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RELEASED: MAY 2010
After researching the UK telecommunications market development and taking into account various other factors the following conclusions can be drawn from MBD's report:
MARKET REVIEW 2005-2009:
The UK market for telecommunications declined by 6% in 2008, which is believed to have been followed by a further decline of 3% in 2009, taking the value of the market to £33.4 billion. This is in contrast to growth of 10% and 4% recorded in 2006 and 2007 respectively. The decline in the latter part of the review period, reflects the adverse economic conditions with discretionary telecommunications spend (such as replacement handsets) being reduced and the increasingly competitive market, and indeed regulation (such as restrictions on call roaming charges effective in the latter part of 2009), leading to lower margins, but also reflects the high levels of saturation in the market leading to a level of maturity. Furthermore, the developments in mobile handsets has been slower in recent years leading to a gradual lengthening of the replacement cycle. Nonetheless, some areas of growth in terms of revenue exist, such as data packages and especially mobile internet, reflecting the popularity of smartphones and the growing use of applications. The overall trend remains that mobile telephony continues to afford stronger market prospects than the fixed line sector.
MARKET FORECAST 2010-2014:
The UK telecommunications market is expected to return to growth in 2010, albeit at a moderate 1% in real terms This is anticipated to be followed by slightly stronger annual growth levels of between 2% and 4% in the following four years. In 2014, the value of the market is expected to reach £37 billion (at 2009 prices), equivalent to growth of 11% in real terms compared with 2009. Further mobile phone and broadband uptake, along with technological advancements are expected to facilitate growth during the forecast period. The market is expected to be particularly driven by the popularity of smartphones, and increased demand for data service and mobile internet applications.
NOTE TO EDITORS:
MBD specialises in business to business market research. The range of reports and industries in which we operate in constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.
Click here for full details of the UK Telecommunications Market Research Report
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