Looking at the market from 2003 - 2007 MBS say the UK telecommunications market is believed to have increased by 4% to a five year peak of £36.7 billion in 2007, consolidating growth of 10% in 2006. Prior to this demand declined by 1% in 2005, partially negating growth during both 2004 and 2003. Overall between 2003 and 2007 sales are believed to have increased by a cumulative 13%.
Growth in the market reflects the progress of the economy and technological developments in the industry, which have both had a positive impact on the market, particularly in the mobile communications sector. However, growth slowed during 2004 and declined during 2005, largely due to the relative maturity of the overall market. The mobile telephony and broadband internet sectors of the market are believed to have shown strong growth, with a converse trend recorded in the more traditional fixed telephony sector.
Market Forecast 2008 - 2012
The UK telecommunications market is anticipated to increase throughout the five year review period. By 2012, demand is expected to reach a peak of £39.3 million (at 2007 prices), representing real term growth of 7% in comparison with 2007. Further mobile phone and broadband uptake, along with technological advancements are expected to facilitate growth during the forecast period.
Fixed Telecommunications Sector Projected to Decline by 8% Between 2007 and 2012
Demand for fixed telecommunications is anticipated to decline in real terms during each year between 2008 and 2012. In the latter year the value of the sector is estimated at £8.6 billion (at 2007 prices), representing a real term decline of 8% in comparison with 2007.
The projected decline largely reflects the move away from fixed lines to mobile phones. Thus, the proportional importance of the sector is expected to decline from 25% in 2007 to 22% by 2012.
The Value of Mobile Telephony is Anticipated to Reach a Peak of £18.5 billion by 2012
MBD expect the trend of landline substitution in favour of mobile phones to continue during the forecast period. Indeed the value of the sector is anticipated to reach a peak of £18.5 billion (at 2007 prices) by 2012. This represents real term growth of 14% compared with 2007. Moreover the share of the sector is expected to increase from 44% in 2007 to 47% by 2012.
SMS and MMS Sector Expected to Demonstrate the Strongest Overall Growth
The SMS and MMS sector is anticipated to demonstrate the strongest overall growth in the UK telecommunications market during the five year forecast period. Overall between 2007 and 2012 demand is projected to increase by 21% in real terms, taking the value of the sector to a peak of £3306 million (at 2007 prices) in the latter year.