One in five firms encounters problems getting adequate broadband connections to run their businesses, a new survey shows.

The biggest problem firms face is a lack of adequate bandwidth capacity, an issue that 53 per cent of multinationals say would affect a decision to invest and locate in a particular area.

Broadband & Data Communications Survey found that one in three corporate firms were encountering problems sourcing adequate broadband services.

Leinster and Dublin were both cited as areas of concern by one-third of all respondents, although this high rating may have been affected by the higher number of firms with a base in these areas.

The report, which was commissioned by the Commission for Communications Regulation (ComReg), found that almost half of firms cannot access the type of broadband services they want.

However, one in five small and medium-sized companies plans to increase bandwidth requirements in the future. Some 42 per cent of corporations plan to increase their bandwidth requirements in the future, the survey of 403 companies shows.

A separate survey, commissioned by ComReg and conducted by Amárach Consulting, found that internet use had stalled at about 40 per cent of people using the web. The uptake of broadband by households already connected to the internet remains low at just 3 per cent but the survey shows the most appealing aspect of broadband is value for money. The main discouragement to broadband is that many consumers are satisfied with their existing internet service.

The survey also found that mobile phone connections outnumbered fixed-line phone connections in the State. It concluded that, in the future, this would affect how people connect to the internet.