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ISPs missing a trick with home workers

by Iain Thomson

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01 Sep 2005

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People working from home are shunning large ISPs because they are unable to meet the high standards demanded by tech-savvy home workers, according to internet analyst firm Point Topic

A survey of more than 2,000 UK workers suggests that 5.5 million people work from home in the UK, and 70 per cent of those use the internet as part of their job.

But the market share of smaller ISPs in this group is 50 per cent higher than the national average, indicating that these workers are not happy with the service provided by large ISPs.

"The big ISPs are clearly missing out on this segment of the market," said Tim Johnson, chief executive at Point Topic.

"They need to develop more specialised premium brands to get their share of the more high-value business."

About half of all home workers are freelancers or sole traders, about nine per cent run businesses with employees from home, and the rest are working as employees themselves.

Home workers typically spend a third as much again on IT security than their office counterparts, and are picky about service. They will be twice as likely on average to change ISP in the next six months.

"This reflects the importance these people place on their internet connection, their data and their PCs," said Johnson.

"If it's critical to our business it seems that we're more prepared to spend than if it's the family photo album that's at risk."

Home workers are men by a margin of two to one and predominantly based in London and the south, although Scotland has between 10 and 15 per cent of the home working population.

Some 28 per cent of people in the London suburbs work from home to some extent, usually those with families.

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