MarketLine Industry Profile

Fixed Line Telecoms
in the United
Kingdom
December 2013
Reference Code: 0183-2233

Publication Date: December 2013

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United Kingdom - Fixed Line Telecoms
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EXECUTIVE SUMMARY
Market value
The United Kingdom fixed line telecoms market shrank by 2.1% in 2012 to reach a value of $22.6 billion.

Market value forecast
In 2017, the United Kingdom fixed line telecoms market is forecast to have a value of $20.6 billion, a decrease of 8.8%
since 2012.

Market volume
The United Kingdom fixed line telecoms market shrank by 0.8% in 2012 to reach a volume of 33.4 million units.

Market volume forecast
In 2017, the United Kingdom fixed line telecoms market is forecast to have a volume of 32.8 million units, a decrease of
1.6% since 2012.

Category segmentation
Voice only is the largest segment of the fixed line telecoms market in the United Kingdom, accounting for 60.8% of the
market's total value.

Geography segmentation
The United Kingdom accounts for 15.5% of the European fixed line telecoms market value.

Market share
BT Group plc is the leading player in the United Kingdom fixed line telecoms market, generating a 30% share of the
market's value.

Market rivalry
The UK fixed line telecommunications market is open to competition thanks to EU mandates. The market in the UK has
seen greater competition than many of its EU counterparts, with former state-owned incumbent BT seeing its share fall to
30%.

United Kingdom - Fixed Line Telecoms
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TABLE OF CONTENTS
Executive Summary ....................................................................................................................................................... 2
Market value............................................................................................................................................................... 2
Market value forecast ................................................................................................................................................. 2
Market volume............................................................................................................................................................ 2
Market volume forecast .............................................................................................................................................. 2
Category segmentation .............................................................................................................................................. 2
Geography segmentation ........................................................................................................................................... 2
Market share .............................................................................................................................................................. 2
Market rivalry.............................................................................................................................................................. 2
Market Overview ............................................................................................................................................................ 7
Market definition ......................................................................................................................................................... 7
Market analysis .......................................................................................................................................................... 7
Market Data ................................................................................................................................................................... 8
Market value............................................................................................................................................................... 8
Market volume............................................................................................................................................................ 9
Market Segmentation ................................................................................................................................................... 10
Category segmentation ............................................................................................................................................ 10
Geography segmentation ......................................................................................................................................... 11
Market share ............................................................................................................................................................ 12
Market Outlook ............................................................................................................................................................. 13
Market value forecast ............................................................................................................................................... 13
Market volume forecast ............................................................................................................................................ 14
Five Forces Analysis .................................................................................................................................................... 15
Summary .................................................................................................................................................................. 15
Buyer power ............................................................................................................................................................. 16
Supplier power ......................................................................................................................................................... 17
New entrants ............................................................................................................................................................ 18
Threat of substitutes................................................................................................................................................. 19
Degree of rivalry ....................................................................................................................................................... 20
Leading Companies ..................................................................................................................................................... 21

United Kingdom - Fixed Line Telecoms
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................................................................................... 38 United Kingdom ................................................................................. 25 TalkTalk Telecom Group PLC ................................................................................................................................................................................................................................................................................................................................................ 21 British Sky Broadcasting Group plc .......................................BT Group plc ............................................................................................................................................................................................................2012 Page | 4 ....................................................................................................... 35 Country Data ............................................................................................................Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 ................. 38 Related MarketLine research .. 37 Methodology............................................................................................................ 35 Appendix .....................................................................................2233 .............................................................................. 37 Industry associations ......................... 29 Virgin Media Inc.............................................................................................................................. ...... 32 Macroeconomic Indicators .......................................................

26 Table 14: British Sky Broadcasting Group plc: key financials (£) .... 23 Table 10: BT Group plc: key financials (£) ......................... by value...............................................................................................2233 .................................................... 2008–12................................................. 8 Table 2: United Kingdom fixed line telecoms market volume: million units................... 36 Table 29: United Kingdom exchange rate.............................: key financials (£)....................... 2008–12 ................................................ 2008–12 ......................................................... 2008–12 . 33 Table 24: United Kingdom size of population (million)............................................................................................................................. 2008–12 ................................................... 2012–17 .............. 2008–12 .............. 23 Table 12: British Sky Broadcasting Group plc: key facts ......... 2008–12 ........................................ 2012–17...................................................................... 2012 .................................................................................................................. 21 Table 9: BT Group plc: key financials ($) ........2012 Page | 5 .......: key facts ...................................... $ billion)...................................................................................................... 35 Table 27: United Kingdom inflation..................................... 32 Table 21: Virgin Media Inc..................................... 27 Table 16: TalkTalk Telecom Group PLC: key facts .. 30 Table 20: Virgin Media Inc................ 35 Table 26: United Kingdom gdp (current prices................................................................... 26 Table 15: British Sky Broadcasting Group plc: key financial ratios................ 13 Table 7: United Kingdom fixed line telecoms market volume forecast: million units............... 35 Table 25: United Kingdom gdp (constant 2000 prices...................... 2012 .............................. 9 Table 3: United Kingdom fixed line telecoms market category segmentation: $ billion.................................................................................. 11 Table 5: United Kingdom fixed line telecoms market share: % share................................. 2008–12 ................................................. 25 Table 13: British Sky Broadcasting Group plc: key financials ($) ........................: key financials ($) .......................................... 29 Table 17: TalkTalk Telecom Group PLC: key financials ($) ..................... 12 Table 6: United Kingdom fixed line telecoms market value forecast: $ billion............................................................................................................................................................................ 36 Table 28: United Kingdom consumer price index (absolute)................................................................................... 2012 .... 33 Table 23: Virgin Media Inc.....Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 ......................................... $ billion)........................................................................................ 33 Table 22: Virgin Media Inc.........................................: key financial ratios ...............LIST OF TABLES Table 1: United Kingdom fixed line telecoms market value: $ billion................................................ 14 Table 8: BT Group plc: key facts ..................................................................................................... 30 Table 19: TalkTalk Telecom Group PLC: key financial ratios ................................................................................................................................................................................................................ 23 Table 11: BT Group plc: key financial ratios ................................................................................................. 29 Table 18: TalkTalk Telecom Group PLC: key financials (£) .............................................. 36 United Kingdom .. 10 Table 4: United Kingdom fixed line telecoms market geography segmentation: $ billion.......................................

.................................................................................... 15 Figure 9: Drivers of buyer power in the fixed line telecoms market in the United Kingdom........................2012 Page | 6 .............................................2233 ............. 14 Figure 8: Forces driving competition in the fixed line telecoms market in the United Kingdom........................................................... 16 Figure 10: Drivers of supplier power in the fixed line telecoms market in the United Kingdom................. 2012 ................: revenues & profitability ................................................... 2012–17 .................................: assets & liabilities ........ 34 United Kingdom .......................................... 27 Figure 17: British Sky Broadcasting Group plc: assets & liabilities........ 20 Figure 14: BT Group plc: revenues & profitability ........................................................ 2012 ................................. 2012 . 28 Figure 18: TalkTalk Telecom Group PLC: revenues & profitability ....................................... 2012–17 ................... 9 Figure 3: United Kingdom fixed line telecoms market category segmentation: % share................................. by value................................... 2012 ................... 2012 .............................................................................................. 2012 ..................................... 31 Figure 20: Virgin Media Inc.............................................. 24 Figure 16: British Sky Broadcasting Group plc: revenues & profitability .......................................................Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 ...... 2012 ... 24 Figure 15: BT Group plc: assets & liabilities ........ 13 Figure 7: United Kingdom fixed line telecoms market volume forecast: million units................................ by value........... 2012 .... 2008–12 .....LIST OF FIGURES Figure 1: United Kingdom fixed line telecoms market value: $ billion.......... 11 Figure 5: United Kingdom fixed line telecoms market share: % share............................. 201219 Figure 13: Drivers of degree of rivalry in the fixed line telecoms market in the United Kingdom......................................................................... 8 Figure 2: United Kingdom fixed line telecoms market volume: million units..................................................................... 30 Figure 19: TalkTalk Telecom Group PLC: assets & liabilities ............ 10 Figure 4: United Kingdom fixed line telecoms market geography segmentation: % share............................................................... 17 Figure 11: Factors influencing the likelihood of new entrants in the fixed line telecoms market in the United Kingdom. 2008–12 ................. by value................ 18 Figure 12: Factors influencing the threat of substitutes in the fixed line telecoms market in the United Kingdom........................................... 34 Figure 21: Virgin Media Inc............... 12 Figure 6: United Kingdom fixed line telecoms market value forecast: $ billion......................................

5% and -2. Germany. the French and German markets will decline with CARCs of -1. In comparison.2bn and $26.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . Russia.MARKET OVERVIEW Market definition The fixed-line telecommunications market is valued as the revenues obtained by operators for voice telephony and other non-voice information transmission using fixed lines (wirelines). The market's volume is expected to fall to 32.2017. Norway. Market analysis The UK fixed line telecoms market has declined noticeably in recent years as consumers have opted for wireless communication solutions such as mobile phones instead.5bn in 2012. This trend is forecast to continue through to 2017.7bn.9% respectively.6bn in 2012. Europe consists of Western Europe and Eastern Europe. and the United Kingdom.4 million fixed line telephones in 2012. rather than wireless systems.2012 Page | 7 . to reach a total of 33. with revenues from other operators. The non-voice segment contributed revenues of $8. Sweden. United Kingdom . over the same period. Market consumption volumes declined with a CARC of -0. Eastern Europe comprises the Czech Republic.6% between 2008 and 2012. Switzerland.7bn in 2017. Revenues from internet services and value-added services are included. representing a CARC of -0.2% of the market's aggregate value.9bn in 2012.8 million fixed line telephones by the end of 2017. Turkey.2233 . Poland. Comparatively.5bn and $23. with an anticipated CARC of -1. Romania. to reach respective values of $21. representing a compound annual rate of change (CARC) of -4. Greece.4% between 2008 and 2012. All currency conversions were carried out at constant 2012 average annual exchange rates. For the purposes of this report. Only revenues from endusers are included.6bn by the end of 2017. Spain. The UK fixed line telecoms market had total revenues of $22. France. although the rate of decline is expected to slow.8% of the market's overall value. Western Europe comprises Belgium.2% respectively. the French and German markets declined with CARCs of -1. Hungary. which is expected to drive the market to a value of $20. The voice only segment was the market's most lucrative in 2012. equating to 39. as in wholesale transactions. to reach respective values of $23.8% for the five-year period 2012 . the Netherlands. The performance of the market is forecast to decline further but with a slower pace. Market volumes represent the number of fixed-line telephones. excluded.3% for the 2012-2017 period.6% and -3. and Ukraine. equivalent to 60. over the same period. Denmark. with total revenues of $13. Italy.

2 2009 26.8 16.2233 .6%) MARKETLINE Figure 1: United Kingdom fixed line telecoms market value: $ billion.7%) 2010 25.3 17.8 (1.9%) 2012 22.2012 Page | 8 .6 billion.9 (7. 2008–12 SOURCE: MARKETLINE United Kingdom .0 15.5 (6.6 (2.6%. Table 1: United Kingdom fixed line telecoms market value: $ billion.3 17.MARKET DATA Market value The United Kingdom fixed line telecoms market shrank by 2. 2008–12 Year $ billion £ billion € billion 2008 27.9 20.8 19.6 14.1% in 2012 to reach a value of $22.6 17.1%) CAGR: 2008–12 SOURCE: MARKETLINE % Growth (4.5%) 2011 23. The compound annual rate of change of the market in the period 2008–12 was -4.2 21.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .1 14.

0 2009 33. The compound annual rate of change of the market in the period 2008–12 was -0. 2008–12 SOURCE: MARKETLINE United Kingdom . Table 2: United Kingdom fixed line telecoms market volume: million units.4% 2012 33.0%) 2011 33.4%) MARKETLINE Figure 2: United Kingdom fixed line telecoms market volume: million units.2233 .8%) CAGR: 2008–12 SOURCE: MARKETLINE % Growth (0. 2008–12 Year million units 2008 34.8% in 2012 to reach a volume of 33.4 million units.2012 Page | 9 .Market volume The United Kingdom fixed line telecoms market shrank by 0.5 (1.4 (0.4%) 2010 33.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .9 (0.7 0.4%.

8% Non-voice 8. 2012 SOURCE: MARKETLINE United Kingdom .2% of the market.2% 22. Table 3: United Kingdom fixed line telecoms market category segmentation: $ billion.2233 .7 60.6 100% Total SOURCE: MARKETLINE MARKETLINE Figure 3: United Kingdom fixed line telecoms market category segmentation: % share. by value.2012 Page | 10 .8% of the market's total value.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .MARKET SEGMENTATION Category segmentation Voice only is the largest segment of the fixed line telecoms market in the United Kingdom.9 39. 2012 Category 2012 % Voice only 13. The Non-voice segment accounts for the remaining 39. accounting for 60.

Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 . 2012 Geography 2012 % Germany 26.0 Spain 10.2 16.2012 Page | 11 .1 Rest of Europe 44.6 15.0 30. Table 4: United Kingdom fixed line telecoms market geography segmentation: $ billion.6 100% Total SOURCE: MARKETLINE MARKETLINE Figure 4: United Kingdom fixed line telecoms market geography segmentation: % share. by value.2233 .0 United Kingdom 22. Germany accounts for a further 18.2 France 23.5% of the European fixed line telecoms market value.2 145.0 13. 2012 SOURCE: MARKETLINE United Kingdom .5 Italy 19.2% of the European market.Geography segmentation The United Kingdom accounts for 15.5 18.3 7.

2012 Page | 12 . accounts for a further 21% of the market.Market share BT Group plc is the leading player in the United Kingdom fixed line telecoms market.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 . 21.0% BSkyB 19.0% Other 13. Table 5: United Kingdom fixed line telecoms market share: % share. by value. by value.2233 .0% Virgin Media Inc. 2012 SOURCE: MARKETLINE United Kingdom . generating a 30% share of the market's value.0% Total 100% SOURCE: MARKETLINE MARKETLINE Figure 5: United Kingdom fixed line telecoms market share: % share. Virgin Media Inc.0% TalkTalk 17. 2012 Company % Share BT Group plc 30.

3 17. 2012–17 SOURCE: MARKETLINE United Kingdom .6 (2. The compound annual rate of change of the market in the period 2012–17 is predicted to be -1.5%) 2017 20.2 13. a decrease of 8.1%) 2013 22.1 13.6 billion.6 14.8 (2.1%) 2015 21.6 16. the United Kingdom fixed line telecoms market is forecast to have a value of $20. Table 6: United Kingdom fixed line telecoms market value forecast: $ billion.8%) 2016 20.2 (1.9 13.8%) MARKETLINE Figure 6: United Kingdom fixed line telecoms market value forecast: $ billion.4 16.5 (1.0 16.2012 Page | 13 .2 16.3%) 2014 21.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .3%) CAGR: 2012–17 SOURCE: MARKETLINE (1.9 17. 2012–17 Year $ billion £ billion € billion % Growth 2012 22.2233 .8%.6 13.8% since 2012.0 (1.6 13.MARKET OUTLOOK Market value forecast In 2017.2 (2.

3%) 2017 32.3%) 2016 33.4 (0.3 (0. Table 7: United Kingdom fixed line telecoms market volume forecast: million units.8%) 2013 33.3%) 2015 33.2 (0.3%) 2014 33. the United Kingdom fixed line telecoms market is forecast to have a volume of 32. 2012–17 SOURCE: MARKETLINE United Kingdom .8 million units. The compound annual rate of change of the market in the period 2012–17 is predicted to be -0.3%) MARKETLINE Figure 7: United Kingdom fixed line telecoms market volume forecast: million units.6% since 2012.2012 Page | 14 .2233 .Market volume forecast In 2017. 2012–17 Year million units % Growth 2012 33. a decrease of 1.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .0 (0.3%.8 (0.4%) CAGR: 2012–17 SOURCE: MARKETLINE (0.1 (0.

2012 SOURCE: MARKETLINE MARKETLINE The UK fixed line telecommunications market is open to competition thanks to EU mandates. The market in the UK has seen greater competition than many of its EU counterparts.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . The number of suppliers is rather low.2233 . The market faces a strong threat from mobile phones and internet applications (particularly Voice over Internet Protocol (VoIP)). The key buyers will be taken as non-wholesale end-users. with former state-owned incumbent BT seeing its share fall to 30%. In some instances. and the increasing popularity of wireless technologies. Summary Figure 8: Forces driving competition in the fixed line telecoms market in the United Kingdom. usually with state-owned monopolies. Rivalry in the UK market is intense as four large incumbents actively compete for a share of the market . and companies/owners who provide networks as the key suppliers. and geographically extensive networks. United Kingdom . suppliers and players are often one and the same company.2012 Page | 15 .FIVE FORCES ANALYSIS The fixed line telecoms market will be analyzed taking operators for voice telephony and other non-voice information transmission using fixed lines as players. as few companies have the necessary ability to supply complex. New entrants may be put off by the declining penetration of fixed line telephones. reliable.

This weakens buyer power as the loss of a single customer will not impact greatly on market players’ revenues.Buyer power Figure 9: Drivers of buyer power in the fixed line telecoms market in the United Kingdom. increasing buyer power for this group. although the strength experienced by commercial buyers is slightly more significant. buyer power in the fixed line telecoms market is assessed as moderate. Breaking such a contract may incur costs and business customers may have to endure a period of ‘downtime’ which could impact their business for a period of time and this represents a switching cost.2012 Page | 16 . Overall. Customer loyalty is low: the service provided is rather undifferentiated and buyers are largely price-driven. both individual and commercial. As such. buyers are prone to switching. which are increasingly more affordable and constantly modernized to include more functions. 2012 SOURCE: MARKETLINE MARKETLINE The UK fixed line telecoms market is characterized by a large number of final buyers. United Kingdom . Although switching costs tend to be low.2233 .Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . many customers are locked into a contract for a set period of time. Retail customers in this market have very little financial strength. strengthening buyer power. The indispensability of the product offered in this market is increasingly reduced due to the popularity of mobile telecom solutions.

These large market players are termed as ‘asset-based carriers’ (ABCs). Their suppliers are network owners. reliable and geographically extensive networks. as exiting long term supply contracts can be difficult. Alternatively. own and operate their own physical network (consisting of exchanges. United Kingdom .Supplier power Figure 10: Drivers of supplier power in the fixed line telecoms market in the United Kingdom.). This is mitigated to some degree by the fact that specialized suppliers are dependent on the income from the fixed line telecoms industry. in most of the countries there is usually only one supplier.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . fiber optic cables etc. After market liberalization. The supplier power in this market is assessed as moderate overall. though the large companies still. and their suppliers are usually large companies.2233 . Switching costs with this market are often high. large telecoms companies were state-owned and had a monopoly over service provision. Due to the specific ability to supply complex. in many cases. large companies with an extensive degree of fixed line penetration and substantial negotiating power. other telecom companies were allowed into the market. a so-called 'virtual network operator' (VNO) may offer telecoms services by purchasing access to an ABC's hardware. 2012 SOURCE: MARKETLINE MARKETLINE In the past.2012 Page | 17 .

and local (fixed) telephone services. compared to a mobile penetration of 130.New entrants Figure 11: Factors influencing the likelihood of new entrants in the fixed line telecoms market in the United Kingdom. In the UK. lessen the attractiveness of prospective players’ market entry. and this may decrease the likelihood of new entrants in mature markets. coupled with the ever increasing threat of substitution. The UK market has experienced continued decline in recent years. New entrants may find it difficult to attract customers away from existing players due to these factors.5. although buyers may enter into a fixed-term contract. Virgin Media. 2012 fixed line telephone market penetration was 52. as services offered are fairly undifferentiated. the threat of new entrants is assessed as moderate.5 per 100 people.2012 Page | 18 . and unfavorable prognoses. This is likely to dissuade potential new entrants. Sky and TalkTalk. Buyers are prone to switch between providers. Overall. The advent and increasing usage of wireless telecommunication is a threat to fixed line telecommunications. high-speed internet. The maturity of the market and the level of penetration are decisive factors for new entrants.2233 . The size of these companies and the economies of scale they can harness make it difficult for new entrants to compete. Additionally.9 per 100 people by 2018. 2012 SOURCE: MARKETLINE MARKETLINE The UK fixed line telecommunications market is dominated by four large incumbents: BT. fixed line penetration is predicted to fall to 49. United Kingdom . Most of the large companies provide both fixed and mobile telecommunications services. Buyer switching costs tend to be low. and buyers are price-focused.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . BT provides wireless. A new entrant may also have to diversify operations in order to successfully compete with existing incumbents. For example.

Threat of substitutes Figure 12: Factors influencing the threat of substitutes in the fixed line telecoms market in the United Kingdom. However. Mobile phone companies put the stress on the growth of Voice over Internet Protocol (VoIP) applications.6% between 2008 and 2012. compared to a compound annual rate of change (CARC) of -4. Overall the threat of substitutes is assessed as strong. Moreover. which prove to be financially rewarding and convenient for on the go customers. United Kingdom . which is believed to be the future in the fixed line market.2012 Page | 19 .Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 .6% for the same period in the fixed line market. Providers of fixed line services are more inclined to move their operations towards data transferring offers and broadband. reducing the threat of substitutes from other service providers. now offer buyers unlimited prepaid plans. 2012 SOURCE: MARKETLINE MARKETLINE Within the fixed line telecoms market. fixed line operators are looking for the extra profit in data services and so increasing their offerings in this area. along with internet service providers. many fixed-line telecoms companies often offer these services themselves. there is a large threat from substitutes. Mobile phone companies. with a compound annual growth rate (CAGR) of 0. The UK wireless telecommunications market has grown at a much stronger rate in recent years. with wireless capabilities.2233 . namely mobile phones.

and this increases rivalry. buyers tend to be price-sensitive and look for the best deal. but switching costs are low. in general. which is assessed as strong overall.2012 Page | 20 . These companies experience decreased rivalry. the extra services offered by players tend to be fairly similar. GPS navigation system and more. in many cases. but their small number reduces rivalry to some degree.Degree of rivalry Figure 13: Drivers of degree of rivalry in the fixed line telecoms market in the United Kingdom. United Kingdom . do not lose any of the technical features of fixed line.2233 . digital camera. as they can fall back on the revenues generated by other segments of their business: they are not entirely reliant on fixed line revenues. However. 2012 SOURCE: MARKETLINE MARKETLINE In the UK. Additionally. Buyers may experience loyalty to a certain extent: if a customer has had good service from a particular operator. and the similar nature of most fixed line services leave companies fighting for a share the market.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . Most market players operate in a diverse range of markets. data transmission. television and internet. Buyers may be locked into a fixed-term contract. These large companies compete intensely with each other. Recent market decline only serves to intensify rivalry. Customers may choose the convenience of mobility and. they may be inclined to stick with that operator in the future. The ever increasing popularity of mobile technology. the increasingly popular and innovative smartphone can also act as a media player. is partly responsible for the recent decline in fixed line telecoms. which can be a perfect substitute for traditional fixed line infrastructure. However. the fixed line market is dominated by four large incumbents. including mobile services.

BT serves customers from offices in more than 25 key cities. London. computing and networking equipment plus associated installation and support services. a Cisco center of excellence specializing in infrastructure. 81 Newgate Street. EC1A 7AJ. the Middle East and Africa. and BT Enterprises. BT Business Direct. BT Global Services offers its products under six categories: BT Assure. an online store providing IT. Germany. BT Consumer provides voice and broadband services for retail consumers in the UK. BT Business supplies small and medium enterprises (SMEs) in the UK with fixed calls and lines. The group operates domestic businesses in Continental Europe such as Belgium. BT's operations span across five divisions: BT Global Services. BT One and BT Advise. logistics.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . BT Connect. BT Engage IT. BT Retail.2012 Page | 21 . The division operates in 85 countries across Asia Pacific. This unit also includes pay-TV service.000 large corporate and public sector customers from a varied range of sectors including banking and financial services. Latin America. Openreach and other. BT Ireland.2233 . BT Retail serves its customers through four customer-facing divisions: BT Consumer. BT Global Services offers managed networked information technology (IT) services and cater to the needs of customers in more than 170 countries worldwide. security and unified communications. The group operates in 170 countries across the world. broadband.btplc. BT Business. BT Compute. BT Stock exchange: London. the Netherlands and Spain. BT also serves the public sector in the UK. BT Ireland operates in Northern Ireland and in the Republic of Ireland. SMEs and the public sector/ United Kingdom . mobility and IT services as well as data and voice networks. The group offers services to around 7. In the US and Canada.LEADING COMPANIES BT Group plc Table 8: BT Group plc: key facts Head office: BT Center. Specialist businesses within BT business include: BT iNet. Italy.A.com Financial year-end: March Ticker: BT. BT provides transit and other wholesale services to global carriers. In Northern Ireland the unit operates the copper access network and provides communications services to consumers. BT-branded services have a range of extra features while Plusnet provides simple voice and broadband services. France. GBR Telephone: 44 20 7356 5000 Fax: 44 20 7356 5520 Website: www. BT Consumer's services are sold under the brand names of BT and Plusnet. including central government and local councils as well as public sector organizations outside the UK. pharmaceuticals and consumer packaged goods. BT Wholesale. manufacturing. BT Contact. New York SOURCE: COMPANY WEBSITE MARKETLINE BT Group plc (BT) provides and manages data and voice networks as well as offers a range of services over these networks. Additionally. Globally. a provider of business-to-business (B2B) IT equipment and services.

managed voice solutions.549m in the fiscal year ending March 2013. BT Expedite & Fresca specialist services cater to the retail sector including store point of sale systems. The group's managed network services combine BT products with third-party components and its own professional services. BT ToolKit offers products and services for legal and accountancy firms. design. taxis and fleet management. BT Enterprises also encompasses BT Redcare fire and intruder alarm signaling services. cash machines and payment terminals. an asset that comprises the copper and fiber connections between telephone exchanges and consumer and business premises. BT Payphones provides public payphones and managed prison. a decrease of 4.2233 . the division provides backhaul services that connect exchanges to CPs' networks. which was formed by merging BT Innovate & Design and BT Operate. broadband and data communications services for fixed and mobile network operators (MNO). Further. BT Wholesale division provides voice. Its net income was $3. the group's two internal service units. back-office applications such as merchandising and sales analytics. Openreach is also responsible for delivering the roll-out of fiber broadband network. internet service providers (ISPs) and telecoms resellers in the Great Britain. Openreach division provides services over the 'local loop' network. BT Directories provides directory enquiries. a directory that includes residential listings.2012 Page | 22 . The other division includes BT Technology.313m in fiscal 2013. In addition to delivering local loop services. network migration. from innovation. which include network solution design. and the large-scale global managed network services which are sold to customers in the UK and internationally. BT Wi-Fi business offers wireless broadband services to consumers and small businesses and to wholesale customers such as mobile network operators. It also designs and delivers the networks and platforms which are used by the group's customer-facing lines of business. closed circuit television (CCTV) and surveillance networks and control room services. voice interconnect services. it also offers website design services and web based marketing services that help customers advertise their businesses online. video and web conferencing and collaboration services for large corporate customers in the UK and around the world. business listings and a classified directory. program management and risk management. Key Metrics The company recorded revenues of $28. data and TV networks and IT applications which make up the core infrastructure for BT's products and services. test and build through to operational management.BT Enterprises consists of seven separate businesses. United Kingdom . and route voice services. field services.7% compared to fiscal 2012. The unit also offers mobile-to-mobile solutions for vending machines. It manages BT's voice. copper-based services and ethernet. It also offers industry-specific services to media companies and broadcasters. Service & Operations (BT TSO). BT Conferencing provides audio. Its marketing solutions business includes 'The Phone Book'. The division primarily offers fiber broadband.172m in the preceding year. partial private circuits. and software and platforms for website transactions. compared to a net income of $3. wholesale ethernet. BT TSO is responsible for the whole lifecycle of the group's global networks and systems.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . card and private payphones. operator and emergency services. BT offers wholesale broadband.

9% 7.897.306.445.028.948.1 37.3% (2.0 31.1 29.947.209.591 $26.5 (305.6% $316.600 89.5% 5.9 37.3%) (2.274.0 3.2012 Page | 23 .052.875.0 28.0 2.680.9 Total liabilities 46.0 18.0%) 4.380.8% Debt/asset ratio 99.607.894.795 ($2.0 Revenues Net income (loss) SOURCE: COMPANY FILINGS MARKETLINE Table 11: BT Group plc: key financial ratios Ratio Profit margin 2009 2010 2011 2012 2013 (0.4% 8.4 49.3 33.942 $357.644 $37.0%) (17.105.0 Total assets 29.707 $356.5%) (3.091.313.9 31.8% 8.021 92.002.1 45.5% 101.629.1% Return on assets (0.017.440 $336.0 23.7%) (0.7% 7.0 21.589.0 1.8%) (5.1 Employees 107.0 2.4 Total assets 46.387.6 35.549.812.0 25.6% (31.9% 7.172.Table 9: BT Group plc: key financials ($) $ million 2009 2010 2011 2012 2013 33.0 22.695 Revenue growth Asset growth Liabilities growth Revenue per employee Profit per employee SOURCE: COMPANY FILINGS United Kingdom .9%) (4.826.9%) 4.0 2.6% 11.448 $324.754.900 Revenues Net income (loss) SOURCE: COMPANY FILINGS MARKETLINE Table 10: BT Group plc: key financials (£) £ million 2009 2010 2011 2012 2013 21.742 $35.943.640.3 3.859.7%) 3.9%) 1.119.9 28.301.000 89.0 34.858) $17.0 18.0 20.7% 3.0 20.390.000 87.0 (193.0 23.2233 .6 39.076.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .502.5% 10.540.7% 94.9% 10.4% 109.0) 1.0 Total liabilities 29.088.6% 3.2% 91.8) 1.0 39.338.0 24.

Figure 14: BT Group plc: revenues & profitability SOURCE: COMPANY FILINGS MARKETLINE Figure 15: BT Group plc: assets & liabilities SOURCE: COMPANY FILINGS United Kingdom .2233 .Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .2012 Page | 24 .

British Sky Broadcasting Group plc Table 12: British Sky Broadcasting Group plc: key facts Head office: Grant Way. The company operates principally within the UK and Ireland.000 movies including new releases. Sky HD is BSkyB's high-definition (HD) service which consists of over 60 HD channels offering a range of content across all key genres. and infrastructure and technology. BSkyB operates through only one segment. The company is engaged in commission and acquisition of programming to broadcast on its own channels and supply certain of those channels on a wholesale basis to third party operators for retransmission to their subscribers in the UK and Ireland. which it retails together with the Sky Distributed Channels. Sky Broadband. under the Freeview brand. from both the Sky Channels and the Sky Distributed Channels for customers to watch on demand. Sky Multiroom. NOW TV. laptops. BSkyB offers its internet television services under the brand name of NOW TV. and the Cloud WiFi. The Sky platform currently offers access to 174 pay television channels (145 Sky Distributed Channels and 29 Sky Channels) and more than 300 free-to-air television and radio channels and services. BSkyB also offers three of its channels available free-to-air via the UK digital terrestrial transmission (DTT) platform. The company's Sky+ service allows its television customers to record two programs simultaneously.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . Sky Box Office. The retail business of BSkyB is engaged in provision of subscription television and communications services to residential and commercial premises in the UK and Ireland.2233 . Sky Go offers live television and on demand content via user's personal computers. Sky Anytime TV and Sky Anytime+. with activities conducted primarily from the UK. Sky Anytime+ is an internet protocol (IP) delivered video on demand (VOD) service. Sky+. selected smartphones and iPads. Isleworth. In addition. content business. United Kingdom . The company owns and broadcasts the Sky Channels. BSkyB's products and services include Sky Channels and Sky Distributed Channels. It also offers Sky+ app for selected smartphones. The company's Sky Anytime TV service Sky Anytime TV offers a wide selection of content from across the Sky platform. Sky HD. GBR Telephone: 44 333 100 0333 Fax: 44 333 100 0444 Financial year-end: June Ticker: BSY Stock exchange: London SOURCE: COMPANY WEBSITE MARKETLINE British Sky Broadcasting Group plc (BSkyB) along with its subsidiaries operates pay television service in the UK and Ireland as well as broadband and telephony services. The company's main activities include retail business.2012 Page | 25 . it also offers internet television services. Sky Go. The company's Sky Box Office service offers its DTH customers' television premieres of movies and occasional live sports entertainment events on a pay-per-view basis. Sky Store is an on demand rentals service that provides customers a choice of over 1. Sky Multiroom is a multiroom subscription that allows direct-to-home (DTH) customers to watch Sky TV in different rooms at the same time by purchasing additional set-top boxes. Sky Store: Sky Store. Sky Talk. TW7 5QD. adjacent businesses.

0 5.509.3 8.240.2233 .464m in the fiscal year ending June 2013.0 979. The company offers its telephony service under the brand name of Sky Talk.0 7.333.006 17.0 Total assets 4.235.729.0 6.6 Employees 14.725. compared to a net income of $1.391.0 6. and Sky News.2 Total liabilities 7.0 4. which include entertainment channels.922 16.9 11.491.2012 Page | 26 . BSkyB's commercial television customers include offices.0 810.3 1.1 10.937 19. In addition.612.5 10. playout and uplink facilities. including HD services to commercial television customers in the UK and Ireland under a range of contracts.0 6.000 high bandwidth.0 5.386. hotels.0 878. Key Metrics The company recorded revenues of $11.565.5 10.244. The company's infrastructure and technology activities include management of business related to satellites.054.843.5% compared to fiscal 2012.464. an increase of 6.483.633.9 8.760.5 1. BSkyB also offer wireless fidelity (WiFi) internet access under the brand name of the Cloud WiFi.5 410.387m in the preceding year.912.5 1.0 5.0 7.597. the company offers its services.453. Table 13: British Sky Broadcasting Group plc: key financials ($) $ million 2009 2010 2011 2012 2013 8.804.3 Total assets 7. Its net income was $1. retail outlets.6 8.0 4.4 6.368.0 Total liabilities 4.569.The company's home communication services include Sky Broadband services.341.413 Revenues Net income (loss) SOURCE: COMPANY FILINGS MARKETLINE Table 14: British Sky Broadcasting Group plc: key financials (£) £ million 2009 2010 2011 2012 2013 5.0 6.0 Revenues Net income (loss) SOURCE: COMPANY FILINGS United Kingdom .283.354.551.0 875.8 7.359.0 4.8 9.0 259. Sky Sports. The company has over 11. The company's content business activities comprise its channel portfolio.0 5. pubs and clubs.791.319. It also offers WiFi services to commercial customers.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .4 1.450 16. digital satellite reception equipment. encryption and security and communications infrastructure. Sky Movies.345.0 4.450. public access hotspots across the UK.551m in fiscal 2013.233.

079 $569.4%) 1.299 $79.9% 12.575 $80.8% 10.190 $77.1% 16.9% 5.6% 2.5% 11.929 $590.3% 12.5% $569.7% 15.099 $599.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .4% 88.Table 15: British Sky Broadcasting Group plc: key financial ratios Ratio 2009 2010 2011 2012 2013 Profit margin 4.9% 15.1% 6.1% 11.9% 13.4% 2.8% 101.504 $84.8% 14.0% (8.8% 5.0% 18.5% Revenue growth 8.557 $27.3% 11.9% 6.487 $653.7% 82.2% 9.9% 84.9% 16.911 Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee SOURCE: COMPANY FILINGS MARKETLINE Figure 16: British Sky Broadcasting Group plc: revenues & profitability SOURCE: COMPANY FILINGS United Kingdom .7% 16.2233 .3% 80.2012 Page | 27 .

2233 .Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .2012 Page | 28 .Figure 17: British Sky Broadcasting Group plc: assets & liabilities SOURCE: COMPANY FILINGS United Kingdom .

London. London.321. such as the TalkTalk Essentials and the TalkTalk Plus.106 people.063. The company primarily operates in the UK.673.671.com Financial year-end: March Ticker: TALK Stock exchange: London SE SOURCE: COMPANY WEBSITE MARKETLINE TalkTalk Telecom is engaged in providing xed line broadband and voice telephony services across the UK.646.9 158.5 Total assets 2. compared to a net income of $252m in the preceding year. W11 4AR.202. The company's TalkTalk residential packages offer customized broadband.2 2.0 193.1 1. Stoke Mandeville and Gateshead.362. Its net income was $158m in fiscal 2013.1 Total liabilities 1. phone and mobile services.239.2 892. The company provides two different packages of its services depending upon its customers need.1 2.7 SOURCE: COMPANY FILINGS United Kingdom .391.TalkTalk Telecom Group PLC Table 16: TalkTalk Telecom Group PLC: key facts Head office: 11 Evesham Street.4 819.3 251.4 2.8 2.7 2. GBR Telephone: 44 20 3417 1000 Website: www.9 2.3 150.5 168.646m in the fiscal year ending December 2013.2233 . The company through TalkTalk Business provides voice and data services to the small and medium sized enterprises in Milton Keynes.0% compared to fiscal 2012. a decrease of 1.194. Table 17: TalkTalk Telecom Group PLC: key financials ($) $ million Revenues Net income (loss) 2009 2010 2011 2012 2013 2.796.1 1. where it is headquartered in London and employs around 3.6 2.2012 Page | 29 .Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .349.581.talktalkgroup.6 2. Key Metrics The company recorded revenues of $2.

8% Debt/asset ratio 53.0 1.0%) Asset growth (47.1% Revenue growth SOURCE: COMPANY FILINGS MARKETLINE Figure 18: TalkTalk Telecom Group PLC: revenues & profitability SOURCE: COMPANY FILINGS United Kingdom .0 998.1% Return on assets 4.4% 6.5% 10.0 122.0 106.9% 52.390.483.7% 1.6% (48.7% 4.765.0 95.2012 Page | 30 .8%) (5.0% (2.9% 37.0 1.7%) 27.Table 18: TalkTalk Telecom Group PLC: key financials (£) £ million Revenues Net income (loss) Total assets Total liabilities 2009 2010 2011 2012 2013 1.2%) 8.7%) 21.0 1.8% (13.0 1.3% 66.5% 7.0 100.0 563.8% 34.465.0 159.0 1.0 SOURCE: COMPANY FILINGS MARKETLINE Table 19: TalkTalk Telecom Group PLC: key financial ratios Ratio Profit margin 2009 2010 2011 2012 2013 6.670.2233 .Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .4%) (1.302.0 1.7%) Liabilities growth (63.4% 71.0 1.0 1.385.1%) 6.0 517.9% 6.686.0 782.4% 8.0 860.687.0 1.509.7% (4.3% 6.9% 9.6% 7.

Figure 19: TalkTalk Telecom Group PLC: assets & liabilities SOURCE: COMPANY FILINGS United Kingdom .2233 .Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .2012 Page | 31 .

Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . third generation (3G) and 3. Through its network partner.com Financial year-end: December Ticker: VMED Stock exchange: NASDAQ SOURCE: COMPANY WEBSITE MARKETLINE Virgin Media Inc. 2. music videos and other on demand content. The company's digital television (DTV) service includes access to over 175 linear television channels. New York.virginmedia. provides customers with instant access to a wide selection of premium movies. including Blackberry and Android based smartphones. and additional services such as call waiting. It also provides a broad range of handsets. Yesterday. advanced interactive features. provided through third party mobile networks. including calling plans. The company provides mobile telephony services through Virgin Mobile. ranging from analog telephony to managed data networks and applications. (Virgin Media) is an entertainment and communications company providing television. and a range of premium subscription-based and pay-per-view services. offers a portfolio of voice. picture messaging and music services. and mobile broadband services.Virgin Media Inc. New York 10022. both on and off cable network.2233 . fixed line telephone and mobile telephone services in the UK. data and internet solutions to commercial and public sector organizations in the UK. United Kingdom . Through Virgin Media Business. tiered bundles of features and services. The company's video on demand (VOD) service. The company operates through two segments: consumer and business. The consumer segment distributes television programming over cable network and is engaged in the provision of broadband and fixed line telephone services to residential consumers. It offers basic line rental services.000 businesses in the UK and over 250 public sector organizations. and Five USA as well as radio services. Suite 2863. and caller line identification services. The business segment. E4. managed through Virgin Media Business.5G.2012 Page | 32 . The company offers a freeto-air digital television service known as 'Free TV' which provides access to approximately 45 linear channels such as Dave. a mobile virtual network operator (MVNO) in the UK. television and fixed line telephone services under the Virgin Media brand to residential customers in the UK. the company delivers its services over second generation (2G). Table 20: Virgin Media Inc. This segment also includes the mobile telephony and mobile broadband operations.5G platforms. Everything Everywhere. television programs. Virgin TV on Demand. including short message service (SMS). It also offers digital video recorders (DVRs) including TiVo and V+ set-top box. the company provides services to 50. call forwarding. The company offers a range of mobile voice services and data services. broadband. The company provides cable broadband internet. USA Telephone: 1 212 906 8472 Website: www. call blocking. national and international telephony services to residential customers on its cable network. advanced voicemail. The segment also offers broadband and telephony services to residential customers outside its cable network through third party telecommunications networks. three-way calling.: key facts Head office: 909 Third Avenue. The company provides local.

6%) 1.645.3 8.696.2%) (8.346.141.504.7 16.8 4.3 4.1 11.568.2 14.2012 Page | 33 . Its net income was $4.Key Metrics The company recorded revenues of $6.5 14.004 Employees SOURCE: COMPANY FILINGS MARKETLINE Table 22: Virgin Media Inc.5 6.9% 68.8% 85.938.195.4%) (1.8%) (3.579.9% 30.981 ($105.8) (224.7% 0.1 11.590 $551.0% 2.3% Liabilities growth 12.702.450 14.5%) (1.8 3.7% 92.7 SOURCE: COMPANY FILINGS MARKETLINE Table 23: Virgin Media Inc.6%) 0.299.2 13.505) ($48.3) (530.9 3.8 10.727 SOURCE: COMPANY FILINGS United Kingdom .463m in fiscal 2012.3% (10. Table 21: Virgin Media Inc.5 Total assets 16.0% 69.598.939 12.5 6.463.6% 83.9 7.9% Asset growth Return on assets Revenue per employee Profit per employee (9.0 Total liabilities 13.7% (12.363.1 7.3 6.558.6% Debt/asset ratio 81.400 11.9 7.: key financials (£) £ million Revenues Net income (loss) Total assets Total liabilities 2008 2009 2010 2011 2012 4.432 $463.497.8 10.625.2233 .567.804.9% 3.816.541.504 $318.9%) (10.4 8.4 6.527) ($18.0) (141.: key financials ($) $ million Revenues 2008 2009 2010 2011 2012 6.028.1) 120.2 7.997.3%) 1.498m in the fiscal year ending December 2012.8%) (3.993.092 $495.069) $10.7 12.991.7% compared to fiscal 2011.6 7.6%) 0.5% $435.3%) (3.4 9.7% (1.325. an increase of 2.4 3.3 11.7%) (3.540.609 10.4%) (5.1%) 32.833.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .641.6 Net income (loss) (1.: key financial ratios Ratio Profit margin Revenue growth 2008 2009 2010 2011 2012 (24. compared to a net income of $120m in the preceding year.285 $552.0 12.4) 75.015.187.9 2.7) (335.5 (972.100.875.

Figure 20: Virgin Media Inc.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .2233 .: assets & liabilities SOURCE: COMPANY FILINGS United Kingdom .2012 Page | 34 .: revenues & profitability SOURCE: COMPANY FILINGS MARKETLINE Figure 21: Virgin Media Inc.

0% 2012 2.7% 2009 61.3 0.6% SOURCE: MARKETLINE MARKETLINE Table 25: United Kingdom gdp (constant 2000 prices.3 (5.0%) 2010 2.6% 2010 62.9 0.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED % Growth MARKETLINE 0183 .5% 2012 63. $ billion 2008 2.2233 .372.180.2 1.0%) 2009 2.1 3.350.514.468. $ billion % Growth 2008 2.5 0.MACROECONOMIC INDICATORS Country Data Table 24: United Kingdom size of population (million).377.2% SOURCE: MARKETLINE MARKETLINE Table 26: United Kingdom gdp (current prices.5 1.7 (4.9% SOURCE: MARKETLINE United Kingdom .9%) 2010 2.7 1. 2008–12 Year Constant 2000 Prices.8% 2011 2. 2008–12 Year Population (million) % Growth 2008 61. $ billion). 2008–12 Year Current Prices.6%) 2009 2.2012 Page | 35 .263.8% 2011 2.404.7 (17.8 0.308. $ billion).4 0.8% 2011 63.8 9.657.1% 2012 2.3 1.3 (1.

6311 0.7 2012 123.Table 27: United Kingdom inflation. 2008–12 Year Consumer Price Index (2000 = 100) 2008 108.6475 0.8921 2010 0.8111 SOURCE: MARKETLINE United Kingdom .8589 2011 0.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MARKETLINE 0183 .7973 2009 0.8% SOURCE: MARKETLINE MARKETLINE Table 28: United Kingdom consumer price index (absolute).6235 0.5449 .2012 Page | 36 .6% 2009 2.5% 2012 2.2% 2010 3. 2008–12 Year Inflation Rate (%) 2008 3.2233 .0 SOURCE: MARKETLINE MARKETLINE Table 29: United Kingdom exchange rate.5 2011 119.8 2010 114.5 2009 110.6416 0.3% 2011 4.8674 2012 0. 2008–12 Year Exchange rate ($/£) Exchange rate (€/£) 2008 0.

2233 . which can then be refined according to specific competitive. all aggregated. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends MarketLine aggregates and analyzes a number of secondary information sources. including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 . analyst commentary. which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. analyzed. accurate and up-to-date United Kingdom . crosschecked and presented in a consistent and accessible style. Review of in-house databases – Created using 250. company profiles and macroeconomic & demographic information.000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools. MarketLine’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news.APPENDIX Methodology MarketLine Industry Profiles draw on extensive primary and secondary research.2012 Page | 37 . regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused.

1050 Brussels.org Related MarketLine research Industry Profile Global Fixed Line Telecoms Fixed Line Telecoms in the United States Fixed Line Telecoms in Europe Fixed Line Telecoms in France United Kingdom .: 44 20 7981 3033 www. Tenants Harbor.: 41 22 730 5111 Fax: 41 22 733 7256 www.ofcom.Industry associations Ofcom Ofcom Media Office. GBR Tel. ME 04860.org. Riverside House.Fixed Line Telecoms © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0183 .: 32 2 219 3242 Fax: 32 2 219 6412 www. 2A Southwark Bridge Road.2012 Page | 38 . SE1 9HA.uk European Telecommunications Network Operators' Association Avenue Louise 54. CHE Tel.itu.be International Telecommunication Union (ITU) Place des Nations.2233 .etno.int International Telecommunications Society 329 Wallston Road.itsworld. BEL Tel. USA Tel. London.: 1 207 372 6241 www. 1211 Geneva 20.

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