6. Telecoms and networks
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1 6. Telecoms and networks
2 Figure 6.1 Key telecoms indicators: Telecoms service revenues ( bn) Telecoms revenues per capita ( ) Fixed telephone lines per 1 popn Monthly outbound fixed minutes per capita Mobile connections per 1 population Share of mobile post-pay connections G/4G as % of all connections Monthly outbound mobile minutes per capita Monthly outbound mobile messages per capita Fixed broadband connections per 1 population FTTx as a proportion of fixed broadband connections Mobile broadband connections per 1 population VoIP subscriptions per 1 population BRA RUS IND CHN Telecoms service revenues ( bn) Telecoms revenues per capita ( ) Fixed telephone lines per 1 popn Monthly outbound fixed minutes per capita Mobile connections per 1 population Share of mobile post-pay connections G/4G as % of all connections Monthly outbound mobile minutes per capita Monthly outbound mobile messages per capita Fixed broadband connections per 1 population FTTx as a proportion of fixed broadband connections Mobile broadband connections per 1 population VoIP subscriptions per 1 population Note: Figures for the US include other forms of mobile text messaging than SMS and are not directly comparable to those for the other 1 comparator countries
3 Figure 6.2 Availability of NGA networks: end Proportion of households (%) BRA RUS IND CHN VDSL FTTH/B FTTLA FTTH/B FTTLA VDSL FTTH/B FTTLA VDSL FTTH/B VDSL FTTH/B FTTLA VDSL FTTH/B FTTH/B FTTH/B FTTLA FTTH/B FTTLA VDSL FTTH/B FTTLA FTTH/B VDSL FTTH/B FTTLA VDSL FTTH/B FTTLA FTTH/B VDSL FTTH/B FTTH/B
4 Figure 6.3 NGA connections per 1 people, by technology: Connections per 1 people FTTH/B VDSL FTTLA FTTx+LAN BRA RUS IND CHN Source: FTTx Watch service, IDATE 213 / industry data / Ofcom 3
5 Figure 6.4 Fixed broadband connections, by headline speed: 29 and Proportion of connections (%) Mbit/s or less >8Mbit/s up to and excluding 3Mbit/s >2Mbit/s up to and including 8Mbit/s 3Mbit/s or higher Source: IDATE / Ofcom / operator data 4
6 Figure 6.5 Reason for choosing current fixed broadband service % of respondents with superfast broadband % of respondents without superfast broadband The deal I was offered was good value for money Its download speed My previous service was slow and I wanted faster speeds Its upload speed CHN The deal I was offered was good value for money Its download speed My previous service was slow and I wanted faster speeds Its upload speed Source: Ofcom research, September 213 5
7 Figure 6.6 Satisfaction with current fixed broadband service % of respondents with superfast broadband Overall service Download speeds Upload speeds Value for money CHN % of respondents without superfast broadband Overall service Download speeds Upload speeds Value for money Source: Ofcom research, September 213 6
8 Voice 7
9 Figure 6.7 Total telecoms voice call volumes, by sector: to Call minutes (billions) , BRA RUS IND CHN , ,81 6, , Fixed 2,124 Mobile 2,933 2, % 1,81 2,58 6,582 5 year CAGR -1.7% 2.5% 1.% 1.9% -3.3% 7.% -.7% -2.1% -1.9% -1.6% 6.8% 9.2% Note: Figures for, and CHN include incoming calls 8
10 Figure 6.8 Proportion of voice call minutes originating on mobiles: to Per cent 1 5 year pp change Per cent CHN RUS BRA Note: Figures for, and CHN include incoming calls 9
11 Figure 6.9 Average price premium of a mobile voice call minute over a fixed call minute: to Per cent Per cent BRA RUS CHN -1 Note: The average fixed and mobile pence-per-minute values used to calculate the price premiums shown include the monthly access charge, and as such may include revenues relating to bundled mobile messaging and data services. 1
12 Figure 6.1 Change in fixed and mobile voice call volumes: Change in Per cent total call volumes (%) BRA RUS IND CHN Fixed Mobile
13 Figure 6.11 Use of alternatives to traditional voice calls Proportion of respondents (%) SMS Instant Messaging Twitter Source: Ofcom research, September 213 Base: All respondents Note: Research conducted online CHN 12
14 Figure 6.12 Total comparator country retail telecoms revenue, by sector: to bn Total Mobile data Mobile voice Annual 5 year growth CAGR.4% 1.2% 1.4% 18.4% -1.2% -1.3% Fixed broadband Fixed voice 5.2% 8.6% -8.9% -7.5% Note: Fixed broadband revenues exclude the BRIC countries; voice revenues include access/line rental revenues and may include revenues relating to bundled data services. 13
15 Figure 6.13 Total comparator country retail telecoms revenue, by country type: to bn Total BRIC / -1.4% -.6% / Annual growth 5 year CAGR.4% 1.2% 4.3% 4.7% 1.4% 2.% EU -3.3% -1.4% Note: Figures for the BRIC countries exclude fixed broadband revenues 14
16 Figure 6.14 Telecoms service retail revenues, by sector: and bn BRA RUS IND CHN Fixed Mobile Broadband Note: Figures for the BRIC countries exclude fixed broadband revenues year CAGR.3% -.8% -1.8% -2.3% 1.8% 3.9% -1.2% 2.6% -4.2%.9% 1.2% -3.8% -1.6% 4.1% 6.1% 3.6% 4.7% 15
17 Figure 6.15 Mobile as a proportion of total telecoms revenues: and Per cent Percentage point change
18 Figure 6.16 Total fixed broadband and mobile data revenues: to bn SMS messaging Mobile internet Fixed broadband Note: Excludes the BRIC countries 17
19 Figure 6.17 Data revenue as a proportion of total telecoms revenue: and Per cent Percentage point change
20 Figure 6.18 Fixed line voice retail revenues: to billion billion BRA CHN RUS IND 5 Year CAGR -7.3% -7.8% -8.6% -4.% -3.6% -6.2% -11.6% -6.5% -3.2% -15.3% -.1% -8.% -5.5% -12.5% -8.4% -12.1% -4.2% 19
21 Figure 6.19 VoIP revenues as a proportion of fixed voice revenues: and Percentage share 5 year pp change Source: IDATE 2
22 Figure 6.2 Fixed line voice call volumes: and Call minutes (billions) BRA CHN , Note: Figures for and exclude local and VoIP calls and include incoming mobile calls 5 year CAGR -7.3% 1.3% -2.1% -5.6% -1.3% -13.% -6.8% -2.2% -4.2% -11.3% -8.8% -11.8% -4.3% 21
23 Figure 6.21 Monthly outbound minutes per fixed line: to Minutes year CAGR 12.2% 1.% Minutes BRA RUS CHN 3.5% -7.7% -6.6% -5.3% -6.3% 8.9% -6.3% -5.1% -1.5% -7.3% -1.5% Note: Figures for and exclude local and VoIP calls and include incoming mobile calls 22
24 Figure 6.22 Incumbent operator s share of fixed voice call volumes: and Market share (per cent) 5 year percentage point change
25 Figure 6.23 Fixed exchange lines: and Lines (millions) BRA RUS IND CHN year CAGR -.8% -9.3% -6.% -6.4% -2.5% -1.7% -8.2% -.5% -1.1% -12.7% -4.7% -5.% -12.4% 2.5% -1.1% -4.7% -5.8% 24
26 Figure 6.24 Fixed broadband revenues: and Revenue ( bn) year CAGR % 12.4% 5.4% 6.2% 1.5% 9.4% 7.8% 7.8% 2.7% 7.7% 1.6% 8.2% 6.% 25
27 Figure 6.25 Fixed broadband as a proportion of total fixed revenues: to Percentage share 5 year percentage point change
28 Figure 6.26 Retail fixed broadband average revenue per connection: to per month year CAGR.5%.9% 3.3% 1.8% per month 5-1.6% -5.6% -3.1% -4.3% 4 3.1% % -2.8% -5.6% 1-4.4%
29 Figure 6.27 Fixed broadband connections: to Connections (million) BRA RUS IND CHN year CAGR 6.8% 8.7% 7.4% 6.3% 5.5% 5.% 7.1% 5.1% 7.4% 3.4% 2.4% 7.9% 7.1% 2.7% 37.4% 37.% 21.4% 28
30 Figure 6.28 Retail connection share of the three largest fixed broadband providers: to Percentage share 5 year percentage point change change
31 Figure 6.29 Total comparator country retail mobile telecoms revenue, by country type: to bn Total BRIC / -.9%.1% / EU Annual growth 5 year CAGR 3.1% 4.2% 8.% 1.% 5.% 5.3% -2.5%.% 3
32 Figure 6.3 Total comparator country retail mobile telecoms revenue, by sector: to bn Total Mobile internet SMS Voice Annual growth 5 year CAGR 3.1% 4.2% 12.4% 22.1% 7.3% 13.7% -1.2% -1.3% 31
33 Figure 6.31 Retail mobile revenues, by service and country: and bn BRA RUS IND CHN Voice SMS Internet Total data year CAGR 2.2% -.1%.9% -1.9% 5.% 7.6% -1.% 7.1% -4.1% 1.6% 7.5% -5.5% 1.3% 9.9% 9.% 9.6% 1.3% 32
34 Figure 6.32 Average monthly revenue per mobile connection: to per month 5 5 year CAGR.2% % -.4% -.5% -5.5% -.7% -3.5% per month %.6% -8.9% 1.1% -6.8% BRA -6.8% -4.5% CHN -5.4% RUS 1.9% IND -19.2% 33
35 Figure 6.33 Data as a proportion of total mobile service revenues: and Millions BRA RUS IND CHN SMS Mobile internet Total data Note: Excludes SMS revenues. CHN, and data for total mobile service revenues includes revenues from incoming calls year change
36 Figure 6.34 Mobile voice call volumes: and Billions of minutes BRA RUS IND CHN ,124 2,3 5 year CAGR 4.5% 3.7% 7.5% 8.% 1.6% 7.8% 3.% 14.9%.8%.2% 9.2% 4.2% 14.7% 29.8% % 488 1, % 2,58 6, % Note: Figures for, and CHN include incoming calls 35
37 Figure 6.35 Mobile messaging volumes: and Billions of messages year CAGR , % 56.9% 2.7% 21.1% 3.6% 56.7% 13.4% -1.1% 4.7% 21.8% 1.3% 6.3% Note: Includes SMS and MMS messages. MMS messaging volume figures were not available for Italy, Australia and the Netherlands. Figures for the US include other forms of mobile text messaging than SMS and are not directly comparable to those for the other comparator countries. 36
38 Figure 6.36 Mobile connections: and Millions , 1, BRA RUS IND CHN 532 1,112 5 year CAGR 2.4% 5.7% 3.1% 1.7% 4.9% 6.8% 5.1% 7.2% 1.1% 1.4% 6.7% 3.1% 5.6% 16.7% 5.8% 29.9% 15.9% 37
39 Figure 6.37 Mobile connections, by type: and Millions BRA RUS IND CHN Change in % post-pay , 1,2 1 year 5 year Pre-pay 532 Post-pay ,
40 Figure 6.38 Herfindahl-Hirschman index of mobile concentration: and HHI BRA RUS IND CHN ,15 3,135 3,729 3,38 2,986 2,66 3,113 2,871 1,988 2,421 3,3 2,65 3,967 3,632 3,231 3,598 3,542 3,25 3,643 3,637 3,374 3,31 3,372 2,844 3,26 2,534 2,235 2,543 2,172 2,397 1,588 1,6 4,673 5,444 Source: IDATE 39
41 Figure 6.39 Mobile broadband as a proportion of total mobile connections: 29 and Per cent Three year change
42 Figure 6.4 Total per-capita telecoms service revenue: to 8 5 Year CAGR 1.4% BRA RUS CHN IND -1.1% 3.1% 1.% -.2% -1.3% -1.6% -2.8% 1.%.5% -5.% -4.9% 3.1% 5.9% -1.6% 4.2% 2.2% Note: Includes spend by businesses, and is therefore not representative of average consumer spend. 41
43 Figure 6.41 Regular use of fixed and mobile telephony services Proportion of respondents (%) 1% % % % % 42 % CHN Neither Mobile-only Fixed and mobile Fixed-only Source: Ofcom research, September
44 Figure 6.42 Average per-capita fixed voice revenue: to per capita 3 5 Year CAGR -7.6% per capita BRA RUS CHN IND -4.4% -8.1% -7.8% -4.6% -8.4% -6.7% -12.1% -5.3% -8.5% -6.% -8.7% -4.1% -.3% -12.1% -15.7% -13.7% 43
45 Figure 6.43 Average cost of a fixed voice call minute: to Pence per minute year change (p/min) 5 year CAGR %.3.2% % % % % % Pence per minute % %.2 3.3% 2 1 BRA % % % CHN
46 Figure 6.44 Monthly fixed voice call minutes per head: to Minutes year CAGR -1.9%.7% -7.8% -11.% -6.1% -7.8% -12.9% Minutes % 5 year CAGR -2.8% RUS BRA CHN -4.7% -9.9% -5.1% -11.7% 45
47 Figure 6.45 Household take-up and personal use of fixed telephony services Proportion of respondents (%) Landline at home Regularly use a landline CHN Source: Ofcom research, September 213 Base: All respondents Percentage point difference 46
48 Figure 6.46 Fixed telephony lines per 1 population: and Lines per 1 population BRA RUS IND CHN year change
49 Figure 6.47 Proportion of fixed broadband users who regularly use their connection to make voice calls Proportion of broadband users (%) CHN Source: Ofcom research, September 213 Base: All those with a fixed broadband connection 48
50 Figure 6.48 Fixed broadband availability: and Population coverage (per cent) 5 year percentage point change
51 Figure 6.49 Average per-capita fixed broadband revenue: to per year year CAGR 7.8% 8.5% 11.8% per year % 6.5% 5.7% 4.1% 5.6% 5 year CAGR 7.2% 1.4% 1 6.9% 5 1.9% % 5
52 Figure 6.5 Fixed broadband connections per 1 population: to Connections per 1 population year change 5 year change Connections per 1 population year change RUS CHN BRA IND year change
53 Figure G, 3G and LTE mobile network availability: end of Population coverage (per cent) G 3G LTE Source: IDATE 52
54 Figure 6.52 Average per-capita monthly retail mobile revenue: to per month year 5 year change CAGR -.3% 5.8% -1.2% -.9% 3.8% 4.2% % 6.7% 2.3% 1.6% 2.9% 1.1% -7.3% -.6% -5.8% -2.4% per month % 7.3% -6.7% -6.6% -4.4% -1.9% 1.1% -4.8% BRA RUS CHN IND 9.6% 8.9% 4.6% 8.8% -.9% 1.3% 6.9% 9.7% 7.% 8.1% 53
55 Figure 6.53 Per-capita mobile data average revenue: and per year BRA RUS IND CHN SMS Mobile internet Total data PP change in % of total data from internet
56 Figure 6.54 Use of data services on mobile phones Proportion of mobile users (%) SMS Instant messaging Twitter Source: Ofcom research, September 213 Base: All respondents with a mobile phone CHN 55
57 Figure 6.55 Smartphone connectivity Proportion of respondents (%) I always have a mobile signal when I want to make a call I can always connect to the internet when I want to My internet connection is always fast enough for what I do online CHN Source: Ofcom research, September 213 Base: All respondents with a smartphone Note: I always have a mobile signal... figures include all mobile phone users 56
58 Figure 6.56 Average per-capita monthly mobile voice call minutes: to Minutes per month % 13.6% 1 year change 5 year CAGR -.7%.8% 6.1% 7.% 5.7% 7.4%.% 3.9% 12.3% 3.1% 2.8% 7.8% % 3.1% Minutes per month CHN 27.7% 2.1% RUS 1.7% 21.2% 4.4% -2.3% 9.% 3.% IND 8.2% 14.8% 14.7% 28.% -3.5%.1% BRA 18.1% 28.6% -1.8% -.3% Note: Figures for, and CHN also include incoming call minutes 57
59 Figure 6.57 Average per-capita monthly mobile text messages: to Messages per month 1 year change 5 year CAGR % 29.5% 2.2% 55.5% 24.5% 56.1% -.3% 21.% 7.1% 2.5% 9.3% 12.1% 7.9% 2.9% Messages per month % 9.% -11.1% 21.6% 3 2.2% 6.4% % 4.2% -25.1% -1.7%
60 Figure 6.58 Activities undertaken on a mobile phone Proportion of respondents (%) Instant messaging Sending a tweet VoIP calls CHN Source: Ofcom research, September 213 Base: All respondents who access the internet on a mobile phone 59
61 Figure 6.59 Mobile connections per 1 people: and Connections per 1 people BRA RUS IND CHN year change
62 Figure 6.6 Mobile broadband connections per 1 people: 28 to Connections per 1 people 2 3 year CAGR Connections per 1 people % 13.% 6.2% 18.4% 17.2% 19.2% % 6.1% 25.3% 29.9% 8.% Note: Figures for the US include mobile data access on a mobile handset 61
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