Digital breakup: Industry decline is expected to continue as consumers switch to digital

The Wired Telecommunications Carriers industry operates, maintains and provides access to wired telecommunications infrastructure that transmits sound, data, text and video. Over the five years through 2018-19, industry revenue is forecast to decline at a compound annual rate of 4.7% to £10.1 billion. This can largely be attributed to an increase in the quality of substitute products, as the improved quality of wireless telecommunications has encouraged downstream clients to move away from traditional wired telecommunications and towards more revolutionary and technologically advanced wireless technologies. This shift in consumer preferences has consistently weighed on demand.In the current year, industry revenue is expected to decline by more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The industry’s decline is expected to continue as mobile and digital technologies progress
  • Bundled packages have supported demand, but have reduced average revenue per user
  • Ofcom has mandated cuts in recent years, which are expected to weigh on ARPU in the future
  • Industry Report - Starting a New Business Chapter

    Barriers to entering the industry are moderate. However, barriers to success at the high-end of the market are much more significant. As the former state provider of wired telecommunication services, BT Group has an established market position, boasting majority ownership of the UK’s fixed-line copper wire network. BT Group provides small-scale operators with network access in accordance with Ofcom-regulated LLU and WLR charges. However, small-scale providers struggle to  compete with companies such as BT Group and Virgin Media, given the large capital expenses associated with owning wired telecommunications infrastructure...purchase to read more.

    Additional Insights for the Wired Telecommunications Carriers Industry

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

  • Economies of scope
  • Ready access to investment funding
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Percentage of households with internet access and IT and telecommunications adoption in the Wired Telecommunications Carriers industry impact industry performance..

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    What's in this report

    What is the Wired Telecommunications Carriers Industry?

    Industry participants operate, maintain and provide access to facilities that transmit data, text, sound and video using a wired telecommunications infrastructure. The industry also includes firms that purchase access and network capacity from infrastructure owners. It does not cover telecommunications resellers (see IBISWorld report J61.900) or internet service providers (see IBISWorld report J61.400).

    Industry Products
  • Calls
  • ISDN rental
  • PSTN rental
  • Wholesaling
  • Industry Activities
  • Providing local voice communication services
  • Providing long-distance and international voice communication services
  • Wholesaling access to wired networks
  • Table of Contents

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

  • Current Performance
  • Competitive pressure
  • Bundled packages
  • Streamlining operations
  • Chart: Revenue Growth

  • Industry Outlook
  • Wireless connectivity
  • Ofcom regulation
  • Diversified services
  • Table: Wired Telecommunications Carriers Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Telecommunications Resellers
  • Banks
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Electricity & Telecommunications Infrastructure Construction

  • Products & Services
  • PSTN rental
  • Wholesaling
  • Calls
  • ISDN rental
  • Other
  • Chart: Wired Telecommunications Carriers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Public sector
  • Chart: Major Market Segmentation for the Wired Telecommunications Carriers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitAccess and termination chargesPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Wired Telecommunications Carriers

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

  • Industry Globalization
    BT Group plc, Virgin Media plc, Sky Ltd, Vodafone Group plc,
  • Table: BT Group plc - financial performance
  • Table: Virgin Media plc - financial performance
  • Table: Sky Ltd - financial performance
  • Table: Vodafone Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wired Telecommunications Carriers 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 Wired Telecommunications Carriers Industry
  • 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
    Average Revenue Per User (Arpu)
  • A key performance indicator that displays whether revenue changes are due to fluctuations in customer numbers or usage. It is calculated by dividing revenue by the number of subscribers.
  • Local Loop Unbundling (Llu)
  • When a phone company other than BT installs its own telecommunications equipment in the local BT exchange.
  • Over-The-Top (Ott)
  • Over-the-top media content, typically an application, refers to audio, video and other media services delivered over the internet, bypassing traditional distribution channels.
  • Universal Service Obligation (Uso)
  • Ensures that basic fixed-line services are available at an affordable price to all citizens and customers across the United Kingdom, as defined by the European Commission Universal Services Directive.
  • Voice Over Internet Protocol (Voip)
  • A way of transmitting voice communications using the internet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wired Telecommunications Carriers market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
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    This report on Wired Telecommunications Carriers:
    • 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 Wired Telecommunications Carriers 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 Wired Telecommunications Carriers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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