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UK broadband, telephony and pay TV trends Q1 2014: Converged growth - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q1 2014: Converged growth

PublisherEnders Analysis.
Publish Date June 8, 2014
Sector Fixed Line (Internet and Voice), Pay TV, Sports.
Company BT, Sky Group, TalkTalk, Virgin Media.

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Market revenue growth in the UK residential communications sector was surprisingly robust in Q1 2014, rising a touch to over 5% (or around 4% excluding the direct impact of BT Sport) from just under 5% the previous quarter, despite facing a number of headwinds.

Revenue growth at the top four operators has converged to around 4% for all, which marks a major long term turnaround for BT and TalkTalk, who back in 2012 were both experiencing firmly declining revenue well below market growth, and have since done much to stabilise their subscriber bases and sustain ARPU growth.

Looking forward, we expect that BT will continue to do well in the June quarter given Sky’s continued focus on TV products, but thereafter its focus may change, and whether BT’s recent competitive boost from fibre will continue growing is uncertain. Having said this, any likely market share shifts are relatively minor in the context of the market, with the general theme likely to remain that the rising tide is lifting all boats.