UK broadband growth to slow off

20/11/2007 by swordfish.

Research carried out by analysis firm Point Topic has come to the conclusion that the current downward trend in net broadband line additions in the UK is not just a blip, but indicative of a trend for the future.

The middle two quarters of 2007 saw the lowest numbers of broadband line additions in the UK (about 330,000 and 550,000 respectively) since 2003. This represents less than half the growth achieved in the previous two quarters. The third quarter of the year has seen a slight improvement, with a net addition of nearly 600,000 lines.

Point Topic points to the shrinking pool of dial-up users who have yet to convert to broadband, as well as perceived problems with broadband set up and connection speeds, as primary reasons for the slowdown. The company does predict steady growth in the medium- to long-term due to current broadband subscribers continuing to use the service as they grow older, leading to a reduction in the overall number of non-user households.

The researchers also say that approximately 4 percent of households currently not connected to broadband will sign up each year. In the business market, which is expected to have lower barriers to take-up than the consumer sector, it is predicted that about 6.5 percent of the remaining business premises without broadband will get connected each year.

Meanwhile, prospects for broadband access in Ireland have improved in the past few months, with the resolution of the local loop unbundling (LLU) controversy in May paving the way for a wider choice of consumer offerings with faster access speeds.

Source: Yahoo News

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