Is the period of rapid growth for UK broadband running out?
The UK has seen two to three years of very rapid broadband growth, with around 8 million broadband customers at this time. Datamonitor is expecting the broadband adoption in the UK to peak at around 60%, and may mirror the sharp slow down in take-up in the United States. See vnunet.com for more details.
The UK has near universal coverage now, with around 61 exchanges with-out any form of ADSL service, out of around 5,500. This means that in 2006, we may not see a steadily growing market of people who can only now get ADSL for the first time. The 61 exchanges without a planned service date only accrued 1550 registrations during the old BT ADSL pre-registration campaign period.
What is likely to happen during 2006, is that competition between providers, irrespective of technology will grow, and churn rates will increase as people are attracted to faster and/or cheaper deals. Hopefully providers will not simply chase the bottom line of the best price versus speed deal to gain customers, but actually concentrate on the overall quality of service offered.