INDEPENDENT PUBLICATION BY raconteur.net #0413 30 / 10 / 2016 MOBILE BUSINESS ARE WE A NATION OF DISRUPTIVE POTENTIAL MOBILE MOMENTS THAT EXECUTIVE JOBS MOBILE 04 OF MOBILE TECHNOLOGY 06 CHANGED THE WORLD 08 WILL AFFECT MOST 03 ‘SCREENAGE’ JUNKIES? Mobile is a powerful and fast-moving force From 1G to 4G and beyond, the mobile phone Mobile technology impacts most, if not all, walks As boundaries between work and leisure blur, smartphones are always in our lives transforming the way we live and work has rapidly evolved to change lives forever of working life, but some more than others South Korea will also unveil the next generation 5G in 2018 to coincide with the Winter Olympics. In the UK, it is unlikely to UK must move be launched until at least 2020. “5G will be important since it has the potential to support a whole new range of applications and industries. If the UK is faster to keep serious about having a vibrant digital econ- omy, being a 5G leader is a must,” says Mr Beresford-Wylie. “This will be a basic competitive require- up with mobile ment for advanced economies. If we’re not a 5G leader, there will be negative consequences for the economy and Although a frontrunner in mobile development, our global competitiveness.” Yet who is going to utilise these the UK is now showing signs of fatigue and services? At present the con- suming public is suffering from falling behind global competition handset fatigue, which shows few signs of abating. This not just a national issue but something with global impact, which is keenly felt in the UK where Apple and Sam- sung dominate. OVERVIEW Not quite. While brand names have Globally mobile services are now becom- NICK EASEN evolved over three decades alongside ing more like other utility services and handsets, the big players driving the therefore as time progresses the consumer market have largely stayed the same. Four is increasingly differentiating contracts in y any measure the UK has one operators dominate – BT’s mobile busi- terms of price. “Let’s hope that we don’t end of the most advanced and de- ness EE, Vodafone, Hutchison’s Three and up with a mobile market that resembles the veloped mobile phone markets Telefonica’s O2 – all heavyweights on the supermarket sector,” says Mr Miah. B on the planet. Walk up any high international scene. street and there’s no doubt that we have “Had the merger earlier this year be- an insatiable desire to interact and trans- tween O2 and Three not been stopped by act on our handsets. the EU, things could have been very dif- The UK is ranked in the top ten globally ferent,” explains Ernest Doku, telecoms If we’re not a 5G leader, when it comes to harnessing information expert at uSwitch.com. “Austria reduced there will be negative technology, according to a recent ranking its operators from four to three and prices by the World Economic Forum. It helps there soared by up to 30 per cent.” consequences for the that the telecoms market is one of the most Competition is fantastic for consumers, economy and our global competitive and regulated in the world. but it’s not great for a sector that’s been competitiveness “The UK’s smartphone appetite for faster consolidating globally because of price mobile speeds continues to grow,” says squeezes. The UK is also highly saturat- Derek McManus, chief operating officer at ed, for instance mobile penetration in the Some providers have now made strides O2. “Four in every five adults own a smart- US and Europe’s big five countries has towards new payment structures, sepa- phone and 4G data reached 91 per cent, rating airtime from handset costs, for in- usage has almost dou- according to research stance. “But we’re some way from a truly bled in the last year. by Kantar, and now value-driven market in terms of what cus- The consumer appe- ageing infrastructure tomers are getting for their money in a Eu- tite and growth oppor- The regulator wants BT dogs the sector. ropean context,” says Mr Doku. tunity are clear.” to place more emphasis “The return on in- One of the biggest developments in the Markets such as South vestment for mobile UK going forward will be the increasing Korea, Japan and the on improving the operators is meagre uptake of multi-play services, broadband United States have long network, but this will to say the least. internet, television and telephone with led the global race, but be costly This needs to be ad- mobile thrown in, also called quad-play. for some measures the dressed,” says Simon Consumers are used to separate suppli- UK ranks favourably. Beresford-Wylie, chief ers, but this situation is changing. “Con- For example, access to phone banking is far executive of Arqiva, providers of mobile vergence is key and what that means for more advanced here than across the Atlan- infrastructure. SMARTPHONE PENETRATION UK SMARTPHONE FORECAST pricing discounts,” says Guy Peddy, head Penetration is the percentage of mobile users who own a smartphone tic. The UK also has some of the world’s fast- Telecoms companies have also com- of European telecoms research at Mac- est mobile internet speeds, according to a plained about BT’s lack of investment in Global smartphone users (bn) Global penetration rate UK penetration rate quarie Group. report by content delivery company Akamai. infrastructure. Many were disappointed m The question is whether fast-growing “We know that 92 per cent of British mil- when the regulator did not force it to sell 3.0 90% 47.9 and profitable mobile services should people in the UK are lennials now view their mobile as their its Openreach business outright. This subsidise fixed lines or ageing infra- 2.5 80% expected to have a primary device for accessing the inter- company owns the pipes and cables that smartphone in 2020, up structure. “The main challenges facing net,” says Chris Worle, digital strategy connect nearly all businesses and homes from 38 million in 2015 operators will also be maintaining voice director at investment firm Hargreaves in the UK. 2.0 70% prices anywhere close to current levels in Lansdown. “The UK has one of the most “The regulator wants BT to place more em- this multi-play environment,” explains sophisticated markets in the world.” phasis on improving the network, but this 1.5 60% Dr Windsor Holden, head of forecasting at And when squared up to Continental will be costly,” says Helal Miah, investment Juniper Research. Europeans, the UK is a 600-pound goril- research analyst at the Share Centre. 1.0 50% Making the UK’s mobile sector work la – it’s one of the largest in terms of sub- The UK was at the forefront of deploy- rate Penetration 86% and pay in the years to come could be a scribers, as well as total revenues, and has ments in 2G and 3G. When 4G came along, 0.5 40% of UK mobile users use tricky business. some of the most competitive pricing. It is the country lagged behind South Korea, (bn) smartphone users Global a smartphone also one of the most advanced in terms of Japan and the US. Many European mar- 0 30% Share this article online via roll-out and up-take of 4G. So the market kets already have 100 per cent coverage; 2014 2015 2016 2017 2018 2019 2020 raconteur.net should be in rude health, right? the UK does not. Source: eMarketer 2016 RACONTEUR CONTRIBUTORS DISTRIBUTED IN PUBLISHING MANAGER HEAD OF PRODUCTION SIMON BROOKE BENJAMIN CHIOU NICK EASEN MARK FRARY GABRIELLA GIDEON SPANIER TIM STAFFORD FINBARR Nathan Wilson Natalia Rosek Award-winning Business and eco- Award-winning free- Science, technology GRIFFITH Head of media at Freelance journal- TOESLAND freelance journalist, nomics writer, his lance journalist and and business writer Freelance business advertising maga- ist, specialising Freelance journal- PUBLISHED IN PRODUCTION EDITOR DIGITAL CONTENT MANAGER who writes for a num- specialisms include broadcaster, he pro- with eight published journalist and as- zine Campaign and in business and ist, he specialises ASSOCIATION Benjamin Chiou Jessica McGreal WITH ber of international a range of topics duces for BBC World books, he speaks reg- sistant commercial Broadcasting Press management, he in technology, publications, he including financial News and writes on ularly on technology editor at News UK, Guild chairman, he was launch editor business and MANAGING EDITOR DESIGN she has also worked economic issues, Peter Archer Samuele Motta specialises in lifestyle markets and com- business, economics, and futurology at writes about busi- of CEB Blogs. 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