United Kingdom Telecoms - Market Analysis 2010

Telecom Investment Research Note

Synopsis

This is a snapshot report of the most recent market, technological and regulatory developments in the UK. It is compiled from the far more extensive publication United Kingdom - Telecoms, IP Networks, Digital Media and Forecasts as also the reports dealing with the telecoms, broadband, mobile and broadcasting sectors in the UK.

Competition remains fierce in all sectors of the market, leading to lower prices for consumers and more generous offers from providers as they struggle to secure market share. The once-fragmented broadband market is now dominated by a single cable provider and three DSL providers, though numerous other ISPs operate on the periphery. The mobile market can expect significant changes during the next two years following the July 2010 merger of two MNOs which created a single operator far larger than its rivals, having significant interests in the fixed line and broadband sectors.

Keys areas for operator investment during the next few years remain fibre-based networks and mobile networks. This upgraded infrastructure is needed to provide universal broadband, and to secure the UK’s socio-economic prosperity for decades to come. To this end, significant spectrum auctions will enable MNOs from early 2012 to develop mobile broadband services with vastly improved performance, while regulatory measures have expedited the roll-out of fibre networks by reducing costs and promoting infrastructure sharing among telcos.