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

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The Wired Telecommunications Carriers industry is in decline, driven by the improved quality and variety of substitute products and changing preferences for communications in both the consumer and business markets. The industry's decline will continue over the five years to 2018-19, as alternative options continue to flourish facilitated by the greater capacity made available by the transition of the wired network to fibre-optic cables and the development of 4G mobile internet.

IBISWorld industry market research
Traditional services suffer as mobile technologies become more popular

The Wired Telecommunications Carriers industry operates, maintains and provides access to facilities for the transmission of voice, data, text, sound and video using a wired telecommunications infrastructure. In 2013-14 total industry revenue is forecast to decline by 4.0% to £11.3 billion. This will be consistent with the industry's performance over the five years to 2013-14, with revenue expected to decline at a compound annual rate of 6.0%. According to IBISWorld industry analyst Andrew Johnson, “the poor performance has been driven by the improved quality and variety of substitute products and changing preferences for communications in both the consumer and business markets."

Carriers have been affected by the changing ways in which people communicate, with a preference towards mobile and digital technologies at the expense of traditional wired telecommunications services. In addition to increased substitution threats, technological innovation has facilitated the introduction of new substitute services that are absorbing existing revenue streams of wired telecommunication companies (telcos). The growth of fixed-line broadband has helped support the operators of the fixed-line network, but communication options, such as VoIP, that operate using internet platforms, increased choice and competition in the telecommunications market, negatively affecting demand and prices. Industry operators have fared reasonably well with declining revenue by bundling traditional services with growing ones to enhance revenue across different related industries.

The industry's decline will continue over the five years to 2018-19, as alternative options continue to flourish, such as voice services over the internet. This will be facilitated by the greater capacity made available by the transition of the wired network to fibre-optic cables and the development of 4G mobile internet. Johnson adds, “the decline in the major revenue stream means that major telcos will have to change their traditional business models to accommodate the growing demand for data services and compete with the speeds offered by 4G mobile networks”. Convergence of audio, video, data and voice communications will continue to influence the services offered by operators in order to compete in a declining industry.

The Wired Telecommunications Carriers industry has a high level of market share concentration as the top four industry participants’ account for about 83% of industry revenue. The industry is highly concentrated despite the significant increase in competition that has occurred since 1984 as a result of regulatory changes. The industry is extremely capital intensive and one of the key success factors is beneficial economies of scale. The exhaustive capital expense required to create a copper network to compete with BT's has been a major stumbling block for potential competitors.

Consequently, the industry is still dominated by the incumbent BT, which is forecast to account for 67.3% of industry revenue in 2012-13. Other major companies include Virgin Media and Cable and Wireless Worldwide.

For more information on the Wired 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

Industry participants operate, maintain and provide access to facilities for the transmission of voice, data, text, sound and video using a wired telecommunications infrastructure. The industry also includes participants that purchase access and network capacity from infrastructure owners. The industry does not include Telecommunication Resellers or Internet Service Providers.

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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