The merger between T-Mobile and Orange, which was completed in July 2010, will bring significant change to the UK mobile market, says a new report from Pyramid Research. The new entity, known as Everything Everywhere, has become the new UK mobile market leader with an estimated 21 per cent of total market revenue in 2010. Everything Everywhere now controls around 42 per cent of the mobile services market and this situation will improve significantly over the next five years.
"As the two operators begin to benefit from economies of scale achieving a number of operational synergies, their share of subscriptions will see a significant rise of roughly 4 percentage points by 2015 and their share of the total UK telecom service revenue will grow by 3 percentage points by 2015," says Stela Bokun, Senior Analyst at Pyramid.
The big loser in the UK telecoms market will be incumbent operator BT which is projected to lost 6 per cent market share as the mobile sector expands at the expense of the fixed line sector over the forecast period. Overall the UK telecom market will generate a cumulative revenue opportunity of US$376 billion between 2010 and 2015 driven by investment in high speed broadband access technology and 3G+ network upgrades and coverage expansion. Mobile data revenues will grow at a CAGR of 12.7 per cent up to 2015, accounting for 47.5 per cent of total mobile revenues.
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