Broadband Update

Service revenue reversed its slight improvement last quarter, worsening 0.2ppts to -0.9%, as all markets except Spain were flat or in decline.

Incumbents in Europe are increasingly trending towards outperforming peers on net adds, despite higher (and more stable) ARPUs.

EE and Vodafone’s recent launches of premium tiers using 5G slicing are the boldest moves in this direction we have seen in Europe, and present challenges and opportunities going forward.

Channel 4 Sales will be selling linear and broadcaster VOD advertising for Paramount channels from January. For the first time Channel 4, Channel 5 and UKTV's channels will be available through one sales house.

C4/Paramount/UKTV will match ITV Media for total viewing, but ITV1 remains the only channel that consistently delivers mass simultaneous reach.

While Sky Media's loss of Paramount in January significantly reduces its size, this could be a blessing in disguise, easing potential competition concerns over the acquisition of ITV's M&E business.

EE and Vodafone have both launched premium consumer services using 5G+ network slicing, a welcome shift away from a hitherto price-focused market.

Pricing is aimed at driving ARPU up, directly but also indirectly by making premium brands and bundles more compelling, and shrinking the pricing gap to discounted channels.

Educating consumers about the importance of network quality is a challenging but important step. Business and CNI tiers offer a less exciting but clearer route to value.