The distribution business had a strong year, marred by a longer than usual Christmas hangover in the last quarter, but the early signs for the new financial year are promising
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UK broadband market growth fell to 3.2 million net additions in 2006 from 3.8 million in 2005. With 47% of UK households already on broadband, new entrant unbundlers (BSkyB and Carphone Warehouse) are racing against the clock of a maturing market to sign up customers
Carphone Warehouse’s core distribution business was firm, showing no signs of being harmed by Vodafone withdrawing its new contract business in the UK
Vodafone UK’s new broadband product is not very competitively priced compared to the offers from Carphone Warehouse and Orange, costing £5-10 a month more than the nearest equivalent packages
In a fit of pique over increasing subsidies, Vodafone UK is dropping Carphone Warehouse (CPW) as a distributor, and moving exclusively to Phones4U with lower subsidy levels and volume guarantees, while Orange is reportedly also considering its position with CPW
The Carphone Warehouse (CPW)’s £370 million acquisition of AOL UK’s internet access business is set to quadruple the size of CPW’s UK broadband customer base, enabling it to become the third largest player in the market after NTL and BT, with approximately 2 million broadband subscribers
Carphone Warehouse (CPW) has launched a broadband/telephony bundle which effectively offers free broadband to non-cable customers in urban areas
O2’s purchase of Be may only have cost £50 million but its entry into UK broadband may ultimately prove an expensive distraction
In this presentation we show our analysis of trends in UK broadband and telephony for the quarter to March 2010, based on the published results of the major service providers. We include our own estimates where reported data is incomplete.
Highlights in the quarter included a bounce in quarterly broadband market net additions sufficient to pause the historical decline in year-on-year subscriber growth, continuing relatively strong broadband subscriber growth at the major ISPs, stabilisation in both the level of telephony market revenue and the rate of growth in unbundled lines, and the soft launch of highly competitive bundled offers by Tesco.