1. How Does the UK Broadband Market Compare with Elsewhere? Sarah Evans, 12 July 2002

2. Overview UK snap shot Benchmarking - why and what? Market size and structure Prices Consumer’s views Summary

3. UK broadband snap shot Subscriber numbers are rising –currently over 700,000 (~ 1% pop) –up from 330,000 end 2001 (>100% growth) Prices are falling –£20-£30 for DSL fallen by around 40% since end 2001 –~£25 for cable modem

4. Why benchmark broadband? Is the UK consumer getting a good deal? Market reviews - measure of effective competition Government targets, eg –most extensive and competitive broadband market in G7 by 2005

5. What to compare? Consumer choices –products –supplier –ease of choosing uPrice (retail/wholesale) and take-up PLUS Supplier options –compete at different levels –competing on an equal basis uLong term view

6. Market size/structure UK subscriber figures behind …but market more competitive

7. Take up over time But started at different times…..

8. Retail prices April 2002 (res) UK compares well –Cable modem prices compare well –DSL prices also in line since April

9. Evolution over time UK DSL prices were high - but now in line

10. Consumers positive about broadband Businesses also “getting the speed they want”

11. Summary UK subscriber figures increasing - but still behind other countries More competition than many countries Prices coming down - UK prices in line with prices elsewhere Consumers happy