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UK mobile market Q2 2014: Pricing stable, volume surges, growth returns - Venture Insights

Report Overview

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UK mobile market Q2 2014: Pricing stable, volume surges, growth returns

PublisherEnders Analysis.
Publish Date September 8, 2014
Sector Fixed Line (Internet and Voice), Mobile and Wireless Technology.
Company EE, Hutchison 3G, O2, vodafone.

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UK mobile service revenue growth finally returned to positive territory in Q2 2014 after three years of decline, largely driven by the MTR impact dropping out, but also helped by a 0.6ppt improvement in underlying growth.

Data volumes accelerated markedly during the quarter, with 4G and improved 3G speeds encouraging more video/media activity, which is far more bandwidth intensive (as well as having less of a substitution effect) than text communications activity. As consumers move to higher data bundles, smartphone usage may actually start to enhance ARPU through tariff upgrades as opposed to damage ARPUs through lower out-of-bundle voice and text usage.

The outlook remains positive, with headline pricing stable, contract ARPUs stabilising and the competitive environment relatively benign.