Broadband demand falls

David Allen -

At the beginning of the year, the internet services providers (ISPs) were very upbeat about the current state of the broadband market.

However, almost a year ago, things began to change when the extent of the credit crunch became apparent, first in the US but quickly followed by the UK as well.

This change of financial buoyancy has been having a direct effect on the estimates that the ISPs had previously made with regards to the amount of customers that they were expecting to gain this year.

People seem to be looking to cut their expenses for the time being, and for those without broadband it would seem that the service is a luxury that consumers could well be doing without for the time being.

One of the worst hit seems to be the Carphone Warehouse, although they have other problems too which is putting pressure on the business itself.

Last quarter was always going to be bad, but with the average house price falling once more last month this could mean another quarter with figures that do not meet the estimates.

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