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Is the broadband market
nearing saturation point?
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UK broadband connections top 15.6m
Garnet Roach garnet@consumerchoices.co.uk
Ofcom’s latest quarterly results for Q4 2007 of the telecoms market shows that UK broadband connections have now passed 15.6 million (20-05-08).
Of this figure, the regulator said that the UK’s biggest broadband provider BT (www.BT.com) had a market share of 26.5 per cent, though this doesn’t include the company’s corporate broadband figures.
Ofcom’s estimates, for the three months ending 31 December 2007, also showed that local loop unbundled (LLU) lines were continuing to increase, posing an additional threat to BT and second largest ISP Virgin Media's (www.VirginMedia.com) market share, both of whom have to compete with decreasing competitor prices and the offers of “free broadband” and “free line rental” that have come from LLU.
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"There are still some estimated 17 million people without access to the internet at home or at work"
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Competition rules say that BT is not allowed to invest in its own LLU network, and as a cable provider Virgin Media doesn’t use BT’s copper wire network so has no use for unbundling.
Michael Phillips, BroadbandChoices.co.uk product director, said: “As the broadband market becomes increasingly saturated ISPs will be looking to increase their customer base by enticing consumers away from rival providers.
“However, there are still some estimated 17 million people without access to the internet at home or at work and any provider that can come up with a strategy to help close the digital divide - like the Post Office’s (www.PostOffice.co.uk) cash for broadband service - will have a whole new pool of customers to tap into.”
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