In the U.K. market, as in the U.S. market, the number of likely new customers for broadband access services is dwindling. In the U.K., there now are about a million dial-up users left."The number of dial-up homes ripe for migration to broadband is rapidly dwindling, there are barely a million of them left now and they are an increasingly resistant minority," says Tim Johnson, Point Topic chief analyst.
There are about 16,735,000 broadband lines already in service, and it would be reasonable to expect a sharp deceleration in 2008. For the 12-month period from June 2006 to June 2007, nearly three million new subscribers were added. Between June 2007 and June 2008 about two million were added. With just about one million dial-up subscribers left to convert, it seems unlikely the gross additions will hit even a million between now and June 2009.
There are 9.6 million households without Internet access at all, but that includes homes with no PCs as well as homes with users who do not use the Internet. Point Topic estimates 58 pecent of U.K. households use broadband, about 4.5 percent use dial-up while 37 percent have no access.
Economic woes might be having some effect, but the primary issue is market saturation.
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