Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Forecast value of mobile network connections, 2007-17
- Market factors
- SMS and data use increasing, mobile call volume and revenue falling
- Inclusive data to become more important than minutes
- Handset exclusivity continues to play a role in marketing
- Companies, brands and innovation
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- Figure 2: Mobile network market share, 2012
- The consumer
- Consumer contract types and length
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- Figure 3: Consumer mobile phone connection types, November 2012
- Figure 4: When consumers last changed their mobile network provider, November 2012
- Factors that prompted consumers to change provider
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- Figure 5: Reasons for consumers’ last change of mobile network provider, November 2012
- What would make consumers change provider in future?
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- Figure 6: Factors that would make consumers change mobile network provider, November 2012
- Attitudes towards the 4G network
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- Figure 7: Consumer attitudes towards 4G networks, November 2012
- What we think
Issues in the Market
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- How should operators approach the fall in voice call volumes?
- How important are smartphones to operator offerings?
- What are the prospects for 4G take-up?
- What can be done to address a market more dependent on data services?
Trend Application
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- Trend: Let’s Make a Deal
- Trend: Extend my Brand
- Mintel Futures: Being Human
Market Drivers
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- Key points
- 4G network up and running, with Q1 auction finalising market players
- EE enjoys debatable success during its period of market exclusivity
- Voice revenues continue to drop
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- Figure 8: Mobile network retail revenue, by service type, 2006-11
- Figure 9: Total call minutes made from UK mobiles, 2006-11
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- Figure 10: Use of communication methods other than voice telephony by consumers, 2010 and 2012
- Figure 11: Access of the internet, email or instant messaging through mobile devices, 2010-12
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- Figure 12: Mobile monthly ARPU, by voice, messaging and data, 2006-11
- Data allowances increase to match demand
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- Figure 13: Inclusion of any internet allowance with consumers’ mobile phone contracts, by fixed and unlimited allowances, 2011 and 2012
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- Figure 14: Inclusion of any free call minutes with consumers’ mobile phone contracts, by fixed and unlimited allowances, 2011 and 2012
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- Figure 15: Forecast global mobile data traffic in terabytes*, by data type, 2012-17
- Figure 16: Proportion of forecast global mobile data traffic taken by data types, 2012-17
- Handsets become integral part of offering
- Retailer initiatives draw in operators to boost usage
- Contract length continues to increase
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- Figure 17: Length of time consumers have been with their current mobile phone network, 2008-12
Who’s Innovating?
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- Key points
- Vodafone Booster Brolly is both practical and imaginative
- O2 marketing campaign creates imaginary Facebook future
- WWF launches its own mobile network
- Telefónica experimenting with the internet of things
Market Size and Forecast
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- Key points
- Market on the cost of cyclical move back to positive growth
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- Figure 18: Value of mobile network connections, 2007-17
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- Figure 19: Volume of mobile network connections, 2007-17
- Forecasts
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- Figure 20: Forecast value of mobile network connections, 2007-17
- Figure 21: Forecast volume of mobile network connections, 2007-17
Market Segmentation and Share
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- Key points
- Post-pay taking a narrow market majority
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- Figure 22: Proportion of mobile handsets on pre-pay and post-pay connections, 2006-12
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- Figure 23: Post-pay and pre-pay mobile call minutes, 2006-11
- Fall in post-pay ARPU accelerates, whilst pre-pay declines
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- Figure 24: Monthly ARPU for pre-pay and post-pay mobile users, 2006-11
- Mobile revenue from data usage increasing
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- Figure 25: Proportion of total revenue from UK mobile telephony, by segment, 2010-12
- T-Mobile and Orange merger gives EE a majority market share
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- Figure 26: Share of mobile market subscribers, by operator, 2008-12
Brand Research
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- Brand map
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- Figure 27: Attitudes towards and usage of brands in the mobile network provider sector, December 2012
- Correspondence analysis
- Brand attitudes
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- Figure 28: Attitudes, by mobile network provider brand, December 2012
- Brand personality
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- Figure 29: Mobile network provider brand personality – macro image, December 2012
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- Figure 30: Mobile network provider brand personality – micro image, December 2012
- Brand experience
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- Figure 31: Mobile network provider brand usage, December 2012
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- Figure 32: Satisfaction with various mobile network provider brands, December 2012
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- Figure 33: Consideration of mobile network provider brands, December 2012
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- Figure 34: Consumer perceptions of current mobile network provider brand performance, December 2012
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- Figure 35: Mobile network provider brand recommendation – Net Promoter Score, December 2012
- Brand index
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- Figure 36: Mobile network provider brand index, December 2012
- Figure 37: Mobile network provider brand index vs. recommendation, December 2012
- Target group analysis
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- Figure 38: Target groups, December 2012
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- Figure 39: Mobile network provider brand usage, by target groups, December 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Companies and Products
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- Telefónica UK Limited (O2)
- Company history
- Product range
- Financial performance
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- Figure 40: Key financial data for Telefónica UK, 2011 and 2012
- Future strategy and objectives
- Vodafone Group Plc
- Company history
- Product range
- Financial performance
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- Figure 41: Key financial data for Vodafone UK, 2011 and 2012
- Future strategy and objectives
- Everything Everywhere Limited
- Company history
- Product range
- Financial performance
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- Figure 42: Key financial data for EE, 2011 and 2012
- Future strategy and objectives
- Hutchison 3G UK Limited (Three)
- Company history
- Product range
- Financial performance
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- Figure 43: Key financial data for Hutchison 3G UK Limited, H1 2011 and H1 2012
- Figure 44: Key financial information for Hutchison 3G UK Limited, 2010 and 2011
- Future strategy and objectives
- Virgin Mobile UK
- Company history
- Product range
- Financial performance
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- Figure 45: Key financial data for Virgin Media, 2011 and 2012
- Future strategy and objectives
Consumer Contract Types and Length
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- Key points
- Over half of consumers on contracts
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- Figure 46: Mobile phone connection types, November 2012
- Signal coverage may be impacting customer inertia
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- Figure 47: When consumers last changed their mobile network provider, November 2012
- High level of consumer inertia on pre-pay connections
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- Figure 48: Pay-as-you-go and contract consumers, by time since consumers last changed their mobile network provider, November 2012
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- Figure 49: Charge list for orange pre-pay Racoon plan, February 2013
Factors that Prompted Consumers to Change Network
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- Key points
- Value still the primary motivator for change
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- Figure 50: Reasons for consumers’ last change of mobile network provider, November 2012
- Different motivations for contract and pay-as-you-go customers
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- Figure 51: Reasons for changing mobile network provider, by contract and pay-as-you-go consumers, November 2012
- Central Londoners significantly more focused on free allowances
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- Figure 52: Regional location of consumers who have changed mobile network provider, by importance of free minutes and free data allowances to their decision, November 2012
- Data significantly more valuable to pay-as-you-go users
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- Figure 53: Proportion of consumers who switched network for a free data or minutes allowance that also listed getting a better deal as a factor in their move, by pay-as-you-go and contract, November 2012
What Would Make Consumers Change Provider?
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- Key points
- Data allowances an unexpected casting vote
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- Figure 54: Factors that will prompt consumers to change mobile network provider, November 2012
- One in ten would switch with a bundle
- Better phones and signal coverage go hand in hand
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- Figure 55: Factors that consumers who want better signal coverage also desire when moving networks, November 2012
- Phones more important than free minutes
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- Figure 56: Ranking of factors that will prompt consumers to change provider, November 2012
Attitudes towards the 4G Network
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- Key points
- Lack of downloads mean four in ten don’t need 4G
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- Figure 57: Attitudes towards 4G networks, November 2012
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- Figure 58: Consumers who do not download enough content to their mobile phones to need a 4G connection, by presence and age of children in the household, November 2012
- Device evolution may provide motivation to enter market
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- Figure 59: Consumers who do not want to engage with the 4G network as the handsets are currently too expensive, by age, November 2012
- Greater understanding will benefit consumers of all ages
- Unlimited data required for a fifth of contract owners
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- Figure 60: People who would only be interested in a 4G connection if it came with unlimited data, by contract and pay-as-you-go users, November 2012
Appendix – Market Size and Forecast
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- Figure 61: Best- and worst-case forecast of the value of mobile network connections, 2012-17
- Figure 62: Best- and worst-case forecast of the volume of mobile network connections, 2012-17
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Appendix – Brand Research
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- Figure 63: Brand usage, December 2012
- Figure 64: Brand commitment, December 2012
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- Figure 65: Brand momentum
- Figure 66: Brand diversity, December 2012
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- Figure 67: Brand satisfaction, December 2012
- Figure 68: Brand recommendation, December 20120
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- Figure 69: Brand attitude, December 2012
- Figure 70: Brand image – macro image, December 2012
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- Figure 71: Brand image – micro image, December 2012
- Figure 72: Profile of target groups, by demographics, December 2012
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- Figure 73: Psychographic segmentation by target groups, December 2012
- Figure 74: Brand usage, by target groups, December 2012
- Brand index
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- Figure 75: Brand index, December 2012
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Appendix – Consumer Contract Types And Length
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- Figure 76: Mobile phone connection type, November 2012
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- Figure 77: Mobile phone connections, by demographics, November 2012
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- Figure 78: When consumers last changed their mobile network provider, November 2012
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- Figure 79: When consumers last changed their mobile network provider, by phone contract type, November 2012
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- Figure 80: When consumers last changed their mobile network provider, by demographics, November 2012
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Appendix – Factors that Prompted Consumers to Change Network
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- Figure 81: Reason for consumers’ last change of mobile network provider, November 2012
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- Figure 82: When consumers last changed their mobile network provider, by most popular reason for consumers’ last change of mobile network provider, November 2012
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- Figure 83: When consumers last changed their mobile network provider, by next most popular reason for consumers’ last change of mobile network provider, November 2012
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- Figure 84: Reason for consumers’ last change of mobile network provider, by when consumers last changed their mobile network provider, November 2012
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- Figure 85: Reason for consumers’ last change of mobile network provider, by most popular reason for consumers’ last change of mobile network provider, November 2012
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- Figure 86: Reason for consumers’ last change of mobile network provider, by next most popular reason for consumers’ last change of mobile network provider, November 2012
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- Figure 87: Most popular reason for consumers’ last change of mobile network provider, by demographics, November 2012
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- Figure 88: Next most popular reason for consumers’ last change of mobile network provider, by demographics, November 2012
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Appendix – What Would Prompt Consumers To Change Provider?
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- Figure 89: Factors that will prompt consumers to change network provider, November 2012
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- Figure 90: When consumers last changed their mobile network provider, by most popular factors that will prompt consumers to change network provider, November 2012
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- Figure 91: When consumers last changed their mobile network provider, by next most popular factors that will prompt consumers to change network provider, November 2012
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- Figure 92: Factors that will prompt consumers to change network provider, by when consumers last changed their mobile network provider, November 2012
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- Figure 93: Factors that will prompt consumers to change network provider, by most popular factors that will prompt consumers to change network provider, November 2012
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- Figure 94: Factors that will prompt consumers to change network provider, by next most popular factors that will prompt consumers to change network provider, November 2012
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- Figure 95: Most popular factors that will prompt consumers to change network provider, by demographics, November 2012
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- Figure 96: Next most popular factors that will prompt consumers to change network provider, by demographics, November 2012
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- Figure 97: Ranking of factors that would lead all consumers to change network, November 2012
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- Figure 98: Importance of factors that would lead consumers who chose that factor to change network, November 2012
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- Figure 99: When consumers last changed their mobile network provider, by factors that would lead consumers to change network, November 2012
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- Figure 100: Important factors that would lead consumers to change network, by when consumers last changed their mobile network provider, November 2012
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- Figure 101: Important factors that would lead consumers to change network, by important factors that would lead consumers to change network, November 2012
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- Figure 102: Importance of a phone or handset that is available on a cheaper plan than with other networks as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 103: Importance of better signal coverage as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 104: Importance of more free minutes as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 105: Importance of more free texts as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 106: Importance of more free data as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 107: Importance of the ability to opt out of a contract early as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 108: Importance of small discounts for long-term prepaid customers as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 109: Importance of the recommendation of friends or family as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 110: Importance of the mobile connection coming as part of a bundle with other services that consumers were interested in as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 111: Importance of factors that would lead consumers to change network, by demographics, November 2012
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- Figure 112: Importance of factors that would lead consumers to change network, by demographics, November 2012
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- Figure 113: Importance of a phone or handset that was available on a cheaper plan than with other networks as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 114: Importance of better signal coverage as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 115: Importance of more free minutes as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 116: Importance of more free texts as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 117: Importance of more free data as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 118: Importance of the ability to opt out of a contract early as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 119: Importance of small discounts for long-term prepaid customers as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 120: Importance of the recommendation of friends or family as a factor that will prompt consumers to change network, by demographics, November 2012
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- Figure 121: Importance of the phone contract coming as part of a bundle with other services that the consumer was interested in, by demographics, November 2012
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Appendix – Attitudes towards 4G
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- Figure 122: Attitudes towards 4G networks, November 2012
- Figure 123: Attitudes towards 4G networks, by most popular attitudes towards 4G networks, November 2012
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- Figure 124: Attitudes towards 4G networks, by next most popular attitudes towards 4G networks, November 2012
- Figure 125: Attitudes towards 4G networks, by least popular attitudes towards 4G networks, November 2012
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- Figure 126: Phone contract type, by most popular attitudes towards 4G networks, November 2012
- Figure 127: Phone contract type, by next most popular attitudes towards 4G networks, November 2012
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- Figure 128: Attitudes towards 4G networks, by phone contract type, November 2012
- Figure 129: Factors that will prompt consumers to change network provider, by most popular attitudes towards 4G networks, November 2012
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- Figure 130: Factors that will prompt consumers to change network provider, by next most popular attitudes towards 4G networks, November 2012
- Figure 131: Factors that will prompt consumers to change network provider, by least popular attitudes towards 4G networks, November 2012
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- Figure 132: Attitudes towards 4G networks, by most popular factors that will prompt consumers to change network provider, November 2012
- Figure 133: Attitudes towards 4G networks, by next most popular factors that will prompt consumers to change network provider, November 2012
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- Figure 134: Most popular attitudes towards 4G networks, by demographics, November 2012
- Figure 135: Next most popular attitudes towards 4G networks, by demographics, November 2012
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