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Thursday, October 27, 2005

The UK Speeds Up:
"Published: October 27, 2005
(After November 04, 2005, this article will only be available to eStat Database subscribers.)

Broadband usage exploded in the UK over the past 12 months.

Almost three-quarters of home Internet users in the UK have a broadband connection, according to new data from Nielsen//NetRatings. This is a positive development for Web site owners, as broadband users spend twice as much time on their computer as narrowband users, and view 3.5 times as many pages.

As users switch away from dial-up, or get Internet access for the first time, most are moving into broadband with speeds over 512 kbps. (Broadband definitions vary, with some putting the broadband cutoff at 200 or 256 kbps, and others higher or lower; Nielsen calls everything faster than 128 kbps broadband). Usage of slower broadband speeds ranging from 128 to 512 kbps actually declined slightly between 2004 and 2005.

As of the second quarter this year, the UK stood sixth in the world in terms of broadband subscribers based on data from Point Topic, and the continued migration of Internet users to high-speed means that the UK will remain locked in with France as the top broadband markets in Europe. eMarketer predicts that the UK will be the largest broadband country in Europe by 2008.

Although Germany has a larger population base than France or the UK, its market is monopolized by Deutsche Telekom and is much less competitive and innovative. And while the UK's broadband population has grown, the country still only has about one-fifth the number of subscribers as the US, and about one quarter as many as fast-growing China.

"With local loop unbundling beginning to happen and infrastructure competition coming from the leading cable TV providers, NTL and Telewest, as well as alternative providers such as Bulldog Broadband, the UK is undoubtedly one of the most competitive broadband markets in Europe," says eMarketer Senior Analyst Ben Macklin.

For an in-depth look at the broadband sector in Europe, read eMarketer's Europe Broadband report."

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