Content Still King

So Carphone Warehouse is opening up the UK broadband market, offering 8MB connections free when you sign up to its international calling plans. This may look great on the surface and it will probably mean that consumers get the benefit of a price war in the short term, but the longer game won’t be about fixed line and broadband, it will be about broadband, fixed line and TV and video content.

Wanadoo will probably be looking with caution at what is happening, even after they combine with Orange in the UK they may struggle as they do not have significant fixed line capability and do not have a content play.

It is doubtful BT will be worried about the announcement from Charles Dunstone this morning as although they are firm competitors with Carphone in the fixed line and broadband services market, they are building up to offer BT Vision, their own TV on demand service over broadband later in the year – which will be free to BT Broadband subscribers - and their dominant market position in fixed line would suggest they won’t worry too much.

Likewise Sky, which is set to offer broadband later this summer after buying Easynet last year, has a dominant market position from the TV side and will no doubt aggressively sell into its own subscriber base.

Finally NTL / Telewest, the cable giant should also not worry as it has fixed line, broadband, cable and on demand TV services and is also ready to add mobile through Virgin to the fold.

Free broadband may be Queen for the day, but content is still King.