UK mobile market Q1 2018: Primed for revenue acceleration | Jun 2018

Sectors: 
Media
Telecoms
Companies: 
EE
Hutchison 3G
O2
Vodafone

Service revenue growth for the UK mobile market improved in the first quarter of the year, lifting from 1.0% to 1.2%. There was an easing of the EU roaming regulatory impact helping growth improve, but the SIM-only drag likely grew to counteract this, suggesting a modest underlying improvement overall

We expect continued market growth improvement in the coming year due to a number of tailwinds, namely annual price rises, the arrival of IFRS 15, and the EU roaming impact dropping out

The fundamentals of the market remain solid: competition is rational; pricing is firm; data demand is strongly rising; supply is partially constrained; MVNOs and convergence do not appear a threat

Access UK mobile market Q1 2018: Primed for revenue acceleration