1. Market Research
  2. > Telecom
  3. > Mobile Services Market Trends
  4. > United Kingdom: Investments in LTE and Fiber Broadband Networks Will Help Keep Revenue Stable

Summary
The UK is the largest communications market in Western Europe, boasting service revenue of US$60bn in 2013. Mobile data was the largest contributor to growth in 2013, driven by network upgrades and skyrocketing smartphone and tablet adoption. This trend will intensify in 2014 as more users adopt LTE. The main driver on the fixed side will be the adoption of fiber-based services, benefitting BT the most. The UK pay-TV market, which will reach 68% household penetration in 2018, has become more competitive with the entry of new IPTV players and Liberty Global's recent acquisition of Virgin Media.

Key Findings
The United Kingdom is the largest communications market in Western Europe, boasting service revenue of about US$60bn in 2013. Through 2018, however, only Italy will grow at a slower rate in the region, which is in part due to the UK's delayed adoption of new technologies, such as LTE and fiber. All four large operators are now offering 4G services commercially, with Three being the last to join the LTE crowd in December 2013. Moving forward, expansion of 4G and Wi-Fi networks presents a significant opportunity for equipment vendors. Network upgrades and skyrocketing smartphone and tablet penetration rates were the primary drivers of the increased mobile data usage in 2013, the single largest contributor to overall market growth during the year. This trend will intensify in 2014 as more users adopt LTE. The MNO Everything Everywhere, for example, reported in Q3 2013 that 64% of new and renewing postpaid customers selected 4G contracts or 4G-ready devices, and its mobile data revenue was up eight percentage points year on year, accounting for 56% of ARPU. A key trend in mobile infrastructure is to achieve cost reductions through network consolidation and sharing: EE has been consolidating the Orange and T-Mobile networks and has a 3G and 4G network sharing agreement with Three; Vodafone and O2 have begun to roll out a network-sharing arrangement too. We expect future differentiation to be driven by value-added services such as Vodafone's planned NFC-based mobile wallet service, a larger variety of MVNO-driven offerings and converged fixed-mobile offerings. Indeed, converged services will become the norm in the UK communications market in the next couple of years, and those players that will be unable to offer such services will find themselves at a serious disadvantage. The main driver of the expansion on the fixed side will be adoption of fiber-based services, with FTTx access lines expected to grow from the current 0.2% of all fixed lines to 11% in 2018, benefitting BT most significantly. The UK pay-TV market, which will reach 68% household penetration by year-end 2018, has become more competitive with the appearance of new IPTV players and the recent acquisition of Virgin Media by Liberty Global. There is speculation that Three and O2 may consider a merger, but complex network sharing agreements, spectrum ownership-related issues and opposition from Vodafone could hinder such an alliance in the short term.

Synopsis
NA

Table Of Contents

United Kingdom: Investments in LTE and Fiber Broadband Networks Will Help Keep Revenue Stable
Table of Contents
Executive Summary
Market and Competitor Overview
UK in a regional context
Economic, demographic and political context
Regulatory environment
Demand profile
Service evolution
Competitive landscape
Major market players
Segment analysis
Mobile services
Fixed services
Pay-TV
Identifying Opportunities

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
The Developed Asia-Pacific telecoms market: trends and forecasts 2016-2021

The Developed Asia-Pacific telecoms market: trends and forecasts 2016-2021

  • $ 7999
  • Industry report
  • November 2016
  • by Analysys Mason

"Telecoms retail revenue for the developed Asia-Pacific region will grow steadily from USD172 billion in 2015 to USD189 billion in 2021." Challenges remain in the developed Asia-Pacific (DVAP) telecoms ...

The Emerging Asia-Pacific telecoms market: trends and forecasts 2016-2021

The Emerging Asia-Pacific telecoms market: trends and forecasts 2016-2021

  • $ 7999
  • Industry report
  • November 2016
  • by Analysys Mason

"Total telecoms retail revenue in emerging Asia-Pacific will grow at a CAGR of 2.3%, increasing from USD278 billion in 2015 to USD319 billion in 2021." Competition is strong in the telecoms market in emerging ...

Wireless network data traffic: worldwide trends and forecasts 2016-2021

Wireless network data traffic: worldwide trends and forecasts 2016-2021

  • $ 7999
  • Industry report
  • February 2017
  • by Analysys Mason

"The rate of annual growth worldwide will decline persistently over the forecast period, falling from 78% in 2015 to 30% in 2021." Cellular data traffic growth will continue to be stronger in emerging ...


ref:plp2014

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.