BT had 10 million wholesale broadband connections (DSL and LLU) at December 31, 2006, including 1.3 million local loop unbundled lines, an increase of 2.7 million connections year on year and 697,000 connections in the quarter. Over 50 per cent of all UK homes now subscribe to broadband services, comprising both DSL and cable services5. BT Retail’s share of the net additions in the quarter was 34 per cent.

Broadband revenue grew by 24 per cent to £233 million with BT Retail connections exceeding 3.2 million by the end of the quarter, an increase in connections of 239,000 in the quarter. BT Retail’s share of broadband net additions (DSL and LLU) in the fiercely competitive marketplace was 34 per cent in the quarter, the highest for over two years. Our share of the installed base was 32 per cent as at December 31, 2006. The proportion of customers opting for higher value Options 2 and 3 packages have been maintained at nearly 60 per cent in the quarter.

A foundation trial for next generation broadband services based on ADSL2+ was launched during the quarter in Cardiff. The trial is an important step in the delivery of next generation broadband services at up to 24 Mbit/s to customers across the UK from 2008 as part of the rollout of 21CN. As part of the trial, editions of the BBC drama, Torchwood, which is filmed on location in Cardiff, is being broadcast in high definition at up to 24 Mbit/s.