Ofcom sees broadband uptake slowing

Ofcom has published its UK Communications Market Review 2008 report which shows that the proportion of UK homes with broadband rose six percent to 58 percent in the first quarter of 2008.

In comparison, the proportion of homes with broadband grew by 11 percent in 2007 and 10 percent in 2006.

With the rate of growth in new fixed broadband users slowing, there will be increased competition among broadband providers, who will need to poach customers from other providers in order to increase their own market share.

At the moment, BT is the market leader, holding a 27.1% share.

The report also showed that 3G mobile broadband is gaining ground, and is now available to 90% of the population living in postal districts where one or more mobile phone providers report at least 75% 3G coverage.

Mobile 3G is seen to represent a threat to fixed broadband, as the report found that 75% of people who use mobile 3G, also use it at home.

However this is not expected to be a long-term risk as services which take up a lot of bandwith, such as IPTV, become more popular.

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