Big-six broadband providers 'still competitive'

Although the number of broadband ISPs has been whittled down to just six large companies, there remains a healthy spirit of competition, it has been suggested.

Buy-outs of smaller firms have been a feature of the market over the last few months - with BT snapping up Madafish and Plusnet and a sizable part of Pipex being sold off to Tiscali.

Along with Virgin Media, BSkyB, the Carphone Warehouse and Orange, these internet service providers account for 94 per cent of the broadband market.

Normally, this would raise concerns that the companies could work together and raise prices for consumers to boost their profits.

But the director of BroadbandChoices.co.uk, Michael Phillips, said that this has not occurred in the UK as competition between these firms remains fierce.

"Smaller ISPs often struggle to keep their place in the market and the past year has seen a rash of consolidations and take-overs as the likes of BT and Tiscali vie for an ever bigger slice of the broadband pie," he said.

But he added: "As the pool of customers completely new to broadband dries up, providers have to devise new ways of tempting consumers away from their rivals."

Continued competition through good value broadband offers will likely help fast internet connections spread across the country, in turn allowing web services such as VoIP and remote working to become more widely used.