Posted: 14th Dec, 2011 By: MarkJ
![point topic point topic](ispnews/data/upimages/subfolders/ISP LOGOS/pointtopic.gif)
Telecoms analyst Point Topic claims that the UK broadband market has delivered its "
best third quarter since 2008" after adding
289,000 new broadband lines in Q3 2011 (up from +240,100 in Q2) to total 20.4m, which represents an annual growth of 6.4%. The firm also "
expects superfast take up to accelerate quite significantly" in 2012.
Apparently UK consumers are now "
gaining an appetite for superfast broadband services". That comes in stark contrast to today's Ofcom report (
here), which found that 59% of UK households now have access to a superfast broadband ISP service but by June 2011
only 4% had subscribed to one.
Annelise Berendt, Senior Analyst at Point Topic, explained:
"There’s good evidence that a growing demand for speed and a more reliable service is helping to drive the growth. At the current rate the UK will have well over a million superfast broadband lines by the end of this year. This will mean that over 5% of British broadband users will be on superfast speeds.
Currently Virgin Media appears to be getting the most benefit. The appeal of superfast seems to have played a major part in turning a fall of 13,000 broadband customers in quarter two into a gain of 24,000 in quarter three."
Indeed back in May 2011 Point Topic warned that the roll-out of superfast broadband around the UK had fallen "
a long way behind" the governments plan, with consumer take-up also proving to be almost equally "
sluggish" (
here). At the time they warned that
fewer consumers than expected would adopt the new services but now seem to be changing their tune.
Annelise Berendt added:
"Currently Virgin Media appears to be getting the most benefit. The appeal of superfast seems to have played a major part in turning a fall of 13,000 broadband customers in quarter two into a gain of 24,000 in quarter three.
The cable operator’s 30Mbps service, launched in February, is really starting to take effect."
Virgin Media recently reported that 54% of its new subscribers in Q3-2011 took superfast broadband at 30Mbps or more, although it was also offered as a one-off £30 speed upgrade to 20Mbps (XL) customers and for awhile suffered due to performance woes with the new
SuperHub router (
here). Separate evidence from BT points to similar growth.
Annelise Berendt said:
"Assuming the trend set in the second quarter of 2011, when about one third of signings for the BT-Infinity service were new to BT Retail, superfast appeal probably brought in about 30,000 new customers for BT in quarter three.
Of course, it is not a simple matter of superfast bringing in non-user households. Although new to BT or Virgin Media, most of these customers will have had broadband before. But it provides a measure of the increasing attractiveness of broadband as a service in the face of hard economic times."
Sadly Point Topic doesn't state what its current forecast is for 2012, although their more pessimistic May 2011 report predicted
6.7 Million superfast broadband lines by the end of 2015 (excludes stats for Virgin Media's cable network).
BT's UK FTTC coverage is also expected to reach 40% of homes next year, before moving on towards their official target of 66% in 2014. This could well be extended further depending on how the Broadband Delivery UK (BDUK) office allocates its funding.