UK ISP, Mobile Internet and Cable Subscriber Numbers - December 2013

Here is an update of the UK ISP market covering DSL and Cable Access market as well as the Mobile Dongle market in the UK.  I have also added in the published figures for 3G and 4G mobile access devices. I have used ITU published data for Broadband usage numbers and Neilson Ratings and ISP published figures to get an accurate picture as well all the reports and disclosures for each of the companies shown below. I believe these figures represent a reasonably accurate representation of the genuine adoption of broadband either via DSL, Cable or mobile dongle. Broadband connections included in this data cover download speeds equal to or faster than 256kbit/s.

Table 1. Broadband ISPs (Source: ITU, Neilsen, OFCOM & ISP Published Figures)

No.	ISP/Provider	User Numbers	% of UK Market (inc Mobile)
1	BT Retail	6,961,000	26.07%
2	Sky Broadband	5,017,000	18.79%
3	Virgin Media	4,488,600	16.81%
4	TalkTalk Group	4,076,000	15.27%
5	Orange	714,000	2.67%
6	Kingston Comms	178,200	0.67%
7	Zen Internet	94,000	0.32%
8	Vodafone UK	85,000	0.31%
9	Thus Group	80,000	0.30%
10	Entanet	70,000	0.26%

BT continues to grow its user base at the expense of the smaller players.  Sky Broadband has continued to grow, primarily by acquisition having taken over O2’s broadband user base.  However, although BT Sport is still in its early days, it is clearly impacting Sky’s organic growth.

The total UK Internet connectivity market is not only made up of Broadband ISPs, but connection is now frequently through 3G and a growing 4G user base. Consequently I have taken the total market as being made up of both the fixed-line broadband and mobile internet access as I think it would be erroneous to suggest that they are not part of the same competitive market. The Broadband ISP market size is estimated to be just under 22 million broadband connections. OFCOM estimates the mobile internet connectivity to be in the region of 5.0 million mobile broadband users in addition the 21.7 million fixed line users.  So the total market is estimated at 26.7million subscribers.  Of these super broadband users make up just 3.7million.

Carphone Warehouse to cut jobs

Carphone Warehouse is expected to reveal about 400 job losses as part of a cost-cutting programme.  The job losses are expected to be mainly among support staff and a consultation period is likely to start today. 

According the Guardian among those affected will be call centre staff who were brought in two years ago to cope with a deluge of complaints when Carphone launched its free broadband offer, Talk Talk.

Carphone Warehouse has 2,400 stores in nine countries and employs 12,500 in the UK.  Job losses are not expected in its retail stores.

Carphone Warehouse's retail division is expected to grow following a joint venture with US electricals giant Best Buy that will pitch it against UK chains such as Currys and Comet.

Last month Carphone Warehouse announced that it would review its structure and financial disclosure policy following its margin squeeze and the fact that Talk Talk’s broadband revenues had fallen by 2%.