|
RELEASED: JUNE 2009
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:
In the early part of the current decade, the UK telecommunications market increased due to the progress of the economy and technological developments in the industry, which both had a positive impact on the market, particularly in the mobile communications sector. However, while the utility nature of the sector affords some protection from economic volatility, Ofcom data indicates a downturn of around 7% in revenue in 2008 (taking the market to £34.2 billion) and MBD believe that a further decline will be evident in the market in 2009, with a projected reduction of around 2% (to £33.4 billion). In part this reflects the 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. While some areas of growth in terms of revenue exist, such as data packages, the developments in mobile handsets has been slower in recent years leading to a gradual lengthening of the replacement cycle. The overall trend remains that mobile telephony continues to afford stronger market prospects than the fixed line sector.
MARKET FORECAST 2010-2014:
While there has been a modest downturn in the UK telecommunications market during the current recession, there are conflicting views in the sector to what extent this reflects the economic climate or if this is a structural indication of a maturing market. MBD believe that the sector still offers considerable growth potential, with speed and capacity in the mobile sector continuing to drive demand. The market is forecast to return to modest growth in real terms in 2010 with annual growth of between 3% and 4% in real terms during the remainder of the forecast period to 2014. Further mobile phone and broadband uptake, along with technological advancements are expected to facilitate growth during the forecast period.
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
MBD WELCOMES PRESS ENQUIRIES:
Press releases on the latest MBD market research reports can be sent to editors and journalists involved in trade magazines.
Full press releases are available, please email your request, along with the magazine title you are writing for, to pressoffice@mbdltd.co.uk.
|
