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Old 04-15-2001, 05:37 AM  
Kat - Fast
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Join Date: Feb 2001
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Daily Telegraph 5 April 2001

UK lagging further in high-speed Net links
By Jonathan Lambeth


THE slow roll-out of high-speed internet services is leaving the UK behind almost every other advanced economy in the world, despite a multi-billion pound market opportunity.

This week internet research company NetValue claimed the UK was nearly bottom of a league table of consumer high-speed internet connections, known as broadband, with only China having a lower percentage of households connected.

The report said: "The UK is still lagging far behind Asia, Europe, and the US in home broadband connections. In the UK, one in 32 online households use broadband. In South Korea more than one in two have this connection and in the US it is one in nine. In France, it is one in 16."

South Korea is a prime example of what happens when people are able to access the internet at high speed, according to NetValue. The vast majority of households downloaded video, audio or played games via internet connections over the past month. Only about 70,000 homes in the UK have either ADSL or cable modem connections, which offer high-speed internet access over standard copper telephone lines.

It is not just consumers that are missing out. John Abbott, analyst at the telecoms consultancy Centre for Market Analysis (CMA), estimates there is a market worth £5 billion for DSL connections, which can combine voice calls with high-speed internet access, among the 1.8m small and medium businesses that spend a significant amount of money on telecoms.

Mr Abbott said: "Unfortunately, BT has played the game very well and seems to have much of the market scooped. The only reason that demand does not seem to be there is because the service is barely available yet."

The best chance for telecoms companies, he said, was to pick only high-demand areas, such as cities, and market their service very aggressively if they had any chance to compete with BT's established operations. However, a number of medium-sized telecoms companies were hitting difficulties because they had anticipated BT providing them with services much sooner, he said.

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