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Free Broadband Access

Focus Notes - 10/01/2007 Free Broadband Access

Purely a UK Phenomenon?

This report provides an overview of the launch of ‘free broadband’ services during 2006/2007 in the UK market, giving some background to the existing and new players, the emergence of free broadband and other competitive offers, some of the key drivers and possible motivations by service providers, and clarifying “is free broadband access really free?”


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Contents
1 - UK broadband market


1.1 Retail broadband - definitions

1.2 Evolution of broadband in the UK
• Overview

1.3 Retail broadband services
• Current landscape

1.4 Positioning of leading broadband providers
• Telco, Mobile, TV, ISP

1.5 Main trends in service bundling
• Voice, TV, Internet, Mobile


 


2 - UK free broadband, in context



2.1 Key commercial, market and regulatory drivers

2.2 Common service features

2.3 Introduction timelines



3 - Service deployments



3.1 Competition & unbundling driving the market?
• New entrants vs. traditional providers

3.2 Leading players & services outline
• Supplementary operator and service details

3.3 Services take-up
• Early reported results and market feedback

3.4 Operator strategies


 


4 - Service details



4.1 Basic package costs

4.2 Contract lengths & termination constraints

4.3 Other service/bundling requirements

4.4 Speeds, contention ratios & download limits

4.5 Connection & provisioning
• Additional costs

4.6 Value-added services
(email, spam filtering, webspace...)

4.7 Customer support: details and costs


 


5 - Key questions & analysis



5.1 Specific attributes of UK market driving free broadband

5.2 True cost of services to the consumer

5.3 Profit centre or enabler for other services

5.4 Implications on the UK communications market
• Pricing
• Incumbent players

5.5 Major convergence shift or short-term trend

5.6 Impact on ARPU


 


6 - Conclusions



6.1 Sustainability, risks & uncertainties

6.2 Replication of the model outside of the UK






• A report on the recent launch of a range of competitive broadband services in the UK, by both new entrants and traditional operators

• UK broadband market maintains strong growth :
- A dynamic market driving fierce competition
- New entrants changing the rules of the game
- Broadband no longer solely a fixed telco & cable province
- Shifts to service bundling to retain customers and market share

• Regulatory shifts a contributory factor : Telco unbundling enabling new commercial models

• Services, in detail – who is offering what
• What is the true cost to the consumer?
• Bundled services – the future for UK consumers?
• Sustainable commercial offering or short-term tactic?
• Can ‘free’ broadband work outside the UK?
Assessment & commentary covering:

BskyB
BT
CarPhone Warehouse / AOL Europe
Hutchison Mobile
Kingston Communications
NTL Telewest / Virgin
Orange
PlusNet
Tiscali
Vodafone


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