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Broadband customers have reacted badly to recent price increases throughout the sector, an expert has warned.

BT recently partly blamed the slowdown in its customer growth figures in Q2 on the fact it increased the prices of its broadband and BT Sports services.

According to Jerry Dellis, an analyst at Jefferies, this may be the first time BT has hiked its prices and "experienced a negative reaction in terms of customer churn".

Speaking to the Financial Times, he said this points towards a change in the mindset of broadband customers in the UK.

"There is a sense that the broadband market is slowing," Mr Dellis commented.

"The way to grow is raising prices, not relying on net adds, but customers appear to have become more price-conscious."

BT has not been the only major broadband provider to see a slowdown in customer growth in recent months, as Virgin Media and O2 have also seen the same pattern after raising their prices.

Guy Peddy, an analyst at Macquarie, suggested that this could be down to a lack of variety and perceived excitement in the broadband sector.

"There has been no product innovation for a long time," he observed.

"It’s just speed and price. It is harder to raise prices without innovation."

Mr Peddy went on to note that many new entry-level internet users are opting to shun expensive broadband subscriptions in favour of cheaper 4G packages.

Dhananjay Mirchandani, an analyst with Bernstein, believes the slowdown in customer growth means the forecast for the industry is less robust than before.

He suggested that the UK broadband market is "returning to a state of heightened volatility", despite the adoption of faster broadband speeds.

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