Point Topic estimates that the number of broadband lines in the UK increased by only 730,000 in the second quarter of 2006. This makes it the worst three months for broadband Britain in the last two years.

"Turmoil in the market is what's caused it," says Tim Johnson, Chief Executive of Point Topic. "New players like Carphone Warehouse and Sky are plunging in with 'free' broadband offers but some of the big existing players are getting out altogether or being very low-key about sales."

"This leaves customers pretty confused," says Johnson. "Over 400,000 have signed up with Carphone Warehouse but they haven't actually got their broadband yet so that's a big number overhanging the market. Others can see prices are coming down so they're waiting to make up their minds. We think the growth rate will go up sharply later in the year when these new users start getting connected."

Point Topic's estimate of 730,000 net new broadband connections in the period from April to June 2007 is based on actual figures for DSL lines, provided both by BT and competing local-loop unbundling operators. The figure for cable modem broadband users is an estimate, based on a steady trend. The data comes from the latest research for Point Topic's UK Plus service.

Between October 2004 and March this year, the UK added an average of 75,000 broadband lines every week. In the April-June period this fell to only 56,000 lines a week. Point Topic estimates that the total number of broadband lines in the UK at the end of June was over 11.7mn.

The second quarter of the year is usually the weakest for broadband but the fall this time was particularly sharp. Percentage growth in the quarter was only 6.6%, the lowest since broadband started.
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