Stronger connection: Rises in average revenue per user have helped to reverse falling revenue

The Telecommunication Resellers industry is structured uniquely when compared with other industries in the wider telecommunications sector. Industry operators do not own any infrastructure, but instead pay carriers for indirect access to their networks in order to deliver various telecommunications services. This allows operators to benefit from wired and wireless services at a relatively low cost, giving them higher wholesale margins than they would otherwise achieve, given the low-end markets that resellers tend to target. Industry operators provide telecommunications services to both consumers and businesses, often targeting their products to specific, bespoke niche markets...read more.

Industry Statistics & Market Size
Revenue
£4.5bn
Annual Growth 14-19
-0.6%
Forecast Growth 19-24
Profit
Employment
14,069
Businesses
358

Industry Threats & Opportunities

  • For much of the period, strong competition weighted on ARPU and industry revenue
  • The ease with which new firms can enter the industry has contributed to a high degree of competition
  • Uncertainty surrounding the UK’s exit from the European Union is expected to restrict growth
  • Industry Report - Industry Locations Chapter

    The geographic spread of Telecommunications Resellers industry establishments is highly correlated with the demographic and economic profile of the United Kingdom. Regions that have a higher concentration of large-scale corporate and government clients tend to have higher concentrations of industry operators. This is particularly true of London. Broadband connections are also partially determined by the level of economic activity in a region. Companies like Lebara and Lycamobile are MVNOs that particularly target niche demographic and ethnic markets. Migrant populations are mostly located in big metropolis and large cities. Consequently, urban areas throughout London, Manchester and Birmingham, for instance, present a higher concentration of ethnic MVNO establishments...purchase to read more.

    Additional Insights for the Telecommunications Resellers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Telecommunications Resellers Industry are

  • Development of a symbiotic relationship with another industry
  • Access to niche markets
  • Use of production techniques that add value to base product(s)
  • IBISWorld analysts also discuss how external factors such as Number of mobile connections and Demand from wireless telecommunications carriers in the Telecommunications Resellers industry impact industry performance..

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    What's in this report

    What is the Telecommunications Resellers Industry?

    Telecommunications resellers provide fixed, mobile and data telecommunication services over networks owned by a third party. Industry operators purchase network capacity from network providers and sell it on through their own channels. The industry does not include wired telecommunication providers, wireless telecommunication providers or internet service providers.

    Industry Products
  • Mobile services
  • Data services
  • Wired services
  • Phone cards
  • Industry Activities
  • Reselling fixed-line access
  • Reselling mobile telephony and related services
  • Reselling internet line access, backhaul and traditional data services
  • Reselling fixed-line voice services
  • Reselling infrastructure access
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of mobile connections
  • Demand from wireless telecommunications carriers
  • Percentage of households with internet access
  • Business confidence index
  • Number of businesses

  • Current Performance
  • Wireless demand
  • Communication competition
  • Regulating rates
  • Chart: Revenue Growth

  • Industry Outlook
  • Disconnected from EU
  • Innovative strategies
  • Bundling up
  • Table: Telecommunications Resellers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Telecommunications Resellers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Banks
  • Consumers

  • Key Selling Industries
  • Wired Telecommunications Carriers
  • Wireless Telecommunications Carriers

  • Products & Services
  • Mobile services
  • Data services
  • Wired services
  • Phone cards
  • Chart: Telecommunications Resellers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Businesses
  • Chart: Major Market Segmentation for the Telecommunications Resellers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitTransmission and interconnection feesPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Telecommunications Resellers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Telecommunications Resellers Industry

  • Industry Globalization
    Tesco Mobile Limited, Virgin Mobile Telecoms Limited, Giffgaff Ltd, Gamma Communications plc,
  • Table: Tesco Mobile Limited - financial performance
  • Table: Virgin Mobile Telecoms Limited - financial performance
  • Table: Giffgaff Ltd - financial performance
  • Table: Gamma Communications plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Telecommunications Resellers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Telecommunications Resellers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Arpu
  • Stands for average revenue per user.
  • Backhaul
  • The part of the network that transports communication data from small end-user networks to the primary central network.
  • Customer Churn
  • The rate at which customers join or leave a firm. It is calculated by taking the number of customers that discontinue a service and dividing it by the average number of customers over the same period.
  • Local Loop Unbundling (Llu)
  • The process of opening up an incumbent operator's telephone exchange so downstream wired telecommunications resellers can distribute fixed-line services to end-users.
  • Metallic Path Facilities (Mpf)
  • Like LLU, resellers rent MPF, which are copper wires that run from a distribution frame at a local telephone exchange to end-users, from incumbent operators to provide voice and broadband services.
  • Mobile Network Operator (Mno)
  • A company that provides wireless services to end-users and supplies network access to downstream MVNOs.
  • Mobile Value-Added Service
  • Additional services other than network access and calls that can provide additional revenue streams.
  • Mobile Virtual Network Operator (Mvno)
  • A company that buys network capacity to market and sell through its own channels.
  • Quadplay
  • Quadplay is a bundled telecommunications service comprising fixed-line telephony, broadband internet access, television and mobile, whereby consumers make a singular payment for all services.
  • Wholesale Line Rental (Wlr)
  • The process of allowing alternative suppliers to rent network access from incumbent telecommunications carriers and network owners on wholesale terms and then resell to end-users.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Telecommunications Resellers market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Telecommunications Resellers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Telecommunications Resellers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Telecommunications Resellers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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