The United Kingdom – Telecommunication Services: An attractive and competitive market (Strategy, Performance and Risk Analysis)

The UK is a highly developed and competitive economy in Western Europe, however, the economy has entered into an era of uncertainty post the Brexit referendum, though the telecom industry is not expected to be affected in the short term. The United Kingdom offers a favourable business environment with low churn rate, despite low minutes of usage and ARPS.

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Key Highlights

Data and internet revenue outpaces voice revenue

Contrary to voice, mobile data revenue increased at a CAGR of 1.6% during the review period, with expectations for the rise to continue at a CAGR of 3.2% during 2016-2021, to reach US$16,769.6 million. Voice revenue fell during 2012-2016 at a CAGR of -13.2%. It is expected to continue to drop at a CAGR of -8.1% during the forecast period, reaching US$5,716.8 million in 2021.

Improving technology to foster data demand

In terms of mobile subscriptions, the UK is the second largest market in western Europe. Increasing mobile subscriptions and enhancement in technology resulted in the growth of mobile data users (with respect to population) from 84.5% in 2012 to 85.5 % in 2016. This is expected to reach 94.4% in 2021. With growing data penetration, coupled with a consistent rise in demand for data and high speeds, operators are largely investing in technology and network enhancement. Subscriptions for LTE-4G significantly increased at a CAGR of 455.1% during the review period, and are expected to continue to grow at a CAGR of 10.9% over 2016-2021.

5G roll-out strategy

The UK’s customers, which highly depend on connectivity as a daily necessity, are experiencing an increase in mobile data traffic per subscriber every year. The roll-out of 5G will further drive mobile data consumption. This technology is expected to be introduced by 2020, with initial pre-commercial deployments expected to begin in 2018 onwards. In order to provide the best options within the telecom industry, Ofcom is planning to choose 700 MHz, 3.4 to 3.8 GHz, and 26 GHz to roll out the technology.

Scope

– Risk/Reward Index – enables you to assess the risks and potential rewards of investing in the United Kingdom Telecommunications market in comparison with other European countries.

– Industry Snapshot and Industry View – Key Telecommunications Industry Statistics including fixed/mobile revenue, subscriptions, churn, market share, and ARPS are analyzed to reveal the key issues and trends driving market performance in the United Kingdom Telecommunications market.

– Industry SWOT Analysis – Discover the Strengths, Weaknesses, Opportunities and Threats impacting market performance and investment in the United Kingdom Telecommunications market.

– Industry Benchmarking – Benchmark how the United Kingdom Telecommunications market is performing compared to regional and global markets in terms of fixed or mobile revenue, subscriptions, ARPS, penetration, and usage to gauge potential for growth or market entry.

– Competitive Landscape – Analyze and compare the performance of the leading players in the United Kingdom Telecommunications market by business segment on metrics such as such as churn, ARPU, and subscriber and revenue growth.

Reasons to buy

- How will Brexit affect the United Kingdom’s Telecommunications market?

- Have technological advances drastically changed the face of the Telecommunications industry?

- How is the market performing in terms of: Revenues, Subscribers, ARPU, and Customer Churn?

- How risky is it to invest in the United Kingdom Telecommunications industry compared to other European countries?

- What is driving the performance of key industry segments such as Voice, Data, Prepaid, Postpaid, Broadband, and IPTV?

- Who are the leading players in the United Kingdom Telecommunications industry and how does their performance compare?

- What trends are being witnessed within the United Kingdom Telecommunications industry?

- How will the breakdown for mobile connection technologies look by 2021?

- What are the United Kingdom Telecommunications industry’s Strengths and Weaknesses and what Opportunities and Threats does it face?

- How has the financial deals landscape changed in 2015 and 2016?

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