BT extends broadband base to hold 27% market share


BT extends broadband base to hold 27% market share

Ian Grant

BT grew its slice of the broadband market by a net 258,000 extra connections, taking 27% of the available market, according to BT's results for the first half of the 2009 financial year.

"In the maturing broadband market, we remain the UK's number one retail broadband provider with a customer base of 4.6 million," CEO Ian Livingston said.

"We had a total of 13.3 million wholesale broadband connections including 5.1 million local loop unbundled lines," he said.

Revenue from large corporate customers rose 15% to £2.1bn. This was due to more sales of networked IT services, the favourable impact of foreign exchange movements and recent acquisitions, BT said. Among smaller and medium sized UK businesses, sales rose 3% to £660m, due mainly to acquisitions, it said.

On the consumer side, sales dropped 4% to £1.24bn, but the average revenue per household rose £5 to £283. This was due to more customers buying "bundles" or multiple services, particularly broadband, BT said.

Wholesale business, where BT rents bandwidth to third parties, dropped 2% to £1.34bn. This was a slowdown from the decline of the first quarter. But the increasing commoditisation of bandwidth has led to an increase in low margin, high volume traffic, as well as price cuts to DSL broadband and a net decline in revenue from migrations to local loop unbundling arrangements. These were only partly offset by strong growth in managed network solutions revenue and growth in global carrier revenue, BT said.

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