Broadband News

Communications costs fall

Thursday, 14 August 2008

By Garnet Roach garnet@consumerchoices.co.uk

We spent, on average, seven hours and nine minutes watching TV, on the phone, using the internet or other services, every day last year according to Ofcom’s annual report (14-08-08).

PC and laptop use has quadrupled since 2002 and mobile use has doubled.

However, the telecoms watchdog revealed that the average household spend fell for the third year to £93.48, down 1.8 per cent since 2006.

Spending on broadband dropped by four per cent and the average household now spends £9.45 a month on their internet, compared to £9.87 in 2006.

Last year the average person in the UK spent 24 minutes on their computer, as BT (www.BT.com) prepared to roll out its 21CN network and the number of premises with access to local loop unbundled (LLU) broadband rose from 66.6 per cent to 82.6 per cent, allowing for cheaper broadband and even “free line rental” and “free broadband”.

Despite a notable slowdown in the market, both fixed-line broadband and mobile broadband continued to grow, and 58 per cent of homes had broadband at the end of 2007.

The mobile broadband boom saw the technology move from niche business markets into the mainstream and more than 500,000 new connections were set up between February and June this year, with 133,000 in June alone.

However, only 27 per cent actually used it “on the go”, with three quarters using their mobile broadband connection instead of a traditional home broadband line.

Although 90 per cent of fixed-voice, mobile and broadband users claim they are satisfied with the service they receive, one in five said their broadband speed was slower than expected.

But that might be about to change as Ofcom noted that the UK’s two biggest providers, BT and Virgin Media (www.VirginMedia.com) both plan to launch next generation broadband networks in the coming years.

Cable provider Virgin Media, which will launch its up to 50Mb package this year, hopes to reach nine million homes by the end of 2008 while BT - which plans to develop a fibre network with top speeds of up to 100Mb - is aiming for 10 million by 2012.

Michael Phillips, BroadbandChoices.co.uk product director, commented on the Ofcom report: “Broadband has become so much more affordable in recent years - and as such has also become an essential part of daily life.

“Despite falling headline rates and increasing headline speeds, many people are still unhappy with their broadband service - especially those living in rural areas or not yet connected to an LLU exchange, who often have to pay more for an inferior service.

“Although improvements have been made, the broadband industry needs to do more to mend its public image. Investment in customer service and free technical support as well as transparency about actual broadband speeds needs to be the norm rather than the exception,” he concluded.

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