Free Broadband Access - Purely a UK Phenomenon?

2006 has seen a wave of new broadband service offerings in the UK market, targeted at existing and new broadband consumers and heavily promoted as �free�. Starting in March 2006 with new-entrant CarPhone Warehouse, with it�s radical promise of a �free forever� service, it was rapidly followed by a range of high-profile announcements from Orange, BskyB, Vodafone and other new players, along with existing broadband providers such as NTL Telewest. Considered by some observers to be short-term marketing tactics, it is now apparent that more fundamental shifts in the market may be occurring as major players seek to retain existing fixed-voice and TV customers, increase ARPU by offering new services, and build new market share.

The UK consumer now has a bewildering array of broadband services on offer, but the true cost is not always easy to discern - requirements to take other �bundled� services, longer contract periods and the inclusion of other value-add internet services serve to complicate the simple �speed and download limits� buying decision.. But early take up has nonetheless taken some operators by surprise, leading to early industry concerns regarding provisioning delays and costly customer support.

Incumbent operator BT continues to play at the higher end of the market offering sophisticated and integrated services rather than joining the price battle of the new entrants. But it is nonetheless aiming for additional market positioning from wholesale rental of it�s broadband services to other operators.

With the UK market fiercely competitive � evidenced by the recent withdrawal of Cable & Wireless from the retail broadband sector � and with movement of players into new sectors still continuing, the longer-term sustainability of free and very low cost broadband offerings is far from clear.

Free Broadband Access in brief

� 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?
Answers to key questions

� 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?

Profiles and Offerings

� Assessment & commentary covering:
� BskyB
� BT
� CarPhone Warehouse / AOL Europe
� Hutchison Mobile
� Kingston Communications
� NTL Telewest / Virgin
� Orange
� PlusNet
� Tiscali
� Vodafone