UK broadband, telephony and pay TV trends Q1 2019: Price wars dominate

Report Overview

UK broadband, telephony and pay TV trends Q1 2019: Price wars dominate

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UK broadband, telephony and pay TV trends Q1 2019: Price wars dominate
Market revenue growth dipped to around zero in Q1, with fierce competition on new customer pricing the major factor
All four of the big operators now suffer from declining ARPU, with existing customer price rises increasingly hard to land given falling prices for new customers
The rapid move to superfast is not helping as much as it should; the operators will hope that they fare better with the move to ultrafast

Contents

Executive summary: Price wars dominate

Market trends and outlook

  • Gradual volume growth decline, but set to decline faster
  • Market revenue growth lowest in years, sustainable improvement unlikely
  • Growth declining for most
  • ARPU watch – all in decline
  • New customer pricing: Some relief to come?
  • Existing customer pricing changes
  • In/out-of-contract and existing/new customer pricing
  • Upcoming pricing regulation a threat
  • Q1 2019 trends: broadband – a steady quarter
  • High speed broadband accelerates (yet) again
  • Even higher speed: FTTP build plans accelerate
  • Q1 2019 trends: telephony – steady before a fall
  • Q1 2019 trends: pay TV – growth slowly falls

Appendix

  • Wholesale price control and Openreach’s new discounted pricing
  • Subscriber and subscriber ARPU growth
  • Pricing outside the ‘big four’
  • EU5 high speed comparison

List of charts/tables

Figure 1. Market net additions (000)

Figure 2. RGU and subscriber growth

Figure 3. RGU ARPU, volume and revenue growth

Figure 4. Subscriber ARPU, volume and revenue growth

Figure 5. Average RGU growth by operator

Figure 6. Consumer revenue growth by operator

Figure 7. Subscriber ARPU growth

Figure 8. RGU ARPU growth

Figure 9. Broadband entry level dual-play pricing, new customers (£/month)

Figure 10. Broadband high speed dual-play pricing, new customers (£/month)

Figure 11. Existing customer price increase impact periods

Figure 12. Unlimited broadband, in/out-of-contract pricing (£/month)

Figure 13. Unlimited high-speed broadband, in/out-of-contract pricing (£/month)

Figure 14. Broadband self-reported contract status

Figure 15. Broadband organic net adds (000)

Figure 16. Broadband organic subscriber growth

Figure 17. High speed net adds (000)

Figure 18. High speed penetration of broadband bases

Figure 19. Premises passed by FTTP (m)

Figure 20. Line rental net additions (000)

Figure 21. Line rental subscriber growth

Figure 22. Pay TV net additions (000)

Figure 23. Pay TV subscriber growth

Figure 24. Broadband subscribers

Figure 25. Consumer revenue

Figure 26. Openreach wholesale pricing (£/month, excluding VAT)

Figure 27. Average subscriber growth by operator

Figure 28. Subscriber ARPU growth by operator

Figure 29. Unlimited broadband dual-play, new customer pricing (£/month)

Figure 30. High speed (30Mbps+) share of broadband, Q4 2017

Figure 31. High speed (30Mbps+) share of broadband

Figure 32. Selected recent and planned price changes for existing customers

Figure 33. Selected recent price changes