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UK Broadband Internet Access to Grow 40 Percent by 2013

Posted: 20th Jun, 2009 By: MarkJ
PricewaterhouseCoopers (PwC) has released new research that predicts a significant growth in the UK Internet access market (wireless and fixed-line broadband) over the next four to five years. This equates to a compound annual growth rate (CAGR) of 7% from 2009 to 2013, an overall rise of 40% (£6.23bn to £8.71bn spend).

Phil Stokes, Head of Entertainment & Media at PwC, said:
“E&M growth slowed to 1.5 per cent in the UK in 2008 and we expect a cumulative 7.2 per cent decline over the next two years as the economy continues to struggle. Although we expect a rebound beginning in 2010, Internet access, internet advertising, TV subscriptions and license fees, filmed entertainment and video games will be the only segments that will be larger in 2013 than in 2008.”

PwC noted that the UK, much like other leading European countries (Germany and France), was investing heavily into Internet access, focussing on rolling out high speed broadband, which is reflected in a predicted 37% increase in penetration across the country from 2009 to 2013.

“National internet access is no longer purely a competitive advantage for an individual country, but will be key to leading in the global economy as the world emerges from recession,” Stokes added. "Despite the recession, the rate with which we are becoming globally connected on a digital level has not eased up. We now expect constant and remote availability, and this new form of millennial "electricity" must always be on, demanding a higher rate of internet access across the UK."

The report goes on to hint about the positive impact of Mobile Broadband growth, which will become very important given the otherwise saturated state of fixed-line access. However, lower prices and moderating subscriber growth during the next two years, it is claimed, will cut into broadband spending growth.
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