Crossed wires: Operators replacing copper wires with fibre-optic cables could support profit

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 2019-20, industry revenue is forecast to decline at a compound annual rate of 2.5%, including a decline of 3.6% in 2019-20, to £16.2 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 more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • The quality of wireless telecommunications has drawn consumers away from the industry
  • Package bundles encourage households to purchase a landline, in addition to wireless services
  • Players are adopting a broadband-by-default approach to services through the use of fibre-optic cables
  • Industry Report - Industry Analysis Chapter

    Over the past decade, operators in the industry have been faced with falling demand for traditional voice services and rising external competition. Fierce competition from the Wireless Telecommunications Carriers industry (IBISWorld report J61.200) has placed considerable pressure on prices for traditional standalone fixed-line telephony rental, which has substantially reduced the average revenue per user (ARPU) of wired network services. Despite low line rental prices, consumers have continued to disconnect their landlines and an increasing share of customers rely solely on mobile telephone services, displacing demand for industry services.Over the five years through 2019-20, industry revenue is forecast to decline at a compound annual rate of 2.5%, including a decline of 3.6% i...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 Demand from wireless telecommunications carriers and Percentage of households with internet access 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 wholesale access and network capacity from infrastructure owners to subsequently provide retail telecommunications services to end users.

    Industry Products
  • PSTN
  • Wholesaling
  • ISDN
  • Industry Activities
  • Providing local audio, visual and data communication services
  • Providing long-distance and international audio, visual and data 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
  • Demand from wireless telecommunications carriers
  • Percentage of households with internet access
  • IT and telecommunications adoption
  • Number of businesses

  • Current Performance
  • Current Performance continued
  • Packages bundles
  • Chart: Revenue Growth

  • Industry Outlook
  • Network migration
  • Competitive conditions
  • 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
  • Wholesaling
  • ISDN
  • Other
  • Chart: Wired Telecommunications Carriers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Government
  • 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
    ProfitDepreciationPurchasesAncillary servicesAncillary services are estimated to absorb 15.4% of industry revenue in 2019-20. The bulk of investment in ancillary services is dedicated to outsourcing network construction. For example, operators in the Electricity and Telecommunications Infrastructure Construction industry (IBISWorld report F42.220) are contracted to lay underground and overhead cables, construct transmission lines and towers, and install and repair major infrastructure assets. Other supplementary services include outsourced research and development activities, business consultancy and advisory services, and impartial risk assessment and evaluation. Operators may also employ freelance technical engineers and consultants as required, so as to alleviate fixed payroll cost pressures and maintain operational flexibility with regards to the workforce. In the current year, BT Group and Virgin Media are heavily investing in the expansion of their respective infrastructure networks, increasing this item’s share of revenue. WagesChargesNetwork access and call termination charges are estimated to absorb 9.7% of industry revenue in 2019-20. This covers Ofcom-regulated metallic path facility (MPF) rental, fixed termination rates (FTR) and general ethernet access (GEA). In general, Ofcom regulates and imposes charge controls for operators that use BT Group’s network to provide retail fixed-line telephony, internet and data services to premises across the United Kingdom. Telecom carriers pay Openreach, BT Group’s wholesale access division, a fee to access the network; this fee is capped by Ofcom. The charge ceiling for renting LLU access to BT Group’s network via MPF was reduced by 0.4% for 2019-20, from a nominal price of £85.74 per LLU line in the year prior. A charge control for BT’s GEA 40/10 service, whereby wholesale access is used by operators to provide broadband services over BT’s fibre connections, was set by Ofcom for the first time in March 2018, at £88.80. It was subsequently reduced to £69.59 for the period between June 2018 and March 2019. FTR caps apply to all fixed telecommunications providers and are the rates that telecom network operators charge to originate and terminate a call on their fixed network. In nominal terms, Ofcom set the FTR cap at 0.0307p per minute for 2019-20, reduced by 5% from 2018-19 (0.0323p per minute). Industry players’ comprehensive network access and call termination charges are undisclosed, although it can be assumed that BT Group has the lowest network access and call termination charges because it owns and operates the majority of the UK’s core telecommunications infrastructure network. Other
  • Chart: Cost Structure Benchmarking – Sector vs Wired Telecommunications Carriers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wired Telecommunications Carriers Industry

  • Industry Globalization
    BT Group plc, Virgin Media, Sky Ltd, Vodafone Group plc,
  • Table: BT Group plc - financial performance
  • Table: Virgin Media - 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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.
  • Churn Rate
  • The percentage of consumers who discontinue their service within a given time period.
  • Fifth Generation Wireless (5G)
  • 5G is a wireless networking structure which aims to increase the speed of wireless networks, as well as offer improvements in latency and capacity.
  • Internet Of Things (Iot)
  • The internet-based interconnection of computing devices embedded in everyday objects.
  • Local Loop Unbundling (Llu)
  • When a phone company other than BT installs its own telecommunications equipment in the local BT exchange.
  • Metallic Path Facility (Mpf)
  • MPF networks comprise two-wire metallic transmission paths between a given network's termination equipment at a customers' premises and the main distribution 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 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.

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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
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    • And of course, much more

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