BT steps up broadband battle
TELECOMS outfit BT Group said today it would hit its target of 5m broadband customers one year earlier than predicted. Revealing stronger-than-expected third-quarter revenue, chief executive Ben Verwaayen said: 'Broadband connections were more than 800,000 in the quarter, a new connection every 10 seconds of the day.
'We expect to achieve our 5m target this year rather than by the end of 2006.'
To give added impetus, BT also said today it would quadruple the speed of its standard broadband service without increasing charges.
The move will mean BT's 1.4m retail broadband customers will transfer to a new super-fast standard. Most consumer and business customers will have their speed increased up to 2Mb - as much as four times faster than current speeds.Those with BT Broadband Basic will have their speed increased from 512k up to 1Mb. The company said it was time for its customers 'to get themost from the internet'.
Revenue from so-called new-wave products, including broadband, soared by 35% to £1.13bn and now represents a quarter of all turnover.
For the three months to end-December, total revenue was unchanged at £4.58bn, better than City expectations. Headline profits were 4% higher at £545m with earnings up 9% at 4.8p a share.
Verwaayen said the domestic market remained very competitive with 'literally hundreds of choices for consumers'.
Services from the likes of One-Tel and Carphone Warehouse's TalkTalk continued to bite into BT's share of the consumer market, which fell from 65% in the previous three months to 63%. Verwaayen said the rate of decline in market share was slowing but he expects the 'fierce battle to continue'.
BT's net debt was 10% lower at £7.94bn. The company's shares were down ½p at 206½p by mid-afternoon.
A REPORT by Financial Mail and This is Money earlier this week examined the best broadband deals on the market. Click here for the full story - and then tell us your experience of broadband on either our Consumer Deals and Tips message board section or on Computers and the Internet.
