Revenue:
For the first time in the history of BT, the quarterly
revenue generated from broadband wholesale surpassed
the retail revenue.
According to the financial report for the period
ending March 2006, the quarterly revenue from
broadband wholesale rose to 298 million Euros
against 284 million Euro generated from the retail
segment.
The total broadband revenue
accumulated to March 2006 stood at 583 million
Euros, a year-on-year increase of 44.2% mainly
as a result of the increase in wholesale services
revenue. The retail ARPU on a year-on-year basis
decreased by 3.58 Euros to drop to 36.68 Euro.
This was the knock on effect of an aggressive
tariff cut by ISP's. In the meanwhile the wholesale
revenue has shown a year-on-year increase of 2.38%
taking its ARPU to 13.12
Euro.
Subscribers:
In the first quarter of 2006, the number of
British incumbent DSL lines has increased to
10.178 million taking the total number of active
DSL subscribers to 7.9 million, whereby 2.6
million are retail and 5.3 million are wholesale
active subscribers.
The annual growth of
retail DSL subscribers stands at 47.5% and wholesale
active DSL lines at 53.9%. This takes the total
DSL market share to 73.5% generating an annual
revenue of 2.095 billion Euros.
Despite this formidable
performance, the company retail broadband market
share at the end of March 2006 stood at 24.1%.
This is the lowest market share for an incumbent's
retail segment in Europe.
Tough competition in
the British market has caused the retail market
share of the incumbent to be unusually low relative
to its European counterpart.
In order to increase
its market share, the incumbent has taken a
series of initiative such as wireless city initiative.
This offers wide area wireless broadband access
across metropolitan areas. This in turn enables
people to use the network on a range of devices
in 6 cities. This initiative is the first phase
of a 12-cities wireless facility across the
UK.
The company has also
boosted the speed of its Broadband Basic product
to 8Mb giving all new customers a faster service.
Price elasticity:
According to the result of our price elasticity
analysis of BT DSL retail tariffs for Q1 2005
and Q1 2006, the demand for DSL broadband is
elastic to the change of tariffs, as the arc
elasticity ratio is 0.45. In other words, for
every drop in the cost of bandwidth by one
Euro there was a net gain of 23,159 new subscribers
since Q1 2005.
Broadband packages:The
DSL tariffs start from 22 Euro for a capped
2Mb for the residential market to 41 Euro for
a flat rate of 40 Mb in the business sector.
There is no recurring cost for hardware rental,
Set-Up and Installation are fee.
If
you would like to access to our online tariffs
database for over 80 countries please
click
here
For more information
about this press release or this research brief,
please contact us at
info@quantum-web.com
About Quantum-Web:
Quantum-Web is a leading provider of broadband
tariff research and analysis. It provides broadband
quarterly statistics, pricing analysis, consultancy,
and tailored reports, product of both a deep technological
understanding and a first-rate research methodology.
Quantum-Web uses a variety of econometric models,
statistical techniques and in-depth market behavioral
analysis to provide comprehensive market intelligence
in the broadband sector. Our services include:
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