United Kingdom: Market Enters Consolidation Phase with Healthy Trends Across Fixed, Pay-TV and Mobile Services

Summary In 2015, UK will be the largest telecom services market in Western Europe and will grow at a 1.0% CAGR from 2015-2020 in local currency to reach $52.4bn (£35.7bn) in 2020. More than 80% of the revenue growth between 2015 and 2020 will come from fixed and pay-TV services, while mobile services will grow slowly due to the EU roaming impact and the possible negative effect of fixed-mobile convergence on mobile revenue. Competition in the UK telecom market is set to intensify as operators look to extend their portfolio to remain competitive in a fixed and mobile convergence market. The ongoing consolidation and possible regulatory remedies will change competitive dynamics over the next few years and will likely reinforce a household-centric proposition. Key Findings - The UK telecom market will generate total service revenue of $51.8bn (£34.0bn) in 2015, a -0.4% decline in local currency from the previous year. - Pyramid Research expects total service revenue to grow at a 1.0% CAGR from 2015-2020 in local currency (0.2% CAGR in US$). The positive impact of fixed broadband network upgrades on ARPS, the growth of LTE beyond the early-adopter status and in-market consolidation will likely compensate the negative impact of fixed-mobile convergence (FMC) on revenue. - The growing adoption of LTE services and the migration of voice services to VoLTE will contribute to growing data usage, mitigating losses in mobile voice revenue. - Broadband customers will benefit from higher speeds as operators are investing heavily in faster networks to achieve the governments target of providing superfast broadband to 95% of premises by 2017. - Driven by operators focus on premium content and quad-play offerings, the UK will add about 1.6m pay-TV subscriptions during 2015-2020 to reach a penetration rate of 71.6% of households. Synopsis United Kingdom: Market Enters Consolidation Phase with Healthy Trends Across Fixed, Pay-TV and Mobile Services report provides an executive-level overview of the telecommunications market in the UK today, with detailed forecasts of key indicators up to 2020. It delivers deep quantitative and qualitative insight into the UK telecom market, analyzing key trends, evaluating near-term opportunities and assessing risk factors, based on proprietary data from Pyramid Researchs databases. The Country Intelligence Report provides in-depth analysis of the following: - Regional context: telecom market size and trends in the UK compared with other countries in the Western Europe region. - Economic, demographic and political context in the UK. - The regulatory environment and trends: a review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more. - A demand profile: analysis as well as historical figures and forecasts of service revenue from the fixed telephony, broadband, mobile voice, mobile data. - Service evolution: a look at changes in the breakdown of overall revenue between the fixed and mobile sectors and between voice, data and video from 2013 to 2020. - The competitive landscape: an examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months. - An in-depth sector analysis of fixed telephony and broadband services, mobile voice, and data services; a quantitative analysis of service adoption trends by technology/platform as well as operator, average revenue per line/subscription and service revenue through the end of the forecast period. - Main opportunities: this section details the near-term opportunities for operators, vendors and investors in the UKs telecommunications markets. Reasons To Buy - Gain in-depth analysis of current strategies and future trends of the UK telecommunications market, service providers and key opportunities in a concise format, to build proactive and profitable growth strategies. - Understand the factors behind ongoing and upcoming trends in the UK communications, fixed telephony and broadband markets, including the evolution of service provider market shares, to align product offerings and strategies to meet customers demand. - Leverage the graphical information (more than 20 charts and tables in the report based on the Pyramid Research forecast products), to gain an overview of the UK telecom market. - Analysis of key telecom players in the markets and major business strategies being adopted by them, to identify the opportunities to improve the market share. - Explore novel opportunities to align your product strategies and offerings to meet the requirements and succeed in the challenging telecommunications market in the UK.

Table Of Contents
Executive summary
Market and competitor overview 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 Overall market opportunities

List Of Tables
UK telecom market size and growth prospects in a regional context, 2015E
Country indicators
Regulatory structure and policy
Major telecommunications policy issues
UK communications market revenue , 2013-2020, US$
Segment revenue CAGRs, 2015-2020, US$
UK communications market revenue , 2013-2020, £
Segment revenue CAGRs, 2015-2020, £
Segment revenues 2013-2020 13
Service revenue mix: voice, data and video, 2015, 2020
Service revenue mix: fixed and mobile, 2015, 2020
Service revenue by operator, 2015
Key telecom market players
Major telecommunications market players
Mobile subscriptions and penetration, 2013-2020
Key mobile market indicators, 2015
Mobile data revenue mix, 2015, 2020
Total mobile ARPS; data percentage of total mobile ARPS, 2013-2020
Mobile market shares by subscriptions, 2013-2020
Mobile subscriptions by technology family, 2013-2020
Fixed-line penetration of population, 2013-2020
Key fixed market indicators, 2015
Fixed voice revenue, 2013-2020
Internet revenue, 2013-2020
Fixed market shares by service, 2015
Fixed access lines by technology, 2015, 2020
Pay-TV subscriptions by technology, 2013-2020
Opportunities in the UK telecommunications market

List Of Figures
UK telecom market size and growth prospects in a regional context, 2015E
Country indicators
Regulatory structure and policy
Major telecommunications policy issues
UK communications market revenue , 2013-2020, US$
Segment revenue CAGRs, 2015-2020, US$
UK communications market revenue , 2013-2020, £
Segment revenue CAGRs, 2015-2020, £
Segment revenues 2013-2020 13
Service revenue mix: voice, data and video, 2015, 2020
Service revenue mix: fixed and mobile, 2015, 2020
Service revenue by operator, 2015
Key telecom market players
Major telecommunications market players
Mobile subscriptions and penetration, 2013-2020
Key mobile market indicators, 2015
Mobile data revenue mix, 2015, 2020
Total mobile ARPS; data percentage of total mobile ARPS, 2013-2020
Mobile market shares by subscriptions, 2013-2020
Mobile subscriptions by technology family, 2013-2020
Fixed-line penetration of population, 2013-2020
Key fixed market indicators, 2015
Fixed voice revenue, 2013-2020
Internet revenue, 2013-2020
Fixed market shares by service, 2015
Fixed access lines by technology, 2015, 2020
Pay-TV subscriptions by technology, 2013-2020
Opportunities in the UK telecommunications market