United Kingdom Telecommunications Report Q4 2009

Executive Summary ......................7
SWOT Analysis..............................8
UK Mobile Sector SWOT............................. 8
UK Fixed-Line Sector SWOT....................... 9
UK Broadband Sector SWOT..................... 10
United Kingdom Political SWOT............... 11
United Kingdom Economic SWOT ............ 12
Business Environment Analysis ......................................13
Western Europe .......................................... 13
UK........................ 15
Table: Western Europe Business Environment Rankings ................. 17
Industry Forecast Scenario........18
Mobile ....................... 18
Table: Telecoms Sector – Mobile – Historical Data & Forecasts, 2006-2013.......................... 18
Fixed Line.................. 20
Table: Telecoms Sector – Fixed Line – Historical Data & Forecasts, 2006-2013.................... 20
Internet....................... 22
Table: Telecoms Sector – Internet – Historical Data & Forecasts, 2006-2013......................... 22
Market Data Analysis ..................24
Mobile ....................... 24
Table: UK Mobile Market, Q209................ 25
Table: UK Mobile Market Net Additions, Q408 – Q209 .................. 27
Table: UK Mobile Network Operator Subscriber Mix, Q209 ............ 29
3G......................... 32
Mobile Contract Wins...................................... 34
Table: Mobile Contract Wins...................... 34
Mobile Content ............................35
Regional Overview .......................................... 35
SMS Revenues Under Pressure................... 36
Table: Data Revenues Failing To Reflect Increased Data Usage ....... 36
Table: 3G And 3G Dongle Customers Soaring................................. 37
UK........................ 38
Table: Revenues By Operator (GBPmn)..... 40
VAS Timeline............ 41
Table: VAS Timeline.................................. 41
Mobile Data ............... 42
Table: UK Mobile Market Overview.......... 42
Table: O2 – Mobile Market Overview........ 43
Table: Vodafone – Mobile Market Overview ................................... 45
Table: Hutchison 3G – Mobile Market Overview............................. 47
Table: Orange – Mobile Market Overview....................................... 48
Table: T-Mobile – Mobile Market Overview.................................... 50
Fixed Line.................. 52
Table: Exchange Line Numbers By Operator, 2006-2008 (‘000s) ..... 52
Table: BT’s Dominance Decreasing? Access And Call Revenues (GBPmn)........................... 55
Broadband.................. 56
Table: Residential And Small Business Broadband Connections (‘000), Q407-Q408 ............. 56
Pay-TV ...................... 57
Table: BT Vision Subscribers (‘000), Q207-Q209............................ 57
Wireless Broadband.................................... 58
Wireline (Fixed-Line & Broadband) Developments ......................... 65
Table – Wireline Developments (2008-2009) ................................... 65
Regulatory Environment.............66
Table: Division Of Regulatory Responsibilities In The United Kingdom................................ 66
Background & Regulatory Bodies .............. 66
Regulatory Issues........................................ 66
Competition .......... 67
Regulatory Development ............................ 68
Company Monitor........................71
Table: Nokia Financial Highlights .............. 71
Nokia’s Position In The Global Handset Market, Unit Sales (mn)..... 73
Nokia’s Position In the Global Handset Market, Unit Sales (mn)...... 73
Nokia Siemens Networks Net Sales By Geographic Area (EURmn)....................................... 75
Table: Nokia Siemens Networks Recent Contract Wins In Western Europe ........................... 76
O2......................... 81
Orange .................. 85
T-Mobile............... 87
Competitive Landscape..............89
Table: Key Players – United Kingdom Telecoms Sector .................. 89
Table: Selected Operators’ Financial Indicators................................ 90
Fixed-Line Overview.................................. 91
Table: Regional Fixed-Line Penetration Overview........................... 91
Table: Regional Broadband Penetration Overview .......................... 92
Mobile Overview........................................ 93
Table: Regional Mobile Penetration Overview................................. 93
Country Snapshot: UK Demographic Data......................94
Section 1: Population.................................. 94
Table: Demographic Indicators, 2005-2030...................................... 94
Table: Rural/Urban Breakdown, 2005-2030 ..................................... 95
Section 2: Education And Healthcare ......... 95
Table: Education, 2002-2005...................... 95
Table: Vital Statistics, 2005-2030............... 95
Section 3: Labour Market And Spending Power............................... 96
Table: Employment Indicators, 2000-2005....................................... 96
Table: Consumer Expenditure, 2000-2011 (US$)............................. 96
Table: Average Annual Wages, 2000-2012 ...................................... 97
BMI Telecoms Industry Glossary .....................................98
Table: Telecommunications Glossary Of Terms............................... 98
BMI Methodology ........................99
Business Environment Ratings Methodology ........................................ 99
Ratings Overview ....................................... 99
Weighting ................ 100
Weighting ........... 100
Indicators ................. 100
Indicators ............ 101
Telecommunications Forecast Modelling & Sourcing ......................... 102
How We Generate Our Industry Forecasts..... 102
Telecommunications Industry Forecast Table................................. 102
Business Environment Ratings ................. 102
Sources .................... 103