The latest report from Enders Analysis has claimed that UK ISP Freeserve will soften its broadband approach during 2003 in favour of a greater concentration on narrowband unmetered dialup services.

Not surprisingly Freeserve has denied this and has reminded any potential customers that they can now subscribe to their £27.99 per month ADSL service and get the connection + modem free; until the end of March 2003:

It notes that Freeserve racked up 50,000 broadband customers in 2002 - some 25,000 below its own target for the year. Worse still, this is well down on Freeserve's earlier estimates for broadband. Citing a presentation made by BT Wholesale last summer, Enders Analysis reports that Freeserve was "pencilled in" for 200,000 broadband connections by summer 2003.

It appears unlikely that the ISP will make this figure unless it invests heavily in promoting the service. The reason Freeserve has scaled back its plans to be a major broadband player appears simple enough - profit. Signing up more flat-rate dial-up users is more likely to push the ISP towards the black.

Says the report: "Increasing unmetered subscribers will be the number one factor in Freeserve reaching profitability in 2004. By contrast, significant broadband investment would have increased losses."

The ISPs excuse is that it's just looking at more clever ways to market broadband and would like to see a further decrease in the wholesale charge for ADSL lines, which is unlikely to occur.

The Register reminds us that all this occurs at a time when speculation about Freeserve's future is rife. Rumour has it that the ISPs parent, France Telecom, has apparently already considered putting it up for sale.