Telecommunications Market Data Update Q1 2008

Published 02|10|08

Market Monitor

In this section we highlight some of the key trends emerging from the data we collect on the UK telecommunications sector. We hope that by doing this we will contribute to a greater understanding of the changing ways in which telecommunications services are delivered and consumed within the UK.

Fixed

• BT’s market share of fixed calls and access revenues fell to under 60% for the first time in Q1 2008.
• Total call volumes were unchanged at 38 billion minutes during the period as a result of growth in call volumes from indirect operators offsetting a decline in call volumes from other operators.

Internet

• The total number of residential and SME broadband connections increased by almost 600,000 to 16.2 million in Q1 2008, with BT’s retail market share being unchanged at 26.5%.

Mobile^(-1-)

• Total mobile revenue across the four mobile operators declined by 1.6% in during the quarter, due to a fall in revenue from calls and other charges.
• Total mobile call volumes declined slightly (0.23%) during the quarter while messaging volumes increased by 8%.
• Contract subscribers grew by 1.9% in Q1 2008 compared to a 1.3% decline in prepay subscribers. The proportion of subscribers on contract has grown each quarter since Q1 2006, accounting for 36% of all subscribers in Q1 of 2008, compared to 32% in Q1 of 2006.

Footnotes:

1.- The commentary provided only refers to the four mobile operators covered in this report.

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