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Businesses give broadband a wide berth

Corporations are cautious about using broadband Internet services in essential areas of their business, according to a new study.

Corporations are cautious about using broadband Internet services in essential areas of their business, according to a new study.

More than 20 percent of respondents said they would not use any type of broadband service in their main offices. The study, conducted by In-Stat/MDR, surveyed 109 "key decision makers" at large businesses between April and July of 2002.

But that doesn't mean that they're not using Web- and server-based applications to share data between office locations, said Kneko Burney, director of business infrastructure and services research at In-Stat/MDR. Many are sticking with dedicated lines for these needs, rather than looking into DSL (digital subscriber line) service or other broadband options.

In determining the amount of bandwidth companies need in the first place, almost 70 percent of those surveyed said security and "hosted or Internet-accessible applications" were important factors for their main offices. Security was not as major a concern when determining bandwidth needs for branch offices, however.

For those willing to test the broadband waters, DSL is the most popular choice, with 37 percent of respondents saying they would choose DSL for their main office over cable, fixed wireless and satellite Internet connections.

While broadband services have begun to catch on with consumers, spending on telecom services by major corporations has slowed. Companies have also become cautious about new investments, because of financial troubles at some broadband providers.