How is "Broadband and phone a mature market"?

dispassionateview

Hi,
I was reading the useful MSE newsletter today and am wondering if the assertion "Broadband and phone is a mature market" is valid for most people.


The first part of the newsletter covered a lot on how to "halve your broadband and phone costs." I think this really only applies to those people who do not have such a service at all or are near the end of their contract. So a minority.


I am with BT and am tied into an 18 month contract, so it is cost-prohibitive to leave until I am close to the end of the contract. I don't think that constitutes a mature or a particularly competitive market. BT still charges other providers for the cost of the infrastructure. I know OFCOM are investigating if BT wholesale prices are competitive to other providers.


I cancelled BT TV because the service was poor and the aerial was inadequate to receive a strong signal. Because the TV is a shorter 12 month contract at just £5 a month I took the hit and cancelled early.


Then, I moved to Sky TV, which I didn't particularly want to do because I loathe Murdoch and am unable to get Virgin in my area. However, unlike BT, Sky came out to the house and installed the box and checked an existing dish to make sure it is all working correctly from the start. Sky were and are generally competent and have good technology.


I would also be open to getting Sky broadband as the MSE newsletter says: "Many already have sports, yet pay for broadband. But that's pointless as Sky is giving away two years' broadband for Sky Sports customers who have a Sky box and pay the provider's £15.40/mth line rental."


But I am locked into a lengthy BT contract, thinking as they own the infrastructure in my area they would be the better company to go with as fibre optic broadband gets rolled out in my area.


The conclusion is, BT still have too much control, are still big and inefficient, have strange priorities such as spending billions on sport when the technology is not reliable or broadly-accessible enough.


I think the broadband market is far from mature and MSE should rephrase the term to "disruptive" at best. What do you think?


Cheers

kwikbreaks

I think it's likely that most people will be outside their minimum contract term and free to move without penalty.

The only reason they wouldn't be is...
voluntarily taking an extension to their original minimum in exchange for a discount
moving home
changing ISP

That will be quite a lot of people for sure but I doubt it's the majority.