Table of Contents
Executive Summary
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- Impact of COVID-19 on mobile network providers
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- Figure 1: Short, medium and long-term impact of COVID-19 on mobile network providers, 12 January 2021
- The market
- Lower monthly fees contribute to drop in market size for network providers
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- Figure 2: Market size and forecast for mobile network providers (value), 2015-25
- Increase in calls but drop in data during initial COVID-19 lockdown
- EE retains leadership but Three could gain share
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- Figure 3: Market share, by network provider, November 2020
- Pre-COVID-19: monthly data usage continues its clear growth
- Companies and brands
- Big Four networks begin trials of 4G on London underground
- Networks support vulnerable people during COVID-19
- The consumer
- SIM-only deals are now the most popular type of payment
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- Figure 4: Type of payment plan for mobile phone, November 2020
- SIM-only subscribers pay less
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- Figure 5: Monthly payments for SIM-only and contracts with phone, November 2020
- One in five contract owners intend to upgrade to 5G next year
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- Figure 6: Current ownership and intentions to upgrade to 5G in next year, November 2020
- Faster video streaming is the biggest motivator for 5G
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- Figure 7: Biggest motivators to upgrade to 5G, November 2020
- London 5G coverage will help EE to maintain market leadership
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- Figure 8: 5G coverage as a motivator to switch network provider, November 2020
- Some consumers have decreased their mobile data allowances since COVID-19
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- Figure 9: Timescale on latest contract modification, November 2020
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- Figure 10: Changes to calls, text or data in latest modification, November 2020
- Figure 11: Increases or decreases of specific allowances in latest modification, November 2020
- COVID-19 accelerates shift to SIM-only
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- Figure 12: Impact of COVID-19 financial uncertainty on mobile contracts, November 2020
Issues and Insights
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- How COVID-19 is shaping the mobile network providers market
- Shift to SIM-only and cheaper contracts
- Changes to habits in mobile calling and data usage
- Potential changes to market share
- Network providers face biggest test yet in engaging and keeping customers
The Market – Key Takeaways
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- Mobile network providers market drops by 5.9%
- O2’s call volumes up 25% during first lockdown
- Virgin Media Gigabit broadband and O2 5G in £31 billion merger
Market Size and Forecast
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- Impact of COVID-19 on mobile network providers
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- Figure 13: Short, medium and long-term impact of COVID-19 on mobile network providers, 12 January 2021
- Lower monthly fees contribute to drop in market size for network providers
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- Figure 14: Value and volume for the mobile network providers market, 2015-25
- Figure 15: Market size and forecast for mobile network providers (value), 2015-25
- Figure 16: Market size and forecast for mobile network providers (volume), 2015-25
Market Drivers
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- Increase in calls but drop in data during initial COVID-19 lockdown
- Liberty Global and Telefonica agree £31 billion merger
- Pre-COVID-19: monthly data usage continues its clear growth
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- Figure 17: Monthly data usage (GB), 2014-19
- Pre-COVID-19: text messages were continuing to drop but calling was stable
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- Figure 18: Average number of SMS/MMS messages sent per month, 2014-19
- Figure 19: Average minutes on outbound calls per month, 2014-19
Companies and Brands – Key Takeaways
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- Three has potential to grow market share due to 5G coverage
- Mobile working boosted by availability of 4G on London underground
- Mobile networks start programmes in response to COVID-19
Market Share
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- EE leads market but Three could gain share
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- Figure 20: Market share, by network provider, November 2020
Launch Activity and Innovation
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- Big Four networks begin trials of 4G on London underground
- Role of 4G in mobile working
- Networks support vulnerable people during COVID-19
- O2 and Hubbub smartphone donations
- Department for Education’s Help with Technology programme
- Vodafone schools.connected initiative
- Vodafone’s discounted mobile plan for jobseekers
- EE launches Full Works plan with range of Apple streaming services…
- …and adds BT Sport’s Match Day Experience for sports fans
- Keeping sports fans connected during lockdowns
- EE also adds voice calling support for Amazon Echo owners
Advertising and Marketing Activity
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- Network providers spent £226.6 million on advertising in 2020
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- Figure 21: Above-the-line, online display and direct mail total advertising expenditure on mobile network services, 2017-20
- Changes to spending across the Big Four providers
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- Figure 22: O2’s above-the-line, online display and direct mail total advertising expenditure on mobile network services, by brand and product category, 2020
- Figure 23: Vodafone’s above-the-line, online display and direct mail total advertising expenditure on mobile network services, by brand and product category, 2020
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- Figure 24: EE’s above-the-line, online display and direct mail total advertising expenditure on mobile network services, by brand and product category, 2020
- Figure 25: Three’s above-the-line, online display and direct mail total advertising expenditure on mobile network services, by brand and product category, 2020
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 26: Attitudes towards and usage of selected brands, November 2020
- Key brand metrics
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- Figure 27: Key metrics for selected brands, November 2020
- Consumers see EE and O2 as most trustworthy and high-quality brands
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- Figure 28: Attitudes, by brand, November 2020
- Tesco Mobile viewed as most accessible network provider
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- Figure 29: Brand personality – Macro image, November 2020
- giffgaff has best reputation for flexibility
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- Figure 30: Brand personality – Micro image, November 2020
- Brand analysis
- Consumer satisfaction with giffgaff is the highest out of the major networks
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- Figure 31: User profile of giffgaff, November 2020
- Tesco Mobile scores well on perceptions of efficiency
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- Figure 32: User profile of Tesco Mobile, November 2020
- O2 has joint highest usage in the past and in the last year
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- Figure 33: User profile of O2, November 2020
- EE’s users are most likely to describe it as their favourite brand
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- Figure 34: User profile of EE, November 2020
- Three UK is in the mid-range for usage, satisfaction and recommendations
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- Figure 35: User profile of Three UK, November 2020
- Vodafone is viewed as expensive but one of the most efficient brands
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- Figure 36: User profile of Vodafone, November 2020
- Consumers see Virgin Mobile as one of the more innovative brands
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- Figure 37: User profile of Virgin Mobile, November 2020
The Consumer – Key Takeaways
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- SIM-only overtakes traditional contract as most common payment
- Network providers may do best to focus on mid-range 5G handsets
- Network providers can target the group of permanent homeworkers
Impact of COVID-19 on Consumer Behaviour
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- COVID-19 accelerates shift to SIM-only
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- Figure 38: Impact of COVID-19 financial uncertainty on mobile contracts, November 2020
- Some consumers have decreased their mobile data allowances since COVID-19
- Targeting permanent homeworkers with 5G as a replacement for broadband
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- Figure 39: Timescale for latest contract modification, November 2020
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- Figure 40: Changes to calls, text or data in latest modification, November 2020
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- Figure 41: Increases or decreases to specific allowances in latest modification, November 2020
Type of Mobile Payment Plan and Prices
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- SIM-only deals are now the most widely used type of payment
- Ofcom also pushes flexibility with ban on locked smartphones
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- Figure 42: Type of payment plan for mobile phone, November 2020
- SIM-only subscribers pay less
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- Figure 43: Monthly payments for SIM-only and contracts with phone, November 2020
Intentions and Motivations for 5G
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- One in five contract owners intend to upgrade to 5G next year
- Network providers may do best to focus on entry-level and mid-range 5G handsets in the short term
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- Figure 44: Current ownership and intentions to upgrade to 5G in next year, November 2020
- Faster video streaming is the biggest motivator for 5G
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- Figure 45: Biggest motivators to upgrade to 5G, November 2020
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- Figure 46: Above 10GB on mobile data allowance in contract, November 2020
- London 5G coverage will help EE maintain market leadership
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- Figure 47: 5G coverage as a motivator to switch network provider, November 2020
- COVID-19 store closures may have held back consumers’ intent to get 5G
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- Figure 48: Satisfaction with current network speed, November 2020
Appendix Data – Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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