Author: Mintel Group Ltd.
Last saved by: HTTP server

Mobile Phones and Network Providers - UK - April 2005

INTRODUCTION AND ABBREVIATIONS
Relevant reports
Definitions
Consumer research
Lifestage and Special Groups
ACORN
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
Going beyond a quick fix
One step further – emergency use
Boosting the contract at home
EXECUTIVE SUMMARY
A healthy appetite for mobile telephony
Soaring subscription levels
Contract phones are fighting the tide
Nokia losing ground in widening market
3 drives revolution in network provision
Texting is social and cultural phenomenon
A faster future
MARKET DRIVERS
Consumers prioritise in a climate of caution
Figure 1: PDI and consumer expenditure, at constant prices, 1999-2008
ARPU is up and down
Changing lifestyles
Consumers on the move…
…and those that stay at home
Figure 2: GB ownership of mobile phones, 2000-04
Wireless services
Telecommunications needs for different age groups
Figure 3: Trends and projections in UK population, by age group, 1999-2008
The pull of youth culture
Spending power
Figure 4: Those agreeing mobile phone is indispensable, by age and Mintel’s Special Groups, January 2005
The new phones
Switching networks
Child protection
Mobile communication?
MARKET SIZE AND TRENDS
Service subscribers
Figure 5: Mobile phone subscribers, 1995-2005
Figure 6: Mobile phone subscribers, 1995-2005
Figure 7: UK expenditure on major brown goods, 1999-2004
The big 3G launch(es)
A pay-as-you-go Christmas
3G making inroads with contract plan subscribers
Figure 8: UK retail sales of mobile phone handsets, by volume and value, 2000-05
MARKET SEGMENTATION
Pre-pay voice calls showing signs of decline
Contract sales are steady
Figure 9: UK retail sales of mobile phones, by volume and type of package, 2002-04
Figure 10: Total network subscribers, by type of agreement, 2002-04
THE SUPPLY STRUCTURE
 HANDSET MANUFACTURERS
More space for new players?
Bigger players retain durability
Own-brand
Brand shares
Figure 11: Estimated mobile phone handset brand share, by volume, 2002 and 2004
Brands and profiles
Nokia
Siemens
Samsung
Sony Ericsson
Motorola
LG
 SERVICE PROVIDERS
Welcoming new subscribers
A widening market
Brand shares
Figure 12: Network operator subscriber shares, 2004
Figure 13: Total network subscribers, by network operators, 2002 and 2004
Figure 14: Mobile phone subscribers, by network operator and payment type, 2002 and 2004
 BRANDS AND PROFILES
Orange
Vodafone
mmO2
T-Mobile
3
ADVERTISING AND PROMOTION
Overview
Figure 15: Main monitored media advertising expenditure on the mobile phone handsets, and advertising as a percentage of sales, 2000-04
Networks are prepared to take the plunge
Figure 16: Total main monitored media advertising expenditure on the mobile phones market, by sector, 2002 and 2004
Handset manufacturers – 3G excitement
Figure 17: Total main monitored media advertising expenditure on the mobile phones market, by sector, 2002 and 2004
Service providers – calls for loyalty?
Figure 18: Top five advertisers – residential mobile communications services/network, 2002 and 2004
DISTRIBUTION
Consumers need service
Figure 19: Retail volume sales of mobile phone handsets, by outlet type, 2000-04
Further consolidation?
Figure 20: Principal specialist retailers of mobile phones, by number of outlets, 2002 and 2004
THE CONSUMER
 MOBILE PHONE OWNERSHIP
Necessities, not luxuries
Figure 21: Number of people in household owning a mobile phone, 2001-04
Mobility for the masses
Retired are still fighting shy
Figure 22: Mobile phone ownership, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel’s Special Groups, 2004
Number of mobiles in the home
Presence of children
Mobile owners are getting younger?
Figure 23: Mobile phone ownership – 7-14s, by gender, age, socio-economic group and region, 2004
 TYPE OF PHONE/PLAN
Pre-pay popularity still pre-eminent
Figure 24: Type of mobile phone, 2004
 THE BILL
Spending low for pre-pay
Figure 25: Total monthly bill, 2004
Youth – who pays the bill?
Figure 26: Who pays mobile phone bill? – 7-14s, 2004
 THE SERVICE
How long with current provider
Figure 27: Length of time connected to current network, 2001-04
Service providers
Figure 28: Service provider and type of plan, January 2005
Service providers and service plans: a typical contract customer
Network distribution
 ATTITUDES TOWARDS COMMUNICATION
Voice calls are most effective
Figure 29: Attitudes towards communication and mobile phones, January 2005
Attitudes towards the bill
Figure 30: Usage habits and bill paying, January 2005
 FEATURES AND HANDSETS
Replacement motivation
Figure 31: Reasons for purchasing a new mobile phone, January 2005
Making use of what they have
Figure 32: Features on mobile phone, 2001-04
THE CONSUMER - DETAILED DEMOGRAPHICS
Number of mobile phones
Figure 33: Number of people in household owning a mobile phone, by gender, age, socio-economic group, working status and region, 2004
Figure 34: Number of people in household owning a mobile phone, by presence of children, marital status, household size, lifestage and Mintel’s Special Groups, 2004
Type of plan and service provider
Figure 35: Type of plan and service providers, by gender, age, socio-economic group, region, working status, supermarkets shopped, ACORN classifications and commercial TV viewing, January 2005
Figure 36: Type of plan and service providers, by marital status, presence of children, Mintel’s Special Groups, media usage, detailed lifestage and household size, January 2005
THE CONSUMER – ASSESSING LOYALTY & ENTHUSIASM
 PLANS AND PROVIDERS
Figure 37: Cross-usage of plans and providers, by plans and providers, January 2005
Texters like T-Mobile
Figure 38: Service plan used, by attitudes towards communication, January 2005
The customs of contract customers
Figure 39: Service providers and types of plans used, by attitudes towards phone usage and costs, January 2005
Buying a new phone
Figure 40: Service providers used, by reasons for buying a new phone, January 2005
 CONSUMER TYPOLOGIES – ATTITUDES TOWARDS COMMUNICATION
Three distinct types of mobile user
Figure 41: Consumer mobile phone typologies, January 2005
Social Texters
Personal Touch
Emergency Users
 CROSS-ANALYSIS – CONSUMER TYPOLOGIES AND ATTITUDES
Figure 42: Consumer typologies, by attitudes towards communication, January 2005
What kind of talk?
The phenomenon of texting
Fondness for the written word
Mobile phones and privacy
Figure 43: Consumer typologies, by attitudes towards phone usage and costs, January 2005
Calling habits and the relationship to the plan
Figure 44: Consumer typologies, by service providers and type of plan used, January 2005
THE CONSUMER – ASSESSING LOYALTY AND ENTHUSIASM – DETAILED DEMOGRAPHICS
Consumer typologies
Figure 45: Consumer typologies, by gender, age, region and marital status, January 2005
Figure 46: Consumer typologies, by socio-economic group, working status, household tenure and ACORN classification, January 2005
Figure 47: Consumer typologies, by presence of children, Mintel’s Special Groups, media usage, detailed lifestage, supermarkets shopped and commercial TV viewing, January 2005
THE FUTURE
3G ownership set to grow
Pricing
What future for the networks?
Expanding the subscriber base
A high-speed corporate future
Evolving consumer habits
New product development
FORECAST
Price deflation to ensure strong growth
Figure 48: Forecast of the UK retail market for mobile phones, 2005-10
NPD will increase appeal across the nation:
i) New forms of communication and interaction
ii) Additional features and function
iii) Phones of fashion
Obstacles to growth: Technology and the ageing population
Figure 49: Indexed growth of the UK retail market for mobile phones, by volume and value, 2000-10
Factors incorporated in the forecast

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.