Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Rise in SIM-only contributes to overall market drop
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- Figure 1: Mobile network provider’s market size and forecast
- Companies and brands
- 5G innovation
- Major networks announce range of rewards and partnerships to keep customers
- Netflix and Amazon Prime work with providers to offer streaming discounts
- Giffgaff continues to be most recommended network
- Consumers trust major networks but question marks over Vodafone
- The Consumer
- Contracts still king but SIM-only on the rise
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- Figure 2: Contract with a phone vs SIM-only vs PAYG, October 2018
- SIM-only price well below regular contracts
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- Figure 3: Sim-only vs contract with a phone prices, October 2018
- PAYG users spend the least
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- Figure 4: PAYG prices, October 2018
- Millennials are the most likely to need large data allowances…
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- Figure 5: Data use by generation, October 2018
- …and value mobile data most highly
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- Figure 6: Importance of data allowance by generation, October 2018
- Customers tend to stay loyal to network providers
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- Figure 7: Length of time with network, October 2018
- Just 14% plan on switching in the next year
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- Figure 8: Intent to switch, October 2018
- Vast majority of consumers happy with customer service
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- Figure 9: Customer satisfaction in customer service, October 2018
- What we think
Issues and Insights
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- 5G introduction could accelerate the shift to SIM-only contracts
- The facts
- The implications
- Data, not calls or texts, is the key battleground
- The facts
- The implications
The Market – What you need to know
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- Rise in SIM-only contributes to overall market drop
- 5G could help to boost market
- Ofcom finds cellular calls and SMS on decline
- Reliance on mobile data increasing
Market Size and Forecast
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- Rise in SIM-only contributes to overall market drop in market value
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- Figure 10: Market size and forecast for mobile network providers, 2013-23
- Figure 11: Volume of mobile network connections, 2013-23
- Figure 12: Value and volume of mobile network connections, 2013-23
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- Figure 13: Phone payment types, October 2018
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- Figure 14: iPhone XS pricing
- 5G could accelerate SIM-only shift
Market Drivers
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- Consumers continue to call and text less, Ofcom finds
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- Figure 15: Average monthly outbound mobile call minutes per subscription, 2012-17
- Figure 16: Average monthly outbound mobile messages per subscription (SMS&MMS), 2012-17
- Bundled services continue to rise
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- Figure 17: Mobile retail revenue, by service (£ billion), 2012-17
- 5G could drive significantly higher mobile data use…
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- Figure 18: Average monthly mobile data per active connection (GB), 2012-17
- …as well as drive up smartphone prices
Companies and Brands – What You Need to Know
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- EE continues to lead market thanks to popularity with older generations
- 5G innovation
- EE adds Samsung Galaxy Watch 4G and Upgrade Anytime Plan contract plan
- Major networks announce range of rewards and partnerships to keep customers
- Netflix and Amazon Prime work with providers to offer streaming discounts
- Giffgaff continues to be most recommended network
- Consumer trust major networks but question marks over Vodafone
Market Share
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- EE continues to lead market thanks to popularity with older generations
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- Figure 19: Market share by network, October 2018
Launch Activity and Innovation
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- 5G innovation
- EE to lead the way with 2019 launch in 16 cities
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- Figure 20: EE’s 5g coverage in 2019
- Other operators gearing up for launch
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- Figure 21: Vodafone’s holographic 5G call
- Streaming services set to benefit
- EE adds Samsung Galaxy Watch 4G and Upgrade Anytime contract plan
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- Figure 22: Samsung Galaxy Watch 4G
- Major networks announce range of rewards and partnerships to keep customers
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- Figure 23: O2 Michael bublé AR experience
- Netflix and Amazon Prime work with providers to offer streaming discounts
Advertising and Marketing Activity
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- Advertising spend continues to drop
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- Figure 24: Recorded above-the-line, online display and direct mail total advertising expenditure on mobile network services, by advertiser, 2015-18
- Nielsen Ad Intel coverage
Brand Research
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- Brand Map
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- Figure 25: Attitudes towards and usage of selected brands, November 2018
- Figure 26: Key metrics for selected brands, November 2018
- Brand attitudes
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- Figure 27: Attitudes, by brand, November 2018
- Brand personality
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- Figure 28: Brand personality – Macro image, November 2018
- Figure 29: Brand personality – Macro image, November 2018
- Brand analysis
- Giffgaff is joint most recommended provider…
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- Figure 30: User profile for Giffgaff, November 2018
- …along with Tesco Mobile
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- Figure 31: User profile of Tesco Mobile, November 2018
- Very positive opinions of O2
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- Figure 32: User profile of O2, November 2018
- EE also well valued by consumers
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- Figure 33: User profile of EE, November 2018
- Mixed bag for Three
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- Figure 34: User profile of Three, November 2018
- Consumers associate Sky Mobile with cost
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- Figure 35: User profile of Sky Mobile, November 2018
- Consumers critical of Vodafone
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- Figure 36: User profile of Vodafone, November 2018
The Consumer – What You Need to Know
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- EE continues to lead market
- SIM-only contracts on the rise
- Regular contracts significantly more expensive than SIM-only
- Most consumers have less than 5GB data allowance
- Less than 15% plan to switch next year
- Even split on network provider’s app usage
Breakdown of Big Four mobile networks
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- O2 leads market for Millennials
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- Figure 37: Big Four networks by generation, October 2018
Contracts vs PAYG
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- Four in 10 people on a contract with a phone
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- Figure 38: Types of phone payment, October 2018
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- Figure 39: Types of phone payment, by gender and generation, October 2018
- Most consumers don’t upgrade their contracts for new phones
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- Figure 40: upgrading contract for new phone, October 2018
Contracts and PAYG Spending
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- SIM-only customers most commonly paying £6-10 per month
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- Figure 41: Contract spending, October 2018
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- Figure 42: SIM-only vs contract spending, October 2018
- Three quarters of PAYG customers on £10 or less
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- Figure 43: PAYG spending, October 2018
Contract Length
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- Two-year contracts remain the most common
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- Figure 44: Contract Length, October 2018
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- Figure 45: Contract length, by gender and generation, October 2018
Data Allowance and Usage
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- Most consumers have less than 5GB allowance
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- Figure 46: Monthly data allowance on personal mobile phone, October 2018
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- Figure 47: Monthly data allowance on personal mobile phone, by generation, October 2018
- Majority of consumers use less data than their allowance
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- Figure 48: Under, same or over data allowance, October 2018
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- Figure 49: Under or same data allowance by generation, October 2018
- Less than half of consumers say data is their main priority
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- Figure 50: Importance of data allowance in contract, October 2018
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- Figure 51: Importance of data allowance in contract, by generation, October 2018
- Three customers value data more than those of other providers
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- Figure 52: Importance of data allowance in contract, by brand, October 2018
- Most consumers not motivated to get more data for mobile services
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- Figure 53: Contracts with specific mobile services, October 2018
Brand Loyalty
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- Most consumers stay with a provider for the long term
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- Figure 54: Length of time with network provider, October 2018
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- Figure 55: Time with network provider, by brand, October 2018
- Vast majority satisfied with their network’s customer service
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- Figure 56: Customer service satisfaction, October 2018
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- Figure 57: customer service satisfaction by brand, October 2018
Switching Networks
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- Less than 15% plan to switch in next year
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- Figure 58: Intent to switch network, October 2018
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- Figure 59: Intent to switch network, by generation, October 2018
- O2 customers least likely to leave out of Big Four
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- Figure 60: Intent to switch network by brand, October 2018
- Most customers find it time consuming to switch
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- Figure 61: Agreement with the statement “I find it time consuming changing mobile network”, October 2018
- Switching customers motivated by cheaper prices
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- Figure 62: Reasons for switching, October 2018
- Switching customers most likely to go to contract
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- Figure 63: New payments for switching customers, October 2018
Use of Network Providers’ Apps
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- Even split on network provider app usage
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- Figure 64: Use of network providers’ apps, October 2018
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- Figure 65: Use of network providers’ apps, October 2018
CHAID Analysis – Use of Network Providers’ Apps
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- Methodology
- Young full-time workers most likely to use provider’s app
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- Figure 66: Target group based on mobile network provider’s app usage – CHAID – Tree output, October 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – The Market
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- Figure 67: Value of mobile network connections, 2013-23
- Figure 68: Volume of mobile network connections, 2013-23
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