Penetration rates are higher than the market share of the cable companies because such rates represent the number of customers taking services as a percentage of the number of homes capable of being served by that company. However, the total number of homes within the licensed area is higher than this figure. As some customers only take cable television, the penetration rates overstate the share of telephony customers. 3.4 Market share represents a percentage of the combined residential and business market. Penetration rates exclude business premises.
Cable companies have a relatively low share of the business market.
When assessing their share of both residential and business customers, the higher penetration rate for residential customers has to be combined with a low penetration rate amongst business customers. The presumption therefore was that regional cable operators do not have SMP on the basis of market share. The number of exchange lines was considered separately in relation to control of means of access. 3.7 Oftel believes that BT has market power. Market power is considered as one of the five factors which may outweigh the initial presumption.