UK Mobile Network Providers Market Report 2022
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Description
The UK Mobile Network Providers Market Report identifies consumers’ attitudes towards different types of mobile contracts, factors that influence which mobile provider consumers choose and future innovations in the mobile network market. This report covers the mobile network market size, market forecast, market segmentation and industry trends for the UK telecom market.
Click here to view our German market research on Mobile Network Providers 2022 (DE version).
Current Market Landscape
There is expected to be a minor decline in the value of the mobile operator market in 2022. Inflation will raise the average price of mobile contracts, which will help the value of the mobile network market. However, some customers will downgrade their contract due to tighter budgets and a quarter of mobile contract subscribers expect to switch to a new network provider that is cheaper once their current contract ends.
UK Mobile Operators Market Share and Key Industry Trends
The rate of inflation is set to cause significant changes to the prices that consumers pay for their monthly contracts. The Big Four mobile networks that dominate the UK mobile operators market share are set to increase the price of their monthly contracts in 2022.
The price rises mean some people will downgrade their contracts or switch to a cheaper provider in the mobile network market. SIM-only is expected to stay the most common payment plan for consumers due to the lower price points, reducing the mobile network market size.
- 53% of UK consumers pay between £11-40 per month for their phone contract.
- 20% of UK mobile users have heard of 5G and plan on getting a 5G plan and handset in the next year.
- 32% of UK mobile users agree that their current mobile contract is too expensive.
- 72% of UK mobile users agree that the monthly price of their contract is most important when choosing a mobile network.
Future Trends in the UK Mobile Network Market
The mobile network market can harness an opportunity of demonstrating its environmental credentials by using ad campaigns to reveal their eco-ethical initiative and engage consumers, particularly Generation Z.
The mobile network market size is expected to grow slightly due to increased 5G sign-up which means that consumers will require more data allowance, and therefore will subscribe to more expensive contracts.
Read on to discover more details or take a look at all of our UK Technology Market Research.
Quickly Understand
- Explores the UK mobile operators market share and the split of SIM only, traditional contract and PAYG.
- The amount spent on mobile contracts and the impact of inflation on these deals.
- Upcoming sign-up and interest in 5G and why some consumers do not intend to get it.
- The factors that influence which mobile network provider a customer chooses.
- Attitudes towards combining a mobile contract into a bundle with other services.
Covered in this Report
Products: Pay-as-you-go system, Contract bought with phone, SIM-only plan.
Brands: EE (Orange, T-Mobile), O2, Vodafone, Three, Tesco Mobile, giffgaff, Sky Mobile, Virgin Media, BT, TalkTalk.
Expert Analysis from a Specialist in the Field
This report, written by Zach Emmanuel, a leading analyst in the Technology sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
There is a significant section of consumers that consider the environmental initiatives run by mobile network providers when deciding which operator to pick. Providers should create advertising campaigns specifically based around these projects, instead of the customers having to proactively find that information.”
Zach Emmanuel
Consumer Technology Analyst
Table of Contents
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Overview
- What you need to know
- Key issues covered in this Report
- Market context
- Products covered in this Report
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Executive Summary
- High data usage from 5G will help mobile network provider’s market in long-term
- Figure 1: Category outlook, 2022-26
- The market
- Mobile network providers market valued at £12.4 billion
- Figure 2: Value of mobile network providers market, 2016-21
- Gap closes between EE and its competitors
- Figure 3: Market share, by network provider, 2020-2021
- Companies and brands
- Vodafone launches its first 5G portable router
- Popularity of giffgaff rises
- The consumer
- SIM-only continues as most popular type of payment
- Figure 4: Type of payment for mobile phone, 2021
- Increase in the number of people paying the higher amount for contracts
- Figure 5: Price of mobile payment plan, 2021
- Percentage of 5G owners increases by over double compared to last year
- Figure 6: Ownership or interest in buying a 5G smartphone and contract, 2021
- Highlighting phones from challenger brands will break the perception of 5G being too expensive
- Figure 7: Barriers against upgrading to 5G, 2021
- Highlighting environmental-based initiatives will engage Generation Z
- Figure 8: Factors when deciding mobile network provider, 2021
- Providers should motivate customers to make reviews and recommendations through incentives beyond price
- Virgin Media is in a strong position to succeed with quadplay offering
- Figure 9: Attitudes towards mobile network providers, 2021
- High data usage from 5G will help mobile network provider’s market in long-term
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Issues and Insights
- Inflation will reduce proportion of consumers paying in the mid-range of contracts
- Environmental ad campaigns will be key to engaging Generation Z
- Quadplay providers should offer to pay off final months of pre-existing contract to potential customers
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Market Size
- Mobile network providers market valued at £12.4 billion
- Figure 10: Value of mobile network providers market, 2016-21
- Figure 11: Volume of mobile subscribers, 2016-21
- Mobile network providers market valued at £12.4 billion
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Market Forecast
- High data usage from 5G will help mobile network provider’s market in long-term
- Figure 12: Category outlook for mobile network providers, 2022-26
- Mobile network providers market forecast to be worth £11.3 billion by 2026
- Figure 13: Market forecast for the value of the mobile network providers market, 2016-26
- Figure 14: Market forecast for the volume of the mobile network providers market, 2016-26
- High data usage from 5G will help mobile network provider’s market in long-term
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Market Drivers
- The conflict in Ukraine will hurt the UK economy
- Inflation is the key concern for 2022 for consumers, brands and the economy
- Consumers’ financial wellbeing has slipped from its recent high point …
- Figure 15: Household financial wellbeing index, 2016-22
- … and concerns over inflation are coming to the fore
- Mobile network providers increase monthly prices significantly due to inflation
- Fixed pricing for Tesco Mobile and giffgaff differentiates them from Big Four providers
- Monthly data usage continued to increase in 2020 despite lockdowns
- Growth of streaming services adds to mobile data usage
- Figure 16: Monthly mobile data usage, 2015-20
- Figure 17: Monthly broadband data usage, 2015-20
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Market Share
- Gap closes between EE and its competitors
- Figure 18: Market share, by network provider, 2020-2021
- Gap closes between EE and its competitors
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Launch Activity and Innovation
- EE introduces temporary gaming benches to promote Xbox Game Pass add-on
- Vodafone launches its first 5G portable router
- Vodafone boosts 4G signal in cities using telephone booths
- Vodafone makes eco-SIM with environment in mind
- Three and EE partner to roll out 4G on underground
- O2 is one of 10 companies behind 5G hybrid music festival
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Advertising and Marketing Activity
- Advertising spend in 2021 was at a similar level to 2020
- Figure 19: Above-the-line, online display and direct mail total advertising expenditure on mobile network services, 2019-21
- Figure 20: Share of advertising spend, by media type, 2019-21
- Nielsen Ad Intel coverage
- Advertising spend in 2021 was at a similar level to 2020
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Brand Research
- Brand map
- Figure 21: Attitudes towards and usage of selected brands, 2022
- Key brand metrics
- Figure 22: Key metrics for selected brands, 2022
- Consumers are most likely to see Tesco Mobile as a brand that offers good value
- Figure 23: Attitudes, by brand, 2022
- EE is viewed as the most fun brand
- Figure 24: Brand personality – macro image, 2022
- O2 is deemed the most reliable brand
- Figure 25: Brand personality – micro image, 2022
- Brand analysis
- Popularity of giffgaff rises
- EE performs at a similar level to 2020
- Tesco Mobile is known for its affordability and reliability
- O2 is the brand that consumers are most likely to have used
- A fifth of those who have heard of Vodafone say it is consistently high quality
- Brand map
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Payment Plan for Mobile Phone
- Rise in number of people with traditional phone contract
- SIM-only expected to remain the most popular due to impact of inflation
- Figure 26: Type of payment for mobile phone, 2020-21
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Price and Purchase Location for Mobile Contract
- Increase in the number of people paying the higher amounts for contracts
- Figure 27: Price of mobile payment plan, 2021
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- Figure 28: Price of mobile payment plan, split by price bands, 2020-21
- Network providers should focus in-store experience on mid to high-end smartphones
- Figure 29: Method of purchasing mobile phone contract, 2021
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- Figure 30: Method of purchasing crossed by money spent on mobile plan, 2021
- Increase in the number of people paying the higher amounts for contracts
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Interest in and Ownership of 5G
- Percentage of 5G owners increases by over double compared to last year
- Impact of inflation means that network providers should focus 5G advertising on the early adopters
- Figure 31: Ownership or interest in buying a 5G smartphone and contract, 2020-21
- Figure 32: Paying more for a 5G contract, 2021
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Barriers Against 5G
- Highlighting phones from challenger brands will break the perception of 5G being too expensive
- Figure 33: Barriers against upgrading to 5G, 2021
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- Figure 34: Price of contract, 2021
- Highlighting phones from challenger brands will break the perception of 5G being too expensive
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Motivations when Choosing Network Provider
- Highlighting environmental-based initiatives will engage Generation Z
- Figure 35: Factors when deciding mobile network provider, 2021
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- Figure 36: Willingness to pay more for an environmental-friendly network provider, 2021
- Highlighting environmental-based initiatives will engage Generation Z
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Attitudes towards Mobile Network Providers
- Providers should motivate customers to make recommendations with incentives beyond price
- Virgin Media is in a strong position to succeed with quadplay offering
- Breaking customers out of current contract remains a challenge
- Figure 37: Attitudes towards mobile contract bundles and expectation to switch provider, 2021
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
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Appendix: Forecast Methodology
- Market forecast and prediction intervals
- Figure 38: Lower bound, central and upper bound forecast for mobile network providers market (value), 2021-26
- Figure 39: Lower bound, central and upper bound forecast for mobile network providers market (volume), 2021-26
- Market drivers and assumptions
- Forecast methodology
- Market forecast and prediction intervals
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Consumer
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Data
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
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