The mobile telephone market has changed rapidly since 1997 since the value has increased by 149.5% and also four digital networks being rolled out. Between 1997 and 2001, the value of the total market increased from £2.75bn to £6.89bn, an increase of over 149.5%. In 1997, the UK cellular telephone network carried a total of 6.6 billion call minutes which rose to over 39 billion by March 2001.
Key Note estimates that, in 2007, the total UK mobile telephone market which includes voice servicing and non-voice services for example texts and data services almost covering both multimedia messaging services which will be worth £14.7bn, a rise of 5% on 2006 and some are as the following:-
- MMS- Picture messaging
- WAP- internet
Revenue generation surrounded by the network providers is no longer as simple as direct mobile services. 2006 and 2007 has seen the mobile telephone industry expand its reach through moves into broadband services, fixed line services and also television.
Example
At the end of 2006 the Carphone warehouse for example bought AOL which is the UK’s internet access firm in order for the compnay to expand the range of its provision. This basically means that Carphone warehouse is expanding into different market which can help to increase sale. Furthermore, the biggest takeover of 2006 is when Virgin Mobile by communications compnay NTL.
In 2007 faster technology has started to grow, high speed downlink packet access (HSDPA) which facilitated greater moves into content provision for mobile. A variety of different network operators for example Three, Vodafone and orange, made deals with television firms such as BBC, to expand programme content.
In addition Key Note forecasts have predicted that revenue from non-voice services will increase proportionately to total revenue over the next five years (2008 to 2012), with market share growing from 21.2% in 2008 to 31.2% in 2012.
The UK mobile telecommunications market was worth £13.6bn in the year ending March 2006, having increased in value by 7.7% on the previous year, although it remains the most active telecommunication market in the United Kingdom. Furthermore, the yearly sales growth slowed considerably compared with previous years, reflecting maturity and price restrictions on call termination rates.
A growing share of the UK mobile market is now in overseas hands, with 4 of the big five mobile operators being foreign owned and these firms control approximately 73% of mobile retail revenues. The Key Note forecast predicts that the mobile industry will show a steady growth between 2006 and 2007 and also between 2010 and 2012, reflecting a relatively stable rate of growth in the UK economy.
Recession and the mobile industry
Due to recession I think the mobile telecommunication market will definitely find it difficult to increase its sales and profit. The UK is in recession for the mean time, however, it is considered to be in a bigger recession in the future.
There are a significant number of mobile phone retailers in United Kingdom which provides different types of goods and services. Some of the biggest mobile phone retailers are as follows:-
- Vodafone
- Carphone Warehouse
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O2
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Orange
- T-mobile etc
It is quite difficult to compete with these large organisations because they have stores which are located all around the United Kingdom for example high street and local areas.
In addition the number of mobile Telecommunication retailes in the market is actually decreasing for a variety of reasons. For example the Link was shut down because it didn’t sell and didn’t make enough profit to cover the costs. Besides the number of independent stores had also decreased because large organisations are actually finding it difficult to build new stores in the City Centre for a variety of reasons which includes costs and populations.
Since the number of mobile phone retailers is decreasing, the market would find it difficult to serve more customers. The mobile telecommunication retailers should open more stores in order for the company to serve more customers include new and existing customers.
Phone retailers are facing a tough times since the sales is decreasing. Below is a table which basically proves that sales for the mobile phone market are decreasing from the period of 1999 and 2005:-
Global sales growth rate
Smartphones are benefiting from brisker than expected growth, according to a new report from Gartner. The company’s lately released "mobile terminals" market study projects that shipments of mobile phones in general will surpass 1 billion units in 2009, and that "smartphones" will reach the 200 million mark one year earlier, in 2008.
Carphone warehouse would actually find it uncomplicated to convert its stores very quickly and expensively to essentially serve another market. The layout of the business for Carphone Warehouse is quite effortless and simple, for this reason the organisation would perhaps find it simple to move stock in and out of stores to convert its business and serve another market. Carphone warehouse only has phones on the wall as a display and would be a trouble free for the company to move its stocks.
