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Ofcom publishes market data for second quarter of 2007
Friday 11 January 2008 12:12:31 by Andrew Ferguson

Ofcom has published its latest Telecommunications Market Report. The report covers all the main areas of the telecoms market, but we will just feature the broadband data which is for up to the end of the third quarter in 2007.

  Total BT Retail DSL Other DSL Virgin Media Other (inc. LLU) BT Retail Share
2005 9,894 2,311 4,717 2,666 201 23.4%
2006 12,995 3,103 5,530 3,059 1,304 23.9%
2006 Q2 11,517 2,720 5,306 2,902 589 23.6%
2006 Q3 12,219 2,867 5,524 2,980 847 23.5%
2006 Q4 12,995 3,103 5,530 3,059 1,304 23.9%
2007 Q1 13,849 3,541 5,243 3,146 1,918 25.6%
2007 Q2 14,365 3,715 5,025 3,192 2,432 25.9%
2007 Q3 14,961 4,074 4,375 3,308 3,204 27.9%

The most noticeable change is that the number of 'Other DSL' connections, which is mainly BT Wholesale based services, has dropped by some 600,000 connections in one quarter. The majority of these appear to have converted to an unbundled connection. A lot of these will be providers like Talk Talk who are now moving customers onto their own LLU network, but it also reflects the popularity of things like the broadband offers from Sky.

Given the competition from unbundled providers, it is a surprise to see that BT Retail has increased by some 300,000 connections in the third quarter and hence increased its market share by 1.3% to 27.2%. This softens some of the loses in connections for BT Wholesale, since BT Retail customers still use the BT Wholesale network, bringing income to BT Wholesale.

One concern for the smaller providers who utilise BT Wholesale services is that as the large providers increasingly switch to unbundled networks, BT Retail will become ever more dominant in any communication with BT Wholesale. The end result may be that features that don't appeal to BT Retail may never see the light of day.

Comments

Posted by Dawn_Falcon over 9 years ago
"it is a surprise to see that BT Retail has increased by some 300,000 connections in the third quarter"

No, not really. Most people leaving VM will change back to BT phone and bandwidth. VM's slow growth and high churn is noticeable, yes?
Posted by AndrueC over 9 years ago
But overall BT's BB share is shrinking even further..presumably falling back to the less profitable, non-LLU exchanges. That makes the chance of a fibre roll-out even lower. Only BT can possibly afford to do it and on these figures it'd be suicidal.

Well done Ofcom. You got the competitive market you wanted. Shame you've also killed off any profitability in fibre investment.
Posted by KarlAustin over 9 years ago
Looks like 3rd quarter to me, not 2nd quarter :)
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