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Industry metrics and summary

0 Figure 5.1 UK telecoms industry: key statistics

2007 2008 2009 2010 2011 2012

Total operator-reported revenue (£bn) 42.1 42.5 41.3 40.4 39.5 38.8 Operator-reported retail revenue (£bn) (excl. CDS) 28.5 28.9 27.9 27.4 27.3 27.5 Operator-reported wholesale revenue (£bn) 10.3 10.5 10.1 9.7 8.8 7.8 Average monthly household telecoms spend (2012 prices) (£) 88.38 85.71 82.07 79.62 78.94 80.25

Fixed access and call revenue (£bn) 10.4 10.2 9.6 9.3 8.8 8.5 Fixed revenue (£bn) 3.2 3.2 3.3 3.2 3.4 3.7 Fixed lines (millions) 34.5 34.2 33.5 33.4 33.3 33.1 Fixed connections (millions) 15.6 17.3 18.2 19.5 20.6 21.7 Superfast broadband connections (millions) 0.0 0.0 0.0 0.2 1.1 3.3 Fixed voice call minutes (billions) 149 141 128 123 111 103

Mobile retail revenues (£bn) 15.0 15.5 14.9 14.9 15.1 15.3 Mobile voice call minutes (billions) 105 115 121 125 124 122 SMS messages sent (billions) 66 85 104 128 151 152 Active mobile subscribers (millions) 73.8 76.5 80.3 81.2 81.6 82.7 Source: / operators Notes: CDS = corporate data services 1 The launch of 4G paves the way for faster mobile services

2 Figure 5.2

4G share of total mobile subscribers, May 2013

Subscribers (millions) 0.5

4G

2G/3G

82.2

Source: EE for 4G subscriber figures; Ofcom/ operators for remaining mobile subscribers Note: 4G subscribers are cited for the end of May 2013. Total mobile subscribers are cited for the end of December 2012. Because growth in the number of total mobile subscribers is low, the December 2012 figure is likely to provide an accurate estimate of the figure for the end of May 2013

3 Figure 5.3

Awareness and take-up of 4G

Proportion of respondents (%)

4% 8% Aware, and already have 4G 17% 12% Aware, and likely to get in the next year

Aware, and unlikely to get in the next year

Aware, and unsure if will get in the next year 21% Not aware 38% Don't know

Source: Ofcom research, April 2013 Base: All with with internet (1320) Question: 4G is a new service only currently available to Orange and T-Mobile (Everything Everywhere) customers, and it enables faster mobile . Which of the following statements best describes your awareness and use of 4G?

4 Figure 5.4

Future intention to sign up to 4G

14% Strongly agree 22% Slightly agree

16% None

14% Slightly disagree

Strongly disagree 34%

Source: Ofcom research, April 2013 Base: All who use a (967) 5

Figure 5.5 Reasons for wanting to upgrade to 4G

Proportion of respondents (%)

80%

60%

40% 73% 60% 59% 58% 20% 41% 38% 1% 2% 0% Quicker Improved data Quicker More reliable To keep up To take Other Don't know download coverage streaming data with advantage of speeds speeds connection technology newest developments phones Source: YouGov Smartphone, Mobile Internet eXperience, December 2012. Base: Respondents who own a smartphone and said they are likely to get a 4G handset on a 4G contract (681). Question: You said that you are likely to get a 4G-enabled handset on a 4G data contract in the future. For which, if any, of the following reasons are you likely to get a 4G data contract? (Please select all that apply).

6 Figure 5.6

Use of EE’s 4G network by application, March 2013

2% 8% Web browsing, email Video download/upload/streaming 13% 36% Music and apps

Social media 15% Video calling and other

26% File sharing and storage

Source: EE

7 Figure 5.7

Volume of data consumption among 4G handset users

13% 10% Up to 100MB 101 to 300MB

16% 20% 301 to 500MB 500MB to 1GB

1GB to 2GB 17% 24% 2GB to 4GB

Source: YouGov, SixthSense & 4G Tariffs report Question: How much data do you use in an average month? ‘Don’t knows’ have been excluded. Remaining base: 286, all of whom owned a 4G handset.

8 Figure 5.8

Volume of mobile data used by BillMonitor site visitors, by percentile

Monthly data use (MB) 1,000 922 924 849 865 878 823 90th 800 702 729 658 660 75th 600 582 568 513 465 466 474 503 485 50th 372 400 399 400 337 325 373 246 250 236 182 180 216 220 227 25th 200 145 143 166 166 85 89 100 102 101 52 49 61 59 65 63 83

0 12 12 12 12 13 12 12 12 12 12 12 12 ------Jul Apr Oct Jun Jan Mar Feb Nov Dec Aug Sep May

Source: BillMonitor. Note: Percentiles given are counted from the lowest user. Therefore one-quarter of users consume less data than the 25th percentile. 9 Figure 5.9 Reasons for not moving to 4G

Proportion of respondents (%)

50%

40%

30% 46% 20% 37% 30% 29% 10% 13% 13% 14% 8% 0% Data charges Cost of Stick with Not interested Worried about No coverage Other Don't know handsets current phone in speed coverage at home

Source: YouGov SixthSense 4G Tariffs report. Question: Which of these describes why you are unlikely to move to 4G? Please choose all that apply. Base: 225. The answers given in the chart are abbreviated for reasons of space and clarity. The full answers, in the same order given in the chart are: The greater use of data will make it too expensive; The handsets are too expensive; Not interested in faster speed; really like my current phone, which is not 4G compatible; Worried about poor reception; Will not get reception where I live; Other; Don’t know.

10 Superfast broadband becomes mass-market as availability increases

11 Figure 5.10 Number of BT exchanges that are fibre-to-the cabinet enabled

FTTC-enabled BT exchanges

1,522 1500 1,391 1,282 1,127 1,005 1000 782 679 528 500 421

0 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

Source: BT Wholesale

12 Figure 5.11 Proportion of premises in postcodes served by NGA networks: by technology

16% Cable only 27% Fibre only

25% Both cable and fibre

No superfast services available 32%

Source: Ofcom / operator data, June 2013

13 Figure 5.12 Comparison of major ISPs’ superfast and current generation broadband services BT TalkTalk Sky Headline download 38Mbit/s 38Mbit/s 38Mbit/s 38Mbit/s 30Mbit/s cable speed/technology FTTC FTTC FTTC FTTC Average actual speed, Nov 34.2Mbit/s 28.7Mbit/s - - - 2012 40GB plus 40GB plus Data allowance unlimited Unlimited Unlimited unlimited off- Unlimited WiFi peak Virgin Media Fixed off- Fixed off- Fixed off- Fixed Call allowance plus fixed peak peak peak weekends weekend £14.50 plus line £18 plus line £16.50 plus £15.99 plus £20 plus line Monthly cost rental (or stand

service superfast cost Lowest rental line rental line rental rental alone at £22.50) Headline download 16Mbit/s 16Mbit/s 16Mbit/s A16Mbit/s n/a

speed/technology ADSL2+ ADSL2+ ADSL2+ DSL2+ Average actual speed, Nov 9.2Mbit/s n/a 8.3Mbit/s 9.9Mbit/s 8.3Mbit/s 2012 10GB plus 10GB plus Data allowance unlimited n/a Unlimited unlimited off- Unlimited . Source: Ofcom / Pure Pricing UK Broadband Pricing Briefing, March 2013 Note: Excludes Virgin Media’s ADSL service as this is availableWiFi only outside its cable network footprint, meaning that the twpeako services are not substitutes for each other Fixed off- Fixed off- Fixed off- Fixed Call allowance n/a peak peak peak weekends14 generation service generation Lowest cost current current cost Lowest Figure 5.13

Take-up of superfast broadband services

Connections (millions) Per cent 5 17.5 20 Superfast 4 15.0 15 connections (left axis) 3 11.0 8.9 10 2 6.5 Superfast as a 5.3 3.8 4.2 3.3 % of all 2.9 2.4 5 1 1.8 1.9 connections 0.3 0.4 0.5 0.9 1.1 1.4 (right axis) 0.6 0.9 0.1 0.1 0.2 0.4

0 0.1 0 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 2011 Q1 2011 2010 Q1 2010 Q1 2012 Q1 2013

Source: Ofcom / operator data Note: Includes estimates where Ofcom does not receive data from operators

15 Figure 5.14

Changing composition of Virgin Media’s broadband customer base

Proportion of connections (%)

100 11 1 4 6 5 14 17 80 25 22 50/100/120 Mbit/s

60 60Mbit/s 89 40 84 79 64 20/30 Mbit/s 69 20 2/10 Mbit/s

0 9 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013

Source: Virgin Media: Q1 2013 Earnings Presentation

16 Figure 5.15 Superfast broadband net additions

Net subscription additions (000s) 800

13 15 28 600 7 15 22 38 21 Others 150 160 200 211 TalkTalk 400 6 BT Retail 4 3 460 200 2 131 453 419 Virgin Media 95 338 133 147 0 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Source: Company Reports / Enders Analysis Note: Data reflect company reported information, although estimates are used where data is incomplete or inconsistent.

17 Superfast users are altering their online behaviour after upgrading

18 Figure 5.16 Reasons for choosing current broadband service

49% The deal I was offered provided good value for money 30% 37% I want the fastest possible download speeds 14% 33% Previous service slow so wanted to get faster speeds 17% 32% Good simultaneous performance on different devices 16% 25% Connect to online services without experiencing delays 5% 22% So that I can quickly download large files, such as films 4% 19% I want the fastest possible upload speeds 3% 13% All reasons So that I can quickly upload or send large files 1% 12% Main reason Capacity limits or traffic management policy 2% 9% For my work or business needs 3% 0% 10% 20% 30% 40% 50% Source: Ofcom research, fieldwork carried out by Populus in March 2013 Base: All respondents (excluding those upgraded by their provider) (1016; Virgin Media 516, BT Infinity 272) Question 1 & 2: Why did you choose a broadband service? And which of these was the single most important reason? 19 Figure 5.17 Price of current broadband service compared to previous service

0% 20% 40% 60% 80% 100%

2013 14% 38% 28% 13% 6% 1%

2011 16% 46% 23% 10% 2%4%

Much more expensive A little more expensive About the same price as my previous service A little less expensive Much less expensive Don’t know

Source: Ofcom research, fieldwork carried out by Populus in March 2013 Base: All respondents who had ADSL, cable or mobile broadband previously (994) Question 9: How does the price of your current broadband service compare to the broadband service that you used to have? 20 Figure 5.18

Previous internet service provider, by current superfast provider

100% 8% 6% 9% 4% 11% Dont know 2% 7% 6% 13% 3% 14% 80% 11% Other 7% 7% 7% O2 60% 30% 49% Talk Talk Group 40% 53% 22% 62% 3% Sky 9% 20% Virgin Media 24% 21% 11% 0% British Telecom BT Virgin Media Sky Talk Talk

Current provider

Source: Ofcom research, fieldwork carried out by Populus in March 2013 Base: All with ADSL cable or mobile broadband previously: 1012; BT Infinity: 244; Virgin Media: 595, Sky 61, Talk Talk 76 Question 5: And which internet service provider did your household use before you subscribed to your (current) service?

21 Figure 5.19 Change in use, compared to previous broadband connection

100% 3% 3% 3% 3% 3% 27% 80% 35% 34% 45% 46% 51% 49% 53% 60% 60% 61% 60% 26% 28% 34% 40% 24% 30% 27% 28% 22% 23% 19% 46% 21% 20% 36% 30% 27% 22% 20% 19% 22% 16% 19% 16% 0% Streaming Streaming Uploading Uploading Working Uploading Listening to Accessing Purchasing Banking Sending/ HD TV TV cloud video from home photographs radio/ social goods receiving programmes programmes services content streamed networking email films or films audio sites services Much increased use Slightly increased use Use about the same Slightly decreased use Much decreased use

Source: Ofcom research, fieldwork carried out by Populus in March 2013 Base: All respondents who had ADSL, cable or mobile broadband previously and use each service Question 12: How has the amount you use these services changed compared to when you had your previous

22 Figure 5.20 Speed of downloads compared to initial expectations, by year

0% 20% 40% 60% 80% 100%

2013 4% 16% 44% 20% 15%

2011 5% 11% 50% 17% 16% 1%

Much slower than I expected A bit slower than I expected As I expected A bit faster than expected Much faster than expected Don’t know

Source: Ofcom research, fieldwork carried out by Populus in March 2013 Base: All with broadband before (943) Quetsion 9: How does the download speed of your current broadband service compare with what you expected when you signed up for it? 23 Figure 5.21 Experience of using these services compared to previous broadband connection 100% 2% 2% 2% 2% 10% 14% 17% 21% 22% 27% 28% 80% 19% 38% 40% 40% 44% 22% 30% 24% 27% 60% 28% 33% 23% 23% 24% 22% 40% 68% 61% 49% 53% 49% 20% 43% 37% 38% 36% 35% 33%

0% Streaming Streaming Uploading Uploading Uploading Listening to Working Accessing Purchasing Sending/ Banking HD TV TV cloud video photographs radio/ from home social goods receiving programmes programmes services content streamed networking email films or films audio sites services Much better Slightly better No real change Slightly worse Much worse

Source: Ofcom research, fieldwork carried out by Populus in March 2013 Base: All respondents who had ADSL, cable or mobile broadband previously and use each service Question 13: How would you describe your experience of these services using your current connection compared to your previous connection? 24 The telecoms industry

25 Market overview

26 Figure 5.22

Total telecoms revenue, by wholesale and retail, fixed and mobile, and corporate data services

Revenue (£bn) 42.1 42.5 41.2 40.4 39.5 38.8 40 3.2 3.2 3.3 Corporate data 3.4 3.5 3.5 services 30 15.0 15.5 14.9 14.9 15.1 15.3 Retail mobile 20 13.6 13.4 12.9 12.5 12.2 12.2 Retail fixed 10 10.3 10.5 10.1 9.7 8.8 7.8 0 Wholesale 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators with the exception of corporate data services, which is sourced from IDC. Notes: Corporate data services comprises web hosting, , IP VPN, digital leased line and frame relay/ATM services; wholesale mobile comprises mobile voice and SMS termination revenue and wholesale inbound roaming revenue (i.e. - revenue from overseas operators when their subscribers use UK networks).

27 Figure 5.23

Retail revenue, by service

Revenue (£bn) 28.9 30 28.5 27.8 27.4 27.3 27.5 0.8 1.2 Mobile data 2.7 2.8 1.5 1.7 2.0 2.4 2.6 2.6 2.5 2.4 Mobile 20 11.5 11.5 10.9 10.6 10.5 10.6 messaging Mobile access & 3.2 3.2 voice 10 3.3 3.2 3.4 3.7 Broadband and 10.4 10.2 9.6 9.3 8.8 8.5 narrowband 0 Fixed voice 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators

28 Figure 5.24

Volume of outgoing fixed and mobile voice minutes

Billions of minutes 300 254 256 249 248 235 225 Post-pay 80 mobile 200 87 91 98 102 104 25 28 Pre-pay 29 27 21 mobile 100 18 149 141 128 123 111 103 Fixed 0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators

29 Figure 5.25 Number of fixed connections, by service

Lines, channels and connections (millions)

29.8 29.6 29.3 29.7 29.6 29.8 30 PSTN lines

20 21.7 Fixed 19.5 20.6 18.2 broadband 17.3 connections 15.6 10 ISDN channels 4.7 4.6 4.2 3.7 3.6 3.3

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators

30 Figure 5.26 Number of mobile and mobile broadband subscribers

Subscribers (millions) 100 80.3 81.2 81.6 82.7 76.5 8073.8 Mobile 60 subscribers

40 Mobile broadband 20 subscribers 2.6 4.1 4.8 5.1 4.9 0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators. Note: Mobile broadband subscriber figures are included in the total mobile subscriber figures.

31 Figure 5.27

Retail fixed voice revenues: 2007 to 2012

Revenue (£bn)

12 10.4 10.2 9.6 10 9.3 Other calls 1.4 1.2 8.8 8.5 1.2 1.1 8 1.7 1.7 1.0 0.9 Calls to mobiles 1.6 1.5 0.6 0.6 1.2 1.0 0.5 0.4 0.4 0.3 International calls 6 1.4 1.4 1.3 1.2 1.1 1.0 4 UK geographic calls 5.2 5.3 5.0 5.0 5.1 5.3 2 Line rental

0 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators

32 Figure 5.28

Average monthly retail revenue per fixed line

Average monthly revenue (£) 30 25.09 24.67 25 23.60 23.11 3.31 22.03 21.36 Other calls 3.02 2.91 2.80 2.43 20 4.23 4.09 2.21 3.92 3.64 3.07 2.59 Calls to mobiles 1.54 1.46 1.20 1.11 0.83 15 0.95 3.47 3.30 3.16 3.10 2.72 2.48 International calls 10 UK geographic calls 12.54 12.80 12.41 12.46 12.86 13.26 5 Line rental 0 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators

33 Figure 5.29 Fixed voice volumes, by type of call

Minutes (billions) 200

149.5 150 140.7 Others 127.9 31.0 123.0 28.2 111.1 23.7 102.5 International calls 6.9 7.1 21.7 100 14.6 13.5 6.7 6.7 19.7 12.3 11.8 18.4 6.5 5.8 10.3 9.4 Calls to mobiles 50 97.0 91.9 85.1 82.8 74.6 68.9 UK geographic calls

0 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators Note: Others category includes narrowband internet calls. 34

Figure 5.30 Share of fixed voice call volumes

Call volume share (%) 100

29.7 29.5 29.8 29.3 26.8 23.8 80 Other indirect 9.9 12.8 60 15.0 19.2 22.9 25.7 Other direct 13.8 13.7 13.5 12.8 12.4 12.4 40 Virgin Media BT 46.6 20 44.0 41.7 38.8 37.9 38.0

0 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators 35 Figure 5.31 Number of fixed lines: 2007 to 2012

Lines (millions) 40 34.5 34.2 33.5 33.4 33.3 33.1

30 10.9 10.7 10.2 9.7 9.4 8.8 Business 20

Residential 23.6 23.5 23.4 23.8 23.9 24.4 10

0 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators

36 Fixed data services

37 Figure 5.32 Retail fixed internet revenues

Revenue (£bn) 4 3.7 3.4 0.0 3.3 3.2 3.2 3.2 0.0 0.1 0.1 0.1 3 0.2 Narrowband

2 3.7 3.2 3.4 2.9 3.1 3.2 Broadband 1

0 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators

38 Figure 5.33

Fixed broadband connections: 2007 to 2012

Connections (millions) 25 21.7 20.6 19.5 0.4 1.1 20 18.2 0.1 17.3 4.3 Other (inc. FTTx) 15.6 4.0 4.1 3.8 15 3.7 Cable 3.4 7.9 6.4 7.5 8.8 10 3.7 5.5 LLU ADSL Non-LLU ADSL 5 8.4 8.1 8.0 7.8 8.1 7.5

0 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators 39 Figure 5.34

Fixed broadband market share: 2007 to 2012

Market share (%) 100% 7 7 7 8 17 16 5 4 3 3 3 3 3 2 Other 80% 7 6 17 1 2 23 20 18 EE 16 17 O2 60% 18 19 11 13 15 8 TalkTalk Group 40% 24 23 23 22 21 21 Sky Virgin Media 20% 27 26 27 28 29 30 BT 0% 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators Note: TalkTalk figures include from 2009 onwards. Please also note that Tiscali was included in ‘Other’ prior to 2009.

40

Mobile voice and data services

41 Figure 5.35

Mobile voice retail revenue, by type of call

Revenue (£bn)

12 11.5 11.5 Other calls 10.9 10.6 10.5 10.6 1.1 1.1 10 0.4 0.4 1.2 0.4 1.4 1.4 1.4 1.8 1.6 0.4 0.4 0.4 International 1.5 0.9 8 0.7 0.7 1.2 1.1 0.8 0.6 0.6 0.5 0.40.6 0.9 0.7 0.6 0.6 6 On-net mobile 4 6.6 6.9 6.4 6.4 6.6 7.0 Calls to fixed 2 Access and 0 bundled calls 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators

42 Figure 5.36 Average revenue per user for mobile subscribers

Revenue per month (£) 40 34.58 32.78 28.74 30 26.24 25.14 24.23 Post-pay

20 17.40 17.15 Blended 16.03 15.47 15.43 15.57

10 7.43 7.24 7.12 6.86 6.56 6.35 Pre-pay

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators. Note: Blended refers to all subscribers: pre-pay and post-pay.

43 Figure 5.37

Volume of outgoing mobile minutes, by type of call

Minutes (billions) 121 125 124 122 125 115 8 8 7 105 27 2 2 2 27 Other calls 100 27 38 38 41 43 36 International 75 33 Off-net mobile 42 45 42 50 32 38 39 On-net mobile 25 31 31 32 32 31 31 UK geographic 0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators 44 to Q4 2012 Q4 to quarter and Volumesent, messages SMS of 5.38 Figure Source: - 10 20 30 40 10 Messages (billions)/quarterly change (%) 0

15 Ofcom 2007 Q1 5.7 16 Q2 2.9

17 / operators

Q3 4.0 18

Q4 11.4 20

Quarterly change in SMSvolume 2008 Q1 6.4

21

Q2 4.7 21

Q3 4.0 23

Q4 9.6 24

2009 Q1 4.4 25

Q2 3.4 26

Q3 1.2 29

Q4 14.2 30

2010 Q1 2.8 31 Q2 3.3 -on 32

Q3 2.3 2007 Q1 -quarter change: 36 Q4 13.2 SMS volumes 37

2011 Q1 2.7 37

Q2 0.0 37

Q3 1.5 40

Q4 6.3 39 2012 Q1 -1.5 39 Q2 -1.4 37 Q3 -4.3 37

45 Q4 0.7

Figure 5.39

Volume of SMS messages sent, by pre-pay and post-pay: 2007 to 2012

Messages (billions) 151 152 150 128 104 83 89 Post-pay 100 85 68 66 53 42 50 33 Pre-pay 68 52 61 63 34 43 0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators

46 Figure 5.40

Volume of MMS messages sent, by pre-pay and post-pay, 2007 - 2012

Messages (millions) 800 674 620 552 600 Post-pay 469 498 341 395 400 281 330 221 242 155 Pre-pay 200 248 256 271 279 279 175 0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators

47 Figure 5.41 Mobile connections, by type: 2007 to 2012

Connections (millions) 80.3 81.1 81.6 82.7 76.6 Mobile 8073.8 connections

60 Internet via 40.5 mobile 40 31.8 handset 26.0 Mobile 16.9 20 15.3 broadband 2.6 4.1 4.8 5.1 4.9 M2M 0 3.0 3.8 4.9 2007 2008 2009 2010 2011 2012

Source: Ofcom/operators and Ofcom market research. Note: ‘Internet via mobile handset’ figures are based on Ofcom’s market research on mobile internet use in Q1 of the year after the one stated; and Ofcom’s subscriber figures obtained from operators that refer to the end of the year stated. M2M figures relate to the end of September of the year stated. The number of mobile subscribers includes mobile broadband subscribers but excludes M2M connections.

48 Figure 5.42 Number of active mobile subscribers, by pre-pay and post-pay: 2007 to 2012

Connections (millions) 100 80.3 81.2 81.6 82.7 80 73.8 76.5 Post-pay 60 27.4 30.2 33.2 37.1 40.2 43.7

40 Pre-pay 47.1 20 46.4 46.3 44.0 41.4 39.0

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators

49 Figure 5.43 Number of active mobile broadband subscribers, by pre-pay and post-pay: 2012

Connections (millions)

Pre-pay 1.9

Post-pay 3.1

Source: Ofcom / operators

50 Business markets

51 Figure 5.44 Business fixed voice and fixed broadband connections, 2007 to 2012

Lines/channels/connections (millions) 8

6.2 6.1 6.0 5.9 5.8 PSTN lines 6 5.4

4 4.7 4.6 ISDN 4.2 channels 3.7 3.6 3.3 2 Broadband 1.5 1.4 1.5 1.6 1.6 1.7 0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators. Note: Fixed broadband includes FTTx and PSTN lines includes lines classed as ‘other’

52 Figure 5.45

Business mobile and mobile broadband connections: 2011 and 2012

Connections (millions) 10.7 10.2 10

8 2011 6

4 2012

2 1.4 1.4

0 Mobile connections Mobile broadband connections

Source: Ofcom / operators Note: Mobile broadband excludes smartphone data use.

53 Figure 5.46 Business fixed voice volume and revenue

Outgoing minutes (billions) Voice revenues (£bn) 50 5

40 3.8 3.6 4 3.2 Volumes 2.9 2.8 30 2.5 3

41 20 36 2 Revenues 30 29 26 24 10 1

0 0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators.

54 Figure 5.47

Mobile voice call volume, by consumer and business: 2012

Outgoing minutes (billions)

25.0 Business

Consumer

97.3

Source: Ofcom / operators Note: Contains estimates for some operators.

55 Figure 5.48

Mobile retail revenue by consumer and business

Revenues (£bn)

2.8 Business

Consumer 12.5

Source: Ofcom / operators Note: Contains estimates for some operators.

56 Figure 5.49 Corporate data services connections and revenue

Revenue (£bn) 4 3.4 3.5 3.5 3.2 3.2 3.3 3 Web hosting 0.9 1.0 1.1 1.2 1.3 1.4 revenue

2 Remaining 1 2.3 2.2 2.2 2.1 2.1 2.1 data services revenue

0 2007 2008 2009 2010 2011 2012

Source: IDC Note: Data services means the following services for connections and revenue: Ethernet, IP VPN, digital leased lines, frame relay/ATM and, for revenue only, web hosting.

57 The telecoms user

58 Market overview

59 Figure 5.50 Average household spend on telecoms services

£ per month (2012 prices) As a % of total expenditure 3.8% 3.7% 3.8% 3.7% 3.6% 3.7% 4% Fixed internet 100 £88.38 £85.71 £82.07 £79.62 £78.94 £80.25 3% 11.74 11.35 Mobile voice & 11.44 10.92 11.26 11.91 data 2% 50 48.65 47.74 Fixed voice 45.31 44.17 45.21 46.73 1% As a proportion of total household 27.98 26.62 25.33 24.52 22.48 21.61 spend 0 0% 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators / ONS Notes: Includes estimates where Ofcom does not receive data from operators; adjusted to RPI; includes VAT.

60 Figure 5.51 Household penetration of key telecoms technologies

Proportion of adults (%) 100 93 92 92 93 94 94 88 87 85 85 84 84 Fixed telephony 80 76 79 80 73 76 75 67 70 71 74 68 72 72 Internet 60 58 65 65 67 connection 50 Total broadband 42 38 40 49 Fixed broadband 30 27 39 32 Mobile data user 20 20 21 Internet on 17 12 15 13 mobile Mobile 0 5 2008 2009 2010 2011 2012 2013 broadband Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+ 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? 61 Figure 5.52

Household penetration of fixed and mobile telephony

Proportion of respondents (per cent)

100% 1 1 1 1 1 11 12 14 15 15 15 None 80%

60% Mobile only 81 80 78 79 79 79 40% Fixed and mobile 20% Fixed only 0% 8 7 7 6 5 5 2008 2009 2010 2011 2012 2013

Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+

62 Figure 5.53 Comparison of average fixed and mobile voice call charges

Pence per minute

15

10.9 10.0 Fixed 10 9.0 8.5 8.6 9.1

8.5 8.6 7.6 7.9 8.1 8.1 5 Mobile

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; fixed calculation excludes non- geographic voice calls Figure 5.54 Home internet access: by age and socio-economic group

Proportion of adults (%)

100 92 92 91 91 91 90 90 90

88 88

87 86 85 85

83 80 80 79 79 78 77 77 75

73 80

65 2011 64

63 57 56 60 55 2012 40 31 27 26 2013 20

0 UK 16-24 25-34 35-54 55-64 65-74 75+ AB C1 C2 DE

Source: Ofcom research, data as at Q1 2013. Base: All adults aged 16+ QE2: Do you or does anyone in your household have access to the internet/ worldwide web at home?

64 Figure 5.55

Household penetration of fixed and mobile broadband

Proportion of respondents (per cent) Total broadband 68% 71% 74% 76% 75% 100% take-up 32 29 26 24 25 None 80% 42 5 3 3 6 7 8 2 Mobile only 60% 9 9 9 Fixed and mobile 40% 70 58 56 56 58 64 Fixed only 20% Any broadband 0% 2008 2009 2010 2011 2012 2013

Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+

65 Figure 5.56 Use of methods of communication other than traditional voice telephony Proportion of respondents (per cent) 100 80 80 81 78 80 68 71 2011 60 52 54 47 2012 40 28 22 24 19 17 2013 20 12

0 Mobile Email Social networking VoIP Mobile instant messaging sites messaging Source: Ofcom research, data as at Q1 of each year Base: All adults 16+ Note: VoIP data for 2013 are not comparable to those from previous years they have been compiled on a different basis. QD28A Which, if any, of the following activities, other than making and receiving voice calls, do you use your mobile for? QE5A Which, if any, of these do you use the Internet for? QE30 Have you or anyone in your household ever used one of these services to make voice calls using the Internet at home? (answers used relate to current use).

66 Figure 5.57 Average monthly time per person spent using telecoms services Hours per month 30 23.9

20 18.0 2007

10 7.1 7.9 2012 4.9 4.3 4.8 3.0 2.2 0 Fixed voice Mobile voice Mobile Fixed internet on Mobile internet messaging PC/laptop Annual -7.4% -2.2% +5.7% +12.5% +6.6% change

Source: Ofcom / operators / ComScore MMX, UK, home and work panel, January to December 2007 and January to December 2012 / US Census Bureau / ComScore GSMA MMM, UK, browser access only, on-network, December 2011 and December 2012 Note: Includes estimates where Ofcom does not receive data from operators; voice calls include incoming and outgoing calls; fixed voice call figures include NTS voice calls; mobile messaging figures assume an average of two minutes per SMS and MMS message and one minute per IM message; Ofcom’s estimates of fixed and mobile internet use per person are based on comScore data and exclude time spent watching online video and listening to streamed music; Mobile internet use includes on-network traffic only, and excludes time spent using internet connected mobile applications.

67 Fixed voice services

68 Figure 5.58

Real price of a basket of residential fixed voice services

£ per month (2012 prices) 25 22.44 22.18 21.72 21.69 21.17 21.27 2.36 2.50 2.55 2.60 Calls to mobiles 20 1.75 2.52 2.34 1.44 1.22 1.11 0.91 0.82 15 International calls 10 18.33 18.25 17.95 17.98 17.74 18.11 Fixed access & 5 UK geographic calls 0 2007 2008 2009 2010 2011 2012 Annual -1.2% -1.1% -2.1% -0.1% -2.4% 0.5% change

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; excludes non-geographic voice calls; adjusted for RPI; includes VAT

69 Figure 5.59

Use of fixed voice communication services in the home

Proportion of respondents (per cent) 100 92 86 89 82 Personally 80 70 use a 66 60 Have ever 40 38 40 38 36 34 used VoIP 31 30 29 28 25 20 10 9 Currently use VoIP 0 All 16-24 25-34 35-54 55-64 All aged 65 respondents or older

Source: Ofcom research Q1 2011 Base: All adults aged 16+

70 Figure 5.60

Average monthly outbound fixed voice call volumes per person

Minutes per month

203 NTS voice calls 200 190 42 171 164 38 32 147 150 20 29 135 Calls to mobiles 9 18 26 10 17 16 24 9 9 14 12 100 9 8 Outgoing 132 124 international 50 114 110 99 91 calls UK geographic 0 calls 2007 2008 2009 2010 2011 2012 Annual -3.7% -6.5% -9.6% -4.4% -10.1% -8.2% change

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators

71 Figure 5.61 Average revenue per fixed-voice call minute

Pence per minute 15 12.9 12.0 12.5 12.4 11.9 11.0 Calls to mobiles 9.3 9.1 10 8.5 8.4 7.5 7.4 UK geographic (inc. line rental) 7.2 7.3 5 6.8 6.6 5.9 5.6 International

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; UK geographic calculation includes line rental revenues; Excludes VAT. Figure 5.62 Standalone fixed-line tariff analysis

2012 2013

Provider With evening With evening With weekend With anytime With weekend With anytime and weekend and weekend calls calls calls calls calls calls £14.60 £17.75 £19.50 £15.45 £18.75 £20.60 BT (£10.75) (£13.90) (£15.65) (10.75) (£14.05) (£15.90) £12.25 £17.25 Sky - £14.50 - £19.50 (£9.95) (£14.95) £17.411 £20.01 TalkTalk - - - - (£13.11) 1 (£15.71) Virgin Media - £18.502 £21.902 - - -

Source: Pure Pricing UK Broadband Pricing Briefing, March 2012 and March 2013 Note: All tariffs exclude activation charges and promotional discounts and include VAT; all tariffs are the lowest price available; contract lengths vary; figures in brackets require prepayment of twelve month’s line rental; ¹ also includes anytime calls to TalkTalk ; ² also includes calls to Virgin Mobiles 73 Figure 5.63

Residential consumer satisfaction with fixed-line services

Proportion of all adults with service (per cent)

100 88 91 91 89 89 90 80 32 34 34 32 34 34 Fairly satisfied 60

40 Very satisfied 56 57 57 57 56 56 20

0 2008 2009 2010 2011 2012 2013

Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+ with a fixed line phone Note: Only includes those who expressed an opinion

74 Fixed broadband services

75 Figure 5.64

Real average monthly price of a residential fixed broadband connection

£ per month Annual -13.3% -11.5% -5.1% -8.9% -0.1% +1.1% change 25

20

15

£21.17 10 £18.73 £17.77 £16.20 £16.17 £16.35 5

0 2007 2008 2009 2010 2011 2012 Average n/a 3.6Mbit/s 4.1Mbit/s 6.2Mbit/s 7.6Mbit/s 12.0Mbit/s actual (November) (April) (November) (November) (November) speed

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; includes VAT; adjusted for RPI

76 Figure 5.65 Lowest -cost fixed broadband options from major ISPs

Fixed Fixed Fixed Fixed Fixed Fixed Fixed broadband broadband, broadband, Provider broadband broadband broadband broadband and fixed fixed line fixed line only and calls and mobile and pay-TV line and mobile and pay-TV £28.45 £33.45 BT - - - - - (£23.75) (£28.75) EE - - £24.00 - - £19.002 - O2 £13,501 - £26.50 £8.501,2 - £21.502 - £19.98 Plusnet - £5.991 - - - - (£16.48) £24.50 £36.00 Sky - - - - - (£19.95) (£31.45) £21.45 £30.45 TalkTalk - - - - - (£16.00) (£25.00) Virgin £29.49 £29.492 £32.99 £22.50 - £22.502 £36.50 Media3 (£24.50) (£24.502) (£28.00)

Source: Pure Pricing UK Broadband Pricing Briefing, March 2012 and March 2013 Note: All tariffs exclude activation charges and promotional discounts and include VAT; all tariffs are the lowest price available; contract lengths vary; allowances for fixed-line and mobile calls, plus availability of TV channels included within packages may differ by operator and option; figures in brackets require pre-payment of twelve months’ line rental; 1 Also requires BT fixed-line rental at £15.45 a month/£129 pre-payment for a year; 2 plus cost of mobile tariff; 3 discounts available on Virgin Mobile tariffs.

77 Figure 5.66

Take-up of fixed broadband, by age

Proportion of respondents (per cent) 100 82 83 75 76 76 79 80 72 72 73 73 3 70 74 Fixed and 67 3 2 11 9 69 1 8 2 63 12 4 62 mobile 9 12 14 6 54 60 13 51 2 broadband 2 1 40 80 70 72 74 73 73 29 64 61 59 64 68 63 66 60 25 25 58 50 49 53 1 Fixed 20 broadband 25 25 28 only

0 2011 2011 2011 2011 2011 2011 2011 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013

All adults 16-24 25-34 35-54 55-64 65-74 75+

Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+

78 Figure 5.67 Non-ownership of home broadband, by socio-economic group and age

Proportion of respondents (per cent) 75 80 7471

60 2011 47 4543 44 46 2012 40 36 26 2626 28 2827 2425 22 23 1720 1719 2013 20 1614 14 15 1414 13

0 All ABC1 C2 DE 15-24 25-34 35-54 55-64 65-74 75+

Source: Ofcom research, data as at Q1 2013 Base: All adults 16+

79 Figure 5.68 Main reasons for not having a home broadband connection

Proportion of those without broadband (per cent)

50 44 41 37 40 2011

30 24 25 25 2012 18 19 18 18 18 18 18 20 16 15 15 17 15 10 2013

0 Don't need it Don’t want a Don't have Too expensive Too old to use Likely to get in computer knowledge / internet next year skills

Source: Ofcom research, data as at Q1 of each year Base: All adults without the internet aged 16+ Note: 2% of people without the internet in Q1 2013 did not know what their main reason was or provided an ‘other’ reason

80 Figure 5.69 Location of internet access Proportion of adults aged 16+ (per cent)

0 20 40 60 80

78 At home 61 31 At work 25 2013 At someone elses 23 house 15 At library or 10 2008 educational institution 14 5 At internet cafe 7 5 All other locations 2

In total 82% of UK adults used the internet in Q1 2013 Source: Ofcom research , data as at Q1 of each year Base: All internet users aged 16+

81 Figure 5.70 Satisfaction with aspects of fixed broadband service

Proportion of all adults with service (per cent)

100 89 90 90 86 87 88 83 81 80 80 80 81 80 34 38 40 Fairly 41 44 40 34 60 36 38 41 41 39 satisfied

40 Very satisfied 55 52 50 49 20 46 43 48 45 42 39 39 41

0 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Overall Speed of service

Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+ with a fixed broadband connection Note: Includes only those who expressed an opinion

82 Mobile voice and data services

83 Figure 5.71

Real cost of a basket of mobile services

£ per month (2012 prices) 30 Metered £24.32 messaging £21.05 20 8.69 £17.71 Metered voice 6.76 £15.70 £14.47 4.98 £14.10 3.95 5.14 4.11 3.18 2.89 10 3.54 2.98 2.49 2.06 Line rental fee, UK landline 10.49 10.17 9.19 8.78 8.80 9.15 calls and 0 inclusive calls, 2007 2008 2009 2010 2011 2012 texts and data Annual -14.6% -13.5% -15.9% -11.3% -7.8% -2.6% change

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; excludes non-geographic voice calls; adjusted for RPI; includes VAT 84 Figure 5.72 Average per-minute mobile call charges, by customer type

Pence per minute 15

11.5 10.7 9.5 Pay 10 8.7 8.6 8.7 monthly 8.9 8.2 8.3 7.8 7.5 7.6 5 Pre-pay

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; contract calculation includes rental element which will often include a number of inclusive messages and data allowance; calculations use actual minutes of usage

85 Figure 5.73

Monthly line rental prices for new post-pay mobile connections

Proportion of sales (%)

100% 6 6 £40+ 17 15 15 16 12 13 15 12 13 10 10 10 9 9 8 9 7 10 10 12 14 14 15 16 80% 15 14 11 13 13 14 15 17 13 £35-39.99 26 19 15 7 8 9 31 30 28 13 11 10 8 9 11 10 9 9 34 12 13 12 12 10 £30-34.99 60% 13 15 17 21 14 10 10 12 13 14 11 11 14 11 13 £25-29.99 10 14 11 10 10 13 13 11 9 11 11 8 7 13 13 13 15 16 14 11 40% 14 11 8 10 13 13 20 20 18 16 13 £20-24,99 13 10 18 19 13 6 6 8 22 20 19 18 17 20% 20 21 23 23 £15-19.99 15 17 17 19 29 30 29 27 30 18 17 18 20 24 26 26 £0-14.99 7 6 7 7 12 12 12 13 15

0% Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 2011 Q1 2011 2008 Q1 2008 Q1 2009 Q1 2010 Q1 2012 Q1 2013

Source: GfK Retail and Technology UK Ltd, Contract Handset Acquisitions: price segments. Notes: England, Scotland and Wales only (excludes ); based on GfK’s coverage of 94% of the consumer market; based on new post-pay connections; excludes contract renewals; only represents sales through consumer channels (i.e. most business connections are excluded)

86 Figure 5.74

Contract lengths for new post-pay mobile connections

Proportion of sales (%) 100 1 24 3 5 7 13 26 Other 80 41 47 50 63 69 70 68 70 69 70 67 68 69 72 67 24 months 60 72 68 67 63 60 50 18 months 40 35 28 24 12 3 2 5 3 6 4 3 2 3 12 8 3 3 3 4 7 8 10 9 11 13 16 17 18 12 months 20 13 8 18 15 24 24 21 21 21 15 19 20 18 17 17 19 18 18 14 14 13 12 12 14 10 1 month

0 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q1 2011 Q1 Q1 2008 Q1 2009 Q1 2010 Q1 2012 Q1 2013 Q1

Source: GfK Retail and Technology UK Ltd, Contract Length Sales of new Mobile Connections Notes: England, Scotland and Wales only (excludes Northern Ireland); based on GfK’s coverage of 94% of the consumer market; based on new post-pay connections; excludes contract renewals; only represents sales through consumer channels (i.e. most business connections are excluded)

87 Figure 5.75

Household penetration of fixed and mobile telephony, by socio-economic group and age

Proportion of respondents (per cent)

100% 1 1 31 15 11 15 12 8 7 26 29 28 None 80% 62 60% Mobile only 81 79 86 81 87 40% 64 87 70 71 Fixed and mobile 20% 35 12 Fixed only 0% 5 4 5 9 1 1 6 All ABC1 C2 DE 16-24 25-34 35-54 55-64 65-74 75+

Source: Ofcom research, data as at Q1 of each year Base: All adults aged 16+

88 Figure 5.76

Average monthly outbound mobile voice minutes per person

Minutes per month 200 Other calls 167 164 155 162 161 11 142 9 3 103 10 Outgoing 150 103 3 3 92 international calls 51 51 54 56 49 Off-net calls 100 45 59 44 52 56 55 51 On-net calls 50 42 42 42 43 42 41 UK fixed calls 0 2007 2008 2009 2010 2011 2012

+18.1% +9.1% +4.1% +3.0% -1.7% -1.6% Annual change

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; calculation excludes mobile broadband connections

89 Figure 5.77

Average monthly outbound mobile call minutes, by subscription type

Minutes per month 300 256 252 240 233 221 207 200 Pay monthly

100 Pre-pay 50 52 45 48 41 38

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators; calculation excludes mobile broadband connections

90 Mobile data services

91 Figure 5.78 Average monthly mobile messaging volumes per person

Messages per month 250 200 201 200 1 1 172 1 MMS picture 150 141 messages 115 1 1 100 90 200 200 171 SMS text 140 114 messages 50 90

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators.

92 Figure 5.79 Average monthly messaging volumes by subscription type

Messages per month 200 179 176 160 138 150 Pay 121 104 monthly 132 130 100 111 92 Pre-pay 77 50 61

0 2007 2008 2009 2010 2011 2012

Source: Ofcom / operators Note: Includes estimates where Ofcom does not receive data from operators. 93 Figure 5.80

Satisfaction with aspects of mobile service

Proportion of all adults with service (per cent)

100 94 94 94 93 95 94 88 88 87 88 89 88

80 35 32 33 32 37 35 30 29 30 30 35 36 Fairly 60 satisfied

40 Very 62 61 61 59 58 60 58 59 57 58 55 52 satisfied 20

0 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Overall Accessing the network

Source: Ofcom research Base: All adults aged 16+ with a mobile phone Note: Includes only those who expressed an opinion

94 Figure 5.81 Use of data services on mobile phones, by age and socio-economic group

Proportion of adults (%)

80 75 74 68

61 2009 57 57 56 60 55 53 50 49

2010 46

44 43 42 41

39 39

38 37

36 35 2011 34 34 40 32

31 30

28

27 27 27

26

25

24

23

22 2012 21 20 19 19 18 20 17 13

2013 9

6

5 4 3 2 2 0 Total 16-24 25-34 35-54 55-64 65+ AB C1 C2 DE

Source: Ofcom research, data as at Q1 of each year Base: All adults 16+ Note: Internet use includes accessing the internet, downloading and streaming content, connecting using WiFi and using VoIP QD28A: Which if any, of the following activities, other than making and receiving voice calls, do you use your mobile for?

95 Figure 5.82

Use of mobile data services among mobile users

Proportion of mobile users using service (per cent) 50 47 40 40 36 2011 29 29 30 28 26 19 19 2012 20 17 12 13 10 2013

0 Web browsing Emailing Downloading apps Instant messaging

Source: Ofcom research, data as at Q1 of each year Base: All mobile users aged 16+ QD9A: Which if any of the following activities, other than making and receiving voice calls, do you use your mobile for? 96 Figure 5.83

Location of internet access using a mobile handset

Proportion of mobile data users

Always use outside the home, 1% Always use in the home, 7% Mainly use outside the home, 11% Mainly use in the home, 14%

Use equally inside and outside the home, 66%

Source: Ofcom research, Q1 2013 Base: All adults aged 16+ who access the internet on their mobile phone

97 Figure 5.84 Take-up of mobile broadband: by age, socio-economic group and housing type

Proportion of respondents (per cent) -8 -13 -14 -5 -4 -2 0 -10 -8 -6 -5 -8 -10 -2 Annual change 10 9 8 Mobile 8 7 7 broadband 6 6 6 only 6 5 5 5 5 6 5 4 4 4 3 4 3 2 2 5 2 5 Fixed and mobile 2 3 3 2 1 1 3 3 3 3 3 broadband 2 2 1 1 1 1 1

0 24 34 54 64 74 All C1 C2 AB DE - - - - - 75+ 16 25 35 55 65 social

private -

- Rent Rent Rent Rent

Socio-economic mortgage / Own Age group Housing Source: Ofcom research, data as at Q1 2013 Base: All adults aged 16+

98 Figure 5.85 Location of mobile broadband use outside the home

Proportion of total mentions (per cent)

Other Outdoors 1% 16% When travelling 25%

At work 18%

At someone else's Indoor public house spaces 22% 18%

Source: Ofcom research, data as at Q1 2013 Base: All adults aged 16+ who use mobile broadband outside the home 99 Figure 5.86 Lowest cost standalone mobile broadband contracts by provider

Minimum contract Charges above Provider Monthly charge Data allowance WiFi hotspot use length allowance

Vodafone 2011 £7.50 500MB 1 month £15/GB 1GB 2012 £3.00 250MB 1 month £2/250MB/day Not included 2013 £3.00 250MB 1 month £2/250MB/day Not included O2 2011 £5.11 500MB 1 month 2.4p/MB Unlimited £5.11/500MB or 2012 £10.21 1GB 1 month Unlimited £10.21/GB £5.11/500MB or 2013 £10.21 1GB 1 month Unlimited £10.21/GB T-Mobile 2011 £10.00 1GB fair use 18 months n/a Not included 2012 £10.00 1GB fair use 18 months n/a Not included 2013 £7.50 1GB fair use 1 month £3/day 3GB fair use Orange 2011 £10.00 500MB 1 month 5.1p/MB Not included 2012 £10.00 500MB 1 month 5.1p/MB Not included 2013 £10.00 500MB 1 month £3/day Not included 3UK 2011 £7.89 1GB 18 months 10p/MB Not included 2012 £7.87 1GB 18 months 10.2p/MB Not included 2013 £7.87 1GB 24 months 10.2p/MB Not included £6/500MB or 4GEE 2013 £12.99 1GB 24 months 3GB fair use £15/2GB Virgin Mobile 2011 £10.21 1GB 2 months 1.46p/MB Not included 2012 £10.21 1GB 2 months 1.46p/MB Not included 2013 £10.21 1GB 2 months 1.46p/MB Not included Source: Pure Pricing UK Broadband Pricing Briefings Note: Data as at March of each year 100