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UK broadband, telephony and pay TV trends Q3 2016: Peak growth? - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q3 2016: Peak growth?

PublisherEnders Analysis.
Publish Date December 16, 2016
Sector Fixed Line (Internet and Voice), Telecom, UK Media.
Company BT, SKY, TalkTalk, Virgin Media.

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UK residential communications market revenue growth accelerated to 5.8% in Q3, from 5.0% in the previous quarter, helped by an overlapping price rise at BT, and supported by firm pricing and accelerating high speed adoption elsewhere.

In contrast, volume growth in the core three products continues to slow, with little sign that this will ever re-accelerate. In the longer term we cannot see ARPU growth acceleration continuing to fully compensate, and market revenue growth might also have peaked.

With Virgin Media’s continuing network extension and improving pay TV service putting pressure on the other operators, Sky and TalkTalk are protecting themselves by aggressively marketing high speed broadband. Correspondingly, this quarter marks the first time that Openreach’s high speed net adds were mostly derived outside of BT’s retail divisions.