UK Internet Market Statistics, 2002-2011

The UK Internet Services Market consisted of 16.2 million connections at the end of 2006, split into 3.2 million dial-up and 13 million broadband connections.

The overall market is nearing saturation, with 85% of PC households enjoying broadband access by 2011. We anticipate strong migration to faster connectivity speeds over the next five years, with 90% of consumers using speeds above 2Mbit/s by 2011. Nonetheless, we expect average spend per broadband customer (ARPU) to continue declining over the next five years and reach 10 per month by 2011, amid intensifying competition between internet service providers (ISPs) which will result in further discount broadband offers bundled with other telephony and media products.

There is likely to be strong take-up of IPTV services over the next five years as consumers adopt faster broadband speeds and also due to the promotion of hybrid DTT/IPTV set top boxes. We anticipate 1.5 million IPTV households by 2011, constituting around 5% of total households in the UK.

This report provides comprehensive five year historical and five year forecast market sizing data across the residential UK Internet Services Market, consisting of:

• Households
• PC households
• Total internet connections
• Total broadband connections
• Total DSL connections, split by:
  • 0-2Mbit/s
  • 2-10Mbit/s
  • 10+ Mbit/s
• Total cable modem connections
• Dial-up connections
• IPTV households
• Fixed internet penetration
• PC household penetration
• Broadband penetration of PC households
• Mobile internet connections
• Broadband access revenues
• Dial-up access revenues

Centre for Telecoms Research (CTR) provides insight into fixed, mobile and internet telecommunications markets around the world. It is our commitment to serve the international telecommunications community with accurate, informed and comprehensive market intelligence, to aid strategic and investment decisions.

Our market reports are based on robust, tried and tested, research methodologies. Historical market data is sourced largely from regulatory and company sources, where available. In cases where historical information is unavailable, we compile market assumptions and test these with industry professionals and experts. All our forecasts are sense checked both from a bottom-up and top-down perspective.

All variables are clearly defined. This report is available in Microsoft Excel format.