Abstract
The UK telecommunications market generated more than £32bn ($59bn) in
revenue in 2008. This is expected to continue growing at a 0.4% CAGR in local
currency terms. Since the introduction of LLU in 2005, broadband Internet
revenue has grown at a CAGR of 9% through 2009. Fixed-line broadband services
are expected to slow to a CAGR of 3.9% for the next five years, reaching
£4.8bn ($8.2bn) in 2014.
Mobile broadband' s popularity and greater coverage will increase mobile data
revenue from £6.8bn ($9.9bn) to £9.1bn ($15.5bn) over the forecast
period. The refarming of 900MHz spectrum for UMTS services will likely see
more people using mobile broadband service as their primary Internet
connection.
VoIP revenue is expected to more than double in size from an estimated
£467m ($679m) in 2009 to £914m ($1.6bn) in 2014. However, problems
of call quality and general awareness remain major issues. In addition,
international calling promotions from both fixed and mobile operators, such as
BT and O2, have helped to erode the low-cost appeal of VoIP.
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