Wednesday, August 24, 2016

U.K. Business Telecom Spending Falls, but SME Grows

If 2015 enterprise and business spending on telecommunications services has relevance for the U.S. market, business segment revenue likely is down (fixed and mobile), but small business buying of voice and Internet access lines is up.

Leased line and web hosting revenue likely climbed fractionally.

Web hosting grew 1.3 percent, while Ethernet or leased-line services grew 1.5 percent.

IP-VPN services revenue fell slightly (0.8 percent), while frame or cell (ATM) services revenue plummeted 53.5 percent.

Total U.K. business revenue fell by £0.2 billion (2.4 percent) to £9.1 billion in 2015. This was driven by a £0.2 billion (7.6 percent) decrease in fixed voice revenues and a £0.2 billion (5.4 percent) fall in mobile revenues, partly offset by a £0.1 billion (14 percent) increase in non-corporate internet services.
The decline in business monthly retail revenue per fixed line was due to call volume and price declines.

The proportion of business calls that originated on mobile networks was 56 percent in 2015, representing a 1.2 percentage point increase on 2014.

But total business call volumes fell by 2.2 billion minutes (4.9 percent) in 2015, driven by a fall of 1.5 billion (7.5 percent) fixed business minutes and 0.7 billion (2.9 percent) mobile business minutes, excluding use of IP telephony services.

At the end of 2015 there were 7.6 million business fixed lines and ISDN channels, a year over year fall of 0.3 million (4.3 percent), and 2.0 million (21 percent) fewer than there had been at the end of 2010.

The number of small and mid-sized business broadband lines increased by 0.1 million (5.2 percent) in 2015. Between 2010 and 2015 SME broadband lines increased by 0.6 million (a five-year CAGR of 5.4 percent).

At the end of 2015 there were 9.5 million business mobile connections (excluding the 6.7 million M2M connections), equivalent to 13 percent of all such connections.

Some 77 percent of businesses’ dedicated data subscriptions were M2M connections.

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