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CMA - 66% Broadband Usage Increase

Posted: 17th Feb, 2004 By: MarkJ
The Communications Management Association (CMA) has issued us with an annual summary of its 'Communications Market 2003' study. The report found that broadband usage rose by 31% to 66% during 2003, with cable broadband also rising 21%:

Wireline:

• The use of Broadband in business is reaching maturity and confirms our view that there has always has been demonstrable demand for Broadband. In 2003, usage has risen by 31% to 66%, with 20% still evaluating. In comparison, in 2002 35% were using ADSL with a further 40% of respondents in the process of evaluating or implementing Broadband

• Fears in wireline market from 2002 have largely gone. BT has retained customers and grown its market penetration by 3% following the rush back to BT in 2002

• Cable broadband also rises sharply by 21% because of medium sized companies ‘filling in the gaps’ to achieve national coverage of broadband not available through BT

• 65% of respondents believe that greater utilisation of fibre delivery is essential to facilitate ‘Broadband Britain’

• Remote working contributes to Broadband take-up and business models now reflect the need for remote working practices

• Service quality is still highest on the customers’ agenda with ‘fault repair and complaint handling’ a close second as the main stated drivers of customer satisfaction

• 65% of customers still believe that Government should intervene to make universal access to broadband services a reality

• 59% fear that interoperability of different suppliers’ equipment is of concern when implementing a converged network

• 23% of businesses now have converged networks with 52% responding that the data exceeds the voice traffic upon the network

• Security risks still prevalent – political/terrorist/cybercrime but there is still a complacency surrounding business continuity

Wireless:

• Bluetooth and GPRS are starting to play a role in business with adoption rising 30% and are used predominantly in the manufacturing and travel and transport sectors

• The demand for bandwidth to the handset amount increases, especially up to 2Mbs

• WiFi usage has risen by a significant 21% to enable remote/flexible working and WiFi also now extends the traditional LAN environment. 34% of companies are still evaluating WiFi so usage in 2004 is expected to reach 50%

• Market still uncertain surrounding 3G, with only 3% take-up on last year. 61% of respondents also stated they have no plans to use 3G when services start

• Market share shifts by 9% predominantly to Orange. (Orange up 4%, Vodafone up 2%, T-Mobile up 2%)

• 45% of respondents prefer flat rate mobile data tariffs

• Vodafone leads suppliers on customer satisfaction ratings especially on quality and reliability

Internet/Online:

• Dedicated web hosting declines due to over hype of ebusiness

• Low customer satisfaction scores from all suppliers

• 37% of company servers are now hosted by a web hosting supplier

• Only 18% buy value added services from web hosting suppliers

• BT increases it’s share by 5%, MCI’s share drops by 7% since 2002 fallout

• 62% of respondents state that web services are set to be ‘the’ key enabler in the way we use Information Technology

• Telewest Business top customer satisfaction especially on price and account management
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