Digital Transition: Advanced Market Lessons Part 2 - UK
2015.09.21   |   33 pages   |   Direction, Strategy and Brand Differentiation

Author:
Patrizia Balia


Twitter LinkedIn

Share:

Sign up to receive our latest insights and reports

Sign up

Advanced communications markets are going through significant digital transformation, which is affecting every aspect of the market environment. Our research in the UK and US markets highlights significant M&A activity leading to substantial market consolidation characterised by the emergence of three key groups of digital players (converged operators, super mobile-only operators and frenemies).  

  • In this new market environment, operators (both converged and mobile) compete and collaborate with the frenemies whilst smaller mobile players continue to exist in the form of niche MVNOs.  
  • Monetisation of new digital services is beginning to impact service revenues, with leading players focusing on the development and promotion of services such as video content (including ad-sponsored OTT services), IoT/M2M and m-health. 
  • Leading players are busy transforming and integrating their distribution and CRM functions with the aim of enhancing customer experience and offering practical support for new digital products and services.  Operators’ branded concept stores provide live demos of new services and include meeting areas both for consumer and SME customers.  
  • Seamless integration of devices and services is favouring uptake of multi-play and multi-device plans.  Long-term contracts are gradually discontinued, as customers are encouraged to upgrade their smart devices as often as they like through device instalment schemes.  

Insights from these leading markets, presented in two reports (this one details research findings from the UK, while the first explored the US experience), will be most valuable for players in the markets that will follow a similar transitional path.  By taking on board the lessons from leading edge transitional markets, players can ensure their positioning is optimised to limit the potential downsides of market evolution (e.g. loss of voice and SMS revenue), while taking stakeholders and customers to their new position with minimum disruption.

 

Companies: Vodafone, Orange, Deutsche Telekom, Telefónica, O2, Three UK, Hutchison Whampoa, BT, Virgin Media, Liberty Group, EE, Sky, Talk Talk, UK Post Office, giffgaff, Tesco, Sainsbury, Asda, Google, Facebook, Amazon, Transport for London, Apple

Countries: UK, USA

Keywords: multi-play, net neutrality, SMS revenue, OTT, convergence, CRM function, Apple Pay, mobile-only, distribution channel, OTT video, contract plans, partnerships, OTT regulations, IoT, voice revenue, SME, omnichannel, digital partners, data revenue, Innovation, m-money, M2M, customer experience, MVNO, m-health, stores, multi-device, retail channel, m-fitness, data pricing, Digital transformation,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

2

2.3

Currency and Conversions

3

2.4

Further Questions and Feedback

3

3

Market Overview

4

3.1

Key Performance Indicators

4

3.2

The UK Market

5

3.2.1

Overall Headlines

5

3.2.2

Technology Overview

5

3.2.3

Key Mobile Players

8

3.2.4

Other Market Players

10

3.2.5

Regulatory Environment

11

4

Consolidation, Convergence and New Players

13

4.1

Mergers and Acquisitions

13

4.1.1

M&A Activity

13

4.1.2

Player Behaviour Simulated by M&As

13

4.2

Emerging Type of Players

16

4.2.1

Converged Players

16

4.2.2

Super Mobile-only Players

16

4.2.3

New Players/Frenemies

17

5

Pursuing Digital Services Opportunities

18

5.1

M-Money

18

5.1.1

Financial Services Overview

18

5.1.2

MNO’s Role

18

5.1.3

Increasing Involvement OS Players

19

5.1.3.1

Apple Pay

20

5.2

Video Services

21

5.3

Vodafone and IoT/M2M

21

6

Distribution, Sales & Customer Experience

24

6.1

Experience Centres and Omnichannel Retail

24

6.2

Workshops & Expert Support

24

6.2.1

Three UK’s Discover Services

25

6.2.2

Workshops Targeting SMEs

26

7

Conclusions & Recommendations

30

7.1

Conclusions

30

7.2

Recommendations

31

 

Appendix – Feedback Questions

 

 

Conclusions & Recommendations From US Report

33

 

Conclusions

33

 

Recommendations

33

Related Reports

Digital Transition: Advanced Market Lessons Part 1 - USA
2015.09.03

Complimentary
Report

Advanced communications markets are going through significant digital transformation, which is affecting every aspect of the market environment. Our research in the UK and US markets highlights significant M&A activity leading to substantial market consolidation characterised by the emergence of three key groups of digital players (converged operators, super mobile-only operators and frenemies).   In this new market environment, operators (both converged and mobile) compete and collaborate with the frenemies whilst smaller mobile players continue to exist in the form ...

Read more

Our Clients

Here at Orange France we have many program subscriptions but yours, in my mind, offers the best content for the best value. Your reports give a complete overview on the market and provide so many details and quality of analysis ... Orange France
Mobile Market Development 2015