London, United Kingdom (PRWEB) October 19, 2012
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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