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UK fixed broadband expansion propelled by the growing DSL market

Quarterly Monitoring of Consumer and Business Internet Market
Published: 2014-02-03

Primarily triggered by the increasing uptake of high speed Internet subscription and stable ARPU, the United Kingdom recorded about EUR 1.7bn fixed broadband revenue in 3Q13 – 1% lower than the previous year. Nevertheless, overall fixed broadband revenue showed recovery in a QoQ perspective, demonstrating around 2% and 1% increase in 2Q13 and 3Q13, respectively.

The revenue improvement can be attributed to the increase in all fixed broadband subscriptions, especially in the xDSL segment. This was chiefly pushed by the upgrades of the operators from DSL to VDSL service, encouraging customers to experience higher download and upload speeds for a much lower price than fibre Internet. In the case of BT, the company’s strategy in the past year was to develop and market VDSL aggressively using fibre-to-the-cabinet (FTTC). The carrier also partnered with Huawei for fibre-to-the-distribution-point (FTTdp) trials in 3Q13, another initiative to increase the speed of VDSL. Aside from the VDSL deployment and vectoring, BT was partway through its commercial roll-out of FTTP network in several cities of the UK, with customers having an option to obtain FOD (FTTP on Demand) or upgrade their FTTC subscription to FOD.

Published: 2014-02-03

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