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UK broadband, telephony and pay TV trends Q4 2015: Diversified growth - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q4 2015: Diversified growth

PublisherEnders Analysis.
Publish Date April 7, 2016
Sector Broadcast TV, Fixed Line (Internet and Voice), Internet, Technology, Telecom, TV.
Company BT, SKY, TalkTalk, Virgin Media.

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The UK residential communications market maintained strong growth of 6% in Q4, helped by overlapping price increases at BT and TalkTalk, albeit mitigated by weaker volume growth as a result of the TalkTalk cyber-attack.

This strong growth level benefits from multiple factors, including continually growing broadband adoption, broadband ARPU being boosted by the shift to superfast, price increases across line rental, calls and premium pay TV, and additional pay TV adoption at the lower end.

We expect a modest dip in market revenue growth moving into 2016 as various one-off boosts drop out, but the underlying drivers of growth are sufficiently diversified to give us confidence that further downside is limited.