12 October 2007
The biggest six internet service providers (ISPs) in the UK are pushing out smaller firms in the broadband market.
While research from Point Topic, released yesterday, showed that while the industry has grown as a whole during the second quarter of 2007, the market share from the "big six" has also risen.
BT (the UK's largest ISP at over four million subscribers), Virgin Media, Carphone Warehouse, Tiscali, Orange and Sky now collectively hold 94% of the market.
Recent regulatory changes from watchdog Ofcom, such as boosting support for unbundled lines in BT telephone exchanges, are intended to increase competition among ISPs.
It is possible that the rapidly rising number of unbundled lines in the UK - with the Telecommunications Adjudicator announcing earlier this month that around 200,000 lines had been created in September alone - will eventually see a more competitive market.
However, Point Topic said that the figures provided a "salutary lesson" for authorities - and might point towards a long-term decline in competition.
© 2008 Adfero Ltd
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