Feeds

BT's DSL market share carries on falling

That's why price has to fall

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

BT's share of the UK's broadband market is being eroded because its packages are too expensive compared to other ISPs.

While BT Wholesale's overall share of the broadband market continues to do well against cable, the same can't be said for BT Retail which offers packages (such as BT Broadband Basic and BT Yahoo! Broadband) direct to punters.

Two years ago, six in ten of all end-user DSL connections were supplied by BT Retail - the telco's customer facing division. This year that number has slipped to just four in ten. In fact, BT Retail's share of the UK DSL market has fallen every quarter since September 2002. And its share could fall still further unless it cuts prices to compete with rival ISPs.

According to research from Ender Analysis, BT's share of new subscribers signing up to DSL is also dropping. In Q3 2002, half of all customers hooking up to DSL chose BT. At the beginning of this year BT's share of new customers fell to just three in ten. Unless BT can reverse this downward trend, its overall share of the DSL market will continue to fall.

Enders Analysis says that BT must cut the cost of its broadband products if it stands any chance of competing with rivals AOL, Tiscali and Wanadoo. Sources have already told The Register that a price cut is on the way and could be announced as early as this week.

While BT tries to figure out how to hang on to its dwindling market share, the big winners have been Tiscali and Wanadoo (formerly Freeserve). In the first three months of the year Tiscali's share of new DSL customers grew to 28 per cent following the launch of its 150k service at £15.99 a month.

Since then, Wanadoo has taken the wind out of Tiscali's sails following the April launch of its £17.99 a month 512k service. It is currently adding between 12,000-15,000 new punters a week, giving it 25 per cent share of new DSL punters. Nine in ten of all Wanadoo's new punters are hooking up to the £17.99 a month product.

Overall, BT commands 42 per cent DSL market share followed by AOL (13 per cent), Tiscali (10 per cent), Wanadoo (8 per cent) and Pipex (5 per cent). ®

Related stories

BT to cut broadband prices for punters
Eclipse unveils flexible, boostable broadband
Nildram to offer PAYG broadband
AOL UK in sub £20 broadband offer
PlusNet offers 'full-fat' broadband
AOL UK to offer cut-price broadband
Wanadoo UK racks up 192k broadband punters
PlusNet cuts price of entry-level DSL
Freeserve morphs into Wanadoo
Tiscali is UK's 'fastest-growing' broadband ISP

Choosing a cloud hosting partner with confidence

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.