16 April 2007
Figures from the Centre for Telecoms Research have predicted that the increasing competitive nature of the broadband market will push monthly bills down to just £10 per month by 2011.
"Although we expect 90% of broadband consumers to be using speeds above 2Mbps by 2011 (from around 33% in 2006), we expect internet service providers to reap less not more revenue per customer from these services," said Raj Modi, Research Director at Centre for Telecoms Research.
"Competition between internet service providers 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."
Several broadband providers are already capitalising on the bundled market, with Virgin Media, BT and BSkyB all offering their customers discounted deals for signing up to home phone, broadband and digital television services.
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