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UK broadband hit by the recession
Monday, 27 October 2008
By Garnet Roach garnet@consumerchoices.co.uk
Broadband Britain has finally felt the effects of the recession with the number of new lines falling 20 per cent below expectations, said analysts Point Topic (27-10-08).
Point Topic had previously predicted that 800,000 new lines would be added in the second half of 2008, with 390,000 lines between July and September. However, the actual figure was only 319,000 - 20 per cent less than the target.
local loop unbundling (LLU) - where providers such as TalkTalk Broadband (www.TalkTalk.co.uk) and Sky Broadband (www.Sky.com) install their own equipment in the exchange - was the main driver for growth, said Point Topic. There were 323,000 LLU lines added in the last quarter.
It estimated that Virgin Media (www.VirginMedia.com) had added 60,000 cable broadband customers while BT Broadband (www.BT.com) and other smaller ADSL providers actually lost around 70,000 net customers.
The analysts have now cut their prediction to just 620,000 for the second half of the year and expect a total of around 18.4 million lines by the end of 2009. This includes an estimate of 1.1 million new lines for next year - 200,000 less than previously expected.
Point Topic said this would be a “blow to the government’s objectives for digital inclusion” and that “fewer people will switch from relying on dial-up lines to broadband, and about 240,000 more homes will be without any kind of internet access at end-2009. Many businesses will continue to do without broadband as well.”
However, Michael Phillips, BroadbandChoices.co.uk product director, said that broadband access could actually help people save money. “Research by the Post Office Broadband (www.PostOffice.co.uk) in September showed that broadband was an ‘essential’ and families could save £70 a month by shopping for household goods and services online - far outweighing the cost of a broadband connection,” he said.
“If you already have broadband at home, you should consider switching broadband provider as it can save you up to £150 a year,” he added. “And if you’re a first time broadband customer you’ll be able to take advantage of all the great deals on the market.”
You can also save money by using our broadband comparison tool.
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