Ofcom niche ISP research to inform discussions with Internet industry

Friday, 26th January 2006

Yesterday, Ofcom published the findings of its niche Internet service provider (ISP) research.

At the request of the Internet Services Providers’ Association (ISPA UK) – the UK’s leading Internet trade association – Ofcom undertook research into the niche ISP market.

The purpose of the survey was to provide a more detailed view of the ISP market in the UK focusing on the role of niche players’ service in the sector. The data gleaned is intended to inform the regulator and give it a better understanding of the variety of businesses in the sector in light of important ongoing telecoms consultations.

Former ISPA Council members Richard Sharpe of altoHiway and Matthew Hare of Community Internet were centrally involved in the discussions with Ofcom that led to the research.

The research discovered that there are nearly 700 niche ISPs serving 30% of UK business customers and 5% of UK households. Collectively these niche ISPs turnover £1.15 billion each year.

 Other key findings included:

• Niche ISPs offer a broad range of services from Internet connectivity and web-hosting to consultancy;
• More than half (54%) of niche ISPs surveyed claim their approach to service provision, offering personalised products rather than standard packages, give them an advantage over larger ISPs;

Both ISPA and Ofcom will benefit from the research particularly in discussions about the UK ISP market and the ongoing reviews of wholesale broadband.

- ends -

Notes To Editors

The views expressed in this release are those of the Internet Services Providers' Association (ISPA UK) and do not necessarily reflect the corporate policies of the individual companies that are members of the Association or other organisations that may be mentioned in the release.

For further editorial information or to arrange an interview please contact the ISPA Press Office (020 7340 4535)

Online press office: http://www.ispa.org.uk/press_office/

About the Internet Services Providers’ Association:

The Internet Services Providers’ Association (ISPA UK) was established in 1995 as a trade association to represent providers of Internet services in the UK. ISPA promotes competition, self-regulation and the development of the Internet industry. For a list of members or other information about ISPA, please consult the website: www.ispa.org.uk