UK broadband, telephony and pay TV trends Q4 2017: Approaching ex-growth | Feb 2018

Sectors: 
Fixed Line
Internet
Media
Mobile
Telecoms
TV
UK Media
Companies: 
EE
Liberty Global
Ofcom
Sky
TalkTalk
Virgin Media

UK residential communications market revenue growth fell again to 1.2%, with weakening ARPU growth the main driver. New customer pricing remains flat to down, and existing customers are being increasingly discounted, fuelling the ARPU weakness

High speed broadband adoption is proceeding apace, but the high speed premium is fairly thin, muting the impact on ARPU. Regulated wholesale price cuts from Openreach finalised today and due in April 2018 will not help

Looking forward, the March quarter will benefit from price timing effects at BT and Virgin Media, but we fear that the rest of 2018 will follow the current downward trend and the operators will need to adjust to an ex-growth environment

 

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