Superfast broadband is taking off at an unprecedented rate in the UK, as consumers increase the amount they are prepared to pay in order to get connection speeds in excess of 25Mbit/s, according to a new industry report.
"Superfast broadband is where the UK is heading and the consumers agree," Oliver Johnson, chief executive at communications analyst group Point Topic, said of the report findings.
He added that Virgin Media, BT, Sky and TalkTalk, among others, are all showing strong demand for their higher bandwidth tariffs, while those internet service providers (ISPs) that do not offer over 25 Mbit/s are "struggling".
According to the BT Group, net FTTx additions for external providers increased by more than 300 per cent during in the three months to end September 2013.
Point Topic notes that this move to superfast speeds comes against the backdrop of poor quarterly growth for the UK broadband sector as a whole, with net additions a mere 200,800 – the lowest third quarter figure since the analyst company began tracking the sector back in 2006.
Smaller ISPs are finding it difficult - as they try to compete with large companies with large marketing budgets, their cutting edge has been dulled further by the lack of full unbundling for fibre services.
"Overall it’s good news for the consumer and for the larger ISPs. More bandwidth to more people is a positive outcome. It would be appropriate to watch the competitive landscape carefully and regulation may be needed soon to ensure a healthy market in the future," Johnson added.
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