Broadband subscription rates have seen a decline in the past quarter with figures slumping from 510,000 subscriptions, to fewer than 470,000.
One reason that has been suggested is that as the majority of UK homes are now connected to the internet via a broadband connection, the market has reached saturation point with the remainder either satisfied with their dial-up connection or just not interested in connecting the internet.
According to Tim Johnson, chief analyst at Point Topic: "The reason for the sudden drop is largely the shrinking size of the remaining pool of dial-up users. There are fewer now and the ones that are left are more resistant to change. On top of that, the industry has been failing to bring enough new homes on line."
Tech site Gizmodo.com reports that by the end of this year, UK broadband customers could amount to 15.5 million, up 17 per cent on 2006.