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

Decoding the Generative AI Global Surge

Commercial interest in Generative AI (GenAI) tools has reached a fever pitch, and the latest forecast from Gartner amplifies this emerging trend. Gartner predicts $644 billion in worldwide spending on GenAI in 2025, marking a dramatic 76.4 percent increase from the previous year. This surge underscores the impact GenAI will have across industries. It also requires a closer examination of the underlying dynamics of future potential. Generative AI Market Development This growth is fueled by the GenAI foundational model providers who invest billions into enhancing the size, performance, and reliability of their models.  Hardware also accounts for a significant portion of this spending, with ~80 percent allocated to servers, smartphones, and PCs equipped with artificial intelligence capabilities. This highlights the critical need for computational power to support the demanding workloads of GenAI. However, Gartner also injects a dose of reality into the GenAI hype cycle. There's a dec...