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Figure 1.1 Communications industry revenue – telecoms, TV, radio, post £billions Annual 5 year 80 change CAGR 61.1 61.6 60.2 59.8 59.6 59.5 Total -0.2% -0.5% 60 6.8 6.8 6.7 6.5 6.7 7.2 1.2 1.1 1.1 1.1 1.2 1.2 Post 7.0% 0.9% 11.0 11.2 11.1 11.7 12.2 12.3 40 Radio 2.7% 0.3% TV 0.8% 2.2% 20 42.1 42.5 41.3 40.4 39.5 38.8 Telecoms -1.8% -1.6% 0 2007 2008 2009 2010 2011 2012 Source: Ofcom/ operators Note: Includes licence fee allocation for radio and TV, Figures are in nominal terms 0 Figure 1.2 Digital communications service availability UK UK Platform UK 2012 England Scotland Wales N Ireland 2011 change Fixed line 100% 100% 0pp 100% 100% 100% 100% 2G mobile1 99.6% 99.7% -0.1pp 99.8% 99.3% 98.8% 98.5% 3G mobile2 99.1% 99.1% 0pp 99.5% 96.6% 97.7% 97.4% Virgin Media cable broadband3 48% - - 51% 38% 22% 28% LLU ADSL broadband4 94% 92% +3pp 95% 87% 92% 85% BT Openreach / Kcom fibre b’band5 56% n/a n/a 59% 25% 41% 93% NGA broadband6 73% 65% +8pp 76% 52% 48% 95% Digital satellite TV 98% 98% 0pp - - - - Digital terrestrial TV7 99% - - 99% 99% 98% 97% DAB BBC Network88 94.3% 92% +2.3pp 95.5% 90.9% 85.9% 85.4% DAB commercial network (Digital 85% 85% 0pp 90% 75% 60% - One)9 Sources: Ofcom and operators: 1. Proportion of premises that have outdoor 2G mobile coverage from at least one operator, June 2013 2. Proportion of premises that have outdoor 3G mobile coverage from at least one operator, June 2013 3. Proportion of homes in postcodes served by Virgin Media’s cable broadband network, June 2013 4. Proportion of homes connected to an LLU-enabled BT local exchange area, December 2012 5. Proportion of homes in postcodes served by BT Openreach’s fibre broadband network, June 2013 6. Proportion of homes in postcodes served by NGA networks, June 2013 7. Estimated proportion of homes that can receive the PSB channels via DTT (3PSB Mux coverage). Joint TV planning project (Arqiva, BBC, Ofcom) 8. BBC National DAB network coverage as of April 2012 http://stakeholders.ofcom.org.uk/broadcasting/radio/coverage/dab-coverage/ 9. Digital One coverage (indoor proportional method – households), April 2012 http://stakeholders.ofcom.org.uk/broadcasting/radio/coverage/dab-coverage/ 1 Figure 1.3 Household take-up of digital communications/ AV devices Proportion of individuals (%) 100% 97% Digital television DVD player 80% Games console 75% MP3 player 60% DAB digital radio 53% 51% DVR 40% 38% Smartphone 35% E-reader 24% 20% 22% Smart TV 8% 3D ready TV 7% 0% Tablet 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Ofcom technology tracker. Data from Q1 of each year Note: The Question wording for DVD Player and DVR was changed in Q1 2009 so data is not directly comparable with previous years. Base: All adults aged 16+ (2013 n=3750). 2 Figure 1.4 Household take-up of communications services Proportion of adults (%) 100 93 93 92 92 93 94 94 Mobile telephony 90 88 87 85 85 84 84 80 79 80 Fixed telephony 73 76 75 70 74 76 67 71 64 68 72 72 Internet connection 60 65 65 67 58 50 52 Total broadband 42 49 38 40 39 30 Fixed broadband 27 32 Mobile data user 20 21 20 17 15 13 12 Internet on mobile 5 0 2007 2008 2009 2010 2011 2012 2013 Mobile broadband dongle or datacard QE1: Does your household have a PC or laptop computer? / QE2: Do you or does anyone in your household have access to the Internet/Worldwide Web at HOME (via any device, e.g. PC, mobile phone etc)? / QE6: Which of these methods does your household use to connect to the Internet at home? Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+ 3 Figure 1.5 Take-up of superfast broadband services Per cent 5 17.5 20 4 15.0 Superfast 15 connections (left axis) 3 11.0 8.9 10 6.5 2 5.3 3.8 Superfast as a 4.2 3.3 % of all 2.9 2.4 5 1 1.8 1.9 connections 0.9 1.4 0.3 0.4 0.5 0.9 1.1 (right axis) 0.2 0.4 0.6 0 0.1 0.1 0.1 0 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 2011 Q1 2011 2010 Q1 2012 Q1 2013 Q1 Source: Ofcom / operator data Note: Includes estimates where Ofcom does not receive data from operators 4 Figure 1.6 Most important device for internet access by device ownership Device owners (%) 100% 8 10 7 13 80% 15 30 32 Other 23 17 Tablet 60% 28 20 21 16 Smartphone 40% 15 15 Desktop 61 Laptop 46 43 20% 34 34 0% All internet Of those with a Of those with a Of those who Of those with a users smartphone smartphone personally use laptop and who a tablet personally use Source: Ofcom research, Q1 2013 a tablet Question: Which is the most important device you use to connect to the internet, at home or elsewhere? “Other” responses include: “Netbook”, “Games console”, “Other device”, “None” and “don’t know”. 5 Figure 1.7 Most missed media activity Use a portable media 5 player (2009 onwards) 3 3 4 13 5 4 4 Watch videos/ DVDs 8 8 8 9 10 6 Play console/ computer games 12 17 16 12 15 17 Listen to a portable music device/ MP3 8 13 player 11 Listen to music on a hi- 18 20 13 fi/ CD or tape player 10 Read newspapers/ magazines Listen to the radio 52 50 Go online via computer/ 46 44 44 43 laptop/ netbook/ tablet Use a mobile phone Watch television 2005 2007 2009 2010 2011 2012 A2 – Which one of these would you miss doing the most? (Prompted responses, single coded) Base: All adults aged 16+ (3244 in 2005, 2905 in 2007, 1824 in 2009, 2117 in 2010, 1823 in 2011, 1805 in 2012). Significance testing shows any change between 2011 and 2012 Source: Ofcom research, fieldwork carried out by Saville Rossiter-Base in September to November 2012 Figure 1.8 Approximate number of items sent and received by post Claimed volume of items sent in the Claimed volume of items received in the last month last week Estimated average Average no. 20 or more 6 30 or more 2 no. items received: items sent per 8.5 per week month: 7.7 21 to 30 items 4 or 34 per month 11 to 20 items 11 11 to 20 items 17 5 to 10 items 25 5 to 10 items 3 or 4 items 17 3 or 4 items 17 1 or 2 items 20 1 or 2 items 16 None 18 None 8 Don't know 2 Don't know 1 0 20 0 % of consumers 20 % of consumers Source: Ofcom Residential Post Tracker Q3 2012-Q1 2013. Base: All respondents (n= 3671). Question: ‘Approximately how many items of post - including letters, cards and parcels - have you personally sent in the last month? This should exclude any items you send from home in connection with running a business, if you do this from home.’ Question: ‘Approximately how many items of post - including letters, cards and parcels - have you personally received in the last week?.’ 7 Figure 1.9 Average time spent using communications services per day Minutes per day 250 241 218 2007 200 177 170 2012 150 100 47 50 35 29 14 14 10 0 TV Radio Internet on Mobile phone Fixed phone PC/laptop Source: Ofcom / BARB / RAJAR / comScore MMX, home and work panel/ Operator data/ Strategy Analytics Note: Daily figures for mobile voice & data and fixed voice were calculated from monthly data on the assumption that there are 30.4 days in the average month; for the internet consumption figures relate to monthly averages of Jan-Dec for each year; the estimated internet consumption on a PC/laptop figures include the use of online applications such as streaming media and includes use at home and work; mobile telephony figures are Ofcom estimates based on message volume data and Ofcom Digital Day research conducted in 2010 8 Figure 1.10 Tak e-up of bundled services over time Proportion of households 70% 60% Other 60% 57% 53% 7% Mobile and broadband 6% 50% 1% 50% 2% 46% 8% 1% 3% Fixed voice, broadband, mobile 9% 2% and multi-channel TV 2% 40% 39% 6% 1% 40% 1% 2% Fixed voice, dial-up and 1% 2% multichannel TV 5% 5% 2% 19% 21% 1% 1% Fixed voice and multichannel 29% 29% 3% 3% 16% 30% 1% 17% TV 3% 5% 16% 4% 1% Fixed voice and dial-up 1% 4% 7% 12% 20% 4% 5% Fixed voice, broadband and 7% multichannel TV 5% 27% 27% 24% 10% 3% 20% 22% Fixed voice and broadband 19% 17% 12% 9% 0% Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Source: Ofcom technology tracker Base: All adults aged 16+ (2013 n=3750) QG1. Do you receive more than one of these services as part of an overall deal or package from the same supplier? 9 Figure 1.11 Overall satisfaction with communication services Proportion of users of service (per cent) 95 94 100 91 89 89 90 94 93 90 90 86 87 88 83 88 83 80 Satisfied 34 32 34 34 33 32 37 35 40 41 40 60 44 44 46 44 57 40 57 57 61 61 58 60 Very 56 56 50 46 48 20 43 39 42 40 33 satisfied 0 2011 Q1 2011 Q1 2011 Q1 2011 Q1 2011 2010 Q1 2012 Q1 2013 Q1 2010 Q1 2012 Q1 2013 Q1 2010 Q1 2012 Q1 2013 Q1 2010 Q1 2012 Q1 2013 Q1 Fixed Mobile Fixed Mobile telephony telephony broadband Broadband Source: Ofcom research Note: Shows the proportion of users with each service, includes only those who expressed an opinion.
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