Skip to main content

EU Mobile Phone Market Saturation Issues

The UK mobile phone market is approaching an important crossroad. The emergence of a first tier of dominant wireless operators has triggered a tough acquisition and retention war, which is proving costly and unsustainable.

Over the coming months it is likely that the UK mobile landscape will change significantly as a result and will enter a new phase of development, according to the latest market assessment by Ovum.

The UK was one of the first markets to be liberalized and it is now one of the most competitive. With five MNOs and over 13 MVNOs, it is a fragmented and crowded market.

Mobile penetration has reached 118 percent, with connections exceeding 71 million in Q2 2007. ARPU is still high in the UK, but so are acquisition costs, partially because of handset subsidies.

The UK is a crowded, competitive and increasingly saturated market. Price decline is a problem in the UK, as in most other saturated markets, but it does not affect operators as much as in other Western European countries.

Despite being saturated and highly competitive, the UK mobile market has avoided the fate of the German, Danish, Dutch and Belgium markets as ARPU is still relatively high and so are revenues. The increased competition has not resulted in a significant price drop.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ

Why Instant Issuance Payment Cards Evolved

The global financial services sector continues to grow as more progressive organizations seek to gain a meaningful competitive advantage from their digital transformation initiatives. Across the globe, many regions are seeing a significant rise in 'instant issuance' activity from a physical and digital perspective, from both traditional and emerging innovative banking institutions. Digital Payments Market Development Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to the latest worldwide market study by ABI Research, the market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. "Critically, instant issuance of payment cards is no longer limited to the physical," said Sam Gazeley, industry analyst at ABI Research . Indeed, the growing digitization of p