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Tuesday 30th January 2007

Top five ISPs dominate UK broadband provision 9:25AM, Tuesday 30th January 2007

Just five ISPs account for 88 per cent of the UK broadband market, following the series of high-profile acquisitions that have taken place of late.

In June 2006, 10 providers shared 82 per cent of the market between them. Of those 10, Telewest and Virgin have since merged and AOL has been absorbed by Carphone Warehouse, while BT and Tiscali have both expanded their user bases with the acquisitions of PlusNet and HomeChoice respectively.

The latest figures compiled by thinkbroaband.com show that BT including PlusNet and Virgin Media (the new name for the combined ntl:Telewest an Virgin businesses) each have 24.6



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per cent of the market with just shy of 3.2 million subscribers. Carphone Warehouse, which only entered the market last year, is already the number three provider with 14.9 per cent. Tiscali, 10.3 per cent, and Orange, formerly Wanadoo, with 7.6 per cent complete the top five.

'The pattern of providers acquiring others does look likely to continue as 2007 progresses, with rumours appearing weekly as to who is the next big target,' wrote thinkbroadband's Andrew Ferguson. 'What is interesting is the large gap between fifth, sixth and seventh places showing that any new entrants to the market have a big gulf to cross if they want to become a large nationally recognised broadband player. This is the situation Sky, Vodafone and O2 (via Be) probably find themselves in.'

According to recent Ofcom research, just five per cent of UK households subscribe to the UK's 686 'niche' providers. But when it comes to business broadband provision the picture is very different, with around 30 per cent of UK companies relying on niche providers, who are able to offer tailored packages and, they claim, higher quality support services.

Simon Aughton

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