Tiscali's Future Remains Uncertain While Potential Buyers CircleLondon, England - 3 June 2008 - Sky Broadband added 50% more new subscribers than its nearest competitor during the first quarter of 2008 and accounted for more than a third of total new broadband subscribers in the UK during the same period, according to a report just released by Strategy Analytics, "Sky Maintains Lead in Q1 Broadband; Orange Stagnation Continues." Sky added nearly one million broadband customers during the 12 months to March 2008, compared to 741,000 for BT Retail. But BT Retail remains the largest broadband provider overall, with 4.4 million subscribers and a 26% market share.
"Sky is maintaining its position as the UK's fastest growing broadband service provider," noted David Mercer, Vice-President of Strategy Analytics' Digital Consumer Practice. "Although with the broadband market maturing there are indications that the company's quarterly net adds might track at a slower rate in 2008 than in 2007."
Meanwhile, the takeover battle for Tiscali's 11% market share is heating up. Vodafone, whose need for broadband customers is probably greatest, is one of the front runners, according to Strategy Analytics.
"After a period of seesaw growth and decline in recent quarters, Tiscali appears to have regained some stability in Q1'08," said Ben Piper, Director of the Broadband Network Strategies service. "That being said, the company's future remains uncertain."
In addition to reporting and analysis on UK first quarter results, covering both DSL and cable platforms, this report includes Strategy Analytics' latest near-term subscriber performance projections for BT Retail, Virgin Media, Carphone Warehouse, Tiscali, Sky Broadband and Orange.