Cost of living crisis challenging bundled TV, broadband synergies
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| 28 December 2022
2022 has seen a surge in full-fibre rollout across the UK but uptake of full-fibre services, especially those combined with a TV bundle, is yet to make any impressive inroads says Point Topic research.
Virgin Media O2 gigabit network 10 Aug 2021
The analyst commissioned YouGov to conduct a survey on video, ISPs, broadband speeds and fibre-to-the-home (FTTH) connectivity and undertook its study in November 2022. The fundamental was that full-fibre networks passed 41% of UK premises with nearly 2 million of these having access to two or more independent network providers.

Yet even though broadband suppliers have been investing billions in full-fibre networks and promoting fibre superiority, they are still struggling with significant returns or uptake in FTTH services. Indeed, the term full fibre continues to confuse consumers as 61% of survey respondents subscribing to Virgin Media O2’s (VMO2) DOCSIS 3.1 gigabit capable service stated they were on a FTTH connection.

In addition, ultrafast and gigabit capable speed tiers fail to impress subscribers with 31% of survey respondents taking a superfast (25–100 Mbps) package, moreover 44% stated that they did not know which speed tier they were subscribed to. For those respondents subscribing to an FTTH service, speed packages of up to 100 Mbps dominated.

Sky and Virgin Media continue to lead the broadband and pay-TV bundled services market, with 65% of Sky subscribers taking a bundled package followed by VMO2’s 52% and BT with 28%. For those who took a bundled service, 63% of VMO2’s subscribers stated they were on a full-fibre connection compared with 42% of BT Group’s (BT, EE and Plusnet) bundled package consumer base having an FTTH connection.

Yet over a third (36%) of respondents surveyed were unsure as to whether their broadband connections are based on full fibre technology indicating a market that has yet to fully get to grips with the technology or the terminology. And somewhat worryingly, a pay-TV or subscription to more than one on-demand service was increasingly perceived as an unnecessary monthly expenditure with 55% of respondents stating that they did not take a bundled package.