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Price Wars Lead to a Loss in Internet and Broadband Market Value

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The UK Internet and broadband market has fallen in value for the second year in a row, according to figures supplied by the Office of Communications (Ofcom) found in the Key Note Market Report, Digital Communications. In a period of rising inflation, consumers are paying less for their broadband connection, with the residential broadband market now valued at an estimated £2.5bn in the UK in 2010, representing a 3.8% decline in value, when compared to the previous year.


Analysis on the causes of this trend shows that many companies are reducing the price of their internet and broadband services in a bid to tie consumers into bundles for other services, such as digital TV and mobile phone contracts. Further to this, companies such as TalkTalk and PlusNet have offered consumers cheap broadband and have marketed their product on this platform.


The future of the digital communications market will undoubtedly rely on the production of more portable devices, which are able to perform a greater variety of tasks. Video calls between mobile phones are set to become more common place, when the 4G Internet network is auctioned off by Ofcom. However, for now, consumers seem content to invest in their digital communications usage, despite a recent period of financial uncertainty, at trend that if forecast to continue well into the future.



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Press enquiries: Jack Sykes at Key Note at or 0845 504 0452. Press/review copies of the report are available on request.