Seventy per cent of firms based outside cities have problems using mobile phones because of inadequate network coverage in their areas, a new survey shows.

The study, conducted by IBEC's Telecommunications User Group (TUG), also shows that more than half of Irish firms cannot get broadband services at all their office locations.

The main finding of the annual survey is that 41 per cent of businesses believe that telecoms infrastructure in the Republic is inadequate. This represents a slight improvement on the previous year when 44 per cent of firms said it was inadequate.

The survey uncovers significant regional variations, with corporations in Dublin more content with their telecoms services than those elsewhere in the State.

This was particularly evident in a comparison of mobile coverage in non-urban areas, with seven out of 10 firms reporting problems.

In comparison, just 29 per cent of firms based in Dublin reported coverage problems.

Access to broadband services throughout the State is still a big issue for 59 per cent of firms, who are not yet able to sign up for digital subscriber line services, according to the survey..

The study, which is in its third year, also highlights that more than half of mobile users were either "dissatisfied" or "very dissatisfied" with the price of their mobile services.

Some 62 per cent of firms said broadband services were not competitively priced, although this was asked before recent price reductions.

The user group recommends that in rural areas the State should encourage greater take-up of group broadband schemes - projects that enable local communities to create a business case for investment in infrastructure.

The lobby group, which represents business users of telecoms services, also asks the telecoms regulator to develop a pricing template for all telecoms services providers to follow to promote more price transparency.