Industry metrics and summary - Ofcom€¦ · 14.9. 14.9: 15.1 Mobile voice call minutes (billions)...

Industry metrics and summary

0

Source: Ofcom / operators

2006 2007 2008 2009 2010 2011

Total operator-reported revenue (£bn) 40.7 42.0 42.5 41.2 40.5 39.7

Operator-reported retail revenue (£bn) 30.6 31.7 32.0 31.1 30.9 31.0

Operator-reported wholesale revenue (£bn) 10.1 10.3 10.4 10.1 9.6 8.8

Average monthly household telecoms spend (£ 2011 prices) 78.46 76.00 73.04 70.81 68.06 65.04

Fixed access and call revenues (£bn) 10.5 10.4 10.2 9.7 9.4 8.9

Fixed voice call minutes (billions) 154 149 141 132 129 116

BT share of fixed call minutes (%) 47.1 46.6 43.8 40.1 36.5 35.9

Fixed lines (millions) 34.5 34.5 34.2 33.5 33.4 33.2

Fixed internet revenues (£bn) 3.2 3.2 3.2 3.3 3.2 3.4

Fixed internet connections per 100 population 28.0 29.3 29.5 30.3 32.1 33.2

Fixed broadband connections per 100 population 21.3 24.9 27.4 28.7 30.6 32.5Proportion of premises connected to an unbundled exchange (%) 66.6 80.2 84.2 84.5 89.0 91.9

Mobile retail revenues (£bn) 13.9 15.0 15.5 14.9 14.9 15.1

Mobile voice call minutes (billions) 88 105 115 121 125 124

1

Figure 5.1 UK telecoms industry key statistics

Key market developments in telecoms

2

Fibre-to-the-cabinet rollout and take-up of superfast services start to gain momentum

3

Figure 5.2

13 13 15 16 17 18 19 20 23 24 24 27 28 29 30 31

0

10

20

30

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

4

Source: Ofcom / BTNote: Includes estimates where Ofcom does not receive data from operators

Estimated household availability of BT’s fibre-to-the-cabinet network

Proportion of homes (per cent)

51 51 52 53 53 53 54 54 55 55 56 57 57 58 59 60

0

20

40

60

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

5


Figure 5.3

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators

Estimated household availability of superfast broadband services

Figure 5.4

39 38 37 37 36 35 35 34 32 32 32 30 30 29 29 28

7 7 7 8 9 9 10 11 12 13 13 14 15 15 16 16

6 6 7 8 8 9 9 9 10 11 11 12 13 14 14 1551 51 52 53 53 53 54 54 55 55 56 57 57 58 59 60

0

20

40

60

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

FTTC-only

FTTC and cable

Cable-only

6


Estimated household availability of superfast services, by technology


7

Figure 5.5Comparison of major ISPs’ superfast and current generation broadband services

Source: Ofcom / Pure Pricing UK Broadband Pricing Briefing, March 2012

BT Virgin Media TalkTalk Sky Plusnet

Low

est c

ost s

uper

fast

se

rvic

e

Headline download speed / technology 38Mbit/s FTTC 30Mbit/s cable 40Mbit/s FTTC FTTC 38Mbit/s FTTC

Average actual speed, November 2011 36.0Mbit/s 31.0Mbit/s - - -

Data allowance 40GB plus unlimited WiFi Unlimited 40GB Unlimited 40GB plus

unlimited off-peak

Call allowance Fixed off-peak Virgin Media plus fixed weekend Fixed off-peak Fixed off-peak Plusnet plus fixed

off-peak

Monthly cost £18 plus line rental £14.50 plus line rental

£16.50 plus line rental£20 plus line rental £16.49 plus line

rental

Low

est c

ost c

urre

nt

gene

ratio

n se

rvic

e

Technology / headline download speed ADSL2+/ 16Mbit/s n/a ADSL2+/ 14Mbit/s ADSL2+ ADSL2+/ 16Mbit/s

Average actual speed, November 2011 8.7Mbit/s n/a 8.0Mbit/s 7.5Mbit/s 8.3Mbit/s

Data allowance 10GB plus unlimited WiFi n/a 40GB Unlimited 10GB plus

unlimited off-peak

Call allowance Fixed anytime n/a Fixed off-peak Fixed off-peak Plusnet plus fixed off-peak

Monthly cost £13 plus line rental n/a £6.50 plus line rental£10 plus line rental £6.49 plus line

rentalAdditional monthly superfast cost £5 n/a £10 £10 £10

Figure 5.6

0.2 0.4 0.60.9

1.11.4

1.22.1

2.9

4.3

5.5

6.6

0

2

4

6

8

0.0

0.5

1.0

1.5

2.0

Q4 2010 Q1 2011 Q2 Q3 Q4 Q1 2012

Superfast connections (left axis)

Superfast as % of all connections (right axis)

8


Take-up of superfast broadband services

Superfast connections (millions) Superfast as a % of all connections

New devices shape an explosion in mobile data use

9

10

2.6 4.1 4.8 5.18.9 8.4

14.5

22.7

32.6

0.2 1.20

10

20

30

40

2007 2008 2009 2010 2011

Mobile broadband

Smartphone data users

3G-enabled tablets

million

Figure 5.7

Number of mobile broadband connections, 3G-enabled tablets and users accessing the internet on their mobile device

Source: Ofcom data based on submissions by operators and Ofcom market research. Consumers accessing the internet on their mobile phone and 3G-enabled tablets are estimates based on these data. Mobile broadband figures are for December of the stated year and the other two categories are for the first quarter of the following year.

Figure 5.8

11

Source: YouGov Dongle Track

Reasons for choosing pre-pay mobile broadband

% of consumers mentioning each criteria

64%

39%

20% 19%

8%1%

0%

20%

40%

60%

80%

100%

Low

usage

Dislike

contract

Unsure

of usage

Low

comm

itm

ent

Other

Don't

know

12

Figure 5.9

812 12

94 2

129 9

410

6 5

5

9 8

3

31

1

34 4

7

3 106

0

5

10

15

20

25

30

Mobile broadband only

Fixed and mobile broadband

Source: Ofcom research, Q1 2012Base: All adults aged 16+ (n=3772)

Take-up of mobile broadband by socio-economic group, age and housing type of respondent

% take-up

Age Socio-economic group

Housing

Figure above chart shows % point

change in overall take-up from Q1 2011

-4 -9-5 -5-4 -1-2-5-6-7 +/-0+/-0 -5 -3

0

200

400

600

Jul-2

010

Aug-

2010

Sep-

2010

Oct

-201

0

Nov

-201

0

Dec

-201

0

Jan-

2011

Feb-

2011

Mar

-201

1

Apr-

2011

May

-201

1

Jun-

2011

Jul-2

011

Aug-

2011

Sep-

2011

Oct

-201

1

Nov

-201

1

Dec

-201

1

Jan-

2012

Feb-

2012

75% use more than

50% use more than

25% use more than

10% use more than

Figure 5.10

13

Source: BillMonitor

Smartphone data use

Monthly data use (MB)

14

Figure 5.11

Smartphone data caps

Source: YouGov SMIX

17%

24%

6%9%

2%1%

19%

21%

Less than 500MB

500-750MB

750MB-1GB

1-2GB

2-5GB

5GB or more

Unlimited

Don't know

Percentage of respondents using each range of allowance

15

Figure 5.12

Use of smartphone WiFi connection relative to cellular connection

Source: YouGov SMIX

3%

36%

31%

25%

2% 3% Only WiFi

Mostly WiFi

WiFi and mobile equally

Mostly mobile

Only mobile

Don't know

% of respondents in Sep 2011

4%

39%

28%

23%

2%5% Only WiFi

Mostly WiFi

WiFi and mobile equally

Mostly mobile

Only mobile

Don't know

% of respondents in Dec 2011

Figure 5.13

16

Source: YouGov SMIX

Location of Wi-Fi use on a smartphone

% of consumers mentioning each location

90%

43%

67%

46%

63%

0%

20%

40%

60%

80%

100%

At hom

e

At w

ork

Public

places

On the

move

Out and about

After fixed-to-mobile substitution are we seeing voice-to-data substitution?

17

Figure 5.14

63.6 58.8 55.0 52.2 50.8 48.4

36.4 41.2 45.0 47.8 49.2 51.6

0

20

40

60

80

100

2006 2007 2008 2009 2010 2011

Mobile voice

Fixed voice

18


Fixed and mobile share of total originating voice call volumes

Per cent

Figure 5.15

154 149 141 132 129 116

69 80 87 91 98 102

19 25 28 29 27 21242 254 256 252 254 239

0

100

200

300

2006 2007 2008 2009 2010 2011

Total

Pre-pay mobile

Contract mobile

Fixed voice

19


Total fixed and mobile voice call volumes

Billions of minutesAnnual change

5 year CAGR

-5.6% -0.3%

-20.1% 2.2%

4.0% 8.1%

-10.0% -5.6%

Figure 5.16

85 78 77 76 76 68

46 54 58 61 60 56

45 40 36 32 32 29

42 51 57 60 65 68

218 223 228 229 232 220

0

100

200

300

2006 2007 2008 2009 2010 2011

Bus

Res

Business mobile

Business fixed

Residential mobile

Residential fixed

20

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; fixed call volumes exclude NTS voice calls.

Total fixed and mobile voice call volumes, by customer type

Billions of minutesAnnual change

5 year CAGR

-8.7% -1.2%

-0.6% 2.1%

3.6% 10.1%

-9.1% -8.6%

-6.3% 3.7%

-10.7% -4.4%

Figure 5.17

297275 272 272 268

236

67 74 76 78 74 69

0

100

200

300

2006 2007 2008 2009 2010 2011

Fixed

Mobile

21


Average monthly call minutes per residential fixed and mobile voice connection

Minutes per month Annual change

5 year CAGR

-11.6% -4.5%

-7.1% 0.7%

Figure 5.18

22

7564

40

1610

8068

47

1912

8071

52

22 17

0

20

40

60

80

100

Mobile messaging

Email Social networking sites

VoIP Mobile instant messaging

2010

2011

2012

Source: Ofcom research, data as at Q1 of each yearBase: All adults 16+

Proportion of respondents (per cent)

Use of methods of communication other than traditional voice telephony

Figure 5.19

23

5847

3230

2926

129

8

0 10 20 30 40 50 60

Text messagingVoice call on mobile

Social networking (e.g. Facebook)Email

Voice call on landlineInstant messaging (e.g. MSN)

Comment on websiteVoIP (e.g. Skype)

Micro blogging (e.g. Twitter)

Source: Ofcom research, Q1 2012Base: All adults 16+


Means of communicating with friends and family used at least once a day

Government announces investment to increase mobile coverage

24

25

Figure 5.20

Premises in complete mobile not-spots

Source: Ofcom

26

Figure 5.21

Source: Department for Culture, Media and Sport

Name of road Nation Start End

A2 Northern Ireland Derry Newry

A29 Northern Ireland Coleraine Armagh

A591 England Keswick Sizergh

A169 England Whitby Norton

A57 England Liverpool Manchester

A470(T) Wales Llandudno Cardiff

A82(T) Scotland Inverness Glasgow

A360 England Devizes Salisbury

A143 England Great Yarmouth Haverhill

A352 England Sherborne Wareham

Roads targeted to benefit from the Mobile Investment Programme

The telecoms industry

27

Figure 5.22

28

Source: Ofcom/operators (retail and wholesale data); IDC (corporate data services data)

UK telecoms revenue by wholesale and retail, fixed and mobile, and corporate data services

6.1 5.7 5.5 5.4 5.4 5.24.0 4.6 5.0 4.7 4.2 3.6

13.8 13.6 13.4 12.9 12.6 12.3

13.9 15.0 15.5 14.9 14.9 15.1

3.0 3.2 3.2 3.3 3.4 3.640.7 42.0 42.5 41.2 40.5 39.7

0

10

20

30

40

50

2006 2007 2008 2009 2010 2011

Corporate data servicesRetail mobile

Retail fixed

Wholesale mobile

Wholesale fixed

Revenue (£bn)

Figure 5.23

29


Total retail revenue, by voice and data

10.5 10.4 10.2 9.7 9.4 8.9

3.2 3.2 3.2 3.3 3.2 3.4

10.9 11.5 11.5 10.9 10.6 10.5

3.0 3.5 4.0 4.1 4.3 4.6

0

10

20

30

2006 2007 2008 2009 2010 2011

Mobile msgg and data

Mobile voice

Broadband and narrowband

Fixed voice

Revenue (£bn)

30

Figure 5.24

25.23 24.87 24.56 23.83 23.31 22.26

16.27 16.47 15.85 14.43 13.67 13.34

0.71 0.92 1.30 1.59 1.80 2.09

16.39 16.07 15.38 14.78 13.51 13.70

11.96

0

10

20

30

2006

2007

2008

2009

2010

2011

Fixed voice

Mobile voice and messaging Mobile data

Fixed broadband

Mobile broadband

Source: Ofcom/operators except for mobile broadband figure which was from YouGov DongleTrackresearch. In this chart, mobile data refers to handsets only and so excludes mobile broadband.

Average revenue per user (ARPU) per month, by service

£ per month

Figure 5.25

31

154.2 149.5 140.9 131.9 128.8 115.9

88.3 104.9 115.1 120.6 124.9 123.6

0

100

200

300

2006 2007 2008 2009 2010 2011

MobileFixed

Source: Ofcom/operators

Volumes of outgoing fixed minutes and mobile minutes

Minutes (billions)

32

Figure 5.26

34.47 34.47 34.20 33.54 33.41 33.23

4.66 4.70 4.59

4.18 3.74 3.61

13.01 15.32 16.94 17.86 19.13 20.44

70.01 73.81 76.55 80.28 81.17 81.61

2.55

4.10 4.82 5.060

20

40

60

80

2006

2007

2008

2009

2010

2011

PSTN lines

ISDN channels

Fixed broadband connectionsMobile handset

Mobile broadband

Source: Ofcom/operators. Mobile broadband figures are also included in the total mobile figure.

Number of connections, by service

Connections (millions)

Figure 5.27

4,222 4,363 4,451 4,269 4,285 4,473

830 825 822 770 718 682

5,490 5,189 4,881 4,613 4,394 3,782

658 242 118 85 74 29

2,559 2,954 3,126 3,166 3,102 3,361

13,758 13,574 13,398 12,904 12,572 12,327

0

3,000

6,000

9,000

12,000

15,000

2006 2007 2008 2009 2010 2011

Broadband

Narrowband

Calls

ISDN rental

PSTN rental

33

Fixed telecoms revenues, by access technology

Revenue (£m)


Figure 5.28

1,570 1,433 1,363 1,340 1,328 1,156

1,763 1,748 1,675 1,595 1,477 1,243

669 637 604 503 474403

1,381 1,283 1,165 1,115 1,065919

5,383 5,101 4,808 4,553 4,3443,721

0

2,000

4,000

6,000

2006 2007 2008 2009 2010 2011

Others

International

Mobile

UK geographic

34

Fixed voice revenues, by type of call

Revenue (£m)


Figure 5.29

107 97 92 89 88 79

1615 13 12 12

10

77 7 7 7

7

24 31 28 23 2119

0

30

60

90

120

150

2006 2007 2008 2009 2010 2011

Others

International

Mobile

UK geographic

35

Fixed voice volumes, by type of call

Billions of minutes


Figure 5.30

9.93 11.87 13.22 13.97 14.97 15.91

3.063.41

3.68 3.84 4.03 4.12

0.030.04

0.04 0.050.13

0.41

13.0115.32

16.9417.86

19.1320.44

0

5

10

15

20

2006 2007 2008 2009 2010 2011

Other broadband

Cable

ADSL

36

Fixed broadband connections



Figure 5.31

37

3.1 4.1 4.5 4.9 5.4 6.01.33.7

5.5 6.47.5 7.9

5.5

4.03.2 2.7

2.1 2.0

9.911.9

13.2 14.0 15.0 15.9

0

5

10

15

20

2006 2007 2008 2009 2010 2011

Other non-LLU ADSL

LLU ADSL

BT Retail ADSL


Local loop unbundling connections


38

Figure 5.32

Fixed broadband market share


29%

20%18%

18%

3%3% 7%BT Retail

Virgin

TalkTalk

Sky

Orange

O2

Others

Market share

Figure 5.33

39

Fixed broadband connections by ‘up to’ headline speed

% of broadband connections

Source: Ofcom/operators. Excludes business connections.

34% 30%8% 4% 2% 1% 1%

59% 62%

68%54% 51%

41%31%

8% 8%24%

41% 45%53%

60%

0% 1% 2% 5% 8%

0%

20%

40%

60%

80%

100%

Nov 2008 Apr 2009 May 2010 Nov 2010 May 2011 Nov 2011 May 2012

30Mbit/s and higher

Over 10Mbit/s and less than 30Mbit/sOver 10Mbit/s

8Mbit/s to 10Mbit/s

Less than 8Mbit/s

Figure 5.34

10.9 11.5 11.5 10.9 10.6 10.5

2.4 2.7 2.8 2.6 2.6 2.50.6

0.8 1.2 1.5 1.7 2.0

0

5

10

15

2006 2007 2008 2009 2010 2011

Data

Messaging

Voice

40

Mobile retail revenue, by voice, messaging and data

Revenues (£bn)


Figure 5.35

5,861 6,595 6,909 6,416 6,415 6,582

831882 776 705 638 563828728 693 639 607 526

1,948 1,751 1,5691,460 1,228 1,062

339 377 429399 353 352

1,051 1,132 1,0971,233 1,355 1,422

0

2,000

4,000

6,000

8,000

10,000

12,000

2006 2007 2008 2009 2010 2011

Other calls

International

Off-net mobile

On-net mobile

Calls to fixed

Access and bundled calls

41

Mobile retail revenues, by type of call

Revenue (£m)


42

Figure 5.36

16.99 17.40 17.15 16.03 15.47 15.43

7.24 7.43 7.23

7.12 6.86 6.56

34.89 34.58 32.7828.74

26.24 25.14

0

10

20

30

40

2006

2007

2008

2009

2010

2011

Blended

Prepay

Postpay

Source: Ofcom / operators. Blended refers to all subscribers – prepay and postpay.

Mobile average revenue per user

£ per month

Figure 5.37

28 31 31 32 32 31

26 32 38 42 45 4226

3336 38 38 41

12

2 2 2 2

7

77 7 8 8

88

105115 121 125 124

0

25

50

75

100

125

2006 2007 2008 2009 2010 2011

Other calls

International

Off-net mobile

On-net mobile

UK geographic

43

Outgoing mobile minutes, by type of call

Billions of minutes


44

Figure 5.38

19 25 28 29 27 21

6980

8791

98 102

0

20

40

60

80

100

2006

2007

2008

2009

2010

2011

Prepay

Postpay


Volume of mobile voice minutes, by pre-pay and post-pay subscribers

Billions of minutes

45

Figure 5.39

2634

4352

6168

25 3342

5368

83

0

20

40

60

80

100

2006

2007

2008

2009

2010

2011

Prepaid

Postpaid


Volume of SMS messages sent

Billions of messages

46

Figure 5.40

70 74 77 80 81 82

9 814

2333

3 4 5 5

3 40

20

40

60

80

100

2006

2007

2008

2009

2010

2011

Mobile connections

Internet via mobile handset

Mobile broadband

M2M

Source: Ofcom/operators and Ofcom market research. Note: ‘Mobile broadband’ connections and ‘internet via mobile handset’ connections are included in the figure for ‘Mobile connections’. M2M connections are reported separately. ‘Internet via mobile handset’ does not count mobile users who access services such as email or social networking via their mobile device but who do not browse the web. Internet via mobile handset figures are collected in the first quarter of the following year. M2M figures are for September of the stated year.

Number of mobile connections

Millions of connections

47

Figure 5.41

45 46 46 4744

41

25 27 3033

3740

0

10

20

30

40

50

2006

2007

2008

2009

2010

2011

Prepay

Postpay


Number of mobile connections, by pre-pay and post-pay


48

Figure 5.42

1,953

2,417

73 980

500

1,000

1,500

2,000

2,500

2010 2011

Total revenue MNO expected revenue

Machine-to-machine (M2M) revenue

£million

Source: Machina Research: M2M Global Forecast and Analysis

Figure 5.43

49

Source: Machina Research, M2M Global Forecast and Analysis

Machine-to-machine (M2M) connections, by application

% of connected devices

28%

21%

14%

11%

6% 4%

1% 2% 2% 2%

9%

26%

19%

12%

12%

6%

3% 3% 3% 2% 2%

12%

0%

10%

20%

30%

AV s

ourc

es

Pers

onal

mul

timed

ia

devi

ces

Smar

t offi

ce e

quip

men

t

Inte

lligen

t bui

ldin

g se

curit

y

Con

sum

er n

etw

ork

equi

pmen

t

Man

ufac

turin

g &

proc

essi

ng

Smar

t met

erin

g

Auto

mot

ive

secu

rity

& tra

ckin

g

Traf

fic m

anag

emen

t

Goo

ds m

onito

ring

& pa

ymen

t Oth

ers

50

Figure 5.44

5.3 5.2 5.1 5.1 5.0 4.9

4.6 4.7 4.64.2 3.7 3.6

0.9 1.0 1.0 0.9 1.0 0.9

1.6 1.5 1.5 1.5 1.61.7

0

1

2

3

4

5

6

2006

2007

2008

2009

2010

2011

PSTN lines

ISDN lines

Other lines

Broadband


Business fixed voice and fixed broadband connections


51

Figure 5.45

Business mobile handset and mobile broadband connections: December 2011


9.0

1.4Mobile handset

Mobile broadband


Figure 5.46

52

Source: Ofcom Business Connectivity Services Review

Type of wide-area connectivity used by businesses

% of businesses that use each type of connection

69%56%

9%

42%21% 22%

0%20%40%60%80%

100%

Cable modem,

ADSL and mobile

broadband

ISDN lines Internet access via

dial-up

Leased lines Ethernet leased lines

SDSL

Figure 5.47

53

Applications used over businesses’ wide area network connections

% of businesses that use each application over their wide area connection(s)

96%83%

77%

61%

47% 45%35%

0%

20%

40%

60%

80%

100%

Email and internet

Remote access Apps, info and knowledge

Storage networking

Voice - PSTN grade

Voice over IP Video


54

Figure 5.48

Likelihood of switching to super-fast broadband


25%

28%13%

18%

14%2%

Very likely

Quite likely

Neither

Quite unlikely

Very unlikely

Don't know

% of businesses

Figure 5.49

55

45 40 36 32 32 29

3.9 3.8 3.63.2 2.9 2.8

0

1

2

3

4

5

0

10

20

30

40

50

2006

2007

2008

2009

2010

2011

Volumes

Revenues

Source: Ofcom / operators. Excludes NTS.

Business fixed voice volumes and revenues

Billions of outgoing minutes Voice revenues (£bn)

56

Figure 5.50

183 141 107 79 58 40

1,2081,354 1,355 1,385 1,438 1,466

233 307350

396 445493

555 465385

313 250 197

809 885 981 1,0921,224

1,386

0

250

500

750

1,000

1,250

1,500

2006 2007 2008 2009 2010 2011

Frame relay/ATM

IP VPN

Ethernet

Digital leased line

Web hosting

Source: IDC

Corporate data services revenue, by type of connectivity

£million

57

151 148

5162

100 106 113

0

25

50

75

100

125

150

2009 2010 2011

Audio conferencing

Web conferencing

Video conferencing

£millions

Figure 5.51

Audio, web and video conferencing revenue

Source: Ovum: Audio and Web Conferencing Services, Volume and Revenue Forecast and Ovum: Enterprise Business Video Forecast.

The telecoms user

58

Figure 5.52

59

28.61 27.13 25.84 24.73 24.04 22.06

37.94 37.81 36.51 35.05 33.49 32.21

11.92 11.06 10.68 11.02 10.53 10.78

£78.46 £76.00 £73.04 £70.81 £68.06 £65.04

3.4% 3.4% 3.3% 3.3% 3.2% 3.0%

0%

1%

2%

3%

4%

0

50

100

2006 2007 2008 2009 2010 2011

Fixed internet

Mobile voice & data

Fixed voice

As a proportion of total household spend

Source: Ofcom / operators / ONSNotes: Includes estimates where Ofcom does not receive data from operators; adjusted to RPI; includes VAT

Average household spend on telecoms services

£ per month (2011 prices) As a % of total expenditure

7.0 7.6 7.9 7.8 7.7 8.3

12.310.9

10.09.0 8.5 8.5

0

5

10

15

2006 2007 2008 2009 2010 2011

Fixed

Mobile

Comparison of average fixed and mobile voice call charges

Figure 5.53

Pence per minute

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; fixed calculation excludes non-geographic voice calls

Figure 5.54

61

52 58 56 56 58 64

9 9 9 83 6 7 548 42 32 29 26 24

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012

None

Mobile only

Fixed and mobile

Fixed only

Any broadband

Household penetration of fixed and mobile broadband

Source: Ofcom research, data as at Q1 of each yearBase: All adults aged 16+

Proportion of respondents (per cent)68% 71% Total broadband

take-up76%74%

Household penetration of key telecoms technologies

62

QE1: Does your household have a PC or laptop computer? / QE2: Do you or does anyone in your household have access to the Internet/Worldwide Web at HOME (via any device, e.g. PC, mobile phone etc)? / QE6: Which of these methods does your household use to connect to the Internet at home?Source: Ofcom research, data as at Q1 of each yearBase: All adults aged 16+

Proportion of adults (%)

93 93 92 92 93 9490 88 87 85 85 84

64 67 70 73 76 79

5258

68 71 74 76

65 65 6772

27 3038 42

20 21

3239

12 15 17 130

20

40

60

80

100

2007 2008 2009 2010 2011 2012

Mobile telephony

Fixed telephony

Internet connection

Total broadband

Fixed broadband

Mobile data user

Internet on mobile

Mobile broadband dongle or datacard

Figure 5.55

Figure 5.56

63

Household penetration of fixed and mobile telephony



7 8 7 7 6 5

84 81 80 78 79 79

9 11 12 14 15 151 1 1 1 1 1

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012

None

Mobile only

Fixed and mobile

Fixed only

Figure 5.57

64

6.15.0

6.1

3.1

1.01.7

5.55.0

7.5

3.3

0.8

2.1

0

2

4

6

8

Fixed voice Mobile voice Mobile messaging

Member communities

Email Mobile internet

2010

2011

Source: Ofcom / operators / Nielsen / UKOM / Comscore / Strategy AnalyticsNote: Includes estimates where Ofcom does not receive data from operators; fixed voice call figures include NTS voice calls; mobile messaging figures are Ofcom estimates based on message volume data and OfcomDigital Day research conducted in 2010; Ofcom estimate of member communities and email use per person is based on Nielsen’s data on the average monthly time spent using these services at home and work on a PC/laptop including the use of applications in March of each year across the online population only.

Hours per month

Average monthly time per person spent using telecoms services

Change between 2010 and 2011

-9.6% -1.2% +22.7% +5.3% +24.7-19.1%

Fixed voice services

65

Figure 5.58

18.31 18.17 18.08 17.81 17.86 17.66

2.35 1.93 1.58 1.34 1.22 1.01

2.49 2.79 2.96 3.01 3.06 2.97

23.15 22.90 22.62 22.17 22.15 21.65

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011

Calls to mobiles

International calls

Fixed access & UK geographic calls

66

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; excludes non-geographic voice calls; adjusted for RPI; includes VAT

Real cost of a basket of residential fixed voice services

£ per month (2011 prices)

-0.3% -1.1% -1.2% -2.0% -0.1% -2.3%Annual change

Figure 5.59

67

Source: Ofcom research, Q1 2012Base: All adults aged 16+

Use of fixed voice communication services in the home

82%

61%72%

87% 91% 95%

26% 30% 32% 31%21%

12%21% 22% 25% 24%

17%9%

0%

20%

40%

60%

80%

100%

All respondents

16-24 25-34 35-54 55-64 All aged 65 or older

Personally use a landline

Have ever used VoIP

Currently use VoIP


Figure 5.60

146 132 125 119 118 105

99 10 9 10

9

2220 18 17 16

14

33 42 38 31 2926

210 203 190177 172

154

0

50

100

150

200

250

2006 2007 2008 2009 2010 2011

NTS voice calls

Calls to mobiles

Outgoing international callsUK geographic calls

68


Average monthly outbound fixed voice call volumes per person

Minutes per month

-5.9% -3.7% -6.3% -2.9%-7.0% -10.5% Annual change in total

11.012.0 12.5 12.9 12.5 11.9

7.0 7.6 7.97.8 7.7 8.3

6.2 6.8 7.2 7.2 7.2 8.0

10.0 9.3 8.57.2

6.6 5.9

0

5

10

15

2006 2007 2008 2009 2010 2011

Calls to mobiles

Average for these call types

UK geographic

International

Average per-minute fixed voice call charges

Figure 5.61

Pence per minute

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; UK geographic calls calculation includes line rental revenues

70

Figure 5.62Analysis of standalone fixed-line tariffs

Source: Pure Pricing UK Broadband Pricing Briefing, March 2011 and March 2012Notes: All tariffs exclude activation charges and promotional discounts and include VAT; all tariffs are the lowest price available; contract lengths vary; figures in brackets require prepayment of twelve month’s line rental; ¹ also includes anytime calls to TalkTalk landlines; ² also includes calls to Virgin Mobile mobiles

Provider

2011 2012

With weekend calls

With evening and weekend

calls

With anytime calls

With weekend calls

With evening and weekend

calls

With anytime calls

BT £13.60 (£10.00) - £18.60

(£15.00)£14.60

(£10.75)£17.75

(£13.90)£19.50

(£15.65)

TalkTalk - £15.911 £18.51 - £17.411

(£13.11) 1£20.01

(£15.71)Virgin - £16.992 £20.992 - £18.502 £21.902

71

Figure 5.63

Overall consumer satisfaction with residential fixed-line services

Source: Ofcom researchBase: All adults aged 16+ with a fixed line phoneNote: Includes only those who expressed an opinion

56 57 57 57 56

32 34 34 32 34

88 91 91 89 89

0

20

40

60

80

100

2008 2009 2010 2011 2012

Fairly satisfied

Very satisfied

Proportion of all adults with service (per cent)

Fixed broadband services

72

73

Figure 5.64

Estimated average monthly cost of a residential fixed broadband connection

£23.60£20.51 £18.09 £17.59 £15.96 £15.73

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011

£ per month

Source: Ofcom / operatorsNote: Data is based on operator allocations of revenues for bundled services and should be treated with some caution; includes estimates where Ofcom does not receive data from operators

Average headline speed

-15.4% -11.8% -2.8%-13.1% -9.2% -1.4% Annual change

2.5Mbit/s 6.4Mbit/s 8.3Mbit/s4.8Mbit/s 12.8Mbit/s 16.8Mbit/s

74

Figure 5.65

Lowest cost fixed broadband options from major suppliers

Source: Pure Pricing UK Broadband Pricing Briefing, March 2012Notes: All tariffs exclude activation charges and promotional discounts and include VAT; all tariffs are the lowest price available, contract lengths vary; allowances for fixed-line and mobile calls, plus availability of TV channels included within packages may differ by operator and option; figures in brackets require pre-payment of twelve month’s line rental; 1 also requires BT fixed line rental at £14.60 a month / £129 pre-payment for a year; 2 plus cost of mobile tariff.

ProviderFixed

broadband only

Fixed broadband

and calls

Fixed broadband

and fixed line

Fixed broadband and mobile

Fixed broadband and pay-TV

Fixed broadband,

fixed line and mobile

Fixed broadband,

fixed line and pay-TV

AOL £15.311 10.201 £20.30 - - - -

BT - - £28.60 (£24.75) - - - £28.60

(£24.75)

O2 £13.501 - £26.50 £8.501,2 - £21.502 -

Orange - - £23.50 - - £18.502 -

Plusnet - £6.491 £19.48 (£15.98) - - - -

Sky - - £22.25 (£19.95) - - - £32.25

(£29.95)

TalkTalk - - £20.30 (£16.00) - - - -

Virgin Media £22.50 - £28.40 £22.502 £36.50 £28.402 £33.90

56 58 64 54 50 61 60 59 64 66 68 7358 63 66

45 49 60

20 25 25

9 9 812 13

12 10 14 12 11 11 9

5 6 4

1 22

1

65 67 72 66 6373 70 73 76 77 79 82

63 69 70

46 5162

21 25 25

0

20

40

60

80

100

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012

2010

2011

2012


Fixed broadband only

Figure 5.66

75


Take-up of fixed and mobile broadband services, by age


All adults 16-24 25-34 35-54 55-64 65-74 75+

76

Figure 5.67

2919

31

48

23 19 17

34

52

79

2616

26

45

2215 14

28

47

75

2414

26

43

17 17 14

2736

74

0

20

40

60

80

All ABC1 C2 DE 15-24 25-34 35-54 55-64 65-74 75+

2010

2011

2012

Non-ownership of home broadband, by socio-economic group and age

Source: Ofcom research, data as at Q1 of each yearBase: All adults 16+


77

Figure 5.68

41

25 19 18 18 17

0

10

20

30

40

50

Don't need it Don’t want a computer

Don't have knowledge /

skills

Too expensive Too old to use internet

Likely to get in next year

Main reasons for not having a home broadband connection

Source: Ofcom researchNote: 6% of people without the internet did not know what their main reason was or provided an ‘other’ reasonBase: All adults without the internet aged 16+

Proportion of those without broadband (per cent)

78

Figure 5.69Location of internet access

Source: Ofcom research, data as at Q1 of each yearBase: All internet users aged 16+

77

26

14

11

3

1

74

24

11

10

3

2

72

25

10

11

2

1

0 20 40 60 80

At home

At work

At someone elses house

At library or educational institution

At internet cafe

All other locations

Proportion of adults aged 16+ (per cent)

2012

2011

2010

In total 81% of UK adults used the internet in Q1 2012

79

Figure 5.70

Average time per person spent online using a PC/laptop at home

8.711.3

13.4 13.7 13.9

0

5

10

15

2008 2009 2010 2011 2012

Hours per month

Source: Ofcom / Nielsen / UKOMNote: Ofcom estimate of fixed internet use per person is based on Nielsen’s data on the average monthly time spent online at home including the use of applications across the online population only; data are for March of each year.

80

Figure 5.71

Residential consumer satisfaction with aspects of fixed broadband service

Source: Ofcom researchBase: All adults aged 16+ with a fixed broadband connectionNote: Includes only those who expressed an opinion

55 52 50 46 43 49 45 42 39 39

34 38 40 41 44 34 36 38 41 41

89 90 90 86 87 83 81 80 80 80

0

20

40

60

80

100

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Fairly satisfied

Very satisfied

Overall Speed of service


Mobile voice and messaging services

81

10.57 10.47 10.15 9.17 8.76 8.78

7.08 4.91 3.93 3.38 2.84 2.38

10.218.44

6.574.83

3.83 3.09

£27.86

£23.82£20.64

£17.38£15.44 £14.25

0

10

20

30

2006 2007 2008 2009 2010 2011

Metered messaging

Metered voice

Line rental fee, UK landline calls and inclusive calls, texts and data

82

Real cost of a basket of mobile services

Figure 5.72

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; excludes non-geographic voice calls; adjusted for RPI; includes VAT

£ per month (2011 prices)

-12.6% -14.5% -13.3% -15.8% -11.2% -7.7%Annual change

Figure 5.73

12.511.5

10.79.5

8.7 8.611.6

8.97.8 7.5 7.6 8.2

0

5

10

15

2006 2007 2008 2009 2010 2011

Pay monthly

Pre-pay

83

Average cost per mobile voice call minute, by customer type

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; contract calculation includes rental element which will often includes a number of inclusive messages and data allowance; calculations use actual minutes of usage

Pence per minute

84

Figure 5.74

2 13 10 15 19 24 24 21 20 21 21 18 17 17 19 18 18 14 1419 16 1511 13 12 8 5 3 3 3 3 4 7 8 8 10 9 11 13 16

80 84 82 75 72 68 67 63 6050

35 28 2412 6 4 3 3 2 3 2

1 1 1 1 2 3 5 7 1326

41 47 5063 69 70 68 70 69 70 67

1 4 1 1 1 1 1 2

0

20

40

60

80

100

Q1

2007 Q

2

Q3

Q4

Q1

2008 Q

2

Q3

Q4

Q1

2009 Q

2

Q3

Q4

Q1

2010 Q

2

Q3

Q4

Q1

2011 Q2

Q3

Q4

Q1

2012

Other

24 months

18 months

12 months

1 month

Source: GfK Retail and Technology UK Ltd, Contract Length Sales of new Mobile Connections, Q1 2007 to Q1 2012.Notes: England, Scotland and Wales only (excludes Northern Ireland); based on GfK’s coverage of94% of the consumer market; based on new post-pay connections; excludes contract renewals; onlyrepresents sales through consumer channels (i.e. most business connections are excluded).

Contract lengths for new post-pay mobile connections

Proportion of sales (%)

85

0 0 0 6 7 6 7 7 12 12 12 13 15 18 17 18 20 24 26 26 295 5 8

12 15 17 17 19 20 21 23 23 22 20 19 18 17 18 19 20 20

4 49

6 6 6 8 10 10 13 13 13 13 13 15 16 14 13 13 11 11

14 1611

13 13 14 11 8 7 10 10 11 11 14 15 17 21 14 12 10 10

14 9 9 6 8 10 14 11 1413 12 13 12 13 11 10 7 8 8 9 9

46 43 41 38 34 31 30 28 26 19 15 15 14 11 13 13 12 14 14 15 1417 23 21 19 17 15 15 16 12 13 15 12 13 10 10 10 9 9 8 9 7

0%

20%

40%

60%

80%

100%

Q1

2007 Q

2

Q3

Q4

Q1

2008 Q

2

Q3

Q4

Q1

2009 Q

2

Q3

Q4

Q1

2010 Q

2

Q3

Q4

Q1

2011 Q2

Q3

Q4

Q1

2012

£40+£35-39.99£30-34.99£25-29.99£20-24,99£15-19.99£0-14.99

Source: GfK Retail and Technology UK Ltd, Contract Handset Acquisitions: price segments.Notes: England, Scotland and Wales only (excludes Northern Ireland); based on GfK’s coverage of 94% of the consumer market; based on new post-pay connections; excludes contract renewals; only represents sales through consumer channels (i.e. most business connections are excluded).

Monthly line rental prices for new post-pay mobile connections

Proportion of sales (%)

Figure 5.75

Figure 5.76

86

5 4 4 9 1 1 4 1137

79 86 83 6365 73

87 88 84

61

15 11 1325 33 26

11 6 5 11 2 1 1 1 1

0%

20%

40%

60%

80%

100%

All ABC1 C2 DE 16-24 25-34 35-54 55-64 65-74 75+

None

Mobile only

Fixed and mobile

Fixed only

Household penetration of fixed and mobile telephony, by socio-economic group and age

Source: Ofcom research, Q1 2012 dataBase: All adults aged 16+


Figure 5.77

39 42 42 42 43 42

35 44 52 56 59 5536

45 49 51 51 542

23 3 3 3

99

10 9 11 10121

142155 162 167 164

0

50

100

150

200

2006 2007 2008 2009 2010 2011

Other calls

Outgoing international calls

Off-net calls

On-net calls

UK fixed calls

87

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; calculation excludes mobile broadband connections

Average monthly outbound mobile voice minutes per person

Minutes per month

+15% +28% +9% +3%+4% -2% Annual change

Figure 5.78

243 256 252 240 233 221

36 45 50 52 48 41

0

100

200

300

2006 2007 2008 2009 2010 2011

Pay monthly

Pre-pay

88

Average monthly outbound mobile call minutes per connection, by subscription type

Minutes per month

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators; calculation excludes mobile broadband connections

Average monthly mobile messaging volumes per person

70.0 90.0114.4

139.9171.2

199.7

0.30.4

0.60.7

0.70.8

70.390.4

115.0140.5

172.0200.5

0

50

100

150

200

2006 2007 2008 2009 2010 2011

MMS picture messages

SMS text messages

89

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators.

Figure 5.79

Messages per month

Average monthly messaging volumes by subscription type

90

Source: Ofcom / operatorsNote: Includes estimates where Ofcom does not receive data from operators.

Figure 5.80

89 104121

138160

179

4961

7792

111132

0

50

100

150

200

2006 2007 2008 2009 2010 2011

Pay monthly

Pre-pay

Messages per month

91

Figure 5.81

Residential consumer satisfaction with aspects of mobile service

Source: Ofcom research, data as at Q1 of each yearBase: All adults aged 16+ with a mobile phoneNote: Includes only those who expressed an opinion

59 62 61 61 58 58 59 57 58 55

35 32 33 32 37 30 29 30 30 35

94 94 94 93 9588 88 87 88 89

0

20

40

60

80

100

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Fairly satisfied

Very satisfied

Overall Accessing the network


Internet access on a mobile handset

92

93

Figure 5.82

18

10 11 8

28

1713 12

40

29

19 19

0

10

20

30

40

50

Internet access Emailing Instant messaging Downloading apps

2010

2011

2012

Use of data services on mobile handsets

Proportion of mobile data users (per cent)

QD9A: Which if any of the following activities, other than making and receiving voice calls, do you use your mobile for?Source: Ofcom research, data as at Q1 of each yearBase: All mobile users aged 16+

94

Figure 5.83

Location of internet access using a mobile handset

Source: Ofcom research, Q1 2012Base: All adults aged 16+who access the internet on their mobile phone

Always use in the home, 6%

Mainly use in the home, 12%

Use equally inside and outside the

home, 60%

Mainly use outside the home, 15%

Always use outside the home, 6%

Proportion of mobile data users

95

Figure 5.84

26

4638

25

92

30 2823 19

32

57 53

34

132

4136

3120

39

6861

42

17

3

5044

3427

0

20

40

60

80

All adults 15-24 25-34 35-54 55-64 65+ AB C1 C2 DE

2010

2011

2012

Use of the internet on mobile phones, by socio-economic group


QD28A: Which if any, of the following activities, other than making and receiving voice calls, do you use your mobile for?Source: Ofcom research, data as at Q1 of each yearBase: All adults 16+Note: Web/data access includes accessing the internet, downloading and streaming content, connecting using Wi-Fi and using VoIP.

Mobile broadband services

96

97

Figure 5.85

812 12 9

4 2

12 9 94

106 5

5

9 8

3

31

1

34 4

73 10

6

13

21 20

12

73

1

1513 13

1113

16

11

0

5

10

15

20

25

All

16-2

4

25-3

4

35-5

4

55-6

4

65-7

4

75+

AB C1

C2

DE

Ow

n/m

ortg

age

Ren

t: pr

ivat

e

Ren

t: so

cial

Mobile broadband only


Source: Ofcom research, Q1 2012Base: All adults aged 16+

Take-up of mobile broadband, by socio-economic group


AgeSocio-economic

group Housing

Annual change-4 -9-5 -5-4 -1-2-5-6-7 00 -5 -3

98

Figure 5.86

Location of mobile broadband use outside the home

Source: Ofcom research, Q1 2012Base: All adults aged 16+ who use mobile broadband outside the home

When travelling25%

Indoor public spaces

22%Outdoors21%

At someone else's house17%

At work14%

Other1%

Proportion of total mentions (per cent)

99

Provider Monthly charge

Data allowance

Minimum contract

length

Charges above

allowance

WiFi hotspot use

Vodafone 2011 £7.50 500MB 1 month £15/GB 1GB2012 £3.00 250MB 1 month £2/250MB/day Not included

O2 2011 £5.11 500MB 1 month 2.4p/MB Unlimited

2012 £10.21 1GB 1 month £5.11/500MB or £10.21/GB Unlimited

T-Mobile 2011 £10.00 1GB fair use 18 months n/a Not included2012 £10.00 1GB fair use 18 months n/a Not included

Orange 2011 £10.00 500MB 1 month 5.1p/MB Not included2012 £10.00 500MB 1 month 5.1p/MB Not included

3UK 2011 £7.89 1GB 18 months 10p/MB Not included2012 £7.87 1GB 18 months 10.2p/MB Not included

Virgin Mobile 2011 £10.21 1GB 2 months 1.46p/MB Not included2012 £10.21 1GB 2 months 1.46p/MB Not included

Source: Pure Pricing UK Broadband Pricing BriefingsNote: Data as at March of each year

Lowest cost standalone mobile broadband contracts by provider

Figure 5.87

42 39 42 40 35 33 39 36

40 44 46 4435 40

41 43

82 83 88 83

70 7380 78

0

20

40

60

80

100

2009 2010 2011 2012 2009 2010 2011 2012

Fairly satisfied

Very satisfied

100

Figure 5.88


Source: Ofcom researchBase: All adults aged 16+ with a mobile broadband connectionNote: Includes only those who expressed an opinion

Residential consumer satisfaction with aspects of mobile broadband service

Overall Speed of service

Industry metrics and summary - Ofcom€¦ · 14.9. 14.9: 15.1 Mobile voice call minutes (billions)...

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