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UK mobile market Q1 2018: Primed for revenue acceleration - Venture Insights

Report Overview

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UK mobile market Q1 2018: Primed for revenue acceleration

PublisherEnders Analysis.
Publish Date June 8, 2018
Sector Media, Telecom.
Company EE, Hutchison 3G, O2, vodafone.

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Service revenue growth for the UK mobile market improved in the first quarter of the year, lifting from 1.0% to 1.2%. There was an easing of the EU roaming regulatory impact helping growth improve, but the SIM-only drag likely grew to counteract this, suggesting a modest underlying improvement overall.

We expect continued market growth improvement in the coming year due to a number of tailwinds, namely annual price rises, the arrival of IFRS 15, and the EU roaming impact dropping out.

The fundamentals of the market remain solid: competition is rational; pricing is firm; data demand is strongly rising; supply is partially constrained; MVNOs and convergence do not appear a threat.