Internet Service Providers in the UK Industry Market Research Report Now Updated by IBISWorld

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The UK Internet Service Providers industry has displayed only modest growth over the past five years, but this is a strong performance against a telecommunications sector in decline. This reflects the growing importance and influence that the internet has on the day-to-day lives of consumers and businesses. Industry revenue is expected to rise by 2.5% per annum growth in the five years through 2012-13. In the coming five years to 2017-18, the industry is projected to grow at a much stronger rate. Larger gains made by the industry will result in a short-term influx of new operators trying for a quick market grab. Market share will be made available with the roll-out of the fibre-optic network and the expanding number of service offerings that come with it. However, as experienced in the past five years, economies of scale rule this game and will again shake out smaller operators that cannot find a niche market. For these reasons, industry research firm IBISWorld has updated its report on the Internet Service Providers industry.

IBISWorld Market Research

IBISWorld Market Research

Growing subscriber numbers will propel the industry's expansion

The UK Internet Service Providers industry has displayed only modest growth over the past five years, but this is a strong performance against a telecommunications sector in decline. According to IBISWorld industry analyst Angela Kidson, “this reflects the growing importance and influence that the internet has on the day-to-day lives of consumers and businesses”. Value added services are also allowing the industry to outperform the sector. Industry revenue is expected to rise by 2.5% per annum growth in the five years through 2012-13.

The ability for internet service providers to unbundle their service from an incumbent's local exchange has provided for some aggressive pricing strategies in internet services. Local loop unbundling is also a means of uncoupling internet provision from traditional fixed line services, which are losing out to the mobile alternative. Kidson adds, “this is boosting usage by facilitating access to various data-intensive applications such as online gaming, online commerce, video sharing and content downloads”. In 2012-13, the industry is expected to generate £14.0 billion in revenue, a 6.1% increase from the previous year.

In the coming five years to 2017-18, the industry is projected to grow at a much stronger rate. Larger gains made by the industry will result in a short-term influx of new operators trying for a quick market grab. Market share will be made available with the roll-out of the fibre-optic network and the expanding number of service offerings that come with it. However, as experienced in the past five years, economies of scale rule this game and will again shake out smaller operators that cannot find a niche market.

In 2012-13, across the entire internet service provider industry, the top four players will hold a combined 33% market share, giving the industry a low level of market share concentration. BT remains the largest provider, followed by Virgin Media, TalkTalk and BSkyB.

For more information on the Internet Service Providers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Companies in this industry provide internet access via fixed lines to businesses, households and government. Internet services are provided via dial-up and fixed broadband connections. Internet service providers may also offer support services including web page hosting, web development, domain services, intranets development and administration, and e-commerce based services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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