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BT Retails Falling ADSL Market Share

Posted: 29th Jun, 2004 By: MarkJ
The overall picture of ADSL broadband access may be that of growth, yet BT Retail's (BT Broadband Basic and BT Yahoo! Broadband) own unique market share has continued to thin; hence the need for further price cuts:

Two years ago, six in ten of all end-user DSL connections were supplied by BT Retail - the telco's customer facing division. This year that number has slipped to just four in ten. In fact, BT Retail's share of the UK DSL market has fallen every quarter since September 2002. And its share could fall still further unless it cuts prices to compete with rival ISPs.

According to research from Ender Analysis, BT's share of new subscribers signing up to DSL is also dropping. In Q3 2002, half of all customers hooking up to DSL chose BT. At the beginning of this year BT's share of new customers fell to just three in ten. Unless BT can reverse this downward trend, its overall share of the DSL market will continue to fall.

Enders Analysis says that BT must cut the cost of its broadband products if it stands any chance of competing with rivals AOL, Tiscali and Wanadoo.


We've already reported on rumours that BT is preparing to introduce further price cuts to its own offerings, possibly being announced before the end of this week.

The Register states that the current share estimate has BT on 42%, AOL 13%, Tiscali 10%, Wanadoo 8% and Pipex 5%.
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