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

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...