Telecoms Strategic Review
Ofcom, BT and the industry are getting closer to completing the Telecoms Strategic Review (TSR), currently in its Phase 3, and scheduled to complete in the Autumn. Ofcom's proposals and the supportive measures announced by BT offer some good news for virtually all players in the UK market, although clearly such judgements depend on what was expected prior to these announcements. We have always considered it unlikely that Ofcom would choose the option of investigating BT and possibly making a referral to the Competition Commission, which could have led to the break-up of BT. However the reaction of the financial markets suggests that at least some City analysts considered that BT has secured a major win by avoiding this outcome.
Strong growth in both online and mobile music revenues was not enough to compensate for the erosion of the core CD market