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UK mobile market Q1 2015: A little growth, less convergence - Venture Insights

Report Overview

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UK mobile market Q1 2015: A little growth, less convergence

PublisherEnders Analysis.
Publish Date June 17, 2015
Sector Mobile, Mobile and Wireless Technology, Telecom, Wireless.
Company EE, Hutchison 3G, O2, vodafone.

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UK mobile service revenue growth continued to improve, rising to 1.2% in Q1, a modest figure but still the best of the five largest European mobile markets, albeit weaker than the UK consumer fixed line market (4%-5%).

O2 continued to be the strongest grower of the ‘big 3’, and maintained over 40% share of contract net adds. Both Vodafone and EE appear to have suffered from the demise of Phones 4U, having been its biggest (and latterly its only) network operator suppliers. EE is also suffering from the gradual withdrawal of its Orange and T-Mobile brands, which is forcing it to work harder to both attract and retain customers.

Vodafone launched a competitively priced consumer fixed broadband offer on 10 June. EE has shown that there is an opportunity for Vodafone to have some limited success cross-selling broadband through its shops, but O2’s mobile-only success and EE’s struggles in its mobile business suggest that this will not drive improved mobile performance.