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UK broadband competition reaches new milestone, says regulator

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
25/04/2013

The level of competition in the UK broadband market has reached a new milestone, Ofcom has announced.

The number of ‘unbundled’ lines, where communications providers offer services to households using BT’s copper telephone network, has reached nine million.

Competition is also taking hold in the new market for ‘superfast’ broadband, which is most often delivered over fibre optic cables to the street cabinet, and from there to the premises over copper.

Ofcom says that investment in this market is expected to increase rapidly over the coming months.

Virgin’s network already provides superfast broadband services to more than two million households, while BT’s roll-out of fibre broadband is passing 100,000 new premises per week and has so far reached around 15 million.

The BT network is available for many providers, including BT Retail, to sell broadband services to consumers, ensuring competition in a fast-growing market.

There are now around 80 providers other than BT Retail either trialling or offering fibre broadband, between them serving more than a quarter of a million customers.

By November 2012, 13% of residential broadband connections were superfast, more than doubling from 5% in November 2011.

Dominic Baliszewski, telecoms expert at broadbandchoices.co.uk, said: “There has never been a better time to be a broadband customer in the UK.

“The market is intensely competitive and with more and more providers innovating to win business, it all results in a better service and better pricing for customers.”

At the end of 2005, UK consumers were paying on average £23.60 a month (excluding VAT) for a broadband service delivered over a copper phone line.

Today the same service costs £13.11.

Baliszewski added: “However, for consumers to fully benefit from the various new technologies each provider offers, and the better service and lower costs that competition brings, it must be made easier for them to compare and switch.

“Comparison sites take the hard work out of finding deals in your area, but our research has shown that households still stay put with providers for several years – despite being free to leave and benefit from cheaper, faster packages that would better suit their needs.”


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