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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 its share by 5%, MCIs 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