BT 2012 Annual Report Download - page 16

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Business 13
Market share of UK consumer lines
BT
Virgin Media
Other
35%
47%
18%
Source: Ofcom Telecommunication Market Data Tables, Dec 2011
Broadband
The UK has one of the highest levels of broadband availability in Europe,
with 99% of premises being able to receive a type of broadband
connection and around 67% currently having a fixed broadband
connection. At 31March 2012 there were around 21m fixed cable
and digital subscriber line (DSL) broadband connections to homes
and businesses in the UK, up by 6% over last year. BT, Virgin Media,
Sky and TalkTalk are the largest broadband providers in the UK. We
are the largest broadband provider with a 30% share of the total
broadband market including cable and a 37% share of the DSL, LLU
and fibre broadband market at 31March 2012. Mobile operators
O2 and Everything Everywhere also have a significant share of the
fixed broadband market and a number of other players make up the
remainder of the market.
BT’s retail broadband market share
%
Source:
BT and market data
Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012
Market share of broadband base (DSL+LLU+fibre+cable)
Market share of broadband base (DSL+LLU+fibre)
35%
27% 27% 27%
29% 30%
34% 35% 36% 37%
40
35
30
25
20
Broadband speed has become increasingly important as consumers
have more devices and use more data-intensive applications. Average
downstream speeds have steadily increased as we have invested
in upgrading networks and as customers have migrated to higher
speed services. Higher upstream speeds are also becoming more
important for customers for activities such as sharing large files, video
communications and online gaming.
Wi-fi
Wi-fi networks allow customers to access the internet out of the home
at hotspot locations as an alternative to using mobile networks. We are
a leader in this field with the largest wi-fi network in the UK with more
than 4m hotspots. These are a mix of BT Openzone sites in premium
locations such as hotels, transport hubs and shopping centres, and
BT Fon sites in customers’ homes and premises. There is a trend for
premium locations to offer access to wi-fi networks for free. We offer
free wi-fi connectivity to our BT Broadband and BT Infinity customers
across our entire network. Competition in wi-fi has increased with Sky
(who bought The Cloud in January 2011), O2 and Virgin Media all
investing in their networks.
Pay-TV services
There are four main platforms supporting pay-TV services in the UK:
cable and satellite, which account for over 90% of subscriptions, and
digital terrestrial and internet protocol TV (IPTV) services. BT Vision is
our IP-enabled TV service.
Pay-TV subscriptions
There were 14.3m pay-TV subscriptions in the UK in December 2011
and penetration has now reached 53% of all households. Sky has the
largest market share with 67% of subscriptions. BT was not allowed to
offer TV services for many years and so started offering services much
later. We now have around a 4% market share.
Market share of pay-TV subscriptions
Satellite
Cable
IPTV
Digital terrestrial
3%
4%
67%
26%
Source: Screen Digest, Dec 2011
On-demand TV
Technological developments are bringing the TV and internet together.
A number of companies have already launched TV services over the
internet in the UK, including Sky, LoveFilm and Netflix. There is also
considerable choice in free online catch-up TV services, such as BBC
iPlayer, ITV Player and others. There are an estimated 4m TV sets in the
UK that are connected to the internet, via games consoles, set top boxes
and smart TVs. There is also a growing number of IP-connected devices
such as tablets and smartphones that can be used to view TV content in
or out of the home.
This trend will become increasingly important and will allow richer
on-demand and interactive TV services, provided that there is suitable
regulatory intervention to allow fair access to premium content.
Customers, markets and products
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information