Wireless Telecommunications Carriers in the UK Industry Market Research Report Now Updated by IBISWorld

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Revenue in the UK Wireless Telecommunications Carriers industry is expected to decrease at a compound annual rate of 2.7% over the five years through 2012-13 due to falling demand for voice services, lower prices due to regulation and attempts to retain customers. The industry is expected to return to growth over the five years through 2017-18 with the short-term outlook looking very positive as new mobile internet technology provides opportunities for operators to offer data hungry customers a new package of services.

IBISWorld industry market research
New technology will help mobile network performance.

The UK Wireless Telecommunications Carriers industry is largely influenced by the four mobile network operators that generate over 90% of industry revenue. The dominance of the mobile network operators means trends in the mobile market significantly influence the performance of the industry. The overall industry includes all UK companies that operate, maintain and provide access to facilities for the transmission of voice, data, text, sound and video using wireless telecommunications infrastructure. Industry performance is broadly driven by developments in systems and technology, competition for wired telecommunications services and business confidence. The penetrations of mobile phones among UK households as well as disposable income levels also apply specifically to the mobile market.

Industry revenue is expected to decrease at a compound annual rate of 2.7% over the five years through 2012-13 due to falling demand for voice services, lower prices due to regulation and attempts to retain customers. Revenue is forecast to fall at a slower than average rate of 2.1% in 2012-13 to £20.3 billion. According to IBISWorld industry analyst Andrew Johnson, “the demand for data and smartphone capabilities helped operators gain subscribers over the five-year period, but lower average revenue per user reduced overall revenue”. The resulting pressure on operators has made scale more important, culminating in the merger of the T-Mobile and Orange businesses to form Everything Everywhere and become the largest player in the industry.

The industry is expected to return to growth over the five years through 2017-18. Johnson adds, “the short-term outlook is very positive as new mobile internet technology provides opportunities for operators to offer data hungry customers a new package of services”. The industry will continue to be dominated by the mobile market, however niche services are expected to grow rapidly as businesses gain confidence in the economic recovery and switch to wireless services to facilitate operations. The industry does still face threats, in the form of alternative technologies, potential new entrants into the wireless domain, free internet voice and text services and continued regulated cuts to Mobile Terminations Rates.

Market share concentration in the Wireless Telecommunications Carriers industry is high, with the four largest companies controlling about 93% of the market. This high level of concentration is not unusual in mature mobile markets. Major companies include Everything Everywhere, Telephonica O2, Vodafone Group and Hutchison 3G UK.

For more information on the Wireless Telecommunications Carriers 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 operate, maintain and provide access to facilities for the transmission of voice, data, text, sound and video using wireless telecommunications infrastructure. Businesses in the industry also provide internet access through wireless infrastructure. The industry does not include telecommunication resellers.

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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Gavin Smith
IBISWorld
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