Broadband use and awareness continues to rise

Oftel’s quarterly surveys, which examinee use and awareness of broadband in the UK, reflect this increasing interest in broadband services.

The main findings of the latest research, which consists of a consumer survey of a cross section of UK residential and business consumers, show that use and awareness of broadbandare continueing to grow. Interest in broadband amongst Internet users currently using slower methods to connect also suggests that continued growth in broadband use can be expected.

Residential use and awareness

Oftel’s consumer research and supplier figures show that broadband use in the UK continues to increase. Approximately 1 in 10 homes with Internet access now use broadband services.Broadband penetration now stands at approximately 1 in 10 homes with Internet access.

The surveys also show that awareness of broadband is on the increase. Awareness of broadband services rose dramatically between February and November of last year. 84% of Internet users surveyed in November wereare aware of broadband services rising from 53%– in February. The recent BT advertising campaign is likely to have been the main driver behind this increasese in awareness.

Around a third of Internet users surveyed were interested in finding out more about broadband services. The majority of these (71%) were specifically interested in finding out more information on the price of broadband services, along with more information on how it works, benefits compared to other access methods and information on which suppliers offer broadband services.

Oftel’s August 2002 survey showed that a third of consumers currently using ordinary dial-up or ISDN connections at home claimed to be interested in upgrading to broadband. This equates to approximately 3 million Internet homes. Although claimed ‘interest in upgrading’ figures will not necessarily translate to conversion to broadband services it is clear that there is plenty of room for growth in use of broadband. The rapidly increasing awareness of broadband services reported In November’s research may act as a catalyst for further take up.

The main driver for broadband take up so far appears to have been increased speed. Just under 6 in 10 current broadband users mentioned faster access as a reason for getting broadband. 4 in 5 use the Internet daily, and nearly all broadband users use their home Internet for e-mail (97%). Other popular uses were searching for travel information (80%), exchanging files with friends/family (76%) and general shopping (74%). Downloading was also popular amongst broadband customers with around 7 out of 10 claiming to download software or upgrades and half downloading music. Oftel will continue to monitor what is driving broadband take-up.

Broadband users spend almost twice as long online than the average Internet user – an average of 17 hours per week, compared to 9 hours per week by all Internet users. High satisfaction levels are also recorded among broadband users - 95% are satisfied with their Internet service overall.

Business use of broadband and perceived benefits

Oftel’s latest research shows that over 1 in 10 businesses with Internet (13%) claim to be accessing the Internet using broadband (DSL/cable modem).

Nearly half of these small and medium sized businessesSMEs stated that a benefit of their broadband connection (compared to other connection methods) is the time savings it offers, allowing faster and more efficient working. Other benefits of broadband mentioned by businesses were not having to pay call charges, the ability to control costs better because of unmetered access, and the convenience of unlimited usage and of having a permanent connection.

Just under half (44%) of companies connected to the Internet by non dial-up access were interested in using an SDSL connection. SDSL is a two-way broadband service that allows larger amounts of data to be both sent and received faster than an ordinary phone line. Just under half (44%) of companies connected to the Internet by non dial-up access were interested in using an SDSL connection. Over a quarter of respondents mentioned speed as a perceived benefit of SDSL, including faster data transfer, access, quicker transactions, and the amount of time these would then save. Other perceived benefits mentioned included two-way transfer of files, and increased productivity and efficiency.

For more details on Oftel's consumer research programme, contact Richard Howard (tel: 020 7634 8883 / e-mail: richard.howard@oftel.gov.uk). All Oftel research is published and on the website at www.oftel.gov.uk/consumer/about/research/index.htm.