Prepay decline still challenging the industry

Prepay decline still challenging the industry

The rate of decline in the telecoms market is slowing, although the shrinking prepay market is still hitting sales, new data has shown.

GfK research revealed the value of the sector was £200m last month, down 11.7% on 2011. The figures showed the decline has been getting shallower since it hit a low of -24% in February this year.

The research agency said the continued growth of mobile accessories, particularly protective cases for smartphones, continues to boost the market. New handset launches are also driving sales in the sector.

GfK tracks the sale of fixed-line telephones, headsets, accessories, handsets and tariffs in the telecommunications category. In the year to 30 June, the market is trading 18.9% behind the same period last year.

However, telecoms is faring much worse than the overall durables market. It declined 3.4% in June, compared to the same period last year. Sales in the total market are down 6% on 12 months ago.

Editor: Graeme Neill

Written by Mobile Today
Mobile Today

Comments

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The reduction in termination charges and subsequent effect on subsidies has really hurt the prepay market. The networks did warn that this would happe ...
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