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Number of UK broadband users nearing saturation point?
Tuesday 06 November 2007 17:42:17 by Andrew Ferguson

The Register is reporting that BT Retail is expected to report a slow down in the number of sign-ups when it publishes its latest figures. Data from Point-Topic.com shows that broadband growth in the UK was well down on previous quarters, with just over half a million new connections in the second quarter of 2007 versus some 891,803 in the first quarter. This drop seems to be common across Western Europe and may just be an annual thing during the second quarter of the year as Q2 2006 had a similar dip in the rate of new connections.

Total Broadband Subscribers
Country Q107 Q207 % Growth
USA 61,397,740 63,408,156 3.27%
Canada 8,010,139 8,176,555 2.08%
Japan 26,557,000 27,251,200 2.61%
South Korea 14,102,888 14,444,073 2.42%
Australia 4,037,300 4,243,800 5.11%
Germany 16,185,050 17,614,350 8.83%
UK 14,015,488 14,520,988 3.61%
France 13,697,400 14,270,600 4.18%
Sweden 2,386,630 2,422,630 1.51%
Denmark 1,844,394 1,906,894 3.39%

What should be obvious to people following the broadband market is that as the number of connections increases, a point will be reached where those willing to sign-up will have signed up and the growth will slow. It is perhaps with this background we are seeing value added services such as BT Vision and Tiscali TV appearing. Bundles are also a good way of making it harder for consumers to churn away and head to competitors, as once in a bundle people are generally less likely to move all of their services elsewhere.

We can but hope that as the new sign-up market dwindles that providers may begin to focus on quality of customer service rather than chasing ever cheaper deals to attract dial-up customers. Looking further into the future, many will hope that as the market for new connections dries up, things like fibre will start to be pushed out from the telephone exchanges to support higher broadband speeds. One advantage of shorter lines for running variants of DSL over is that the effects of noise should be lessened, making lines more reliable and thus more attractive for video and VoIP services.

Comments

Posted by _TRIaXOR_ over 9 years ago
at the price BTW are charging the ISPs for IPStream and the effect its having on FUPs, AUPs etc.. no wonder..

Ripoff britain at its worst..

Thank god for LLU!
Posted by chrysalis over 9 years ago
What I find scary is the trend of long term contracts, most of the isps know they not offering high quality services but instead cost effective services so tie in the customers.
Posted by herdwick over 9 years ago
Don't all technology rollouts have some sort of S curve - slow to start, strong growth then mopping up the residual market.

What is this "LLU" of which you speak ? :-)
Posted by danman7_200 over 9 years ago
LLU stands for Local Loop Unbundling. LLU allows telecoms operators such as sky and orange to rent space in the exchange and install their own equipment rather than renting the backhaul and dslams etc from BT wholesale, the ibcumbent. LLU start up costs are very high but allows operators to save money in the mid-long term.

I'm with SKY LLU and the network by far beats any other ISP I have used that uses IPSTREAM. Unlike other ISP's I never get a drop in speed even in the busy evening period.
Posted by CARPETBURN over 9 years ago
Errr danman7 i think you will find herdwick was speaking in a sarcastic comedy manner.

I agree with _TRIaXOR_ on this Thank God for LLU

I suspect once BT see these figures are dropping they will be even more eager to pump out their 21CN dross to the market place, with more promises about how wonderful it is but the reality being no difference in price for us consumers and throttles and caps still in place.
Posted by danman7_200 over 9 years ago
Oh yes, my bad. I glanced over the post rather than read it fully.

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