Abstract
Overview
2006 has seen a wave of new broadband service offerings in the UK market,
targeted at existing and new broadband consumers and heavily promoted as
' free' . Starting in March 2006 with new-entrant CarPhone Warehouse, with it' s
radical promise of a ' free forever' service, it was rapidly followed by a
range of high-profile announcements from Orange, BskyB, Vodafone and other new
players, along with existing broadband providers such as NTL Telewest.
Considered by some observers to be short-term marketing tactics, it is now
apparent that more fundamental shifts in the market may be occurring as major
players seek to retain existing fixed-voice and TV customers, increase ARPU by
offering new services, and build new market share.
The UK consumer now has a bewildering array of broadband services on offer,
but the true cost is not always easy to discern - requirements to take other
' bundled' services, longer contract periods and the inclusion of other
value-add internet services serve to complicate the simple ' speed and download
limits' buying decision.. But early take up has nonetheless taken some
operators by surprise, leading to early industry concerns regarding
provisioning delays and costly customer support.
Incumbent operator BT continues to play at the higher end of the market
offering sophisticated and integrated services rather than joining the price
battle of the new entrants. But it is nonetheless aiming for additional market
positioning from wholesale rental of it' s broadband services to other
operators.
With the UK market fiercely competitive - evidenced by the recent withdrawal
of Cable & Wireless from the retail broadband sector - and with movement of
players into new sectors still continuing, the longer-term sustainability of
free and very low cost broadband offerings is far from clear.
Answers to key questions
- What is the true cost to the consumer?
- Bundled services - the future for UK consumers?
- Sustainable commercial offering or short-term tactic?
- Can ' free' broadband work outside the UK?
Profiles and Offerings
Assessment & commentary covering:
- BskyB
- BT
- CarPhone Warehouse / AOL Europe
- Hutchison Mobile
- Kingston Communications
- NTL Telewest / Virgin
- Orange
- PlusNet
- Tiscali
- Vodafone
Table of Contents
1. UK broadband market
- 1.1 Retail broadband - definitions
- 1.2 Evolution of broadband in the UK
- 1.3 Retail broadband services
- 1.4 Positioning of leading broadband providers
- 1.5 Main trends in service bundling
- Voice, TV, Internet, Mobile
2. UK free broadband, in context
- 2.1 Key commercial, market and regulatory drivers
- 2.2 Common service features
- 2.3 Introduction timelines
3. Service deployments
- 3.1 Competition & unbundling driving the market?
- New entrants vs. traditional providers
- 3.2 Leading players & services outline Supplementary operator and
service details
- 3.3 Services take-up
- Early reported results and market feedback
- 3.4 Operator strategies
4. Service details
- 4.1 Basic package costs
- 4.2 Contract lengths & termination constraints
- 4.3 Other service/bundling requirements
- 4.4 Speeds, contention ratios & download limits
- 4.5 Connection & provisioning additional costs
- 4.6 Value-added services (email, spam filtering, webspace...)
- 4.7 Customer support: details and costs
5. Key questions & analysis
- 5.1 Specific attributes of UK market driving free broadband
- 5.2 True cost of services to the consumer
- 5.3 Profit centre or enabler for other services
- 5.4 Implications on the UK communications market
- pricing, incumbent players
- 5.5 Major convergence shift or short-term trend
- 5.6 Impact on ARPU
6. Conclusions
- 6.1 Sustainability, risks & uncertainties
- 6.2 Replication of the model outside of the UK
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