More Market Share for BT says Ovum

Charlie Davies, Ovum analyst, says “The current British government has restated the former governments’ intention that the UK will lead Europe in broadband, albeit with a more ambitious target of 24 Mbit/s broadband by 2015.

“In certain markets like Japan, the pay-off for higher penetration rates of fibre-based broadband has been a significant increase in incumbent market share. This is a concern for a number of broadband suppliers in the UK who are worried that BT will simply maintain and even increase its market position in broadband as a result of its dominant position in more rural areas.

“There is nothing new in yet another government stating its intention to be the ‘best in broadband’; many other markets in Europe have cited aggressive development of broadband infrastructure as a key means of achieving differentiation in the global economy. Nor is there any transformational aspect to the announcement of £830 million of public funding to ensure ubiquitous coverage; the market is expected to deliver broadband to two thirds of the country.”