Released on = April 16, 2007, 5:03 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = In terms of total revenue, the UK telecommunications market
was worth £29.16bn in the year ending March 2005. Over the past year (2004/2005)
market growth was slowed by radically altering price structures in the market.

Press Release Body =
Telecommunications: Market Report 2005

In terms of total revenue, the UK telecommunications market was worth £29.16bn in
the year ending March 2005. Over the past year (2004/2005) market growth was slowed
by radically altering price structures in the market. Pressures on prices to be
competitive, new regulations on pricing, and the introduction of new technologies
all served to hinder market growth. Any growth has tended to come from new sectors
and emerging niche markets such as Internet and broadband services, short message
service (SMS) messaging and mobile content.

This report looks mainly at the market for end-user spending on telecommunications
services, which can be split into three sectors: cellular or mobile services revenue
(revenue from mobile telephone usage); fixed-line revenue (revenue generated from
calls to fixed-line handsets and exchange lines); and other end-user spending
(including revenue from Internet, broadband, and other business data services).

Cellular services now account for the largest sector of the total market. While the
revenue generated from basic fixed-line telephony declines, profits from mobile,
Internet and data traffic continue to increase. However, even the mobile sector is
now showing signs of maturity, with the strongest growth restricted to niche areas
such as new third-generation (3G) services. The telecommunications market is highly
regulated and the main regulatory body, the Office of Communications (Ofcom), is now
undertaking a strategic review of the market.

In the coming 5 years, Key Note expects cellular and data services (especially
Internet protocol [IP] networks) to continue to grow at a much stronger rate than
the rest of the telecommunications market. Key growth areas will be video messaging,
video alerts and video telephony (in the mobile sector), asymmetric digital
subscriber lines (ADSL) and fixed-line video telephony (in the fixed-line sector)
and broadband and ADSL services in general. Convergence between mobile and
fixed-line services is expected to be a growing theme in the market, with companies
such as British Telecommunications (BT) already introducing hybrid fixed-and-mobile
handsets and services.



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