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BT Broadband - Venture Insights

Report Overview

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BT Broadband

PublisherEnders Analysis.
Publish Date November 3, 2002
Sector Fixed Line (Internet and Voice).
Company BT.

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In this report, we show that price competition between ISPs is helping to push broadband penetration to higher levels than we expected. BT is likely to achieve at least some of its targets for broadband connections. However, this is at the expense of profitability. We suggest that BT Retail is unlikely to make money on broadband connections, particularly in view of the high acquisition costs and the potential for subscriber churn. We also note that the BT strategy in broadband is crippling other ISPs.