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United Kingdom - Telecoms, IP Networks, Digital Media and Forecasts

Cover of United Kingdom - Telecoms, IP Networks, Digital Media and Forecasts

Table of Contents

Management Report
Published: March 2012
Pages: 146
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 619.00  Buy Now!
Research from: Paul Budde Communication Pty Ltd.
Sector: Networks & Infrastructure

This report provides a comprehensive overview of trends and developments in the UK telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, revenues, subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile voice and data markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and digital media;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

Virgin Media trials the world’s fastest cable broadband, at 1.5Gb/s, 100Mb/ service extended to one million households; government allocates £363 million for regional broadband schemes; Fujitsu, Virgin Media, TalkTalk and Cisco announced plan open-access FttH platform to five million homes; BT to extend ADSL2+ to 90% of premises by mid-2013; community fibre deployment gaining traction; Ofcom’s powers to be revised in 2012; Ofcom claims 4G spectrum efficiency gains of up to 200% on 3G; 800MHz and 2.6GHz auction delayed until late 2012; Big Three m-commerce initiative; UK Broadband LTE developments in 3.5GHz band; Everything Everywhere and BT Wholesale trial LTE in the 800MHz band; 3UK reports 97% of all network traffic is data; MBNL signs £100 million network deal with Virgin Media Business; potential LTE interference with DTTV in 800MHz band; Everything Everywhere extends LTE trial, upgrades HSPA+ network to 21Mb/s; Pingit mobile payment app launched; regular’s 2010 market report and data to Q2 2011; operator data to end-2011; market developments into 2012.

Companies covered in this report include:

H3UK, O2, Vodafone, Everything Everywhere, Virgin Mobile, UK Broadband, British Telecom, Virgin Media, BSkyB, Freeview, BBC, Tiscali, Thrive Telecom, Libera, The Cloud, Kcom, Carphone Warehouse, BSkyB, O2.

Regulator and MNOs prepare for LTE auction at end-2012

BuddeComm’s Annual publication, UK - Telecoms, IP Networks and Digital Media, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors in this key European market, including regulator data to the second quarter of 2011, operator data to the end of 2011 and market developments into 2012.

The UK’s telecom market has not been unscathed by the global economic downturn, which has pushed the economy into one of the deepest recessions experienced by any European country. GDP contracted 4.9% in 2009 before showing some recovery since, though growth may be marginal during 2013. Telecom retail revenue has fallen steadily in recent years, buttressed only in part by mobile data services and TV sector revenue. Revenue from fixed internet services has fallen in response to the proliferation of cheaper bundled services. Although competition has continued to drive down prices, the effect on real monthly household spend on telecom services is negligible, remaining at around 4.6% of total household spend for several years.

Investment in the telecom sector has also been affected by the economic climate. It has been dominated by operators concentrating on upgrading cable and fibre networks, as also mobile networks with new technologies including HSPA and LTE. A boost to investment is expected in 2012 as MNOs bid for available spectrum in the 800MHz and 2.6GHz bands. This will enable them to extend their mobile broadband offerings and capabilities in coming years.

Fixed-line penetration has been falling steadily since 2000 while mobile penetration has increased to the extent that by early 2011 more than a quarter of households relied on mobile-only access, compared with only 6% in 2001. In digital broadcasting, satellite services have shown considerable growth while DTTV coverage continues to be extended ahead of ASO scheduled for the end of 2012.

UK – Key telecom parameters – 2010; 2012

Sector

2010

2012 (e)

Broadband:

Fixed broadband subscribers (million)

19.58

21.20

Fixed broadband penetration rate

31.9%

34.2%

Mobile broadband connections (million)

6.5

12.6

Subscribers to telecoms services:

Fixed-line telephony (million)

33.4

33.0

SIM cards in service (million)

81.1

83.9

SIM penetration (population)

134%

141%

(Source: BuddeComm)

Key Highlights

  • Broadband speeds have increased considerably, with Virgin Media offering 120Mb/s services across much of its network and BT extensively providing a 40Mb/s FttC offer as part of its £1.5 billion network investment. Average speeds have climbed to about 7.2Mb/s.
  • Virgin Media has extended its FttH network, being part of a consortium which will deliver an open-access FttH platform to five million homes and businesses. The first customers were switched on to the network by the network builder Fujitsu, with Virgin Media and TalkTalk as retailers.
  • Mobile data usage is expected to grow at 80-90% annually in coming years as consumers respond to greater network capacity combined with lower usage charges (the result of competition) and imposed maximum data tariffs (the result of EC legislation). To this end operators are relying on additional spectrum in the 800MHz and 2.6GHz band to be made available from 2013 following auctions to be held in 2012.
  • Bundled services are now taken by more than half of the UK’s households, dominated by telephony/broadband and telephony/broadband/TV offers. Competition has greatly reduced prices for consumers, while deals among operators, such as that between Vodafone and BT Wholesale, has made quad-play offers readily available.
  • LTE trials have been undertaken by a range of operators using several spectrum bands, including a world first in the 3.5GHz band. There is a chance that Ofcom will allow MNOs to refarm their allocated spectrum for 4G: Everything Everywhere has asked for permission to refarm its 1800MHz holdings for 4G, following a precedent established in 2011 when O2 and Vodafone were allowed to refarm their 900MHz allocations, and Everything Everywhere its 1800MHz allocation, for 3G.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in the UK. It provides further information on:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of spectrum auctions and new license awards in 2012;
  • 3G developments, regulatory issues and technologies including HSPA and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

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