Showing posts with label U.K. broadband. Show all posts
Showing posts with label U.K. broadband. Show all posts

Saturday, December 15, 2007

Is U.K. Business Broadband Near Saturation?


By October about 1.76 million (85 percent) of the 2.12 million U.K. workplaces already had Internet access. This is much the same proportion as six months earlier, in March according to Point Topic. Which could lead to several different conclusions. One might argue that the base of potential buyers is nearly saturated. Or one could argue that the remaining 360,000 sites require some new sort of plan. One might also argue that some businesses might not require broadband, for some reason.

Point Topic’s latest results contrast with the 6.3 percent increase found for the period May 2006 to March 2007 when the pace of broadband development was still high.

Part of the problem is that most of the remaining businesses without internet access are small and poor, Point Topic notes. There is a strong positive association between workforce size and business internet penetration. Organizations with more than 250 employees all have Internet access. Businesses with only one or two employees reported 75 percent penetration.

Internet penetration is 100 percent in the businesses with the highest sales volume, particularly those in the finance sector. All businesses with over £20 million in sales have Internet access, but only 77 percent of those in the “£50k to £100k” category do.

The wholesale and business services sectors are both close to saturation with take-up at 95 percent. The least connected is the retail sector, where only 67 percent of companies have Internet access.

About half of businesses say they are making do with an ordinary, low cost, consumer type internet service. But as the number of employees in a business rises, the proportion using consumer-type internet services falls and that using more expensive business-quality services rises.

In terms of internet connection types, cable modem connections are found much more frequently at smaller workplaces, with 20 percent of all Internet-connected one or two employee businesses choosing them.

Take-up is only around five percent at medium-sized sites and they disappear altogether at the biggest ones. More common amongst businesses with greater employee numbers are satellite, fiber, ATM, leased line or frame relay connections. Some dial-up or IDSN connections are found at all workforce sizes – with ISDN much more important at the larger end.

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