speed communications to be “important” or “vital” to their business. With this in mind, the paper develops earlier research by the authors to consider the role of developers in the provision of broadband communications. In particular, the research seeks, through interviews with key developers and broadband suppliers active within the Thames Valley office market, to establish what (if anything) they are doing to promote broadband communications within their developments, their vision for the future supply of such services and the benefits arising from providing such services.

The purpose of this paper is to review recent government policy to provide a context for an exploratory study of broadband take up and use by small‐ and medium‐sized enterprises (SMEs) in the Thames Valley region of the UK. In recent years, the business environment has been fundamentally altered by the information and communication revolution that has changed the way in which businesses are created, operated and managed. However, the take up of broadband amongst SMEs remains low. Recent government policy has focussed on stimulating both supply and demand sides of the market for broadband technology as an entry point for SMEs.

The paper discusses the impact of government policy upon the use of broadband by SMEs and considers how occupiers are using and benefiting from the use of broadband.

The research undertaken indicates that government policy promoting broadband take up amongst SMEs has been effective in terms of the achievement of targets. The majority of SMEs in the case study are now equipped with broadband. However, their use of broadband appears to be limited to the more rudimentary uses for communication and searching for information as opposed to advanced applications such as e‐business and marketing.

Current government policy is aimed at promoting ICT for SMEs, but their effectiveness and success is yet to be measured. There is a need for more research in respect of the impact of broadband upon the working practices of SMEs, their business performance and relative competitiveness.