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|
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.