MDB’s report says that for the period 2002 – 2006 the UK market for telecommunications has increased for the majority of the review period, with the exception of 2005 when turnover declined by 1% in value terms to £32.4 million. In 2006 MBD expect industry turnover to increase by 2% in value terms to £32.9 million. Overall, MBD believe the UK telecommunications market will have increased by 10% between 2002 and 2006.
“Indeed, the market has demonstrated nominal growth throughout the majority of the period, reflecting the progress of the economy and technological developments in the industry, which have both had a positive impact on the market, particularly in the mobile communications sector.
However, growth slowed significantly during the latter part of the period, largely due to the relative maturity of the overall market. The mobile telephony and broadband internet sectors of the market are believed to have shown strong growth, with a converse trend recorded in the more traditional fixed telephony sector.”
Market Forecast 2007 - 2011
MBD project that the UK market for telecommunications will increase year-on-year between 2006 and 2011, culminating in an overall increase of 9% in real terms to a forecast five year peak of £35.8 billion (at 2006 prices) during the latter year. Demand within the sector is expected to increase annually by between 1% and 2% during the forecast period, with demand being driven by technological innovations and the expected continued penetration of broadband internet access over the next five years.
The UK market for fixed telephony is expected by MDB to decline in importance as the forecast period progresses. MBD expects revenues in the sector to decline by 20% in real terms between 2006 and 2011, to an estimated £8.3 billion (at 2006 prices) during the latter year.
In contrast, the UK market for mobile telephony is expected to increase strongly despite increasing competition and pressure on prices within the sector. Revenues within the market are expected to reach £18.1 billion (at 2006 prices) in 2011, representing a substantial 41% increase in real terms since 2006.