BT broadband a bright spot in financials

BT remains the UK's number one retail broadband provider

Despite disappointing third-quarter financials, and a net profit slump of almost 75 per cent owing to a badly performing Global Services division, BT's broadband division is performing well.

Releasing its 2008 third-quarter results today, which cover the three months leading up to 31 December, BT said that it now has 4.7 million retail broadband customers, up from 4.6 million in the previous quarter. The division added 100,000 customers for each quarter last year.

The numbers mean that BT remains the UK's number one retail broadband provider, with 34 per cent of the market.

BT also said that it had 13.6 million wholesale broadband connections, including Digital Subscriber Line and Local Loop Unbundling, adding 296,000 connections in the quarter. BT Retail's broadband revenue rose nine per cent, with net additions of 83,000 in the quarter.

The firm's Openzone Wi-Fi hotspot service saw a 13 per cent surge in usage compared to the previous quarter, with almost double the amount of surfing minutes being used. BT said that it has added more UK hotspots, as well as signing new agreements with international operators Swisscom Hospitality Services and SFR in France.

BT Vision, the firm's broadband internet TV service, also saw its customer base increase, from 340,000 in the previous quarter to 398,000 in this quarter. The firm now hopes to attain 40 per cent availability of ADSL2+, which offers connection speeds up to 24Mbit/s, by April 2009.

But it is not all good news on BT's internet front. The UK's Crown Prosecution Service is apparently still considering whether to allow BT to be prosecuted privately under the Regulation of Investigatory Powers Act over the Phorm debacle. Losing the suit could prove extremely expensive for the company.

BT said in November that it would be laying off some 10,000 employees by March of this year, but may now be considering fresh staff cuts as the economic turmoil continues.