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[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
[2012] Ofcom - International Communications Market Report 2012
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[2012] Ofcom - International Communications Market Report 2012

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  • 1. International Communications Market Report 2012 13 December 2012 Ofcom analyst briefing 0
  • 2. 1 Agenda Introduction to the ICMR and Market Overview James Thickett, Director of Research and Market Intelligence Trends in the television and audio-visual industries Jonathan Fenn, Senior Media Analyst Trends in telecoms Chris Adams, Head of Market Intelligence, Telecoms Internet and web-based content Andrew Jackson, Senior Convergence Analyst Comparative international pricing Nicholas Collins, Senior Fixed Telecoms Analyst
  • 3. 2 Introduction and Market overview James Thickett, Director of Research
  • 4. 3 One of three Communications Markets Reports International Communications Market Report 2012 Research Document Publication date: 13 December 2012
  • 5. 4 Methodology Combination of industry data (2011) and consumer research data (September 2012) • Industry data (17 countries) - Telecoms and media industry data: IDATE - Other third-party sources - Pricing: Teligen • Online consumer research (9 countries, >=1000 consumers in each country) to examine the take-up and use of communications services. It focused on: - The change in levels of use over the last two years - Preferred methods of communicating - Consumption of Olympic Games content - Consumption of news online - The use of connected devices - Use of, and attitudes towards, postal services Third-party sources of data: Analysys Mason, comScore, IMRG, Eurostat, Eurodata TV Worldwide, The European Commission, Forrester Research, IDATE, Kantar Media, Mediamétrie, The Nielsen Company, PricewaterhouseCoopers, The Reuters Institute, Teligen, US Census Bureau, the World Advertising Research Centre and Zenith Optimedia.
  • 6. 5 Communications revenues continue to rise Global communications revenue, 2007-2011 Source: Ofcom, PricewaterhouseCoopers; UPU, IDATE and industry data. Postal revenues are for our 17 comparator countries only. CAGRs 2007-2011: Radio -1.2%; Post -0.9%; Television +5.2%; Telecoms +2.9%. Revenue (£bn) 836 871 885 905 936 211 221 221 242 258102 103 100 99 98 31 30 28 29 30 £1,180bn £1,226bn £1,234bn £1,275bn £1,322bn 0 200 400 600 800 1,000 1,200 1,400 2007 2008 2009 2010 2011 Radio Post Television Telecoms
  • 7. 66 UK ranked seventh in terms of revenue Communications revenues, 2011 71 90 186 12 31 100 14 39 1 3 12 £86 £138 £331 0 50 100 150 200 250 300 350 CHN JPN USA Revenue (£bn) 21 24 36 31 27 36 4 8 12 10 11 12 4 8 7 7 5 1 1 3 2 1 0 £31 £36 £58 £49 £47 £54 0 10 20 30 40 50 60 CAN ITA GER FRA UK BRA Telecoms Television Post Radio Revenue (£bn) Source: Ofcom, PricewaterhouseCoopers; UPU, IDATE and industry data.
  • 8. 7 Australia highest on a per capita basis Communications sector revenues per capita, 2011 53 134 180 145 471 499 534 411 790 708 629 598 389 437 476 436 63 62 182 198 155 102 244 244 128 320 127 142 155 180 99 136 125 71 108 108 123 96 99 107 26 38 16 10 30 22 34 37 8 37 22 19 £64 £14 £178 £270 £243 £778 £871 £830 £558 £1,135 £1,083 £899 £1,078 £593 £712 £753 £741 £0 £200 £400 £600 £800 £1,000 £1,200 £1,400 CHN IND RUS BRA POL IRL SWE NED ESP AUS JPN CAN USA ITA GER FRA UK Telecoms Television Post Radio Source: Ofcom, PricewaterhouseCoopers; UPU, IDATE and industry data.
  • 9. 58 19 45 15 50 10 55 23 44 20 30 12 64 24 56 24 0% 20% 40% 60% 80% 100% Smartphone Tablet computer Percentageofrespondents UK France Germany Italy USA Japan Spain Australia Source: Ofcom consumer research 8 UK smartphone take-up among the highest Ownership and personal use of smartphones and tablets 8
  • 10. 9 Trends in the television and audio-visual industries Jonathan Fenn, Senior Media Analyst
  • 11. Global TV industry revenues increased YoY 10 Source: Ofcom / PWC £95bn £103bn £111bn £121bn £133bn £19bn £19bn £19bn £20bn £20bn £98bn £98bn £91bn £102bn £105bn 0% 20% 40% 60% 80% 100% 2007 2008 2009 2010 2011 Advertising Public funds Subscriptions £211bn £221bn 1.8% 1.4% 9.0% CAGR (4yr) £258bn£242bn£221bn YOY 3.5% -0.2% 10.5% 5.2%6.7% Proportionofrevenues TV industry revenues, by source
  • 12. BRICs closed gap on Japan / Australia 11 Source: IDATE / industry data / Ofcom £66 £70 £76 £83 £86 £85 £94 £100 £45 £48 £50 £53 £54 £53 £57 £58 £33 £34 £34 £35 £35 £33 £35 £36 £14 £16 £18 £20 £23 £25 £30 £34 £0bn £10bn £20bn £30bn £40bn £50bn £60bn £70bn £80bn £90bn £100bn £110bn 2004 2005 2006 2007 2008 2009 2010 2011 USA Europe / Canada Japan / Australia BRIC 3.0% 2.0% 6.5% 1.4% 2.9% 5.7% 14.0% 13.8% Total revenues(£bn) £158bn £168bn £178bn £191bn £197bn £197bn CAGR (5 yr)YOY Growth (%) 5.8% 5.1%£216bn £228bn TV industry revenues among comparator countries
  • 13. UK remained on a par with Germany as largest TV market in Europe 12 Source: IDATE / industry data / Ofcom £10.4 £10.8 £10.9 £11.0 £11.0 £10.9 £11.2 £11.6 £9.3 £9.8 £9.8 £10.3 £10.4 £10.4 £11.0 £11.3 £7.9 £8.0 £8.2 £9.1 £8.9 £9.2 £9.9 £10.2 £6.2 £6.8 £7.1 £7.5 £7.9 £7.7 £8.0 £7.8 £3.8 £4.1 £4.8 £5.0 £5.0 £4.5 £5.0 £4.8 £3.2 £3.3 £3.6 £3.7 £3.7 £4.0 £4.1 £4.4 £2.0 £2.1 £2.1 £2.3 £2.4 £2.4 £2.5 £2.6 £0.8 £1.4 £1.5 £1.7 £2.0 £2.0 £2.2 £2.4 £1.2 £1.3 £1.4 £1.4 £1.5 £1.5 £1.5 £1.8 £0.5 £0.6 £0.7 £0.8 £0.9 £0.8 £0.9 £0.9 £0bn £2bn £4bn £6bn £8bn £10bn £12bn 2004 2005 2006 2007 2008 2009 2010 2011 GER UK FRA ITA ESP CAN NED POL SWE IRE 3.1% 2.6% 2.7% -2.7% 5.4% 10.4% 5.1% 5.7% 1.6% -4.9% YOY CAGR (5 yr) Growth (%) £45bn £48bn £50bn £53bn £54bn £53bn Total revenues(£bn) 4.0% 4.4% 1.2% 2.9% 4.6% 1.7% -0.1% 4.2% 4.6% 9.8% £57bn £58bn TV industry revenues among European countries and Canada
  • 14. All UK TV homes are now digital 13 Source: IDATE / industry data / Ofcom 99% 97% 66% 93% 89% 87% 77% 83% 100% 77% 67% 90% 62% 69% 40% 40% 43% 1% 3% 34% 7% 11% 13% 23% 17% 0% 23% 33% 10% 38% 31% 60% 60% 57% 0% 20% 40% 60% 80% 100% Analogue Digital Proportion of TV homes (%) +1 +3 +4 +1 +2 +9 +4 +11 +2 +9 +4 +8 +7 +10 +9 +9 +9 Year- on-year change (pp) Take-up of digital and analogue television, 2011
  • 15. Appetite for pay TV varies by country 14 Source: IDATE / industry data / Ofcom 55% 62% 64% 35% 89% 93% 63% 34% 27% 92% 76% 78% 23% 64% 94% 57% 45% 38% 36% 65% 11% 7% 37% 66% 73% 1% 8% 24% 22% 77% 36% 6% 43% 0% 20% 40% 60% 80% 100% UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRE POL BRA RUS IND CHI Free TV Pay TV Proportion of TV households (%) +3 +7 +8 -12 +1 +3 +5 +8 +3 +2 -2 -1 +2 +32 +14 +16 +8 YOY change in pay TV homes (%) Take-up of pay and free-to-air television, end 2011
  • 16. The UK has one of the highest take-up rates for HDTV Source: Ofcom consumer research 15 41% 18% 28% 28% 49% 31% 46% 30% 35% 0% 10% 20% 30% 40% 50% 60% 70% UK FRA GER ITA USA JPN AUS ESP CHN HDTV service Take-up (%) Take-up of high definition TV service
  • 17. Ownership of connected TVs is gathering momentum... Source: Ofcom consumer research 16 39% 18% 21% 19% 32% 24% 29% 22% 15% 15% 10% 9% 10% 5% 10% 12% 0% 10% 20% 30% 40% 50% UK FRA GER ITA USA JPN AUS ESP DVR Connected or smart TV Take-up (%) Take-up of digital video recorders and connected TVs
  • 18. ...whilst widening broadband access is influencing how content is viewed Source: Ofcom consumer research 17 42% 31% 19% 26% 31% 11% 27% 34% 23% 13% 9% 12% 17% 3% 12% 16% 0% 10% 20% 30% 40% 50% 60% UK FRA GER ITA USA JPN AUS ESP Ever Weekly Proportion of respondents that access online TV (%) Accessing TV content over the internet
  • 19. However linear TV continues to dominate Source: Médiamétrie, Eurodata TV Worldwide 18 242 227 225 253 293 240 189 239 191 162 205 242 225 220 119 163 0 50 100 150 200 250 300 UK FRA GER ITA USA CAN AUS ESP NED SWE IRL POL BRA RUS IND CHN Change in minutes of viewing per person per day, 2010 - 2011 0.0% 7.1% 0.9% 2.8% 3.5% 4.3% 0.5% 2.1% 0.0% -2.4% 4.6% -1.2% 1.4% -2.7% 0.0% 3.2% Minutesperpersonperday 2011 average 214 mins Daily TV viewing per head, 2010 - 2011
  • 20. 19 Internet and web-based content Andrew Jackson, Senior Convergence Analyst
  • 21. Mobile internet advertising spend almost doubles in the UK and the US 20 Mobile internet advertising expenditure per head 2007-12 £3.12 £0.75 £0.93 £0.41 £3.18 £1.26 £0.41 £0.30 £1.54 £0.29 £0.03 £0.09 £0.21 £0.00 £0.50 £1.00 £1.50 £2.00 £2.50 £3.00 £3.50 UK FRA GER ITA USA CAN AUS ESP SWE POL BRA RUS CHN 2007 2008 2009 2010 2011 GBP/head GBP/head 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 JPN £7.99 16% YoY Growth 10/11 135% 43% 69% 31% 146% 103% 16% 27% 40% 83% 49% 86% 113% Source: PricewaterhouseCoopers Global Entertainment and Media Outlook: 2012-2016
  • 22. Wired internet advertising spend is highest in the UK at £76 per head 21 Total wired internet advertising expenditure, per head 2007-12 £76 £29 £43 £17 £63 £51 £58 £73 £17 £54 £63 £25 £11 £3 £6 £4 0 10 20 30 40 50 60 70 80 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS CHN 2007 2008 2009 2010 2011 Internet advertising spend per head (GBP) YoY Growth 10/11 16% 11% 12% 15% 21% 22% 6% 7% 12% 8% 13% 22% 25% 15% 56% 48% Source: PricewaterhouseCoopers Global Entertainment and Media Outlook: 2012-2016
  • 23. Within Europe, UK internet users are using connected devices the most… 22 Proportion of website traffic using mobile, tablet, and other connected devices (%) Source: comScore Device Essentials, June 2012 16.4 5.0 7.0 5.6 9.7 9.0 9.2 2.2 10.4 11.5 0 10 20 UK FRA GER ITA ESP NED SWE POL RUS IRE
  • 24. … and time spent online on a laptop or desktop computer has declined as a result 23 Average number of minutes spent online on a laptop or desktop computer per week 307 279 294 188 323 0 311 237 344 291 329 200 357 291 345 255 333 297 302 208 323 292 394 233 0 100 200 300 400 500 UK FRA GER ITA USA JPN AUS ESP 2010 2011 2012Minutes online per week Source: Nielsen, August 2012 2012 YoY Change -3.1% +2.2% -8.2% +4.1% -9.4% +0.2% +14.1% -8.5%
  • 25. Google leads search in all countries except Japan 24 Active reach of search engine brands, by country 85 87 82 87 78 61 87 90 48 34 22 40 62 85 50 44 61 61 36 45 57 36 67 67 0 20 40 60 80 100 UK FRA GER ITA USA JPN AUS ESP Active Reach (%) Google Yahoo! MSN/WindowsLive/Bing Source: Nielsen, August 2012
  • 26. Facebook is the largest international social network across our comparator nations 25 67 68 59 71 69 28 68 68 17 9 5 8 15 23 13 18 9 9 8 8 10 14 12 0 20 40 60 80 UK FRA GER ITA USA JPN AUS ESP Facebook Twitter Google + Source: Nielsen, August 2012, home and work panel, including applications Note: Data unavailable for Google+ in Japan. Active reach of Facebook, Twitter and Google+ on laptop and desktop computers Active reach (%) NA
  • 27. YouTube leads online video websites despite some domestic competition 4% 6% 63% 5% 5% 60% 11% 18% 51% 5% 10% 56% 5% 5% 57% 7% 9% 50% 13% 20% 58% 6% 15% 55% 0% 25% 50% 75% Rojadirecta YouTube Dailymotion FC2 Videos YouTube Netflix Rai TV YouTube MyVideo WAT YouTube BBC iPlayer ESPAUSJPNUSAITAGERFRAUK Active reach (%) 26 Top three online video websites among laptop and desktop users Source: Nielsen, August 2012, home and work panel, applications included
  • 28. £76 £66 £49 £5 £17 £0 £10 £20 £30 £40 £50 £60 £70 £80 POL BRA RUS IND CHN UK internet users spent more than £1000 online in 2011 27 Value of B2C e-commerce per head 2007-11 Source: IMRG B2C Global e-Commerce Overview 2011 Update 01, June 2011; IMRG B2C Global e-Commerce Overview 2012, May 2012 Value per head (£) £1,083 £497 £377 £115 £620 £350 £527 £842 £169 £462 £747 £683 £0 £200 £400 £600 £800 £1,000 £1,200 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL 2007 2008 2009 2010 2011 YoY Growth 14% 21% 18% 19% 9% 10% 16% 26% 24% 9% 12% 24% 29% 19% 33% 32% 129%
  • 29. 28 Trends in telecoms Chris Adams, Head of Market Intelligence, Telecoms
  • 30. 29 Source: IDATE / industry data / Ofcom 211 206 197 179 166 154 292 318 333 342 357 375 48 57 63 70 75 81551 580 593 591 598 610 0 200 400 600 2006 2007 2008 2009 2010 2011 Revenue (£bn) Total Fixed broadband Mobile Fixed voice Total retail telecoms service revenues increased
  • 31. UK had third highest telecoms service retail revenues in Europe Source: IDATE / industry data / Ofcom 11 9 11 6 16 11 9 7 6 5 3 2 2 1 1 1 2 1 14 15 16 18 20 20 13 13 12 12 4 5 2 2 1 1 3 4 2 3 3 8 3 5 3 4 2 3 1 2 1 1 0 0 0 1 27 27 29 31 39 36 25 24 20 19 8 9 4 5 2 2 6 6 0 10 20 30 40 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 Fixed broadband Mobile Fixed voice UK FRA GER ITA ESP NED SWE IRL POL Revenue (£bn)
  • 32. 31 154 103 198 108 927 72 124 89 68 30 10 28 234 116 113 191 82 512 0 83 44 64 21 18 7 15 181 158 173 0 200 400 600 800 1,000 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL BRA RUS CHN Bn mins 2006 2011 Source: IDATE / industry data / Ofcom Only France saw increasing fixed-line voice volumes in 2011
  • 33. 32 1 2 1 1 1 2 4 1 0 5 3 0 0 5 9 4 9 14 0 16 12 6 21 12 5 5 0 5 10 15 20 25 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL % share 2006 2011 Source: IDATE VoIP share of fixed revenues increased
  • 34. 33 5 year percentage point change 59 58 47 64 65 69 67 61 56 61 73 39 52 48 48 0 61 55 51 50 50 58 0 20 40 60 80 UK FRA GER ITA JPN AUS ESP NED SWE IRL POL Market share (per cent) 2006 2011 -20 -5 1 -15 n/a -8 -12 -10 -6 -11 -15 Source: IDATE / industry data / Ofcom UK saw the largest fall in incumbent’s share of fixed voice volumes: 2006 to 2011
  • 35. 34 2 3 3 3 16 2 12 1 2 1 1 0 0 3 8 5 4 30 4 18 2 3 2 1 0 1 0 10 20 30 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL £bn 2006 2011 5 year CAGR 6.3% 19.5% 9.8% 9.0% 12.9% 10.3% 8.9% 13.8% 7.5% 9.3% 3.0% 14.2% 6.1% Source: IDATE / industry data / Ofcom Fixed broadband revenues grew…
  • 36. 35 19 22 17 21 20 23 31 17 25 33 28 12 19 27 55 32 36 37 37 48 34 40 50 40 25 37 0 10 20 30 40 50 60 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL % share 2006 2011 Source: IDATE / industry data / Ofcom ..and is increasing % of total fixed revenues
  • 37. 36 64 82 73 88 49 61 69 75 82 63 76 69 78 68 86 68 80 49 52 74 74 77 78 74 85 57 0 20 40 60 80 100 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL % share 2006 2011 Source: IDATE / industry data / Ofcom UK saw an increase in retail connection share for three largest fixed broadband providers
  • 38. 37 100 99 95 99 97 100 99 97 72 65 39 61 11 61 100 51 36 37 0 20 40 60 80 100 UK FRA GER ITA ESP NED SWE IRL POL Household coverage (per cent) Fixed broadband Superfast broadband Source: European Commission / Ofcom UK no longer lagging on superfast availability
  • 39. 38 25 6 36 13 49 30 94 2 56 68 70 4 8 46 34 48 0 72 70 58 29 40 91 40 60 25 0 20 40 60 80 100 UK FRA GER ITA USA CAN JPN AUS ESP NED SWE IRL POL FTTx Cable Source: Analysys Mason, FTTX rollout and CAPEX in developed economies, forecasts 2012-2017 / Ofcom Availability of FTTx and cable networks, end 2011 Japan still leading on availability of FTTx
  • 40. UK leads on >8Mbit/s connections 39 1 15 23 12 58 15 10 19 3 2 11 26 27 31 46 69 10 27 28 56 36 38 61 50 67 51 23 17 25 53 45 17 39 39 29 20 5 3 8 3 7 5 17 7 22 21 0 4 0% 20% 40% 60% 80% 100% UK FRA GER ITA USA CAN AUS ESP NED SWE IRL POL % share 2Mbit/s or less >2Mbit/s up to and including 8Mbit/s >8Mbit/s up to and excluding 30Mbit/s 30Mbit/s or higher Source: Ofcom / IDATE Proportion of fixed broadband connections by headline speed
  • 41. 40 5 year CAGR 7.0% 2.4% 13.4% 11.8% 5.0% 8.9% 3.7% 14.2% 4.1% 3.5% 12.9% 9.3% 19.4% 38.3% 29.5% 41.1% 22.7% Source: IDATE / industry data / Ofcom 358 310 64 11 23 25 71 86 145 141 136 107 106 124 277 98 61 26 7 13 21 58 44 121 92 78 57 94 88 0 100 200 300 400 CHN IND RUS BRA POL IRL SWE NED ESP AUS JPN CAN USA ITA GER FRA UK 2006 2011 Mobile volume growth exceeded fixed but UK and Japan saw declines in 2011 Bn mins
  • 42. 41 5 year CAGR 0 10 20 30 40 50 60 2006 2007 2008 2009 2010 2011 JPN CAN AUS USA FRA NED ESP UK £ per month -6.5% 0.4% 0.5% -0.9% -3.4% -0.4% -4.8% -1.9% Average monthly revenue per mobile connection Source: IDATE / industry data / Ofcom Most countries experienced downward pressure on average monthly mobile revenue
  • 43. Texting remains popular: UK one of leaders sending 200 SMS messages per month in 2011 42 0 200 400 600 2006 2007 2008 2009 2010 2011 USA IRL UK CAN FRA SWE Number of SMS sent per person per month Source: IDATE / industry data / Ofcom.
  • 44. 43 0 100 200 300 400 500 2009 2010 2011 UK JPN CAN FRA USA AUS MB per month per connection Source: Cisco Systems’ Visual Networking Index Mobile data traffic highest in the UK
  • 45. 44 Comparative international pricing Nicholas Collins, Senior Fixed Telecoms Analyst
  • 46. 45 Our international report focuses on comparative pricing International Communications Market Report • Compares the price of services in the UK, France, Germany, Italy, Spain and the US • Based on a pricing model provided by Teligen and data collated in July 2012 Consumer Experience Report • Covers trends in UK fixed, mobile and television pricing • Uses a wide range of sources including the Teligen pricing model, tariff analysis and data submitted to Ofcom by communications providers Due to be published in January 2013
  • 47. Basket Household type Fixed voice Mobile voice SMS Fixed line broadband Mobile broadband Television 1 Basic needs An elderly couple with basic needs Low Low n/a n/a n/a Basic 2 Late adopters Two adults with basic needs and fixed broadband Medium Low Low Low n/a Basic 3 Mobile-only A single occupant mobile ‘power user’ n/a High High n/a High Pay-TV 4 Connected family A family of two parents and two teenage children with multiple needs High Medium High Medium n/a Pay-TV with PVR 5 Sophisticated couple An affluent two person household Low High Medium High use superfast Medium HD premium pay-TV with PVR 46 Source: Ofcom Summary of households and baskets used in the analysis Benchmarking analysis across five baskets
  • 48. 47 Source: Ofcom, using data supplied by Teligen Standalone ‘weighted average’ fixed-line voice pricing Monthly cost (£) 18 19 24 23 27 27 26 29 26 28 24 25 21 20 32 32 15 36 33 40 32 32 33 33 22 21 39 38 16 38 38 48 34 34 38 3722 23 27 25 11 30 30 37 31 31 29 29 0 50 100 150 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 Basket 5 Basket 4 Basket 2 Basket 1 UK GERFRA ESPITA USA UK is the cheapest on fixed-line voice
  • 49. 48 Source: Ofcom, using data supplied by Teligen Standalone ‘weighted average’ mobile pricing Monthly cost (£) 9 9 13 12 12 10 15 15 16 15 26 27 10 10 15 12 18 14 18 15 18 18 30 31 10 10 16 11 26 15 12 15 20 21 17 32 11 10 16 11 28 18 12 16 21 21 18 33 17 16 24 17 56 37 41 36 41 35 46 43 19 18 27 20 50 37 23 31 38 41 53 49 35 43 59 43 82 68 62 53 86 80 95 96 40 53 78 56 115 81 81 64 118 105 118 114 54 55 85 68 145 142 89 73 123 109 103 99 0 200 400 600 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 Connection 1 Connection 2 Connection 3 Connection 4 Connection 5 Connection 6 Connection 7 Connection 8 Connection 9 UK GER FRA ESP ITA USA Overall weighted average mobile prices Were up by 10% in 2012
  • 50. 49 Source: Ofcom, using data supplied by Teligen Standalone ‘weighted average’ fixed-line broadband pricing Monthly cost (£) 17 16 18 20 29 31 33 25 47 44 30 28 19 15 18 20 31 35 46 30 48 44 40 3224 18 34 31 19 21 46 30 62 48 105 64 0 50 100 150 200 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 Basket 5 Basket 4 Basket 2 UK GERFRA ESPITA USA Standalone fixed broadband prices fell in 2012
  • 51. 50 Source: Ofcom, using data supplied by Teligen Standalone ‘best offer’ mobile broadband pricing Monthly cost (£) 16 15 28 19 24 23 10 10 22 38 50 4115 15 19 17 24 23 10 9 22 38 41 31 7 6 12 10 15 14 5 8 16 21 22 22 0 20 40 60 80 100 120 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 1GB per month 3GB per month (Basket 5) 5GB per month (Basket 3) UK GERFRA ESPITA USA UK close behind Italy on mobile broadband pricing
  • 52. 51 Source: Ofcom, using data supplied by Teligen Standalone ‘best offer’ TV pricing Monthly cost (£) 14 11 13 20 21 21 14 24 19 21 24 24 62 61 38 42 34 34 45 47 62 65 69 70 12 12 10 10 18 18 10 10 0 20 40 60 80 100 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 Licence fee HD premium pay-TV with recorder Basic pay-TV UK GERFRA ESPITA USA UK cheapest for basic pay-TV; HD sport and movies attracts a relative premium
  • 53. 52 Source: Ofcom using data supplied by Teligen Change in the standalone pricing of basket components UK FRA GER ITA ESP USA Fixed voice -0.7% -2.1% 90.6% 22.4% 1.9% -1.1% Mobile 10.4% -25.2% -20.5% -9.7% -7.6% 3.5% Fixed broadband -16.7% 4.3% 10.4% -30.5% -13.5% -29.0% Mobile broadband -4.2% -23.4% -5.3% -3.7% 75.0% -20.4% TV -5.6% -1.3% 13.9% 12.3% 5.3% 0.3% Pricing trends generally remain negative across the sector
  • 54. UK has lowest ‘weighted average’ across all five household types... 53 ‘Weighted average’ single service basket prices Monthly cost (£) 50 57 69 70 57 80 68 85 116 107 113 124 100 122 212 128 168 169 146 178 262 247 268 314 200 207 244 229 328 373 0 100 200 300 400 UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA Fixed voice Mobile Fixed broadband Mobile broadband Pay TV TV licence TV hardware Basic needs Late adopters Mobile power user Connected Family Sophisticated couple Source: Ofcom, using data supplied by Teligen
  • 55. 45 54 62 57 47 62 53 66 71 65 73 87 84 108 185 102 163 146 112 94 186 120 187 224 164 168 197 171 300 312 0 100 200 300 UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA UK FRA GER ITA ESP USA Fixed voice, broadband, pay-TV and mobile access Fixed voice, broadband & pay-TV access Fixed voice, broadband & mobile access Fixed voice & broadband access Fixed voice Mobile Fixed broadband Mobile broadband Pay TV TV licence TV hardware 54 ‘Best-offer’, including multi-play, basket prices Monthly cost (£) Basic needs Late adopters Mobile power user Connected Family Sophisticated couple ..and the lowest possible prices for four of the five household types Source: Ofcom, using data supplied by Teligen
  • 56. The UK price differential with other countries is narrowing 55 Source: Ofcom / Teligen Percentage that the next cheapest country is more expensive than the UK for the ‘weighted average’ basket prices Difference (per cent) 21.9 30.3 41.1 51.9 27.3 12.8 25.7 21.9 22.0 3.4 0 10 20 30 40 50 60 Basic needs Late adopters Mobile power user Connected Family Sophisticated couple 2011 2012
  • 57. Questions 56

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