UK broadband prices to average £10 a month by 2011, according to new research study

Consumers will only pay around £10 a month for high-speed broadband access by 2011 as ferocious competition between internet service providers (ISPs) will drive down prices, according to a new study published today by the Centre for Telecoms Research.

[ClickPress, Fri Apr 13 2007] Consumers will only pay around £10 a month for high-speed broadband access by 2011 as ferocious competition between internet service providers (ISPs) will drive down prices, according to a new study published today by the Centre for Telecoms Research.

Although broadband consumers will continue to migrate to faster connectivity speeds over the next five years, the report expects ISPs to further discount and bundle telephone and media products – such as the packaged offerings of Virgin Media and BSkyB – which will drive down the component price of broadband access for residential consumers.

”Although we expect 90% of broadband consumers to be using speeds above 2Mbit/s by 2011 (from around 33% in 2006), we expect ISPs to reap less not more revenue per customer from these services. Competition between ISPs is likely to intensify over the next five years, and this will result in many operators supplying high-speed broadband as a loss leader or as part of a bundled package in hope of cross-selling other services to the customer,” said Raj Modi, Research Director at Centre for Telecoms Research.

The report UK Internet Services Market, 2002-2011 envisages there to be 20 million broadband connections by 2011, making up around 85% of UK households with a personal computer. The report also predicts a surge in take-up of IPTV over the next five years and anticipates 1.5 million IPTV households (5% of total UK households) by 2011.

A copy of UK Internet Services Market, 2002-2011 is available to purchase online for $500 (approximately £250) at www.centrefortelecomsresearch.com

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