Mobile revenues hit five year flat line, Ofcom finds

Mobile revenues hit five year flat line, Ofcom finds

UK mobile revenues remained flat for the fifth year running, Ofcom’s annual Communications Market Report has found.

The data from the regulator showed there was no change between 2014 and 2015 with mobile retail revenues stationary at £15.2bn. Since 2010 all changes to mobile revenue has been below 1%.

Total telecoms revenues were up for the second year in a row, with the rise of £200m largely driven by fixed line revenue.

The figures mirrored much of what operator’s financial results have been suggesting that the market is saturated. After a number of positive quarterly results, O2 were the latest operator to report a flat quarter.

4G and data continue to drive

The market penetration of data services continued to edge to even higher levels. The report found that two thirds of adults (66%) now use internet data services on a mobile phone. This was an increase of 5% from the previous year.

Mobile subscriptions also rose 1.8% to 91.5m during 2015 with almost half of these connections on the 4G service, the demand of which the regulator found has increased threefold since the start of 2014. 

The rise of data services at the expense of traditional methods of mobile communications like text messages were also clear from the figures. The total number of text messages and multimedia messages fell from 110bn to 101bn in 2015. Ofcom attributed this to the growth of instant messaging as a service.

The number of homes without a landline fell down 1% on the previous year, although this was amidst the backdrop of an increase in spending on broadband services, as the nature of home connectivity continues to evolve.

 

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