Pipex - Wimax - the next telecoms revolution

2007 to bring mixed blessings in the world of personal finance
21 December 2006

With 2007 just around the corner, price comparison website moneysupermarket.com offers its predictions for the year ahead across the banking, mortgage, insurance, utilities, mobile phone and broadband markets.

Broadband

Jason Lloyd, head of broadband at moneysupermarket.com, said:" I think 2007 will be known within the broadband industry for the introduction of mandatory MAC codes. This is due to come into effect in mid-February. For many people this should make the process of switching between broadband suppliers much easier. However, it will also become an additional cost burden on broadband ISPs who will have to manage a system that allows mandatory MAC codes. Monthly subscriptions for broadband and charges for hardware are likely to increase across all providers as they seek to absorb the cost, and we may see even longer minimum contract terms as they try to retain customers for longer.

“We will probably see further consolidation in the broadband market in 2007, simply because some of the mid-range ISPs do not have the spending power of the largest ISPs to be able to keep up. What we’ll see is four or five big brands controlling over 90 per cent of the broadband market. It seems apparent that Tiscali and PIPEX will be the two biggest casualties in 2007 and are likely to be consumed by other groups. Unfortunately, in the long term this is not good news for people as it makes the market less competitive, but it should make the services they deliver much more reliable.

“I would expect that in 2007 there will be an increase in the use of IPTV, (Internet Protocol TV) – essentially watching television via your broadband connection. Many people now have access to bandwidth that enables them to download TV programmes or films fairly quickly, and the popularity of video on demand services is likely to grow as people realise they don’t need to rely on digital TV as the primary method for getting TV programming.

“Usage of VOIP (Voice Over IP) is also likely to double next year. At present there are just over three million people in the UK regularly using VOIP in the home, yet it is very cost effective and with more providers now offering packages which bundle VOIP into their broadband deals, its popularity is set to grow.”