BT confirmed this morning that they have met their targets and achieved a 3 per cent increase in first quarter core earnings and revenue, pushing them further ahead in the highly competitive broadband market.
The telecoms provider has performed extremely well in the broadband sector, with their retail sector having accounted for 38 per cent of DSL acquisitions during the second quarter, compared with 32 per cent the previous quarter and 30 per cent the year before.
With almost half a million new broadband customers, 38 percent gave BT 175,000 new broadband customers for the Retail unit in what they say is seasonally the slowest quarter of the year.
The report shows that about half of new customers choose Option 1 from BT’s broadband packages whilst two-thirds of the remaining chose Option 3. Option 1 is the cheapest broadband package BT offer whilst Option 3 is the most expensive; all packages offer speeds of up to 8Mb/s, but have varying download limits and extras. The growth of BT’s broadband will be boosted soon after their acquisition of Brightview, which currently has 62,000 customers and operate a number of ISPs including Madasafish and Global internet.
Ben Verwaayen, Chief Executive of BT commenting on the results said: “We have got the year off to a strong start with another robust all round performance [with] success across the board. BT Retail’s share of the broadband net additions in the quarter was 38 per cent; contract wins in BT Global Services and BT Wholesale were £2 billion; outside the UK we gained more than 100 new customers…We are keeping BT ahead of the game by delivering software driven services that will offer faster, more resilient and cost effective services to our customers wherever in the world they are.”
BT expects to stay the ISP with the largest market share; however competition is fierce with stiff competition from Virgin Media, BSkyB, Carphone Warehouse, Tiscali and many smaller ISPs.
Sky should announce the fastest growth in broadband for the last quarter tomorrow, with an acquisition of 259,000 customers to make its total 716,000 after just under a year since launch.