International Communications
Market Report 2015
10 December 2015
Ofcom analyst briefing
1
2
Agenda
Introduction and Market Overview
James Thickett, Director of Research
Trends in the television and audio-visual industries
Jane Rumble, Director of Market Intelligence
Trends in telecoms
Max Fernando, Telecoms Analyst
Internet and online content
Andrew Jackson, Senior Analyst
Post
Steven Cape, Senior Analyst, Market Intelligence
Comparative international pricing
Nicholas Collins, Senior Telecoms Analyst
3
Introduction and Market overview
James Thickett,
Director of Research
4
One of three Communications
Markets Reports
International Communications
Market Report 2015
Research Document
Publication date: 10 December 2015
5
Methodology Combination of industry data (2014 and 2015) and
consumer research data (September - October 2015)
• Industry data (18 countries)
- Telecoms and media industry data: IHS
- Pricing: Teligen
- Post: WIK
- Other third-party sources
• Online consumer research (9 countries, >=1000 consumers in each country) to
examine the take-up and use of communications services. It focused on:
- Device ownership
- Use of the internet to watch AV content
- Awareness and take up of 4G mobile services and superfast broadband
- Main source of news
- Use of, and attitudes towards, postal services
Third-party sources of data include: comScore, Deloitte, IHS, Populus, PricewaterhouseCoopers, Teligen, Wik Consult and
YouGov among others.
6
Global communications revenues 2010 - 2014
Source: Data derived from various sources: PwC Global Entertainment and Media Outlook 2015-2019 @ www.pwc.com/outlook for television and radio
revenues, Wik Consult / Ofcom estimates for postal revenues. IHS / industry data / Ofcom for telecoms revenues. Ofcom has used IMF 2014 average
exchange rates in converting from local currency to GBP.
Communications revenues continue to rise
785 798 825 841 846
206 216 226 233 244
73 75 73 72 72
25 26 26 27 28 £1,089bn £1,114bn
£1,150bn £1,173bn £1,190bn
0
200
400
600
800
1,000
1,200
1,400
2010 2011 2012 2013 2014
Radio
Post
Television
Telecoms
3.9% 2.9%
0.7% -0.1%
5.0% 4.3%
0.5% 1.9%
1.5% 2.3%
CAGR
2010-
2014
Year-
on-year
growth
Revenue (£bn)
All
7
Communications sector revenues, 2014
UK ranked 5th in terms of revenue
110
79
172
22
19
103
10
29
1
1
13
135
110
316
0 50 100 150 200 250 300 350
CHN
JPN
USA
Revenue (£bn)
6 15
19 30
20 3
6 4
7 14 15 16
25 19
29
0.6 5
4 11
6 1
2 2
2 3
4 6
20 8
14
0
1 2
2
1 1
2 1
1 3
7 7
4
1 0
3 1
1
7 21
23 43
27 4
9 7
12 18
21 25
55 36
48
0 10 20 30 40 50 60
NGA
IND
RUS
BRA
KOR
SGP
POL
SWE
NED
ESP
AUS
ITA
GER
FRA
UK
Telecoms
Television
Post
Radio
YoY %
change
1.1%
3.0%
6.0%
1.5%
-1.0%
-0.5%
-8.4%
1.0%
-8.3%
-4.0%
-0.4%
-1.7%
2.8%
4.4%
3.9%
3.4%
11.1%
4.3%
Source: Data derived from various sources: PwC Global Entertainment and Media Outlook 2015-2019 @ www.pwc.com/outlook for television and radio
revenues, Wik Consult / Ofcom estimates for postal revenues. IHS / industry data / Ofcom for telecoms revenues. Ofcom has used IMF 2014 average
exchange rates in converting from local currency to GBP.
8
Trends in the television
and audio-visual industries
Jane Rumble,
Director of Market Intelligence
Global TV industry revenues by source
9
Source: Data derived from PwC Global Entertainment and Media Outlook: 2015-2019
Global TV revenues up 5% YoY
101 108 113 118 125
20 20 20 21 21
85 88 92 94 99
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014
All
Annual revenue (%)
£244bn £226bn £216bn £233bn £206bn
Advertising
Public TV
license fees
Subscriptions
10
Source: IHS / industry data / Ofcom.
Rapid increase in online TV revenue
102 57 83
185 188
105 123
261 242 177 167
389 414
233 222
515
631
311 330
579
908
366 386
643
0
200
400
600
800
1,000
UK FRA GER JPN
2009 2010 2011 2012 2013 2014
Online TV video revenue (£m)
1.3 1.7
2.7
4.4
5.8
6.8
0
1
2
3
4
5
6
7
8
USA
Online TV video revenue (£bn)
Online TV and video revenue for selected ICMR countries
Take-up of pay TV varies by country
11
Source: IHS/ industry data/ Ofcom
Take up of pay and free-to-air television: 2014
YoY pp change
in pay TV
households
+4 +2 0 0 0 0 +2 +7 +1 -1 -1 0 +3 +2 +3 0 +1 +4
59
77
55
30
87
69
32 29
99
83 83
63
97
33
66
85
62
22
41
23
45
70
13
31
68 71
17 17
37
3
67
34
15
38
78
0%
20%
40%
60%
80%
100%
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN NGA
Free TV
Pay TV
TV homes (%)
UK consumers more likely to watch TV
online…
12
Source: Ofcom consumer research October 2015. Base: All respondents
Use of any online services to watch TV or films
Proportion of respondents (%)
66
50 45
61 57
43
57 61 52
15
16 14
16
9
11
12 15
16
7
10 13
8
7
7
9
9
11
88
76 71
85
73
61
78
85 79
0
20
40
60
80
100
UK FRA GER ITA USA JPN AUS ESP SWE
Year
Month
Week
Within the last:
…driven by free catch-up services
13
Source: Ofcom consumer research September - October 2015
Use of free-to-access broadcaster catch-up TV services
Proportion of respondents (%)
44
29 20
28 22 17
32 28 30
26
24
16
24
16
8
19 24 20
13
15
18
17
13
5
14 15 15
82
67
54
70
48
31
64 67 65
0
20
40
60
80
100
UK FRA GER ITA USA JPN AUS ESP SWE
Year
Month
Week
Within the last:
…and growing popularity of SVoD
14
Source: Ofcom consumer research – October 2015
Use of non-broadcaster SVoD services
Proportion of respondents (%)
26
13 16 18
38
9
22 15
10
13
8 7
11
11
5
9
12
8
8
6 8
8
7
4
6 10
10
47
27
30
37
56
19
37 37
27
0
20
40
60
UK FRA GER ITA USA JPN AUS ESP SWE
Year
Month
Week
Within the last:
Back catalogue films, the most accessed
content on SVoD
15
61
54
53
50
32
12
63
43
27
44
20
16
60
62
40
57
30
13
58
45
32
34
18
13
69
52 5
9
32
44
20
48
67
44
41
16
5
65
57
44 5
2
38
17
65
42
38 4
6
17
11
48
47
39
58
37
14
0
20
40
60
80
Recently releasedfilms/movies
Back-cataloguefilms/movies
Programmes/seriesmade in own
country
Programmes/seriesmade in the US*
Originalprogrammes made
by the serviceprovider
Children'sprogrammes
UK FRA GER ITA USA JPN AUS ESP SWE
Source: Ofcom consumer research September – October 2015
Types of content accessed via SVoD services
Proportion of respondents who use a SVoD service (%)
Increase in VoD enabled devices
16
42
30
36
41
32
17
39
45
40
0
20
40
60
UK FRA GER ITA USA JPN AUS ESP SWE
Proportion (%) of all respondents
Source: Ofcom consumer research September - October 2015
Household ownership of Connected TV sets
UK personally use a tablet = 54%
UK personally use a smartphone = 67%
UK watches more catch-up on connected
TVs
17
Source: Ofcom consumer research September – October 2015
Types of AV content watched on a connected TV
Proportion (%) of respondents
48
70
54
44 41
54 49
53
43
51 49 43
53 54 51
60
43 50
70
51
32
24 25
33 39
51 50 48 53
63
44
55
37
45
54
36
0
20
40
60
80
100
Live TV broadcast overthe internet
Catch-up TV Video-on-demand orinternet streamed films
Watching video clips(e.g. via YouTube)
UK FRA GER ITA USA JPN AUS ESP SWE
18
Daily TV viewing per head, 2013 - 2014
Source: Médiamétrie, Eurodata TV Worldwide. Note: Figures include timeshifted viewing via DVR.
Viewing to ‘traditional’ live TV down 5%
YoY in UK
220 221 221
262 282
264
204
239
200
153
260
196 224
239
157
0
50
100
150
200
250
300
UK FRA GER ITA USA JPN AUS ESP NED SWE POL KOR BRA RUS CHN
2014 average
223 mins
Proportional change in minutes of viewing per person per day, 2013 - 2014 Minutes
19
Internet and online content
Andrew Jackson,
Senior Convergence Analyst
Internet share of all advertising spend is
highest in the UK and China
Source: Warc data (www.warc.com)
Please refer to notes on adspend data for further detail and source information.
http://www.warc.com/NotesOnAdspendData
Internet share of all advertising spend (%)
27
15 18
10
17 15 16
12
22 23 19
4
20
4
10 7
14
43
30 27 26
30
20
34
21
39 42
29
14
31
21
25
6
43
0
10
20
30
40
50
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN
2009 2014
UK fixed internet advertising spend
continues to grow but declines elsewhere
21
84.29
44.30 51.36
19.02
70.39
34.25
82.10
15.60
65.92
92.22
0
20
40
60
80
100
UK FRA GER ITA USA JPN AUS ESP NED SWE
2010 2011 2012 2013 2014
Fixed internet advertising expenditure per head: 2010-14
Internet advertising spend per head (£)
5% 16% 0% 3% -4% -8% -16% -2% 5% 8% YoY
Growth
Source: Ofcom analysis based on data from PwC Global Entertainment and Media Outlook 2015-2019 @ pwc.com/outlook.
Interpretation and manipulation of data are solely Ofcom’s responsibility. IHS/Ofcom for population figures
UK mobile internet advertising spends
remains the greatest
22
24.77
1.06 2.80 2.00
23.69
6.95
17.66
1.17 0.58
13.37
0
5
10
15
20
25
UK FRA GER ITA USA JPN AUS ESP NED SWE
2010 2011 2012 2013 2014
Mobile advertising expenditure per head: 2010-14
Internet advertising spend per head (£)
57% 29% 34% 20% 75% 13% 116% 51% 16% 64% YoY
Growth
Source: Ofcom analysis based on data from PwC Global Entertainment and Media Outlook 2015-2019 @
pwc.com/outlook. Interpretation and manipulation of data are solely Ofcom’s responsibility. Population figures from Ofcom/IHS
Smartphone and tablet use continues to
grow across comparator countries
23
67 66 70
79
57
77 69
83
74
44 38 35
51
34
25
42
52
37
0
20
40
60
80
100
UK FRA GER ITA USA JPN AUS ESP SWE
Smartphones Tablets
Source: Ofcom consumer research September – October 2015
Use of smartphones and tablets
Respondents (%)
Laptop and desktop online consumption is
broadly similar between countries
24
Top ten web properties accessed on laptop and desktop computers
UK FRA GER ITA USA- JPN AUS ESP
1 Google Sites - Google
Sites -
Sites -
Sites -
Sites - Google Sites - Google Sites - Google Sites -
2 Microsoft
Sites +1 Facebook +1 Facebook - Facebook - Facebook +2 Yahoo Sites -
Microsoft
Sites - Facebook -
3 Facebook -1 Microsoft
Sites -1
Microsoft
Sites +2 ItaliaOnline - Yahoo Sites -1
Microsoft
Sites +1 Facebook -
Microsoft
Sites -
4 Amazon
Sites +1
CCM-
Benchmark +1
Amazon
Sites -1
Microsoft
Sites +1
Microsoft
Sites -1 FC2 inc. -1 Yahoo Sites -
Unidad
Medios
Digitales
-
5 BBC Sites +1 Webedia
Sites -1 eBay -1 Banzai +1
Amazon
Sites +1
LINE
Corporation N
News Corp
Australia N Prisa +2
6 eBay +1 Yahoo Sites - Axel
Springer SE -
Wikimedia
Foundation
Sites
+1 AOL, Inc. -1 DMM +2 TripAdvisor
Inc. N Yahoo Sites -
7 Yahoo Sites -3 Orange
Sites -
Deutsche
Telekom -
Amazon
Sites +3 Mode Media -
Amazon
Sites -
Wikimedia
Foundation
Sites
-1 Vocento +1
8
Wikimedia
Foundation
Sites
-
Schibsted
Media
Group
- Hubert
Burda Media +1 eBay -
Wikimedia
Foundation
Sites
N Rakuten Inc -2 eBay -3 Schibsted
Media Group +1
9 TripAdvisor
Inc. N
Amazon
Sites N
United-
Internet
Sites
-1 Yahoo Sites -5 CBS
Interactive - Facebook N Mode Media N Amazon Sites N
10 Apple Inc. -1 Solocal
Group -1
Wikimedia
Foundation
Sites
-
Gruppo
Editoriale
Espresso
N eBay -2
Kadokawa
Dwango
Corporation
N
Telstra
Corporation
Limited
-2 Alibaba.com
Corporation N
Source: comScore MMX, home and work panel, August 2014 and August 2015, persons 15+
25
Top ten web properties accessed on a mobile phone, by
country
Source: comScore MMX, home and work panel, August 2014 and August 2015, persons 15+
UK FRA GER ITA USA- JPN AUS ESP
1 Google
Sites
CCM-
Benchmark
Deutsche
Telekom
RCS
MediaGroup Google Sites AOL, Inc.
News Corp
Australia
RCS
MediaGroup
2 Facebook Webedia Sites AccuWeather
Sites Yahoo Sites Facebook
TripAdvisor
Inc.
Gumtree
Sites Vocento
3 BBC Sites Axel Springer
SE
Axel Springer
SE
TripAdvisor
Inc. Yahoo Sites
DAILYMOTION.
COM Yahoo Sites Prisa
4 Amazon
Sites
Groupe
Amaury
Shazam
Entertainment
Ltd
Banzai Amazon Sites Indeed BUZZFEED.C
OM
Mediaset
España
5 Sky Sites
Shazam
Entertainment
Ltd
Webedia Sites ItaliaOnline AOL, Inc. Rakuten Inc Mail Online /
Daily Mail
Grupo
Heraldo
6
Online /
Daily Mail
Cerise Media AOL, Inc.
Shazam
Entertainme
nt Ltd
Comcast
NBCUniversal JIJI Press Ltd AOL, Inc. Yahoo Sites
7 Microsoft
Sites
DAILYMOTION.
COM Spotify Ciaopeople
Microsoft
Sites Yahoo Sites Mode Media Grupo Godo
8 Yahoo
Sites
TripAdvisor
Inc. Yahoo Sites
Leonardo
ADV
CBS
Interactive
FASHIONSNAP
.COM LIKES.COM
Schibsted
Media Group
9 eBay Orange Sites TripAdvisor
Inc. Populis Apple Inc.
Weather
Company, The
9NEWS.COM.
AU
Zeta Gestión
De Medios
1
0
Trinity
Mirror
Group
Yahoo Sites Xing Gruppo
Mediaset Twitter
AccuWeather
Sites
Amazon
Sites
Weblogs SL
Sites
But mobile online consumption varies
much more
26
Trends in telecoms
Max Fernando,
Telecoms Analyst
131 124 114 105 96 87
73 81 89 99 110 124
236 234 232 227 217 206
87 102 121 143 162 173
526 542 555 574 585 589
0
200
400
600
2009 2010 2011 2012 2013 2014Mobile Data Mobile Voice
Fixed Broadband Fixed Voice
27
Total comparator country retail telecoms revenue
Source: IHS / industry data / Ofcom
144 141 139 133 125 119
152 159 162 172 173 172
105 107 108 111 114 117
125 135 146 158 173 180
526 542 555 574 585 589
2009 2010 2011 2012 2013 2014
BRIC & Nigeria Asia Pacific USA EU
£bn
Growth driven by mobile and fixed
28
Telecoms service retail revenues, by sector
Source: IHS / industry data / Ofcom
The US and China contributed almost half
of the total retail telecoms revenue in 2014
9 4 6 4 23 11 3 3 1 1 1 0 2 9 4 2 5 0
15 11 15 10
114
43
8 8 4 3 4 2 13 15 12 13
82
6
5 4 3
2
34
25
5 3 1 1 1 1 5
6 3 1
24
0
29 19 25
16
172
79
15 14 7 4 6 3 20
30 19 15
110
6
0
50
100
150
200
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN NGA
Fixed
Mobile
Fixedbroadband
£bn
0.4 -5.2 -1.3 -8.2 2.5 2.6 0.4 -9.3 -0.1 2.1 -2.3 4.3 1.5 3.0 5.0 6.6 9.8 5.1 5 year
CAGR (%)
29
Fixed voice connections per 100 population
52
22 24 31
25 23 35 33
10 21
13 26
34
19 25
2
18
0
9
39 21 5 16 22 3 7
31 18
4
10
20
4 2
1
0
61 60
45
37 41
45 38 40 42 39
16
36
54
23 27
2
19
0 0
20
40
60
80
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN NGA
ManagedVoIPconnections
PSTN lines
Source: IHS / industry data / Ofcom
Connections per 100 people
PSTN lines fell in most countries while
managed VoIP connections grow
Total
YoY
change
1.5 -0.8 -0.4 0.0 -1.1 -0.3 -2.0 -0.2 -1.2 -1.8 -1.6 -0.2 -1.4 0.0 -1.9 -0.2 -1.1 -0.1
78 73
84
72
49
65 68
79
42
63 68
78
60
43 36
50
70
34
0
20
40
60
80
100
UK FRA GER ITA USA JPN AUS ESP SWE
Landline athome
Regularly usea homelandline
30
Household take-up and personal use of fixed telephony services
Source: Ofcom research, September - October 2015
Proportion of respondents (%)
Percentage point
difference
A significant proportion of UK adults have a
fixed line at home but are not regular users
15 5 6 12 6 29 18 9 8
-3 -1 +4 +3 +3 +2 +1 +2 N/A Delta on last year’s pp
difference
18
20
25
13
79
32
5 10
6
3 5
1
16
11
12
8
24
26
29
14
96
49
7 1
3
7
3 8
2
19
21 27
18
0
25
50
75
100
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN
2009
2014
31
Fixed broadband connections
Source: IHS / industry data / Ofcom
Fixed broadband continues to grow …
Connections (millions)
5.3 5.7 3.2 1.8 4.0 8.6 5.7 6.2 2.3 1.9 10.0 10.5 3.5 13.3 16.9 18.0 18.5
5 year
CAGR
(%)
107
251
3 3 3 3 3
15
2 2 5 6
8
24 22
13 10
7
19
32
11 9
17
31
23
49
0
10
20
30
40
50
UK FRA GER ITA USA JPN AUS ESP NED SWE SGP KOR
2009
2014
32
Ave. monthly fixed broadband data volume per person
Source: IHS / industry data / Ofcom
… as does fixed broadband data usage
GB per month
46 33 29 23 45 16 44 34 27 41 24 15 5 year CAGR
(%)
35
12 21
4
62
81
19 24
46 42
28
83 89
11
50
3
16
0
20
40
60
80
100
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN
33
Fixed broadband connections 30Mbit/s or higher, end 2014
Source: IHS / Ofcom / operator data
Proportion of connections (%)
UK leads EU5 for high speed broadband take-
up but lags other countries
10 4 12 3 29 6 2 7 5 4 -12 -4 3 2 5 0 4 YoY pp
change
236 234 232 227 217 206
32 35 38 39 37 33
55 67 82 104 125 139
322 336
353 370 379 378
0
100
200
300
400
2009 2010 2011 2012 2013 2014
£bn
Total
Mobile internet
Messaging
Voice
34
Total comparator country retail mobile telecoms revenue, by service
Source: IHS / industry data / Ofcom
5 year
CAGR
Annual
growth
-0.1% 3.3%
11.2% 20.5%
-9.3% 1.1%
-5.1% -2.7%
Mobile revenues fell by just over £500m
35
Use of data services on mobile phones
Source: Ofcom consumer research September - October 2015
Smartphones help push mobile data services
Proportion (%) of mobile users
88
69
46
39
87
68
33
29
83
62
50
24
90
74
75
50
73
72
34
38 5
4
88
21 3
5
89
68
39
32
67
69
75
46
92
72
41
36
0
20
40
60
80
100
SMS Email Instant messaging Twitter
UK FRA GER ITA USA JPN AUS ESP SWE
Reasons for choosing to purchase 4G
36
Source: Ofcom consumer research September - October 2015
35
33
31
33
26
26
35
38
31
21
39
22
24
37
44
43
36
29
32
19
31
49
43
40
36
29
20
30
36
39
34
34
26
24
38
48
23
35
8
31
9
31
36
32
24
29
24
20
44
45
32
46
38
39
20
38
27
21
22
29
19
15
44
0
10
20
30
40
50
60
Quickerdownloadspeeds
More reliabledata connection
Quickerstreaming
speeds
Improved datacoverage
To takeadvantage of
newest phones
To keep up withtechnology
developments
It was providedautomatically by
the operatorwithout me doing
anythingUK FRA GER ITA USA JPN AUS ESP SWE
Proportion (%) of respondents who have or are likely to get 4G
Direction of arrow indicates a statistically significant difference compared to last year
The top reason to purchase 4G is the
increased speeds, in most countries
251
198
271
469
85
3
909
448
239
169
2,3
05
280
1,3
29
1,3
69
128
96
8 81
31
362
397
398
684
1,7
71
1,4
95
481
370
313
3,0
97
529
1,5
37
2,0
24
197
181
18
126
53
0
500
1000
1500
2000
2500
3000
3500
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN NGA
2013
2014
37
Average per-capita monthly mobile data use
Source: IHS / industry data / Ofcom
Mobile data usage increases
MB per month
44 101 47 46 108 64 7 54 85 34 89 16 48 54 89 119 55 71
YoY
change
(%)
63
68
81
39
97
82
85
47
90 9
9
66
98
100
32
36
1
1 9
84
75
92
77
98
99
87
76
100
99
80
99
100
42 5
1
2
73
11
0
20
40
60
80
100
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN NGA
2013
2014
38
4G population coverage (%) by country
Source: IHS
4G mobile coverage increased in most
comparator countries
Population coverage (per cent)
21 7 11 38 1 17 2 29 9 0 14 1 0 10 15 1 72 2 YoY pp
change
3 4 5 1
25 22 21
3 4
11
24
51
28
14 12
4
40 37 39
13
19
27
39
63
0
20
40
60
80
UK FRA GER ITA USA JPN AUS ESP NED SWE SGP KOR
2013
2014
39
4G as a proportion of total mobile subscriptions: end 2014
Source: IHS / industry data / Ofcom
Asia Pacific countries and the US have the
highest proportion of 4G connections
Proportion of mobile connections (%)
40
Comparative international pricing
Nick Collins,
Senior Telecoms Analyst
41
Price benchmarking methodology
• We compare UK prices to those in the other EU5 countries and the US
• Pricing model developed by Teligen
• Includes tariffs from the largest providers of each service (over 15,000 in
2015)
• Takes connection fees, hardware costs and promotions into account
• Construct five household usage profiles and consider the minimum price
required to fulfil these requirements
42
Summary of households usage profiles used
in the analysis
Source: Ofcom
‘Typical’
household
type
Summary Fixed
voice
Mobile
voice
Mobile
messaging
Mobile
phone data
Fixed line
broadband
Mobile
broadband Television
1 Basic needs A low use
household
Medium
use Low use None None None None
Free-to-
air
2 Late adopters
A basic
broadband
household
High use Low use Low use Low use Low use None Free-to-
air
3 A mobile
‘power user’
A mobile-
only
household
None High use High use High use
4G None High use
Basic
pay-TV
with DVR
4 Connected
family
A family
household
Medium
use
Medium
use High use
Medium
use
Medium
use None
Basic
pay-TV
with HD
DVR
5 Sophisticated
couple
An affluent
two person
household
Low use Medium
use
Medium
use
Medium
use
High use
superfast None
Premium
pay-TV
with HD
& DVR
43
Examples of combinations of multi-play and
single service offers
Single services
Multi-play offer
Source: Teligen
Household
requirement Fixed voice Mobile Television
Multi-play offer
Single services
Multi-play offer
Single services
Multi-play offer
Single services
Television
Multi-play fixed voice & broadband
Triple-play fixed voice, fixed broadband &
Single mobile tariff Single TV service
Single mobile tariff
Single mobile tariff Single broadband
bundled TV service
bundled TV service Multi-play landline &
Quad-play fixed voice, fixed broadband, mobile and TV service
Fixed b/band
44
UK stand-alone fixed voice prices increased
by 12% in 2015
Comparative stand-alone ‘weighted average’ fixed-line voice pricing
Source: Ofcom, using data supplied by Teligen
23 26 28 28 27 28 27 29 25 26 26 27
24 28 32 32 30 32 29 30 29 30 29 27
21 24
23 24 23 24 23
26 21 22 23 19
21 23 19 20 20 21
18 25
20 21 21 15
0
20
40
60
80
100
120
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
Household 5(100 mins)
Household 4(200 mins)
Household 2(400 mins)
Household 1(300 mins)
UK
3
GER
5
FRA
4
ESP
2
ITA
6
USA
1
Average monthly price (£)
2015 rank
12% 2% 4% 14% 5% -11%
12%
4%
-0%
-2%
10%
-3%
9
8
7
8
10
9
12
10
13
12
26
27
9
9
10
10
14
12
14
14
15
15
31
32
16
17
20
24
32
35
27
30
30
38
41
41
28
31
29
28
43
41
36
33
44
57
64
54
28
35
0
41
45
0
49
55
0
49
48
0
47
51
0
57
62
23
21
0
22
23
0
51
37
0
35
39
0
40
39
0
53
49
44
54
0
52
49
0
66
83
0
63
60
0
64
80
0
74
69
54
64
0
53
59
0
93
88
0
89
83
0
97
93
0
104
102
0 100 200 300 400 500
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
Connection 1 (50mins, 0SMS, 0GB data)
Connection 2 (50mins, 25SMS, 0.1GB data)
Connection 3 (150mins,200 SMS, 0.3GB data)
Connection 4 (250mins,100 SMS, 0.4GB data)
Connection 5 (200mins,50 SMS, 0.5GB 4G data)
Connection 6 (100mins,250 SMS, 2GB data)
Connection 7 (300mins,150 SMS, 1GB 4G data)
Connection 8 (500mins,200 SMS, 5GB 4G data)
45
UK weighted average mobile prices
increased by 12% in 2015
Comparative stand-alone ‘weighted average’ mobile pricing
Source: Ofcom, using data supplied by Teligen
UK
GER
FRA
ESP
ITA
USA
Average monthly price (£)
1
4
2
5
3
6
2015
rank
-4% 4% 21% -5% 19% 5%
YoY change
(%)
46
The UK has the cheapest ‘lowest available’
stand-alone fixed broadband prices in 2015
Comparative stand-alone ‘lowest available’ fixed-line broadband pricing
Source: Ofcom, using data supplied by Teligen
14 12 17 18 17 19 21 24 32 38 28 26
14 12 17 18 17
24 27 24
32 38
28 30 16 19
36 36 22
25 27 24
32
38
34 38
0
20
40
60
80
100
120
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
≥30Mbit/s, 100GB data
>10Mbit/s,50GB data
>5Mbit/s,25GB data
UK
1
GER
2
FRA
4
ESP
6
ITA
3
USA
5
Average monthly price (£)
2015 rank
-1% -10% 0% -17% -18% 38%
47
The UK had the third-lowest prices for mobile
broadband services
Comparative stand-alone ‘lowest available’ mobile broadband pricing
Source: Ofcom, using data supplied by Teligen
7 7 9 7 12 14 5 5 11 11 12 15
15 14 13 13 20 19
5 5
25 22 20 28 16 17 15 13
28 28
13 9
31 22 29
40
0
20
40
60
80
100
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
5GB 4Gpermonth
3GB 3Gpermonth
1GB 3Gpermonth
UK
3
GER
4
FRA
2
ESP
5
ITA
1
USA
6
Average monthly price (£)
2015 rank
17 19 22 24 16 16 11 9 35 36
17 39 17 19 22 24
22 23 11 9
35 36
17
43 63 55 40 24 29 30
38 34
56 66
67
76
12 12 10
10 17 17 9
9
0
50
100
150
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
20
14
20
15
Licence fee
Premium pay-TVwith HD & DVR
Basic pay-TVwith HD & DVR
Basic pay-TVwith DVR
-2% -13% 1% -12% 8% 57%
48
UK premium pay-TV prices fell in 2015
Source: Ofcom, using data supplied by Teligen
UK
4
GER
3
FRA
2
ESP
5
ITA
1
USA
6
Average monthly price (£)
2015 rank
Comparative stand-alone ‘lowest available’ pay-TV pricing
The UK had the lowest ‘weighted average’
stand-alone prices for three baskets in 2015...
49
Summary of stand-alone ‘weighted average, basket pricing
41
45
46
49
50
82
58
74
81
86
10
4
12
6
10
3
10
2 15
5
111
15
5
18
8
14
6
16
9 2
34
22
6 27
4
30
3
18
8
18
2 22
9
21
5 26
1
28
8
0
100
200
300
400
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
TV (excl.TV licence)
Mobilebroadband
Mobilephone
Fixedbroadband
Fixedvoice
Monthly cost (£)
Source: Ofcom, using data supplied by Teligen
Basic needs Late adopter Mobile power
user
Connected
family
Sophisticated
couple
1 1 2 1 2 UK rank
50
Summary of stand-alone ‘weighted average, basket pricing
39
35
44
48
57
84
43
40
54
57
64
11
2
97
10
2
16
8
11
2 15
4
27
9
15
9
13
0 17
6
15
3 2
06
32
8
0
100
200
300
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
Monthly cost (£)
Source: Ofcom, using data supplied by Teligen
Basic needs Late adopter Mobile power
user
Connected
family
Sophisticated
couple
2 2 n/a 1 3 UK rank
...but performed less well in terms of
‘weighted average’ bundle prices
51
Summary of ‘lowest available’ basket prices
33
31
30
35
41
45
36
37
42
50
57
99
87
74
11
0
10
1 13
3
16
0
82
94
15
3
10
1
12
2
24
3
15
4
11
4 1
61
14
9 2
00
24
8
0
100
200
300
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
UK
FR
A
GE
R
ITA
ES
P
US
A
TV (excl.TV licence)
Mobilebroadband
Mobilephone
Fixedbroadband
Fixed voice
Bundle
Monthly cost (£)
Source: Ofcom, using data supplied by Teligen
Basic needs Late adopter Mobile power user Connected
family
Sophisticated
couple
3 1 2 1 3 UK rank
The UK had the ‘lowest available’ prices for
three baskets in 2015, as did France
52
Comparison of international household profile pricing, 2015
The UK performed worst for the highest use
households in 2015
Source: Ofcom, using data supplied by Teligen
‘Basic needs’
household
‘Late adopters’
household
‘Mobile power
user’
household
‘Connected family’
household
‘Sophisticated
couple’ household
Price
(£ per
month)
Average
stand-
alone
Average
bundled
Lowest
available
Average
stand-
alone
Average
bundled
Lowest
available
Average
stand-
alone
Lowest
available
Average
stand-
alone
Average
bundled
Lowest
available
Average
stand-
alone
Average
bundled
Lowest
available
UK 41 39 33 58 43 36 103 87 146 97 82 188 159 154
FRA 45 35 31 74 40 37 102 74 169 102 94 182 130 114
GER 46 44 30 81 54 42 155 110 234 168 153 229 176 161
ITA 49 48 35 86 57 50 111 101 226 112 101 215 153 149
ESP 50 57 41 104 64 57 155 133 274 154 122 261 206 200
US 82 84 45 126 112 99 188 160 303 279 243 288 328 248
53
The UK’s average rank was unchanged in 2015,
but France overtook it to rank top overall
Average pricing rankings, by country: 2014 and 2015
Source: Ofcom, using data supplied by Teligen
Rank Country Average rank
2014
Average rank
2015
1 ( ) France 2.0 1.5
2 ( ) UK 1.8 1.8
3 ( - ) Italy 2.9 3.3
4 ( - ) Germany 3.9 4.1
5 ( - ) Spain 4.5 4.4
6 ( - ) USA 5.9 6.0
54
Steven Cape,
Senior Analyst,
Market Intelligence
Post
Letter volumes are down 10.2% since 2010
55
44.3 45.1 45.1 44.5 43.6
30.3 29.5 28.9 28.1 27.4
166.7 164.0 155.3 153.2 150.2
68.3 65.9 62.7 59.4 57.0
309.7 304.5 292.1 285.2 278.2
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014
Europe
USA
Asia Pacific
BRIC
Source: WIK / Ofcom analysis
Billion items
Revenues more stable over this period…
56
3.5 3.8 4.1 4.4 4.7
13.3 13.2 13.0 13.1 13.5
30.9 29.9 28.7 28.4 28.9
24.8 27.9 26.9 25.7 25.1
72.6 74.8 72.7 71.6 72.1
0
20
40
60
80
2010 2011 2012 2013 2014
Europe
USA
Asia Pacific
BRIC
Source: WIK / Ofcom analysis
Note: Figures are nominal
£ billion
…helped by price increases
57
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
2011 2012 2013 2014 2015
ITA
NED
UK
RUS
FRA
SGP
SWE
AUS
BRA
ESP
USA
POL
Source: WIK / Ofcom analysis
Change in First Class equivalent stamp price since 2010
2011=1
UK the only European comparator
where letter mail revenue rose
58
Source: WIK / Ofcom analysis
Change (%)
0.4
-1.3 -1.2
-8.2
1.6 2.6 2.2
-6.8
-2.3 -4.4
-5.7
-1.6
4.3 2.9
4.7
12.7 10.5
-15
-10
-5
0
5
10
15
UK FRA GER ITA USA JPN AUS ESP NED SWE POL SGP KOR BRA RUS IND CHN
The proportion of parcels is growing
59
12 15
7
33
6 4
0
20
40
UK GER USA JPN NED SWE
2013 2014
Source: WIK / Ofcom analysis
Proportion of parcels in total mail (%)
60
Respondents who received a parcel in the last week (%)
69 73 72 71
65 65 71
63 69
47 53 52 51
48 51
42 47 47
0
20
40
60
80
UK FRA GER ITA USA JPN AUS ESP SWE
Weekly online shoppers Not weekly online shoppers
Source: Ofcom research
Helped by online shoppers
61
Questions?