UK Broadband, Mobile and TV Services Market Report 2023
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Description
The Broadband, Mobile and TV Services Market Report 2023 offers comprehensive insights into the broadband and bundled communications market, including market size, segmentation, trends, and projections. Our analysis examines consumers’ attitudes towards and usage frequency of broadband and mobile providers, launch activity and the impact of the cost of living crisis on the broadband, mobile and TV services. Uncover the latest developments in the UK broadband market and respond to changing consumer demands with Mintel’s market research.
UK Broadband Market & Mobile Market Overview
As prices for broadband and mobile services continue to rise, it’s likely that more consumers will shop around for value alternatives in 2023, particularly lower-income consumers are who facing budgetary challenges across all areas of their household spending. However, even with increased competition, overall revenues are projected to rise due to the fact that some customers may be locked into contracts or are not be deterred by the price hikes and therefore stick with their current providers.
UK Mobile Market Trends & Reactive Consumer Behaviours
There are indications that some consumers will be looking to save on their monthly mobile bills by moving towards lower-cost alternatives. Alongside this, significant above-inflation prices will cause a slowdown in upgrade cycles for new mobiles. This slowdown could mean the UK mobile market sees a reversal of trends in recent years of consumers using more data and moving gradually to faster internet and mobile packages, such as 5G and full fibre
- UK broadband market share: Despite dropping 5 percentage points, BT holds a joint lead with Sky as consumers’ broadband supplier, both recording 20% market share.
- UK mobile market size: The market size for fixed telecoms, mobile and pay-TV saw positive growth, reaching £33 billion in 2022.
- UK broadband market consumer behaviours: 71% of consumers agree that it is important to them to stick to well-known broadband suppliers.
- UK mobile market challenges: 21% of mobile owners state that the cost of living crisis is making them consider moving to a pay-as-you-go mobile service.
UK Mobile & Broadband Market Future Opportunities
Given the current economic climate is set to continue, brands in the UK mobile market could look to offer built-in flexibility which can allow consumers to switch between different tariffs on a monthly basis within a 12-month period, so if the economic picture improves, they can switch up to different levels within the same contract.
Consumers have an array of connected devices in the household, with 21% having five or more devices. With many consumers owning multiple smart devices, brands in the UK broadband market can help facilitate digitally connected lifestyles with tie-ins on contracts, as well as guidance and advice for getting a reliable connection that can handle all of a household’s digital needs.
To discover more about the UK Broadband, Mobile and TV Services Market Report 2023, read our UK Mobile Device Apps Market Report 2022, or take a look at our other Technology Market Research.
Quickly Understand
- Examines consumers’ use of broadband and mobile providers.
- Details what connected devices consumers have in the household.
- Explores consumer attitudes towards pay-TV, broadband and mobile providers.
- Covers the impact of cost of living crisis on the UK broadband market, UK mobile market and pay-TV.
- Factors driving the market for mobile, broadband and pay-TV customers in the UK.
- Examines the market size and forecast for the mobile, broadband and pay-TV sectors in the UK.
- Launch activity and innovations happening in the UK mobile market.
Leading Brands in the UK Broadband & Mobile Market
BT, Sky, Virgin Media, TalkTalk, EE, Plusnet, Vodafone, NOW Broadband, Shell Energy Broadband, John Lewis, Hyperoptic, SSE, Zen, Onestream, Origin, Post Office Broadbadn, Pop Telecom, EE, O2, Three, Tesco Mobile, GiffGaff.
Expert Analysis from a Specialist in the Technology Sector
This report, written by Joe Birch, a leading analyst in the technology sector, delivers in-depth commentary and analysis to highlight current trends in the market and add expert context to the numbers.
Consumers were already starting to feel the pinch of the cost of payments for telecoms services towards the back end of 2022, and with significant price rises coming in 2023, many will be considering downgrading telecoms services or cancelling pay-TV. For brands, now is the time to double down on the convenience and potential cost saving of converged services, as well as offering more accessible value options for those struggling with payments.”
Joe Birch
Consumer Technology Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for fixed telecoms, mobile and pay-TV services
- Figure 1: Category outlook, 2023-27
- The market
- Boosted short-term revenues from price hikes will be offset by downgrading and shopping around
- Figure 2: Market size for fixed telecoms, mobile and pay-TV services, 2017-27
- Inflation is the key concern for consumers and brands
- Above-inflation price rises will exacerbate an already challenging situation for consumers
- Broadband and mobile data use continues to climb
- Full-fibre and 5G networks continue to grow
- Continuing work from anywhere can boost hybrid mobile and broadband propositions
- Figure 3: Work location, 2021 and 2022
- Companies and brands
- Pay-TV providers look to streaming services to push enhanced content propositions
- Sky adds flexibility with Sky Stream Puck
- Brands launch social tariffs for those struggling with bills
- The consumer
- Consumers have multiple connected devices in the home
- Figure 4: Personal ownership of technology, 2022
- BT’s lead over rivals diminishes
- Figure 5: Broadband provider, 2021 and 2022
- EE makes marginal gains on O2
- Figure 6: Mobile network provider supplier, 2021 and 2022
- Payment plans broadly static
- Figure 7: Payment plan on personal mobile contract used most often, 2020-22
- 5G is reaching a tipping point of adoption
- Figure 8: Awareness or ownership of a 5G phone or contract, 2022
- Broadband customers value strong brand names
- Offer flexible options for customers considering downgrading
- Figure 9: Attitudes towards broadband services, 2022
- Double down on value of converged service
- Figure 10: Attitudes towards mobile network providers, 2022
- Sky leads the way for pay-TV providers, but sector faces challenging 2023
- Figure 11: Use of pay-TV services, 2022
- Sky’s flexible payment methods for content and hardware can help bridge difficult times
- Figure 12: Attitudes towards pay-TV services, 2022
- Consumers feel the pinch of telecoms services
- Figure 13: Affordability of telecoms and pay-TV services, 2022
- The five-year outlook for fixed telecoms, mobile and pay-TV services
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Issues and Insights
- Converged service proposition will be increasingly important for customer retention during the cost-of-living crisis
- Flexible lifestyles demand flexible and innovative solutions
- Seize the day with flexibility and price freezes to boost brand presence
- Boost broadband and mobile contract attractiveness with hybrid hardware and software subscriptions
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Market Size and Performance
- Post-pandemic upward trend in fixed voice levels off
- Increased connections and first impact of price rises see broadband perform well in 2022
- Figure 14: Market size for fixed telecoms (broadband and voice), 2017-22
- Mobile’s revenues rise in 2022
- Figure 15: Market size for mobile network providers, 2017-22
- Pay-TV struggles despite boost from early start to football season and innovative rollout of new products
- Figure 16: Market size for the pay-TV sector, 2017-22
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Market Forecast
- Five-year outlook for mobile, broadband and pay-TV services
- Figure 17: Category outlook, 2023-27
- Boosted short-term revenues from price hikes will be offset by downgrading and shopping around
- Figure 18: Market size for fixed telecoms, mobile and pay-TV services, 2017-27
- Above-inflation price rises should boost broadband’s revenues
- Brand loyalty will help bolster revenues
- Longer-term price competition and inflation ease will bring revenues down
- Figure 19: Market forecast for fixed telecoms (voice and broadband) value, 2017-27
- Mobile networks’ revenue will also be bolstered by above-inflation price rises
- Longer term, value of mobile networks will fall as prices fall
- Figure 20: Market forecast for the value of the mobile network providers market, 2017-27
- Increased connections can also bolster MNP’s revenues
- Figure 21: Mobile phone subscriptions (millions), 2016-21
- Figure 22: Market forecast for the volume of the mobile network providers market, 2017-27
- Pay-TV subscriptions on the chopping block as consumers look for ways to economise
- Figure 23: Market forecast for pay-TV sector, 2017-27
- Learnings from the last income squeeze
- Forecast methodology
- Five-year outlook for mobile, broadband and pay-TV services
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Market Drivers
- Inflation is the key concern for consumers and brands
- As a result of cost pressures, consumers’ financial sentiment hits a 13-year low
- Figure 24: Household financial sentiment index, 2009-22
- Consumer spending power will be curbed, with many facing pressures on affordability of telecoms services
- Figure 25: Affordability of communications services, 2021-22
- Above-inflation price rises will exacerbate an already challenging situation for consumers
- Figure 26: Price rises for communications services, 2023
- Broadband data use continues to climb
- Figure 27: Average fixed broadband data use per month in GB, 2013-21
- Mobile data use also increases
- Figure 28: Average monthly data volume by mobile user, 2013-21
- Rollout of superfast broadband and mobile connections continues
- Figure 29: Fixed broadband coverage in UK, by speed intervals, 2022
- Brands target new technology to boost 5G’s promise
- Continuing work from anywhere can boost hybrid mobile and broadband propositions
- Figure 30: Work location, 2021 and 2022
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Launch Activity and Innovation
- Pay-TV providers look to streaming services to push enhanced content propositions
- Virgin Media adds free content and fitness to boost value
- Sky adds flexibility with Sky Stream Puck
- TalkTalk launches new affordable alternative TV hub powered by Android TV
- The government invests in telecoms innovation
- Ericsson makes significant investment in 6G technology
- Satellite connectivity boosts mobile networks’ reach
- Brands launch social tariffs for those struggling with bills
- Brands look to boost their sustainability efforts
- BT looks to re-invent the phone box
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Advertising and Marketing
- Telecoms brands go big on advertising spending in 2022
- Figure 31: Total above-the-line, online display and direct mail advertising expenditure on home broadband, home broadband & landline, home broadband & landline & TV, 2020-22
- TV spend boosted by high-profile campaigns
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- Figure 32: Total above-the-line, online display and direct mail advertising expenditure on home broadband, home broadband & landline, home broadband & landline & TV, by media type, 2022
- TalkTalk pushes its home broadband product in 2022
- Figure 33: Total above-the-line, online display and direct mail advertising expenditure on home broadband, home broadband & landline, home broadband & landline & TV, by top 10 campaigns, 2022
- Advertising on mobile networks up 8% in 2022
- Figure 34: Total above-the-line, online display and direct mail advertising expenditure on personal mobile networks & services, 2020-22
- Vodafone uses summer spectacles to boost visibility
- Figure 35: Total above-the-line, online display and direct mail advertising expenditure on personal mobile networks & services, by media type, 2022
- O2 focuses on flexible phone swap options mid-contract
- Figure 36: Total above-the-line, online display and direct mail advertising expenditure on personal mobile networks & services, by top 10 campaigns, 2022
- Telecoms brands go big on advertising spending in 2022
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Brand Research
- Brand map
- Figure 37: Attitudes towards and usage of selected brands, 2023
- Key brand metrics
- Figure 38: Key metrics for selected brands, 2023
- Brand attitudes: Sky leads as an innovative and trustworthy brand
- Figure 39: Attitudes, by brand, 2023
- Brand personality: BT is seen as an accessible brand
- Figure 40: Brand personality – macro image, 2023
- Plusnet is seen as an approachable brand
- Figure 41: Brand personality – micro image, 2023
- Brand analysis
- Sky is a favourite brand of consumers and seen as the most innovative and cutting edge
- BT is seen as a trustworthy brand
- EE has the highest number of users rating their experience as excellent
- Virgin is seen as an expensive brand, but one not necessarily worth paying more for
- O2 is seen as a solid dependable all rounder
- Vodafone’s new innovations should boost middling brand perceptions
- Nearly three quarters of NOW’s customers would recommend it to a family or friend
- TalkTalk struggles to delight its customers
- Plusnet should focus on boosting brand awareness
- Brand map
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Broadband and Connected Devices
- Consumers have multiple connected devices in the home
- Boost broadband and mobile contract attractiveness with hybrid hardware and software subscriptions
- Figure 42: Personal ownership of technology, 2022
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- Figure 43: Repertoire of personal ownership of technology, 2022
- BT’s lead over rivals diminishes
- Consolidation likely amongst smaller players as costs rise
- Figure 44: Broadband provider, 2021 and 2022
- Sky and BT have more financially resilient demographics
- Figure 45: Customer profiles of the leading broadband suppliers, 2022
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Use of Mobile Network Services
- EE makes marginal gains on O2
- Figure 46: Mobile network provider supplier, 2021 and 2022
- Create flexible ways for consumers to pay for their services
- More convergence could lead to better outcomes for consumers
- Figure 47: Mobile network provider supplier, by generation, 2022
- Payment plans broadly static
- Consumers with contracts and phones could be financially vulnerable and will require flexible approach from providers
- Figure 48: Payment plan on personal mobile contract used most often, 2020-22
- Flexibility in contract terms will be key during the cost-of-living crisis
- Figure 49: Type of mobile payment plan, by mobile network provider, 2022
- 5G is reaching a tipping point of adoption
- Figure 50: Awareness or ownership of a 5G phone or contract, 2022
- Younger demographics living in cities are at forefront of 5G adoption
- Figure 51: Awareness or ownership of a 5G phone or contract, by generation, 2022
- EE makes marginal gains on O2
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Attitudes towards Broadband and Mobile Services
- Broadband customers value strong brand names
- Offer flexible options for customers considering downgrading
- Figure 52: Attitudes towards broadband services, 2022
- Now is not the time for a slowdown in advertising spend
- Slowdown in upgrade cycles for new mobiles to be expected as cost of living bites
- Double down on value of converged service
- Figure 53: Attitudes towards mobile network providers, 2022
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Pay-TV Services
- Sky leads the way for pay-TV providers, but sector faces challenging 2023
- Build out additional content to provide greater value
- Figure 54: Use of pay-TV services, 2022
- Pay-TV brands could cater to the stay-at-home culture as consumers look to save money
- Sky’s flexible payment methods for content and hardware can help bridge difficult times
- Figure 55: Attitudes towards pay-TV services, 2022
- BT’s pay-TV looks set for a challenging 12 months
- Figure 56: Likelihood to cancel pay-TV service, by pay-TV provider, 2022
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The use of Bundled Services
- BT Group can prioritise upselling services
- Figure 57: Use of single-play broadband service, (NET) 2022
- Virgin Media O2 has the largest number of those with just a mobile contract
- Figure 58: Use of single-play mobile service, (NET) 2022
- BT leads the way for consumers taking both broadband and mobile products with its companies
- Figure 59: Use of double-play mobile and broadband services, (NET) 2022
- Offer free SIMs to those with pay-TV and broadband subs
- Figure 60: Use of double-play broadband and pay-TV, (NET), 2022
- Make it cost effective and simple to bundle multiple services together
- Figure 61: Use of triple-play broadband, mobile and pay-TV services, (NET) 2022
- BT Group can prioritise upselling services
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The Impact of the Cost-of-living Crisis on Broadband, Mobile and Pay-TV Services
- Consumers feel the pinch of telecoms services
- Figure 62: Affordability of telecoms and pay-TV services, 2022
- Contract type contributes to overall affordability of mobile payments
- Smaller mobile providers can win market share from established names
- Larger broadband names can promote their lower-priced alternatives
- Figure 63: Affordability of payments for broadband service, by broadband provider, 2022
- Consumers feel the pinch of telecoms services
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
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Appendix – Forecast Methodology
- Market forecast and prediction intervals
- Figure 64: Lower bound, central and upper bound forecast for fixed telecoms and pay-TV value, 2022-27
- Figure 65: Lower bound, central and upper bound forecast for fixed telecoms value, 2022-27
- Figure 66: Lower bound, central and upper bound forecast for TV subscriptions value, 2022-27
- Figure 67: Lower bound, central and upper bound forecast for mobile market value, 2022-27
- Figure 68: Lower bound, central and upper bound forecast for mobile market volume, 2022-27
- Market drivers and assumptions
- Forecast methodology
- Market forecast and prediction intervals
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
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*databooks not available with UK B2B Industry reports.
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