Feeds

BT's DSL market share carries on falling

That's why price has to fall

  • alert
  • submit to reddit

Top three mobile application threats

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

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
EE & Vodafone will let you BONK on the TUBE – with Boris' blessing
Transport for London: You can pay, but don't touch
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
Google eyes business service in latest Fiber trials
Lucky Kansas City buggers to host yet another pilot program
Huawei exec: 'Word of mouth' will beat Apple and Samsung in Europe
World Mobile Telephone Factory No.3 won't fling the big bucks around just yet
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.