Effects of the recession are being felt by UK Broadband

The current state of the global economy and the unease and discomfort felt by many industry sectors also seems to be hitting the UK broadband market as well.

Point-Topic predicted back in April this year that in the second half of 2008 the number of broadband lines would increase by a further 800 000. It is now, however, believed by chief analyst at Point Topic, Tim Johnson that these figures are now lower than expected.

Johnson said “We’re now forecasting that only 620,000 broadband lines will be added in the second half of 2008.The forecast for 2009 as a whole is 1.1 million, 200,000 down on the earlier forecast.” He went on to add “To keep on track Britain needed to add 390,000 broadband lines in the July to September quarter. We estimate that the actual number was only 313,000 – 20% down on the target.”

This essentially means that in practical term fewer UK users will be able to upgrade to higher speed broadband connections from the existing dial-up connections they currently use and from numbers received from Point Topic “about 240,000 more homes will be without any kind of Internet access at end-2009.”

The end result of all these new in real terms means that the rapid growth of the next generation broadband services will now be greatly reduced, and even with faster broadband access to the internet by businesses which are reluctant to expend and further capital on the investment.

The effects of the recession on the deployment of broadband has also been pointed out by Point Topic and also the adverse consequences in relation to the programs that have been implemented by the Government to ensure high-speed broadband internet will be available to all school children.