Table of Contents
Executive Summary
-
- The market
- A stagnant subscriber base, with a decreasing monthly spend contribute to market decline
-
- Figure 1: Mobile network providers’ market size and forecast, 2014-24
- Companies and brands
- O2 and EE are top providers but MVNO proposition gains ground
-
- Figure 2: Mobile network provider, 2018 and 2019
- The big four roll out 5G in 2019 across major cities in the UK
- Vodafone and O2 infrastructure agreement to deliver faster 5G rollout
- Vodafone showcases 5G capability at Ricoh Arena in Coventry
- Virgin Mobile moves to Vodafone’s network from 2021
- Three pioneers cloud-based core network in partnership with Nokia…
- The consumer
- SIM-only contracts continue to rise as consumers delay upgrading
-
- Figure 3: Contract with a phone vs SIM-only vs PAYG, 2017-19
- Users in longer-term contracts are down in 2019
-
- Figure 4: Length of contract, 2018 and 2019
- Ethical and environmental traits can add halo effect for providers
-
- Figure 5: Factors influencing purchase decision, November 2019
- Take-up of 5G contracts and handsets looks set to be a slow burn
-
- Figure 6: Uptake of 5G phones and contracts, November 2019
- Customers tend to stay loyal to network providers
-
- Figure 7: Length of time with network, 2018 and 2019
- Data allowances still a priority for consumers
-
- Figure 8: Attitudes towards mobile contracts, November 2019
- What we think
Issues and Insights
-
- Preventing churn and fostering brand loyalty can be short-term aims
- The facts
- The implications
- Bringing 5G’s potential to life for consumers can help re-energise MNOs’ proposition
- The facts
- The implications
- Mobile networks’ next battleground could be away from mobile phones
- The facts
- The implications
The Market – What You Need to Know
-
- Market continues to decline on back of mature consumer base and decreasing prices
- SIM-only deals increase as those with longer-term contracts with providers go down
- Ofcom launches a host of initiatives to encourage competition in the mobile market
- Bundled services see a drop-off in 2018 as market reaches maturity
Market Size and Forecast
-
- A stagnant subscriber base, with a decreasing monthly spend contribute to market decline
-
- Figure 9: Market size and forecast for mobile network providers, 2014-24
- Figure 10: Volume of mobile network connections, 2014-24
- Figure 11: Value and volume of mobile network connections, 2014-24
-
- Figure 12: Contract with a phone vs SIM-only vs PAYG, 2017-19
Market Drivers
-
- Mobile minutes increasing gradually as fixed line use drops off
-
- Figure 13: Average monthly voice call minutes per line/subscription, 2013-18
- Decrease in international calling from mobiles
-
- Figure 14: Outgoing mobile call minutes, by call type (bn), 2013-18
- Bundled services see a drop-off in 2018 as market reaches maturity
-
- Figure 15: Mobile retail revenue, by service (£ billion), 2013-18
- Contract spend decreases as competition across the board hots up
- Flagship smartphones’ price points can be a hindrance to the upgrade cycle
-
- Figure 16: Average monthly payment of those with contracts on phone, 2017-19
- Data use continues to rise on the back of 5G capacity…
- …but take-up will likely be a slow burn
-
- Figure 17: Total mobile data use, by subscription type, (PB) 2013-18
- MNOs focus on 4G rollout to continue targeting not-spots and increased coverage in rural areas
- Transparency and contract rules aim to increase fairness and transparency for mobile customers
- Clearer signposting on cost implications for handset and airtime contracts
- A challenge to industry to reduce bills across the board
- Focus on delivering converged services can shift MNOs’ business models
- Ofcom launches Text-to-Switch service to make it easier for consumers to change providers
- Proposals to ban mobile providers selling handsets locked to their networks aimed to ease switching inconvenience
Companies and Brands – What You Need to Know
-
- EE and O2 share top billing in Mintel’s research as most popular providers
- EE, O2 and Vodafone go live with 5G service
- Virgin Mobile will move from the EE network to the Vodafone network from 2021
- BT outlines its future of connectivity
- EE and Vodafone named top two providers in 2020 UK Mobile Benchmark test
- O2 adds Apple Watch to its Custom Plans
Market Share
-
- EE and O2 share top billing in 2019
-
- Figure 18: Mobile network provider, 2018 and 2019
Launch Activity and Innovation
-
- EE joins O2 and Vodafone in trials to provide 4G on London Underground
- EE, O2 and Vodafone go live with 5G services…
- …but Three delays its launch due to technical problems
- Shared rural network agreement to bolster 4G coverage across the UK
- Virgin Mobile will move from the EE network to the Vodafone network from 2021
- Vodafone partners with Mencap to provide technological help to people with a learning disability
- Vodafone prioritises cross-selling services to existing subscribers to drive growth
- BT outlines its future of connectivity
- Three aims to provide the fastest 5G network with partnership with Nokia
- Vodafone showcases 5G capability at Ricoh Arena in Coventry
- O2 adds Apple Watch to its Custom Plans
- EE and Vodafone named top two providers in 2020 UK Mobile Network Test
- Mobile providers eye strategic initiatives to boost ethical credentials and reduce environmental impact
- Giffgaff pushes refurbished phones
- Vodafone and Sky Mobile partner with Fairphone
- Consumers need tech brands to take the lead
Advertising and Marketing Activity
-
- Advertising spend sees small decrease in 2019
- Vodafone looks to “Unlimited” future
- EE uses Rugby World Cup to consolidate its 4G positioning
- 5G focus could boost spend in 2020
-
- Figure 19: Recorded above-the-line, online display and direct mail total advertising expenditure on mobile network services, by advertiser, 2016-19
- Nielsen Ad Intel coverage
Brand Research
-
- Brand map
-
- Figure 20: Attitudes towards and usage of selected brands, January 2020
- Figure 21: Key metrics for selected brands, January 2020
- Brand attitudes
-
- Figure 22: Attitudes, by brand, January 2020
- Brand personality
-
- Figure 23: Brand personality – Macro image, January 2020
- Figure 24: Brand personality – Macro image, January 2020
- Brand analysis
- Giffgaff joint top for levels of satisfaction
-
- Figure 25: User profile of Giffgaff, January 2020
- Tesco Mobile is the most recommended provider
-
- Figure 26: User profile for Tesco Mobile, January 2020
- O2 has the highest levels of brand awareness
-
- Figure 27: User profile of O2, January 2020
- EE is most used brand in the last 12 months
-
- Figure 28: User profile of EE, January 2020
- Three has work to do to stand out from the crowd
-
- Figure 29: User profile of Three, January 2020
- Virgin Mobile tops MVNO usage
-
- Figure 30: User profile of Virgin Mobile, January 2020
- Vodafone is the least recommended provider
-
- Figure 31: User profile of Vodafone, January 2020
The Consumer – What You Need to Know
-
- SIM-only contracts continue to rise as consumers delay upgrading
- Users in longer-term contracts are down in 2019
- Nearly 70% of PAYG users are spending £10 or less a month
- Ethical and environmental traits can add halo effect for providers
- Awareness of 5G is high amongst the majority, but knowledge of the details is low
- Take-up of 5G contracts and handsets looks set to be a slow burn
- Customers tend to stay loyal to network providers
- Three in 10 are with a different provider for their current mobile contract
- Data allowances still a priority for consumers
- Mobile network providers can foster loyalty through transparency
Contracts vs PAYG
-
- SIM-only contracts continue to rise as consumers delay upgrading
-
- Figure 32: Contract with a phone vs SIM-only vs PAYG, 2017-19
- Users in longer-term contracts are down in 2019
-
- Figure 33: Length of contract, 2018 and 2019
Contracts and PAYG Spending
-
- Nearly 70% of PAYG users are spending £10 or less a month
-
- Figure 34: Contract, SIM-only and PAYG spending, November 2019
Consumer Priorities when Choosing a Network Provider
-
- Ethical and environmental traits can add halo effect for providers
-
- Figure 35: Factors influencing purchase decision, November 2019
Awareness and Interest of 5G
-
- Awareness of 5G is high amongst the majority, but knowledge of the technology is patchy
-
- Figure 36: Knowledge of 5G, November 2019
- Take-up of 5G contracts and handsets looks set to be a slow burn
- Demographics show typical early-adopter spike in intent to buy
-
- Figure 37: Uptake of 5G phones and contracts, November 2019
Contract Length
-
- Customers tend to stay loyal to network providers
-
- Figure 38: Length of time with network, 2018 and 2019
Switching Behaviour
-
- Three in 10 are with a different provider for their current mobile contract
- Text-to-Switch should reduce inertia
-
- Figure 39: Switching behaviour, November 2019
Attitudes towards Mobile Contracts
-
- Data allowances still a priority for consumers
- Mobile network providers can foster loyalty through transparency
-
- Figure 40: Attitudes towards mobile contracts, November 2019
CHAID Analysis
-
- Methodology
- Data still the calling point for younger males
- 5G provides the platform for data-focused deals to appeal
-
- Figure 41: Mobile network providers – CHAID – Tree output, November 2019
-
- Figure 42: Mobile network providers – CHAID – Table output, November 2019
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – The Market
-
-
- Figure 43: Value of mobile network connections, 2019-24
- Figure 44: Volume of mobile network connections, 2019-24
-
Back to top