2008 Europe - Telecoms, Mobile and Broadband in United Kingdom and Ireland

Publication Overview

This report covers the UK and Ireland, representing key and influential telecom markets. The report analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments. Subjects include:

·         Market and industry analyses, trends and developments

·         Facts, figures and statistics;

·         Industry and regulatory issues;

·         Research, Marketing, Benchmarking;

·         Major Players, Revenues, Subscribers, Prepaid;

·         VoIP, IPTV, VoD, digital TV and DTTV;

·         Convergent media, mobile broadband.

 

Researcher: Henry Lancaster

Current publication date: November 2008 (7^th Edition)

Next publication date: November 2009

Executive Summary

BuddeComm’s UK and Ireland Annual Publication, ‘2008 Telecoms, Mobile and Broadband in the UK and Ireland’, profiles two countries key to Europe’s telecoms landscape. In this report we present an overview of the telecom markets in the UK and Ireland, together with product offerings for both the mobile and broadband sectors. We provide key statistics for operators in all sectors, highlighting market and technological developments and detailing the emergence of media convergence and triple and quad-play. In the report we also cover regulatory developments, and provide an analysis of NGNs and the strategies of the main players in coming years. 

Ireland’s medium sized telecom market made steady gains in 2008 to address its relatively low broadband penetration rate. The incumbent eircom considered implementing Europe’s first voluntary structural separation earlier in the year before abandoning the exercise for want of government cooperation with part-funding its broadband infrastructure upgrade. eircom investment plans during the next two years are uncertain as the company’s owner, Babcock & Brown, has suffered from the 2008 financial downturn.  

The UK, which has one of Europe’s largest and most vibrant telecom markets, retains the largest digital TV market in the European Union. In 2008 digital TV was viewed by almost 90% of UK TV households. DTTV is the most popular TV platform, followed by digital satellite from BSkyB and the BBC’s FreeSat service, launched in March 2008. 

The continuing success of BT’s Openreach has helped develop a highly competitive broadband sector, while mobile network upgrades have for the first time enabled mobile broadband services to be a viable alternative to fixed-line services. In conjunction with BT’s hybrid VDSL/fibre plans and the deployment of a 50Mb/s service to most of Virgin Media’s network during 2009, these developments have stimulated the market for triple play services.  

Key highlights:

·         2009 will see a further maturity on the quad-play market as operators such as Virgin Media, BSkyB, Vodafone and BT develop commercial interests beyond their historical areas of interest. The fast growing Sky Broadband service ended caps on data usage in mid-2008, highlighting the robustness of its infrastructure and placing enormous pressure on competitors to lift their similar restrictions.

·         The Irish government in June 2008 proposed upgrading the national broadband network to achieve universal access by 2010 with data rates matching EU counterparts by 2012. The move would address the country’s slow connection rates which have put a brake on consumer take-up of triple play.

·         The UK’s digital and pay TV markets remain among the most developed in Europe, with a range of services reached by about 90% of the population. The imminent aggregated IPTV service Kangaroo service would provide content from the BBC, ITV and C4.

·         The mobile data market looks set to grow rapidly in 2009 after operators introduced fixed-price plans, so encouraging consumer use of services. Fierce market competition will favour consumers in coming years as network operators battle churn and try to encourage the use of data services over their completed HSPA networks.

·         The UK’s government has shown greater determination to promote fibre in coming years. Two 2008 reports on funding next generation broadband services estimated the cost for national infrastructure to 80% of homes with fibre at between £5 and £29 billion, depending on the deployment chosen. BT’s belated plans to build a VDSL/FttC network covering 40% of households by 2012 may be overtaken by market support of the more expensive but future-proof FttH.

Broadband penetration in Ireland and the UK – 2005 - 2009

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Year	Ireland	UK
2005	7%	16%
2006	12%	21%
2007	18%	26%
2008	22%	29%
2009(e)	25%	33%

(Source: BuddeComm based on industry sources)

 

For those needing high level strategic information and objective analysis on this region, this 190+ page report is essential reading and gives further information on:

·         eircom’s potential structural separation as a consequence of B&B’s financial difficulties, its impact on broadband take-up in Ireland, and the regulatory measures needed to guarantee equality of access for competitors;

·         The UK’s developing triple play market in 2009 as the anticipated Kangaroo service competes with existing vibrant offers;

·         The growing demand for high-bandwidth content and its effect on stimulating both DSL and cable network upgrades;

·         The changing face of converged media with widespread triple play services becoming a standard feature in homes.

 

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

• 1. United Kingdom
  
  • 1.1 Key statistics
  • 1.2 Telecommunications market
    
    • 1.2.1 Overview of the UK’s telecom market
  • 1.3 Regulatory environment
    
    • 1.3.1 History
    • 1.3.2 Regulatory authority
    • 1.3.3 BT’s structural separation
    • 1.3.4 Telecom sector liberalisation in the UK
  • 1.4 Major fixed network operators in the UK
    
    • 1.4.1 New regulations
    • 1.4.2 British Telecom
    • 1.4.3 KCOM
    • 1.4.4 Cable & Wireless (C&W)
    • 1.4.5 Virgin Media
    • 1.4.6 COLT Telecom
    • 1.4.7 THUS
    • 1.4.8 Carphone Warehouse
    • 1.4.9 Post Office re-entry
    • 1.4.10 Orange
    • 1.4.11 BSkyB
  • 1.5 Telecommunications infrastructure
    
    • 1.5.1 National telecom network
    • 1.5.2 Next Generation Networks (NGNs)
    • 1.5.3 International
  • 1.6 Broadband market
    
    • 1.6.1 Overview
    • 1.6.2 Cable modems
    • 1.6.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 1.6.4 Fibre-to-the-Home (FttH) networks
    • 1.6.5 Broadband Powerline (BPL)
    • 1.6.6 Wireless broadband
    • 1.6.7 Mobile broadband
  • 1.7 Convergence
    
    • 1.7.1 Overview of media convergence
    • 1.7.2 Key general trends
    • 1.7.3 Triple play models
    • 1.7.4 Regulator issues
    • 1.7.5 Digital TV (DTV)
  • 1.8 Mobile communications
    
    • 1.8.1 Overview of the UK’s mobile market
    • 1.8.2 Regulatory issues
    • 1.8.3 Mobile technologies
    • 1.8.4 Major mobile operators
    • 1.8.5 Mobile voice services
    • 1.8.6 Mobile data services
  • 1.9 Forecasts Broadband and Mobile ARPU and UMTS
    
    • 1.9.1 Forecasts – broadband subscribers to 2018
    • 1.9.2 Forecasts – mobile ARPU to 2013
    • 1.9.3 Forecasts – UMTS to 2013
• 2. Ireland
  
  • 2.1 Key statistics
  • 2.2 Telecommunications market
    
    • 2.2.1 Overview of Ireland’s telecom market
  • 2.3 Regulatory environment
    
    • 2.3.1 History
    • 2.3.2 Regulatory authority
    • 2.3.3 Telecom sector liberalisation in Ireland
    • 2.3.4 Number Portability (NP)
    • 2.3.5 Carrier PreSelection (CPS)
  • 2.4 Fixed network operators in Ireland
    
    • 2.4.1 Operator market shares
    • 2.4.2 eircom
    • 2.4.3 BT Ireland
    • 2.4.4 Smart Telecom
    • 2.4.5 Tele2
    • 2.4.6 Other operators
  • 2.5 Telecommunications infrastructure
    
    • 2.5.1 National telecom network
    • 2.5.2 Structural separation issues
    • 2.5.3 Next Generation Networks (NGNs)
    • 2.5.4 International
  • 2.6 Broadband market
    
    • 2.6.1 Overview
    • 2.6.2 Cable modems
    • 2.6.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 2.6.4 Fibre-to-the-Home (FttH) networks
    • 2.6.5 Broadband Powerline (BPL)
    • 2.6.6 Mobile broadband
    • 2.6.7 Wireless broadband
  • 2.7 Convergence
    
    • 2.7.1 Overview of media convergence
    • 2.7.2 Key general trends
    • 2.7.3 Triple play models
    • 2.7.4 Regulatory issues
    • 2.7.5 Digital TV
  • 2.8 Mobile communications
    
    • 2.8.1 Overview of Ireland’s mobile market
    • 2.8.2 Regulatory issues
    • 2.8.3 Mobile technologies
    • 2.8.4 Major mobile operators
    • 2.8.5 Mobile voice services
    • 2.8.6 Mobile data services
    • 2.8.7 Mobile applications
  • 2.9 Forecasts Broadband, Mobile ARPU and UMTS
    
    • 2.9.1 Forecasts – broadband subscribers to 2018
    • 2.9.2 Forecasts – mobile ARPU to 2013
    • 2.9.3 Forecasts – UMTS to 2013
• 3. Glossary of Abbreviations

• Table 1 – Country statistics United Kingdom – 2008
• Table 2 – Telecom revenue and investment statistics – 2007
• Table 3 – Telephone network statistics – 2007
• Table 4 – Internet user statistics – June 2008
• Table 5 – Broadband statistics – March 2008
• Table 6 – Mobile statistics – March 2008
• Table 7 – National telecommunications authority
• Table 8 – Cost of average telecoms services – 2002 - 2006
• Table 9 – Communications retail sector revenue – 2001 - 2007
• Table 16 – BT Openreach LLU volumes – 2004 - 2008
• Table 43 – COLT financial data – 2006 - 2008
• Table 44 – THUS subscribers – 2006 - 2008
• Table 45 – THUS financial data – 2004 - 2008
• Table 46 – Carphone Warehouse revenue, profit and annual change – 2007 - 2008
• Table 47 – Fixed lines in service and teledensity – 1995; 1997; 1999 - 2007
• Table 48 – BT retail PSTN and ISDN lines – 2004 - 2008
• Table 49 – BT Openreach wholesale PSTN and ISDN lines – 2004 - 2008
• Table 50 – Broadband retail revenue – 2001 - 2007
• Table 51 – Broadband connections by type – 2002 - 2007
• Table 52 – Market share of broadband subscribers by type – 2002 - 2007
• Table 53 – ISP market share of broadband subscribers – 2006 - 2007
• Table 54 – Broadband availability by households – 2000 - 2008
• Table 55 – UK broadband market overview – 2004 - 2007
• Table 56 – Broadband penetration by technology – 2004 - 2008
• Table 57 – Total broadband subscribers by type – 2004 - 2008
• Table 58 – Broadband subscribers by type – incumbent or other provider – 2007 - 2008
• Table 59 – Percentage Internet access by dial-up and broadband – 2000 - 2007
• Table 60 – Dial-up Internet usage in minutes – 2002 - 2007
• Table 61 – PC, broadband and Internet household penetration – 2000 - 2007
• Table 62 – Broadband and narrowband share of connections – 2004 - 2007
• Table 63 – B2C e-commerce sales – 2007 - 2012
• Table 64 – Virgin Media subscribers by sector – 2007 - 2008
• Table 65 – Virgin Media ARPU – 2007 - 2008
• Table 66 – Virgin Media broadband subscribers by speed of service – 2007 - 2008
• Table 67 – Virgin Media financial data – 2007 - 2008
• Table 68 – xDSL subscribers – 2000 - 2008
• Table 69 – Average UK residential broadband subscription prices by speed – 2001 - 2007
• Table 70 – BT retail and wholesale broadband subscribers – 2004 - 2008
• Table 71 – WiFi hotspots by operator – June 2008
• Table 72 – Freedom4 financial data – 2006 - 2008
• Table 73 – Mobile broadband connection types and usage – 2008
• Table 74 – Mobile broadband market share – September 2008
• Table 75 – Availability of digital services – 2008
• Table 76 – Adoption of digital services – March 2008
• Table 77 – Proportion of bundled services by type – 2005 - 2008
• Table 78 – Statistical overview of the digital TV market – 2005 - 2008
• Table 79 – Market share of TV homes by platform (primary sets) – 2005 - 2008
• Table 80 – Digital TV take up, share of main TV sets – 2004 - 2008
• Table 81 – Share of multichannel TV by technology – 2004 - 2008
• Table 82 – Digital TV share of net additions – 2004 - 2008
• Table 83 – BT Vision subscribers – 2007 - 2008
• Table 84 – Cable TV subscribers and penetration – 2003 - 2008
• Table 85 – Virgin Media subscribers, ARPU and operational statistics – 2006 - 2008
• Table 86 – Virgin Media revenue by sector – 2005 - 2008
• Table 87 – Free-to-view satellite households - 2003 - 2008
• Table 88 – BSkyB subscriber statistics - 2005 - 2008
• Table 89 – BSkyB annualised ARPU - 2005 - 2008
• Table 90 – BSkyB revenue, operating profit and annual change - 2007 - 2008
• Exhibit 12 – Digital broadcasting switchover timetable – 2008 - 2012
• Table 91 – Homes equipped for DTTV – 2006 - 2007
• Table 92 – DTTV equipment sales – 2005 - 2008
• Table 93 – VoIP users as % of total Internet subscribers – 2005 - 2008
• Table 94 – BT VoIP subscribers – 2006 - 2008
• Table 95 – Mobile and fixed-line voice traffic and total traffic in minutes – 2005 - 2007
• Table 96 – Mobile call revenue by operator – 2002 - 2008
• Table 97 – Mobile retail revenue – 2002 - 2008
• Table 98 – Mobile retail revenue by service – 2002 - 2007
• Table 99 – Mobile retail ARPU by service – 2002 - 2007
• Table 100 – Mobile operators, subscribers and annual change – March 2008
• Table 101 – Mobile subscribers and penetration rate – 1995; 1997; 1999 - 2008
• Table 102 – 3G subscribers by operator and annual change – 2006 - 2008
• Table 103 – 3G subscribers and percentage of total subscribers – 2003 - 2008
• Table 104 – Percentages of mobile and fixed phones in homes – 2000 - 2008
• Table 105 – Consumer methods of making/receiving calls – 2004 - 2005
• Table 106 – Mobile subscribers by operator – 2000 - 2008
• Table 107 – Mobile retail revenue by operator – 2000 - 2007
• Table 108 – Total mobile retail revenue by sector – 2002 - 2007
• Table 109 – Mobile share of outbound calls – 2002 - 2007
• Table 110 – Average mobile charges by service – 2000 - 2007
• Table 111 – Average mobile retail call and messaging revenue – 2002 - 2006
• Table 112 – Mobile market share by operator – 2004 - 2008
• Table 113 – Share of net adds by network operator – 2005 - 2008
• Table 114 – 3G licence results – April 2000
• Table 115 – European roaming charges – 2007 - 2009
• Table 116 – O2 data roaming tariffs – 2007 - 2008
• Table 117 – Mobile numbers ported – 2003 - 2005
• Table 118 – Average mobile termination charges (historic) – 2000 - 2005
• Table 119 – O2 financial data – 2007 - 2008
• Table 120 – O2 quarterly ARPU – blended, contract, prepaid and data – 2006 - 2008
• Table 121 – O2 subscribers, prepaid and contract – 2005 - 2008
• Table 122 – Vodafone ARPU – blended, contract and prepaid – 2005 - 2008
• Table 123 – Vodafone mobile non voice as % service revenue – 2005 - 2008
• Table 124 – Vodafone 3G and live! subscribers – 2005 - 2008
• Table 125 – Vodafone subscribers and proportion prepaid – 2001 - 2008
• Table 126 – Vodafone Group revenue by sector and annual change – 2007 - 2008
• Table 127 – T-Mobile financial data – 2005 - 2007
• Table 128 – T-Mobile subscribers – 2005 - 2008
• Table 129 – Orange subscribers, contract and prepaid – 2006 - 2008
• Table 130 – Orange revenue – 2005 - 2008
• Table 131 – Orange ARPU by category – 2006 - 2008
• Table 132 – Virgin Mobile subscribers – 2005 - 2008
• Table 133 – Carphone Warehouse subscribers – 2002 - 2008
• Table 134 – Carphone Warehouse mobile revenue – 2006 - 2008
• Table 135 – Percentage of prepaid customers per operator – 2003 - 2007
• Table 136 – Average cost per mobile minute – 2002 - 2007
• Table 137 – Prepaid and contract subscribers – 2002 - 2007
• Table 138 – Vodafone live! subscribers – 2005 - 2007
• Table 139 – Total and average text messages sent – 1999 - 2007
• Table 140 – SMS and MMS revenue by operator – 2006 - 2008
• Table 141 – SMS and MMS volumes by operator – 2006 - 2008
• Table 142 – Mobile broadband market share – September 2008
• Table 143 – Forecast broadband subscribers – higher market growth scenario – 2007 - 2012; 2018
• Table 144 – Forecast broadband subscribers – lower market growth scenario – 2007 - 2012; 2018
• Table 145 – Forecast mobile ARPU - 2005 - 2010; 2013
• Table 146 – Data and voice ARPU per subscriber – 2002 - 2007
• Table 147 – ARPU by subscription type – 2002 - 2007
• Table 148 – Forecast UMTS subscribers – 2007 - 2010; 2013
• Table 149 – Country statistics Ireland – 2008
• Table 150 – Telecom revenue and investment statistics – 2008
• Table 151 – Telephone network statistics – 2007
• Table 152 – Internet user statistics – June 2008
• Table 153 – Broadband statistics – June 2008
• Table 154 – Mobile statistics – March 2008
• Table 155 – National telecommunications authority
• Table 156 – Market revenue share by fixed, mobile and broadcasting sectors - 2002 - 2008
• Table 157 – Fixed-line, mobile and broadcasting revenue - 2005 - 2008
• Table 158 – Proportion of fixed-line revenue by service - 2004 - 2008
• Table 159 – Unbundled loops and access lines – 2004 - 2008
• Table 160 – LLU, shared access price - connection, monthly rental (€) – 2004 - 2007
• Table 161 – eircom access channels: PSTN, ISDN, ADSL and annual change – 2007 - 2008
• Table 162 – Access paths – 2005 - 2008
• Table 163 – eircom leased lines by type and annual change – 2005 - 2008
• Table 164 – Numbers ported – 2003 - 2007
• Table 165 – Indirect access lines: CPS and WLR – 2005 - 2008
• Table 166 – Fixed-line and mobile voice traffic in minutes - Q2 2008
• Table 167 – Alternative operator share of fixed-line revenue by sector- 2007 - 2008
• Table 168 – Total fixed-line revenue (€ million) - 2006 - 2008
• Table 169 – Proportion of fixed-line revenue by sector - 2006 - 2008
• Table 170 – Fixed-line call volumes: incumbent and OAOs - 2005 - 2008
• Table 171 – eircom financial data - 2001 - 2007
• Table 172 – eircom financial data - 2007 - 2008
• Table 173 – eircom revenue by sector and annual change - 2007 - 2008
• Table 174 – eircom voice and data revenue by type and annual change - 2006 - 2008
• Table 175 – eircom access channels subscribers – 2006 - 2008
• Table 176 – eircom voice traffic minutes by sector and annual change – 2007 - 2008
• Table 177 – BT Ireland broadband subscribers - 2006 - 2007
• Table 178 – BT Ireland revenue (All Ireland) - 2006 - 2007
• Table 179 – Smart Telecom financial data - 2003 - 2005
• Table 180 – Smart Telecom subscriber statistics by sector - 2005
• Table 181 – Fixed lines in service and teledensity – 1995 - 2007
• Table 182 – Direct / indirect access paths – 2005 - 2008
• Table 183 – Broadband penetration by technology – 2006 - 2007
• Table 184 – Dial-up Internet subscribers – 2005 - 2008
• Table 185 – Total Internet users – 2005 - 2008
• Table 186 – Total broadband subscribers by access type – 2002 - 2008
• Table 187 – Internet share by platform - 2004 - 2008
• Table 188 – Broadband and Internet annual growth by platform - 2006 - 2008
• Table 189 – Share of total broadband market by operator - 2004 - 2008
• Table 190 – Proportion of DSL access by type - 2004 - 2008
• Table 191 – Proportion of broadband subscriptions by access speed – June 2008
• Table 192 – Broadband subscriptions by access speed – March 2008
• Table 193 – UPC Ireland subscribers – 2005 - 2008
• Table 194 – UPC Ireland subscribers – 2007 - 2008
• Table 195 – DSL access provision by type and operator – 2002 - 2008
• Table 196 – Broadband market share by type and operator – 2005 - 2008
• Table 197 – eircom’s ADSL and bitstream lines – 2004 - 2008
• Table 198 – Mobile broadband subscribers – 2007 - 2008
• Table 199 – Wireless broadband subscribers – 2005 - 2008
• Table 200 – Wireless hotspots and access points - 2007 - 2008
• Table 201 – Statistical overview of Ireland’s broadcasting market - 2006 - 2008
• Table 202 – Take-up of broadcasting services, % of total - 2002 - 2008
• Table 203 – Digital TV: cable and satellite market share - 2004 - 2008
• Table 204 – Digital Pay TV subscribers as % of pay TV – 2004 - 2008
• Table 205 – Cable TV subscribers and penetration – 2000 - 2008
• Table 206 – Digital cable TV subscribers – 2005 - 2008
• Table 207 – UPC Ireland subscribers – 2005 - 2008
• Table 208 – UPC Ireland revenue – 2006 - 2007
• Table 209 – Satellite TV antennae and home penetration – 1992 - 2008
• Table 210 – BSkyB satellite TV subscribers – 2003 - 2008
• Table 211 – Operator blended ARPU – 2005 - 2008
• Table 212 – Mobile operators, subscribers and annual change – March 2008
• Table 213 – Mobile subscribers and penetration rate – 1995; 1997; 1999 - 2008
• Table 214 – Mobile market revenue: voice and data - 2005 - 2008
• Table 215 – Mobile traffic volume in minutes - 2005 - 2008
• Table 216 – Mobile share of subscribers by operator - 2005 - 2008
• Table 217 – Mobile share of net adds by operator - 2005 - 2008
• Table 218 – Mobile numbers ported (cumulative) – 2003 - 2008
• Table 219 – Vodafone subscribers – 2006 - 2008
• Table 220 – Vodafone ARPU: blended, prepaid and contract – 2006 - 2008
• Table 221 – O2 mobile financial data – 2007 - 2008
• Table 222 – O2 annualised ARPU, blended, prepaid and contract – 2006 - 2008
• Table 223 – O2 subscribers – 2006 - 2008
• Table 224 – Meteor Mobile subscribers – 2006 - 2008
• Table 225 – Meteor Mobile revenue and annual change - 2007 - 2008
• Table 226 – Meteor Mobile ARPU - 2006 - 2008
• Table 227 – 3 Ireland subscribers – 2006 - 2008
• Table 228 – Mobile voice minutes – 2005 - 2008
• Table 229 – Prepaid versus postpaid share of subscribers – 2000 - 2009
• Table 230 – Proportion of prepaid subscribers by operator – 2006 - 2008
• Table 231 – Mobile data as proportion of total revenue - 2006 - 2008
• Table 232 – SMS messages sent – 2000 - 2008
• Table 233 – MMS messages sent – 2005 - 2008
• Table 234 – Mobile broadband subscribers – 2007 - 2008
• Table 235 – Forecast broadband subscribers – higher market growth scenario – 2007 - 2012; 2018
• Table 236 – Forecast broadband subscribers – lower growth scenario – 2007 - 2012; 2018
• Table 237 – Forecast mobile ARPU - 2005 - 2010; 2013
• Table 238 – Forecast UMTS subscriber growth – 2006 - 2010; 2013

• Exhibit 1 – EU – The New Regulatory Framework (NRF)
• Exhibit 2 – Access and the local loop
• Exhibit 3 – Principal submarine cables from the UK – 2008
• Exhibit 4 – BT’s wholesale DSL products – 2008
• Exhibit 5 – Estimated cost of fibre by deployment technology – 2008
• Exhibit 6 – Wireless opportunities using technology and frequencies
• Exhibit 7 – Spectrum auction results 10GHz - February 2008
• Exhibit 8 – WLAN operator business models - 2008
• Exhibit 9 – Operators’ service bundling offers – June 2008
• Exhibit 10 – Technology developments in bundled services – 2008
• Exhibit 11 – Snapshot of digital TV services and providers – June 2008
• Exhibit 13 – Popular VoIP providers – 2008
• Exhibit 14 – 3G licensee and infrastructure suppliers
• Exhibit 15 – 3G licence results – June 2002
• Exhibit 16 – WDMDS licences: operators, spectrum and fees – 2005