The 5 millionth broadband connection for BT, in the UK is due this week. A year of ahead of schedule. However the firm still has its critics.

Tony Blair has tried to beef up the spin for BT with "it is great news for the whole communications industry that BT has been able to make this announcement a year ahead of target"

Critics focus not on the "year ahead of schedule, but on the figure of only 5 million. Comparisons are constantly made with South Korea which passed this many moons ago.

Initially, astronomical prices for DSL hampered the growth of the market. (BT by the way had a complete monopoly on DSL). Eventually in the face of declining revenues from its traditional areas it reduced prices.

Ofcom, the telecoms regulator is nearing the end of a review of the whole industry. They have already called for "substantive behavioural and organisational changes" from BT.

As regards broadband, BT still has a stranglehold on the wholesale market. This is the current logjam, not the retail market.

Related Articles
Virgin Mobile Churn Up and ARPU Down
Chip Sales Growth Slows