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.

UK ISP, Cable, Dongle and 3G and 4G User numbers November 2012

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
1	BT Retail	6,444,600	30.43%
2	Virgin Media	4,413,400	20.84%
3	Sky Broadband	4,103,000	19.47%
4	TalkTalk Group	4,043,000	19.09%
5	Orange	723,000	3.41%
6	O2	579,000	2.73%
7	Kingston Comms	178,200	0.84%
8	Zen Internet	94,000	0.44%
9	Entanet	92,000	0.43%
10	Thus Group	87,000	0.41%


The major change over the past year has been been the continued growth of Sky Broadband which has seen it rise above TalkTalk.  Undoubtedly the combination of the Sky bundled offerings with its satellite TV content has driven this growth.  Recent launch of Talk Talk's TV set-top box plus the major BT play into football are both aiming at trying to redress this strategy.  Clearly Orange and O2 are seeking to enhance their position in the UK market through growth in the connected Tablet market which is experiencing phenomenal growth as eluded to below. 

The total UK Internet connectivity market is not only made up of Broadband ISPs, but connection is now frequently through 3G and most recently 4G mobile network connections.  The Broadband ISP market size is estimated to be just over 21 million broadband connections. The figures for mobile connectivity is much harder to obtain, however, given that there are now many millions of Internet enable phones in use today. However, OFCOM indicate in their latest facts on the market that there are 5.1 million mobile broadband users in addition the 21 million fixed line users.

UK ISP, Cable and Dongle Users January 2011

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 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

ISP		Total	% of UK Accts.
BT (inc Plusnet)		5,341,000	27.00%
Talk Talk		4,249,000	21.50%
Virgin Media		4,242,000	21.49%
Sky		3,006,000	15.20%
Orange		795,000	4.00%
O2 (Be Broadband)		663,800	3.40%
Royal Mail		600,000	3.00%
3 (Mobile Dongles)		255,000	1.30%
T-Mobile (Dongle)		195,000	0.90%
Vodafone (Dongle)		190,000	0.80%
Kingston		178,200	0.70%
Thus		93,000	0.50%

The UK Broadband market has become very concentrated with almost 20 million broadband accounts with over 98% concentrated in the top twelve providers with a high degree of consolidation among the top 5 players. The standard speed offering has increased from around 2Mb to 8Mb over the past two years, however many of the grand claims of the leading providers offering 20Mb broadband access is far of the mark with most only achieving 7-8 Mb on average.
The super fast 40Mb and 50Mb deals are beginning to enter the market but mainly only appeal to specialist hard care users in the consumer market.

Whilst the growth of mobile dongles has slowed the market continues to evolve. There are a number of players offering a range of speeds and costs. The market for the iPad and Kindle 3G devices is growing very quickly through sim only offerings. The new tablet applications such as the iPad and Samsung Galaxy and the soon to be launched Motorola Zoom represent the most exciting sector of the market and the mobile networks are likely to be climbing over each other to offer the 3G broadband connectivity. A quick look at the offerings below reveal the developments in the dongle market which will form the basis of any 3G Sim deals for the new tablets.

Who offers mobile broadband via mobile broadband dongles?

• Vodafone offers a range of mobile broadband dongles, the most popular being its small and speedy "USB Modem stick" starting at £15 a month. With speeds of up to 7.2Mb and download allowance of 3Gb, this offer is a real no-brainer.
• 3's mobile USB modem dongle comes free on many of the 3 packages. Offering 1Gb downloads and speeds of up to 7.2Mb, 3’s £10 per month offer is great value for money.
• T Mobile's USB dongles offer speeds of up to 7.2Mb and download allowances of 3Gb - 9/10 T Mobile customers say it "works like a dream".
• Orange's dongle is the sleekest and fastest they've ever made, offering speeds of up to 7.2Mb.
• Virgin Media was late to the mobile broadband market, but it is making some very attractive offers speeds of up 7.2Mb at excellent price points.
• O2 dongles get you online at speeds of up to 3.6Mb and start from just £10 per month.

Europe steps into save UK Users from Phorm's snooping!

Finally someone is willing to fight for our rights to privacy in the UK.  Sadly it isn't our Government. The European Commission has today started legal action against the Government over its failure to protect the privacy of British Internet users.

The case was sparked by BT’s covert use of the controversial user-tracking technology Phorm on customers using BT’s internet service in 2006 and 2007.

Phorm, a UK-based company founded in 2004, monitors users’ favourite sites and searches, and uses the information to deliver individually targeted advertising.  The European Commission has been concerned about the way Phorm was secretly tested in the United Kingdom. Last year, the Government through the Information Commissioner, backed Phorm after a complaint by Brussels.

However, Vivian Reding, the European Union's Commissioner for Information Society and Media, announced the first stage of legal action, saying that the UK Government had failed to implement European laws that protect Internet users under the terms of  'The Privacy and Electronic Communications (EC Directive) Regulations 2003'.

"Technologies such a Internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules,” the Commissioner said. “These rules are there to protect the privacy of citizens and must be rigorously enforced by all member states.”

BT has already admitted that it conducted trials of Phorm without users’ consent in 2006 and 2007. A further, invitation-only, trial was conducted last year.

Ms Reding’s statement continued: “I call on the UK authorities to change their national laws and ensure that national authorities are duly empowered and have proper sanctions at their disposal to enforce EU legislation on the confidentiality of communications.”

Ms Reding’s contention is that UK laws must be tightened to protect consumers and comply with the ePrivacy Directive, which the UK Government signed up to in 2002. It came into force at the end of October 2003.

The Commission has now given the Government two months to respond to today’s “infringement proceeding” - the first stage of a legal process which could end up in the European Court of Justice for an alleged breach of the directive.  The directive states that user consent must be “freely given, specific, and informed”, and it requires EU member states to impose sanctions in the event of breaches of the rules.

Ms Reding reinforced her stern message to the British Government in her weekly video message, delivered via the European Commission’s website.

“Privacy is a particular value for us Europeans; a value reflected in European laws for many years,” she said.

“However, in spite of the many advantages of technological development, there is an undeniable risk that privacy is being lost to the brave new world of intrusive technologies. On the global information highways, personal information is increasingly becoming ‘the new currency’. And I believe that Europeans… must have the right to control how their personal information is used.”

“European privacy rules are crystal clear,” she said. “A person's information can only be used with their prior consent. We cannot give up this basic principle, and have all our exchanges monitored, surveyed and stored, in exchange for a promise of ‘more relevant’ advertisements! I will not shy away from taking action where an EU country falls short of this duty.”

Phorm has already been investigated by the police and the Information Commissioner over privacy concerns. It has attracted interest from UK ISPs including BT, Virgin Media and TalkTalk although no company has yet fully introduced the system.

Tim Berners-Lee spoke out passionately against Phorm at a meeting in the House of Commons in March this year. "It is very important that when we click, we click without a thought that a third party knows what we're clicking on," he said. "'What is at stake is the integrity of the Internet as a communications medium. It's important there should be no snooping on the Internet."

It has always been the contention of Blogcetera and many other industry observers that what Phorm was engaged in was both against the 'spirit' and the letter of the law as laid down in the EU directive that the British Government and Parliament passed into law.  Similarly there are privacy concerns as regards Google’s plans to use behavioural targeting to deploy “relevant” ads to users.  It will be interesting to see whether the EU Commission targets Google as well as Phorm.

Links  :The Privacy and Electronic Communications (EC Directive) Regulations 2003

Additional Reporting: The Times

New Local Government service – FTTH?

Recent developments in Dundee and Bournemouth have suggested that soon you will be able to source your 100 Mbps FTTH along with rubbish collections.  Bournemouth Borough Council is using technology from i3 Group Ltd (formerly H20networks) to build out their new Ethernet speed network throughout the district.  What started as a project to deliver a new network to interconnect all their 5,000 staff is rapidly growing to a plan to deliver FTTH to 88,000 of the Borough’s households.

Bob Rhodes, IT Project Manager, Bournemouth Borough Council comments: “In partnership with H20 Networks we are making tremendous cost savings, meaning that we can put Council Tax payers’ money to better use”.  One of those better uses seems to be to deliver FTTH capability to the all homes and businesses within the Bournemouth Borough Boundary.  The residents of Bournemouth have been receiving letters asking them to grant permission for a free connection.  i3 Group are using Bournemouth's network of underground sewers to deploy its fibre optic cabling.  The entire project will cost in the region of £30m and ultimately connect 88,000 homes and is to be designated as the first Fibrecity.

The Fibrecity project of i3 Group officially connected the first 50 homes in Bournemouth to its next generation network FTTH broadband network, with speeds of up to 100 Mbps. The group is now known to be targeting a nationwide rollout figure of 2,000 homes per week and more once additional fibre cities come on tap. Bournemouth is the first of 15 town and city-wide fibre networks being built across the UK by Fibrecity over the next 10 years.  Work has also started in Dundee to reach 55,000 homes. 

This true FTTH infrastructure sees two fibres installed to each property that connects to the Fibrecity network using underground sewers, which is cheaper than digging up the road to lay new cable. One fibre enables homeowners to benefit from paid for services such as IPTV, telephony and super fast 100 Mbps broadband connectivity. A separate 40 Mbps fibre is dedicated to the council and will be used to deliver local services such as community TV and health services.

Cable broadband provider Virgin Media recently launched a 50Mbps broadband service which, while not a true FTTH deployment, is currently the fastest consumer broadband service in the UK. Virgin aims to have the service available to all its customers by the end of this summer. Meanwhile telco BT has also unveiled fibre-based plans, announcing a £1.5bn investment to bring fibre to 10 million UK homes by 2012.  Neither of these two initiatives will offer the fully duplex services that FTTH can deliver.

The creation of these Fibrecity projects is an extremely interesting development of it may lead to the first direct local authority delivered network to be established since Kingston Telecom remained independent of the GPO National Telephone service when the rest of the country’s telephone exchanges where rolled into the forerunner of BT back in 1914.

The entry of Local Authorities into the ISP business could significantly accelerate the access of the public to the new super fast FTTH services. Equally it could lead to the increased “politicalisation” of service provision and control.  Either way it is an exciting development.  With the UK not even in the top 100 countries with these super fast services of FTTH and FTTB, the Fibrecity initiative is a welcome step in the right direction.

UK ISP, Cable and Dongle User Numbers - April 2009

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 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.

ISP      Total    % of   UK Accts. BT (inc Plusnet) 4,700,000 26.05% Virgin Media (inc Virgin.net) 3,934,800 21.80% CPW (inc AOL) 2,700,000 14.96% Sky 1,955,000 10.83% Tiscali UK 1,768,000 9.80% Orange 1,000,000 5.54% Royal Mail 560,000 3.10% O2 (Be & Dongles) 340,866 1.89% 3 (Mobile Dongles) 255,000 1.42% Kingston 203,000 1.12% T-Mobile (Dongle) 161,000 0.89% Vodafone (Dongle) 132,000 0.73% Thus 126,000 0.66% Entanet 92,000 0.51% Clara.net UK 72,000 0.40% Breathe 12,000 0.07% Supanet 6,000 0.03% Others 28,000 0.16% Total 18,045,666 100.00%

 

The UK market exceeded 18 million broadband connections for the first time with all the growth being shown by the dongle market.  Both Tiscali and Orange again reported lower figures and still no news on the Tiscali sell-off.  The new battle ground for users appears to be shifting to the FTTH (fibre to the home) and FTTB (fibre to the building).  BT announced their high speed initiative targeting 29 areas with their 40 Mbps offering.  Virgin complained that many of the areas targeted were already served by their 50Mbps service.

An interesting development is the planned development of local authority run “ISPs” planned on the back of i3 Group Ltd (formerly H20Networks) in Dundee and Bournemouth who could be offering Ethernet interconnectivity to the home of a fully duplex 100Mbps 55,000 and 88,000 homes respectively. Whether these locally run ISPs ever emerge is an interesting thought since it will lead local councils into the tricky area of service provision and possible political control of services delivered or “surfed” for by their customers.