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United Kingdom - Mobile Infrastructure, Broadband, Operators - Statistics and Analyses

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    Report

  • 119 Pages
  • December 2019
  • Region: United Kingdom
  • Paul Budde Communication Pty Ltd
  • ID: 3763692
The UK has one of the largest mobile markets in Europe, both in terms of revenue and in the number of subscribers. It is served by several major providers which also have a significant international presence. Recent merger activity has seen dramatic consolidation in the market which has also had knock-on effects for network infrastructure deals struck between operators. The merger of Orange and T-Mobile created EE as the largest operator in the country, and in January 2016 the unit was acquired by BT, which thereby returned to the mobile market after having left it some years before. By contrast, the bid by Hutchison to acquire O2 was rejected by the European Commission in May 2016 on the grounds that the deal would have reduced the number of MNOs to three, and so impacted on market competition.

The market has room for a growing number of low-cost MVNOs providing effective price and service competition for subscribers. The market has also been characterised by developments in advanced data services delivered over upgraded networks, the bundling of mobile as a quad-play service, and regulatory controls on charges and fees. Mobile penetration is above the EU average, and in common with developments in many other European markets subscriber growth has dipped in recent quarters as consumers respond to economic pressures and more generous pricing offers among operators which has negated some of the justifications for multiple SIM card ownership.

Auctions for spectrum in the 2.3GHz and 3.4GHz bands have made more bandwidth available for mobile broadband services, supported by regulatory moves which allow the refarming of 2G spectrum for 3G and 4G use. Spectrum will also be released in the 700MHz band, having been being allocated for 5G use. Operators have expanded the reach of 5G, having launched services progressively during 2019 with a number of key vendor partners.

This report surveys the UK's mobile market, providing an overview of mobile statistics, regulatory issues and technologies. It also profiles the major operators and MVNOs and looks ahead to mobile market developments in coming years.

Key Developments:
  • Government commits £500 million to help LTE network sharing plan;
  • Vodafone to switch off its 3G network by 2022;
  • Virgin Media switches MVNO deal to Vodafone;
  • Ofcom completes 2.3GHz and 3.4GHz spectrum auction;
  • O2 becomes the last of the MNOs to launch 5G services;
  • New rates for MNP imposed;
  • Report update includes the regulators market updates to June 2019, telcos financial and operating data to Q3 2019, recent market developments.

Companies mentioned in this report:

H3, Vodafone, O2, Everything Everywhere (BT/EE, incorporating the former T-Mobile UK and Orange UK), Virgin Mobile, Tesco Mobile

Table of Contents

1 Market analysis2 Mobile statistics
3 Mobile infrastructure
3.1 5G
3.2 4G (LTE)
3.3 3G
3.4 Other infrastructure developments
4 Mobile voice
5 Mobile data
5.1 SMS and MMS
5.2 Mobile broadband
6 Regulatory issues
6.1 Spectrum regulations
6.2 Spectrum refarming
6.3 Spectrum sharing
6.4 Spectrum 2.6GHz
6.5 Spectrum 800MHz
6.6 Spectrum 900MHz
6.7 Spectrum 700MHz
6.8 Spectrum 1800MHz
6.9 Spectrum 2.3GHz and 3.4GHz
6.10 Revised licence conditions
6.11 Other spectrum auctions
6.12 Multi-spectrum auction 2020
6.13 Roaming
6.14 Mobile Number Portability (MNP)
6.15 Mobile Termination Rates (MTRs)
7 Major mobile operators
7.1 Hutchison 3
7.2 O2
7.3 Vodafone
7.4 EE
7.5 Mobile Virtual Network Operators (MVNOs)
8 Mobile content and applications
8.1 Mobile applications
8.2 M-payment MNO collaboration
8.3 Contactless payments
8.4 m-ticketing
8.5 m-banking
8.6 m-health
9 Appendix Historic data10 Related reports
List of Tables
Table 1 Growth in mobile voice traffic 2010 2018
Table 2 Change in mobile retail revenue by service 2013 2018
Table 3 Change in the number of active mobile subscribers and penetration 2009 2024
Table 4 Change in the number of mobile connections by type 2013 2018
Table 5 Decline in mobile ARPU by contract, prepaid 2006 2018
Table 6 Change in average household spend of fixed-voice and mobile services 2013 2018
Table 7 Change in the number of prepaid and contract subscribers 2010 2018
Table 8 Growth in the number of LTE subscribers 2013 2018
Table 9 Growth in O2's LTE subscribers and penetration 2014 2019
Table 10 Growth in the number of M2M connections 2010 2019
Table 11 Growth in the number of O2's M2M accesses 2014 2019
Table 12 Development of outgoing mobile voice traffic 2013 2018
Table 13 Growth in average mobile data traffic per user 2011 2018
Table 14 Growth in contract/prepaid mobile data traffic 2013 2018
Table 15 Decline in the volume of SMS and MMS messages sent 2004 2019
Table 16 Change in average SMS/MMS traffic per month by contract type 2010 - 2018
Table 17 Change in the number of dedicated mobile broadband subscribers 2008 2019
Table 18 Growth in the number of active mobile broadband subscribers 2009 2024
Table 19 MTRs by operator (pence per minute) 2015 2018
Table 20 Mobile interconnection traffic 2007 2018
Table 21 Growth in the number of H3's registered subscribers by sector 2008 2019
Table 22 Growth in the number of H3's active subscribers by sector 2014 2019
Table 23 Development of H3's financial data 2008 2019
Table 24 Decline in H3's annualised gross ARPU 2009 2019
Table 25 Development of O2's financial data 2007 2019
Table 26 Development of O2's quarterly financial data 2013 2019
Table 27 Change in O2's mobile ARPU 2006 - 2019
Table 28 O2 proportion of data to service revenue 2006 2019
Table 29 Growth in the number of O2's mobile subscribers by type 2005 2019
Table 30 Development of Vodafone's mobile ARPU (blended, contract, prepaid) 2005 2019
Table 31 Vodafone (UK) subscribers and proportion prepaid 2009 - 2019
Table 32 Vodafone (UK) financial data 2008 2020
Table 33 Vodafone customer churn 2007 2019
Table 34 Vodafone Group revenue by sector 2007 2020
Table 35 Vodafone UK service revenue by sector 2009 2020
Table 36 Vodafone mobile customer retention cost 2007 2020
Table 37 Growth in Vodafone's mobile data traffic 2013 2019
Table 38 Development of EE's mobile revenue (new format under BT) 2017 2020
Table 39 EE quarterly consumer mobile revenue (new format under BT) 2016 2020
Table 40 Decline in EE's ARPU 2009 2019
Table 41 Change in the number of Virgin Mobile's mobile subscribers 2015 2019
Table 42 Development of Virgin Mobile's revenue 2007 2019
Table 43 Historic - Mobile subscribers and SIM penetration rate 1995; 1997; 1999 2009
Table 44 Mobile retail revenue by service 2002 2018
Table 45 Historic - Virgin Mobile subscribers 2005 2014
Table 46 Average 3G and 4G speeds (Mb/s) 2014 2015
Table 47 Historic - Broadband take-up by technology 2007 2016
Table 48 Historic - Average household spend of fixed-voice, mobile and internet services 2008 2016
Table 49 Historic - Prepaid and contract subscribers 2002 2009
Table 50 Historic - Mobile market share by operator 2004 2016
Table 51 Historic EE's LTE subscribers 2013 2015
Table 52 Historic - SMS and MMS revenue 2015 2017
Table 53 Historic - EE subscriber data 2009 2018
List of Charts
Chart 1 Growth in mobile voice traffic 2010 2018
Chart 2 Change in mobile retail revenue by service 2013 2018
Chart 3 Change in the number of active mobile subscribers and penetration 2009 2024
Chart 4 Change in the number of mobile connections by type 2013 2018
Chart 5 Decline in mobile ARPU by contract, prepaid 2006 2018
Chart 6 Change in average household spend of fixed-voice and mobile services 2013 2018
Chart 7 Change in the number of prepaid and contract subscribers 2010 2018
Chart 8 Growth in the number of LTE subscribers 2013 2018
Chart 9 Growth in O2's LTE subscribers and penetration 2014 2019
Chart 10 Growth in the number of M2M connections 2010 2019
Chart 11 Development of outgoing mobile voice traffic 2013 2018
Chart 12 Growth in average mobile data traffic per user 2011 2018
Chart 13 Growth in contract/prepaid mobile data traffic 2013 2018
Chart 14 Decline in the volume of SMS and MMS messages sent 2004 2019
Chart 15 Change in average SMS/MMS traffic per month by contract type 2010 - 2018
Chart 16 Growth in the number of active mobile broadband subscribers 2009 2024
Chart 17 Growth in the number of H3's registered subscribers by sector 2008 2019
Chart 18 Development of H3's financial data 2008 2019
Chart 19 Decline in H3's annualised gross ARPU 2009 2019
Chart 20 Development of O2's financial data 2007 2019
Chart 21 Development of O2's quarterly financial data 2013 2019
Chart 22 Change in O2's annualised ARPU blended, contract, prepaid and data 2006 2019
Chart 23 Growth in the number of O2's mobile subscribers by type 2005 2019
Chart 24 Development of Vodafone's mobile ARPU (blended, contract, prepaid) 2005 2019
Chart 25 Vodafone (UK) subscribers and proportion prepaid 2009 2019
Chart 26 Vodafone (UK) financial data 2008 2020
Chart 27 Growth in Vodafone's mobile data traffic 2013 2019
Chart 28 Development of EE's mobile revenue (new format under BT) 2017 2020
Chart 29 EE quarterly consumer mobile revenue (new format under BT) 2016 2020
Chart 30 Decline in EE's ARPU 2009 2019
Chart 31 Change in the number of Virgin Mobile's mobile subscribers 2015 2019
Chart 32 Development of Virgin Mobile's revenue 2007 2019
List of Exhibits
Exhibit 1 3G licence results April 2000
Exhibit 2 3G licensee and infrastructure suppliers
Exhibit 3 Spectrum available for mobile services
Exhibit 4 Spectrum awards 800MHz and 2.6GHz 2013
Exhibit 5 Spectrum awards 2.3GHz, 3.4GHz April 2018
Exhibit 6 Spectrum auction results 10GHz February 2008
Exhibit 7 H3 spectrum concessions

Companies Mentioned

  • H3
  • Vodafone
  • O2
  • Everything Everywhere (BT/EE, incorporating the former T-Mobile UK and Orange UK)
  • Virgin Mobile
  • Tesco Mobile