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Facebook’s audience and engagement continue to rise as a result of the migration to mobile devices – on its current trajectory more people will access the social network via mobile devices than PCs by the end of 2014

The transition to mobile is cannibalising desktop time on Facebook but significantly higher usage on mobile devices and rising mobile ad yield is driving growth in overall consumption and revenue

Whilst CEO Mark Zuckerberg’s claim that “Facebook is now a mobile company” is increasingly justified, longer term questions remain over whether it can maintain its central position on the mobile internet or develop significant new streams of revenue

Q3 2013 results show a sound financial performance and strong growth in home communications, offset by low DTH net additions under a testing economic climate With a heavy emphasis on its own product initiatives in the broader connected screen and on demand space, the results release also shows Sky to be preparing for increasing competition from BT Vision and others in the IPTV space Although the rising competition promises extra programme and marketing costs and constraints on future product price increases, we expect limited impact on subscriber numbers, but also significant opportunities for incremental revenues

The completion of digital switchover has left an equilibrium between the digital satellite, cable and terrestrial platforms that is not expected to alter significantly by 2020

The main anticipated change over the forecast period is pay-TV subscription take-up where the 50/50 split between pay and free TV households is expected to rise steadily to 60/40, or even 67/33 if we include more individually-, as opposed to household-, based OTT online services such as Netflix, LoveFilm or Sky’s NOW TV

Most of the pay-TV subscription growth will occur at the lower end of the price range among BT Vision and TalkTalk customers, where the popularity and success of YouView will be critical in driving subscriber growth as TiVo has been and will be to Virgin Media holding its ground

Apple’s numbers have got so good they’re bad: after growing at over 50% for two years, relative revenue growth has, inevitably, slowed. The products remain very strong, and direct competitors continue to have little impact. (Apple’s mobile phone market share has never been higher, for example.) However, the premium phone market itself, which the iPhone dominates, is at a potential tipping point.

In January 2013, the US Federal Trade Commission (FTC) cleared Google of anticompetitive practices in its core search and advertising business – a corresponding European antitrust investigation is pending, but looks set to take a (slightly) stricter stance on Google.

The FTC’s closing of the search bias investigation is key to Google’s strategy to integrate and expand its general and vertical search products, such as its e-commerce channels Google Shopping and Google Maps, with direct positive revenue implications.

The European Commission will most likely not impose search bias remedies later this year that significantly impact Google’s current practices, and we therefore have a positive outlook on additional vertical search revenues materialising.

Virgin Media’s consumer business had a very strong quarter in revenue growth terms, but a weaker one in subscriber terms, both driven by the annual price increase occurring during the quarter

On the wholesale side, the company signed up both Sky and two mobile operators for backhaul services, likely at BT Wholesale’s expense

Net net Virgin Media is well on course, with the completion of the acquisition by Liberty Global expected by the end of Q2 unlikely to derail this

Thanks to bargain prices, France’s Iliad managed to grab 5.2 million mobile subscribers in its first year and to increase its fixed broadband market share, while achieving close to cash flow breakeven at the Group level

In 2013 Free Mobile’s termination charges will fall back to parity with those of its competitors, dramatically shrinking its gross margin, and likely pushing mobile EBITDA firmly negative again

Raising prices would be the surest and quickest way back to breakeven for mobile EBITDA, otherwise the losses could continue for some years as gross margins improve but network costs rise as it builds out its network

EE reported 4G subscriber numbers for the first time at the end of March; we estimate the 318k implies that over half of addressable joiners/upgraders are choosing to pay extra for 4G

The rest of EE’s results were more prosaic, with steady net adds and mobile service revenue growth declining slightly due to leap year and price increase timing effects

Vodafone and O2 are planning to launch 4G services in the summer, which may boost the market for all