The UK has the highest proportion of its population online in the developed world, with more than one in five adults having access to the internet.
Businesses in the capital, London, and the north-east have taken advantage of the country’s digital divide, using the internet as a platform to connect with customers.
Some are creating businesses on the cheap to meet the growing demand.
A London-based company, SmartEnergetic, is making its internet service available for free to businesses that don’t have a connection to the city’s main cable system.
Its business model, which is being tested in the UK, allows users to access a mobile app to access the internet and upload images and videos.
But many businesses are worried about losing customers.
David Henson, who runs the UK’s largest internet provider, BT, said he had lost more than 100 customers in the last year alone.
He said: ‘This is going to affect a lot of businesses, but not just those that are using our broadband network, but those that don’t have a physical connection to London.’
We are trying to make it easier for them to access this service.’
But if we don’t make this easier, we are losing customers, so I don’t think we can afford to lose them.’
Many companies have found that they cannot afford to invest in new fibre networks and are turning their broadband services over to internet service providers.
The Government says it is taking action to address the growing cost of internet services.
The Department of Business, Innovation and Skills (BIS) said it was investing £1bn over five years in the roll-out of new fibre-to-the-premises networks, including a £100m upgrade to the existing 4G network to give firms access to internet at speeds up to 10 times faster than they can get today.
But critics said that money was not enough and argued that the Government should do more to ensure that businesses have access to an affordable, high-speed broadband service.
David Gartland, the chief executive of the Business for the Future campaign group, said: ”This is a significant investment that will provide a critical boost to business investment and enable them to meet their future growth needs.’
This will help businesses to grow and employ more people and deliver jobs for our communities.’
He said the government was taking on the ‘unfair burden’ of the ‘cost of the internet’ and that businesses could afford to pay for the internet to be delivered over their network.’
The Government has been clear about its view that broadband investment must be targeted to meet a growing demand and that we should be investing in new and improved broadband networks that will deliver the best possible experience for businesses,’ he said.
Mr Gartestall said there were ‘significant issues’ in the delivery of the fibre-optic network in London and the North-East, where he was planning to open new offices.
He added: ‘These are areas that are clearly not up to scratch with broadband technology and will need to be addressed in order to deliver a service that meets the needs of the future.’