BT, TalkTalk and Virgin Media have agreed to work on a Code of Practice for business broadband services.

The deal was announced by Ofcom as they launched a new report entitled ‘Broadband Services for SMEs’ which revealed the importance of broadband to businesses.

It found that 83 percent of small businesses consider communications services to be fundamental to their business and 78 percent use a fixed broadband connection.

While 85 percent felt that broadband provision was adequate, many expressed concerns about speed, availability, quality of service and provider choice. A fifth were unhappy at not achieving the advertised speed from their broadband. In addition, only 56 percent of SME premises have superfast broadband compared to 75 percent of all UK premises.

The new Code for business broadband would cover similar areas to the existing code for consumers, which among other provisions requires those selling an internet service to give the customer an accurate estimate of the speed they will receive.

Sharon White, Chief Executive of Ofcom, said: "Small businesses are essential to the UK economy, and most rely on telecoms services to carry out their everyday work. But some companies lack the resources or expertise to get the services they need.

"We’ve made clear we want to see better broadband coverage, quality of service, information and advice for all consumers, and that means business users too. So we are taking action alongside industry and the Government to make that happen."