Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Mobile Network Providers - UK - March 2012

“Initial enthusiasm for mobile network issued bank cards appears to be subdued, with only 14% of mobile phone users saying that they would use a debit or credit card issued by their mobile network operator. However, network operators are in a good position to provide payment services in addition to added-value services that they already offer, such as location-based discount and reward schemes for existing mobile customers, as a mobile wallet package.”

– Cecilia Liao, Senior Technology Analyst

Some questions answered in this report include:

  • Who will dominate the mobile wallet market?
  • What needs to be done to get UK consumers ready for mobile wallets?
  • What can mobile network providers specifically do to increase consumer confidence in their version of mobile wallet services?
  • To what extent will the adoption of smartphones and data plans affect SMS usage in the UK?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • Figure 1: Mobile phone subscriptions forecast, by value, 2006-16
            • Market factors
              • Figure 2: Agreement with the statement ‘As long as I can make calls and texts, I don’t care about other features or functions’, by age, December 2010-11
            • Companies, brands and innovation
              • Figure 3: Mobile network provider market share by volume, 2008-11
            • The consumer
              • Mobile network usage
                • Figure 4: Mobile connections and average monthly revenue per user (ARPU), by connection type, 2005-10
                • Figure 5: Message volume from mobile phones, by message types, 2005-10
                • Figure 6: Online activities performed on a smartphone in the last three months, January 2012
              • Consumer attitudes to mobile network providers
                • Figure 7: Consumer attitudes to mobile network providers and mobile wallets, January 2012
                • Figure 8: Reasons for switching mobile network provider, January 2012
              • Consumer attitudes to mobile wallets
                • Figure 9: Reasons for disliking the idea of mobile wallets, January 2012
              • What we think
              • Issues in the Market

                  • Who will dominate the mobile wallet market?
                    • What needs to be done to get UK consumers ready for mobile wallets?
                      • What can mobile network providers specifically do to increase consumer confidence in their version of mobile wallet services?
                        • To what extent will the adoption of smartphones and data plans affect SMS usage in the UK?
                        • Future Opportunities

                            • Trend: Prove It
                              • Trend: Moral Brands
                              • Internal Market Environment

                                • Key points
                                  • The rise of smartphone ownership
                                    • Figure 10: Personal mobile phone ownership, 2007-11
                                    • Figure 11: Mobile phone ownership by platform provider, January 2012
                                    • Figure 12: Agreement with the statement ‘As long as I can make calls and texts, I don’t care about other features or functions’, by age, December 2010-11
                                  • Consumers are holding on to their handsets for longer
                                    • Figure 13: Frequency of upgrading the mobile phone, 2010-11
                                    • Figure 14: Length of ownership of current primary handset, January 2011-12
                                  • Ofcom’s 4G auction delayed until end of 2012
                                    • Figure 15: Theoretical download speeds of mobile data technologies in the UK, 1993-2011
                                  • Using mobiles to connect to the internet
                                    • Figure 16: Using a smartphone to access the internet in the past six months, February 2011-January 2012
                                    • Figure 17: Using a smartphone to access the internet in the past six months, by age, January 2012
                                    • Figure 18: Using a smartphone to access the internet in the past six months, by region, January 2012
                                    • Figure 19: Using a smartphone to access the internet in the past six months, by annual household income, January 2012
                                  • Mobile data traffic explosion
                                    • Figure 20: Cisco’s consumer mobile data forecast in the UK, 2010-15
                                • Broader Market Environment

                                  • Key points
                                    • Uncertain economic climate is a threat for network operators
                                      • Figure 21: GDP quarterly percentage change, Q1 2004-Q4 2011
                                      • Figure 22: GFK NOP Consumer Confidence Index, February 1988-2012
                                    • One million jobless 16-24-year-olds will put financial pressure on network providers
                                      • Figure 23: Seasonally adjusted unemployment rate, by age, October-December 1992-2011
                                    • Aging population could benefit network providers
                                      • Figure 24: Trends in the age structure of the UK population, 2006-16
                                  • Who’s Innovating?

                                    • Key points
                                      • Mobile wallet, with or without the network operators
                                        • Value-added services to attract mobile subscribers
                                          • Figure 25: Orange Quick Tap Treats poster, February 2012
                                        • New contract options to boost smartphone upgrades
                                          • Figure 26: Total cost of O2’s iPhone 4S 16GB contracts over 12 months, by contract type, February 2012
                                        • Buffet pricing
                                          • Multiple personas on one phone
                                            • China Telecom joins the UK mobile market
                                            • Market Size and Forecast

                                              • Key points
                                                • Increase in smartphones and data plans contributes to revenue growth
                                                  • Figure 27: Volume of mobile phone subscriptions, 2006-16
                                                  • Figure 28: Value of mobile phone subscriptions, 2006-16
                                                  • Figure 29: Volume of mobile phone subscriptions, by payment type, 2006-16
                                                • Forecasts
                                                  • Mobile phone subscriptions
                                                    • Figure 30: Mobile phone subscriptions forecast, by volume, 2006-16
                                                    • Figure 31: Mobile phone subscriptions forecast, by value, 2006-16
                                                  • Mobile phone subscriptions by contract types
                                                    • Figure 32: Pre-paid mobile phone subscriptions forecast, by volume, 2006-16
                                                    • Figure 33: Contract mobile phone subscriptions forecast, by volume, 2006-16
                                                • Market Share

                                                  • Key points
                                                    • Everything Everywhere market share falls post-merger
                                                      • Figure 34: Mobile network provider market share by volume, 2008-11
                                                    • O2 struggles to make further gains
                                                      • Is customer service enough to hold up Vodafone’s market share?
                                                        • MVNOs gain market share as consumers become more frugal
                                                        • Companies and Products

                                                            • O2
                                                              • Company overview
                                                                • Product range
                                                                  • Financial performance
                                                                    • Figure 35: Key financial data for Telefónica UK limited, 2010-11
                                                                  • Advertising and promotion
                                                                    • Figure 36: O2’s Advertising expenditure, 2007-11
                                                                  • Business strategy and future objectives
                                                                    • Everything Everywhere
                                                                      • Company overview
                                                                        • Product range
                                                                          • Financial performance
                                                                            • Figure 37: Key financial data for Everything Everywhere Limited, 2010-11
                                                                          • Advertising and promotion
                                                                            • Figure 38: Everything Everywhere’s advertising spend, 2007-11
                                                                          • Business strategy and future objectives
                                                                            • Three UK
                                                                              • Company overview
                                                                                • Product range
                                                                                  • Financial performance
                                                                                    • Figure 39: Key financial data for Hutchison 3G UK Limited, 2009-10
                                                                                  • Advertising and promotion
                                                                                    • Figure 40: Three UK’s Advertising expenditure, 2007-11
                                                                                  • Business strategy and future objectives
                                                                                    • Vodafone UK Limited
                                                                                      • Company overview
                                                                                        • Product range
                                                                                          • Financial performance
                                                                                            • Figure 41: Key financial data for Vodafone UK, 2010-11
                                                                                          • Advertising and promotion
                                                                                            • Figure 42: Vodafone UK’s Advertising expenditure, 2007-11
                                                                                          • Business strategy/future objectives
                                                                                          • Brand Research

                                                                                            • Brand map
                                                                                                • Figure 43: Attitudes towards and usage of brands in the mobile network providers sector, November 2011
                                                                                              • Correspondence analysis
                                                                                                • Brand attitudes
                                                                                                  • Figure 44: Attitudes by mobile network provider brand, November 2011
                                                                                                • Brand personality
                                                                                                  • Figure 45: Mobile network providers brand personality – macro image, November 2011
                                                                                                  • Figure 46: Mobile network provider brand personality – micro image, November 2011
                                                                                                • Brand experience
                                                                                                  • Figure 47: Mobile Network providers brand usage, November 2011
                                                                                                  • Figure 48: Satisfaction with various mobile network provider brands, November 2011
                                                                                                  • Figure 49: Consideration of mobile network provider brands, November 2011
                                                                                                  • Figure 50: Consumer perceptions of current mobile network providers’ brand performance, November 2011
                                                                                                  • Figure 51: Mobile network providers brand recommendation – Net Promoter Score, November 2011
                                                                                                • Brand index
                                                                                                  • Figure 52: Mobile network providers brand index, November 2011
                                                                                                  • Figure 53: Mobile network providers brand index vs. recommendation, November 2011
                                                                                                • Target group analysis
                                                                                                  • Figure 54: Target groups, November 2011
                                                                                                  • Figure 55: Mobile network providers brand usage, by target groups, November 2011
                                                                                                • Group One – Conformists
                                                                                                  • Group Two – Simply the Best
                                                                                                    • Group Three – Shelf Stalkers
                                                                                                      • Group Four – Habitual Shoppers
                                                                                                        • Group Five – Individualists
                                                                                                        • Mobile Network Usage

                                                                                                          • Key points
                                                                                                            • Monthly spending with network operators
                                                                                                              • Figure 56: Mobile connections and average monthly revenue per user (ARPU), by connection type, 2005-10
                                                                                                              • Figure 57: Monthly payment tier for mobile phone, by payment plan, January 2012
                                                                                                            • Inclusive options in mobile phone tariffs
                                                                                                              • Figure 58: Options included in the current service package, 2011
                                                                                                            • Message volume still growing
                                                                                                              • Figure 59: Message volume from mobile phones, by message types, 2005-10
                                                                                                            • Mobile call volumes on the rise
                                                                                                              • Figure 60: Call volumes from mobile phones, by call types, 2005-10
                                                                                                              • Figure 61: Telephone calls from home, 2011
                                                                                                            • Three customers more likely to be mobile surfers
                                                                                                              • Figure 62: Ownership of smartphones and using a smartphone to access the internet in the past six months, by mobile network provider of primary handset, January 2012
                                                                                                            • Online activities on a smartphone
                                                                                                              • Figure 63: Online activities performed on a smartphone in the last three months, January 2012
                                                                                                          • Consumer Attitudes to Mobile Network Providers

                                                                                                            • Key points
                                                                                                              • Switching to a different mobile network operator
                                                                                                                • Figure 64: Selected consumer attitudes to mobile network providers, January 2012
                                                                                                              • Younger consumers more likely to have made the switch
                                                                                                                • Figure 65: Consumers who have switched mobile network providers in the past twelve months, by age, January 2012
                                                                                                              • Reasons for switching mobile network providers
                                                                                                                • Figure 66: Reasons for switching mobile network providers, January 2012
                                                                                                              • Is one reason enough to make the switch?
                                                                                                                • Figure 67: Number of choices selected as reasons for switching mobile network operator, January 2012
                                                                                                              • Satisfaction with existing operators
                                                                                                                • Figure 68: Satisfaction with existing mobile network operator’s service, January 2012
                                                                                                              • Inertia in switching network operators
                                                                                                                • Figure 69: Intent to switch operators, January 2012
                                                                                                                • Figure 70: Intent to switch operators among consumers who are very unsatisfied with their existing network operator, January 2012
                                                                                                              • Which network operators will benefit from dissatisfied consumers?
                                                                                                                • Figure 71: preferred network operator for consumers likely to switch, January 2012
                                                                                                            • Consumer Attitudes to Mobile Wallets

                                                                                                              • Key points
                                                                                                                • How consumers feel about mobile wallet services
                                                                                                                  • Figure 72: Selected consumer attitudes to mobile wallets, January 2012
                                                                                                                • Subdued enthusiasm towards mobile network-issued bank cards
                                                                                                                  • Figure 73: Agreement with ‘I would use a debit or credit card issued by my mobile network provider’, by age, January 2012
                                                                                                                • Personal data in exchange for bespoke discounts
                                                                                                                  • Figure 74: Agreement with ‘I would exchange personal information (such as my clothing size, where I like to shop, etc.) with my network provider for discounts/vouchers to places I like to shop’, by age, January 2012
                                                                                                                • Consolidation of loyalty schemes on smartphones
                                                                                                                  • Figure 75: Agreement with ‘I am prepared to combine various loyalty programmes on my mobile instead of carrying several cards’, by age, January 2012
                                                                                                                • Using mobile phones to pay for purchases
                                                                                                                  • Figure 76: Agreement with ‘I don’t like the idea of using my mobile phone as a debit/credit card to pay for purchases in-store (eg as a contactless payment device)’, by age, January 2012
                                                                                                                • Fraud and security are biggest concerns over mobile wallets
                                                                                                                  • Figure 77: Reasons for disliking the idea of mobile wallets, January 2012
                                                                                                                • Are mobile network providers trusted to deliver mobile wallet services?
                                                                                                                • Appendix – Internal Market Environment

                                                                                                                    • Figure 78: Personally own a mobile phone, 2007-11
                                                                                                                    • Figure 79: Personally own a mobile phone, 2007-11
                                                                                                                    • Figure 80: Telephone calls from home by demographics, 2011
                                                                                                                    • Figure 81: Methods of accessing the internet in the past six months, January 2012
                                                                                                                    • Figure 82: Methods of accessing the internet in the past six months, by demographics, January 2012
                                                                                                                    • Figure 83: Methods of accessing the internet in the past six months, by mobile phone network provider for primary mobile handset, January 2012
                                                                                                                    • Figure 84: Methods of accessing the internet in the past six months, by mobile phone contract type for primary mobile handset, January 2012
                                                                                                                • Appendix – Brand Research

                                                                                                                    • Figure 85: Brand usage, November 2011
                                                                                                                    • Figure 86: Brand commitment, November 2011
                                                                                                                    • Figure 87: Brand momentum, November 2011
                                                                                                                    • Figure 88: Brand diversity, November 2011
                                                                                                                    • Figure 89: Brand satisfaction, November 2011
                                                                                                                    • Figure 90: Brand recommendation, November 2011
                                                                                                                    • Figure 91: Brand attitude, November 2011
                                                                                                                    • Figure 92: Brand image – macro image, November 2011
                                                                                                                    • Figure 93: Brand image – micro image, November 2011
                                                                                                                    • Figure 94: Profile of target groups by demographic, November 2011
                                                                                                                    • Figure 95: Psychographic segmentation by target group, November 2011
                                                                                                                    • Figure 96: Brand usage by target group, November 2011
                                                                                                                  • Brand index
                                                                                                                    • Figure 97: Brand index, November 2011
                                                                                                                • Appendix – Mobile Network Usage

                                                                                                                    • Figure 98: Mobile phone network provider for primary mobile handset, January 2012
                                                                                                                    • Figure 99: Mobile phone network provider for primary mobile handset, by demographics, January 2012
                                                                                                                    • Figure 100: Mobile phone contract type for primary mobile handset, by mobile phone network provider for primary mobile handset, January 2012
                                                                                                                    • Figure 101: Ownership of mobile phone and portable media player, by mobile phone network provider for primary mobile handset, January 2012
                                                                                                                    • Figure 102: Mobile phone contract type for primary mobile handset, January 2012
                                                                                                                    • Figure 103: Ownership of mobile phone and portable media player, by mobile phone contract type for primary mobile handset, January 2012
                                                                                                                    • Figure 104: Mobile phone contract type for primary mobile handset, by demographics, January 2012
                                                                                                                    • Figure 105: Telephone calls from home, by demographics, 2011
                                                                                                                    • Figure 106: Options included in the current service package, 2011
                                                                                                                    • Figure 107: Online activities performed in the last three months, January 2012
                                                                                                                    • Figure 108: Other online activities performed in the last three months, January 2012
                                                                                                                    • Figure 109: Most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
                                                                                                                    • Figure 110: Next most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
                                                                                                                    • Figure 111: Most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
                                                                                                                    • Figure 112: Next most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
                                                                                                                    • Figure 113: Other online activities performed on a smartphone in the last three months, by demographics, January 2012
                                                                                                                    • Figure 114: Online activities performed in the last three months, by mobile phone network provider for primary mobile handset, January 2012
                                                                                                                    • Figure 115: Online activities performed in the last three months, by mobile phone contract type for primary mobile handset, January 2012
                                                                                                                    • Figure 116: Other online activities performed in the last three months, by mobile phone network provider for primary mobile handset, January 2012
                                                                                                                    • Figure 117: Other online activities performed in the last three months, by mobile phone contract type for primary mobile handset, January 2012
                                                                                                                • Appendix – Consumer Attitudes to Mobile Network Providers

                                                                                                                    • Figure 118: Attitudes towards mobile network providers, January 2012
                                                                                                                    • Figure 119: Most popular attitudes towards mobile network providers, by demographics, January 2012
                                                                                                                    • Figure 120: Next most popular attitudes towards mobile network providers, by demographics, January 2012
                                                                                                                    • Figure 121: Attitudes towards mobile network providers, by mobile phone network provider for primary mobile handset, January 2012
                                                                                                                    • Figure 122: Attitudes towards mobile network providers, by most popular ownership of mobile phone and portable media player, January 2012
                                                                                                                    • Figure 123: Attitudes towards mobile network providers, by next most popular ownership of mobile phone and portable media player, January 2012
                                                                                                                    • Figure 124: Reasons for switching mobile network providers, January 2012
                                                                                                                    • Figure 125: Reasons for switching mobile network providers, by demographics, January 2012
                                                                                                                • Appendix – Consumer Attitudes to Mobile Wallets

                                                                                                                    • Figure 126: Reasons for disliking the idea of mobile wallets, January 2012
                                                                                                                    • Figure 127: Most popular reasons for disliking the idea of mobile wallets, by demographics, January 2012
                                                                                                                    • Figure 128: Next most popular reasons for disliking the idea of mobile wallets, by demographics, January 2012

                                                                                                                Companies Covered

                                                                                                                • Arsenal Football Club
                                                                                                                • BT Group plc
                                                                                                                • Deutsche Telekom AG
                                                                                                                • Everything Everywhere Ltd
                                                                                                                • Financial Services Authority (The)
                                                                                                                • Formula One Administration Ltd
                                                                                                                • France Telecom SA
                                                                                                                • Freeserve plc
                                                                                                                • Glastonbury Festivals Ltd
                                                                                                                • Hutchison 3G UK Limited
                                                                                                                • Hutchison Whampoa Limited
                                                                                                                • mmO2 plc
                                                                                                                • Ofcom
                                                                                                                • Orange plc (UK)
                                                                                                                • Skype Technologies S.A.
                                                                                                                • Sony (UK) Ltd
                                                                                                                • T-Mobile (UK) Ltd
                                                                                                                • Telefónica UK Ltd.
                                                                                                                • Tesco Plc
                                                                                                                • Twitter, Inc.
                                                                                                                • UEFA
                                                                                                                • Vodafone Group Plc (UK)
                                                                                                                • Wanadoo UK plc

                                                                                                                Mobile Network Providers - UK - March 2012

                                                                                                                £1,995.00 (Excl.Tax)